Nearly Twice as Many Americans Use Smartphone App Coupons Compared to Paper Circular Coupons

Rhea-AI Summary

United Natural Foods, Inc. (NYSE: UNFI) and Swiftly conducted a survey revealing significant shifts in consumer behavior towards digital grocery shopping. 43% of Americans use digital coupons via smartphone apps, compared to only 23% using paper circulars. Nearly half of the respondents (45%) rely on deals for everyday grocery shopping, with 49% desiring more relevant offers.

In response, UNFI launched the UNFI Media Network (UMN), a retail media network for independent and regional grocers. UMN combines UNFI's extensive network of over 30,000 retail locations and 11,000 brand partners with Swiftly's advanced technology platform. This initiative aims to help retailers compete in the digital-first market by offering personalized promotions and digital touchpoints to consumers.

Positive

• Launch of UNFI Media Network (UMN) to help independent grocers compete in the digital marketplace
• Partnership with Swiftly to provide advanced retail technology solutions
• Access to a network of over 30,000 retail customer locations and 11,000 brand partners
• Potential for increased engagement with consumers through personalized promotions

Negative

• None.

Insights

Market Research Analyst

The survey results reveal a significant shift in consumer behavior towards digital coupons, with 43% of Americans using smartphone app coupons compared to 23% using traditional paper circulars. This trend has profound implications for the grocery retail sector and its marketing strategies.

Several key insights emerge:

• The 45% of Americans relying on deals for everyday grocery shopping indicates a price-sensitive market, likely influenced by ongoing inflationary pressures.
• The desire for more deals on frequently purchased items (49% of respondents) suggests an opportunity for retailers to enhance customer loyalty through targeted promotions.
• With 92% of Americans aware of their local grocery store's digital coupon offerings, there's a clear expectation for digital engagement from retailers.

These findings underscore the growing importance of retail media networks like UNFI's UMN. By leveraging advanced technology and personalization, such platforms can help independent grocers compete more effectively in a digital-first marketplace. The high awareness and usage of digital coupons also indicate a potential for increased ROI on digital marketing investments for both retailers and brands.

However, it's important to note that while digital coupons are gaining traction, a significant portion of consumers still use traditional methods. Retailers should maintain a balanced approach, catering to both digital-savvy and traditional shoppers to maximize reach and effectiveness of their promotional strategies.

Tech Expert

The survey results highlight the critical role of technology in reshaping the grocery retail landscape. The preference for smartphone app coupons over paper circulars signifies a broader digital transformation in consumer behavior and retail operations.

Key technological implications include:

• The need for robust, user-friendly mobile apps that can handle high-volume coupon distribution and redemption.
• Increased demand for advanced data analytics and AI to personalize offers and optimize promotional strategies.
• Growing importance of seamless integration between digital platforms and in-store point-of-sale systems for a frictionless customer experience.

UNFI's Media Network, powered by Swiftly's technology, is well-positioned to capitalize on these trends. The platform's focus on personalization, closed-loop reporting and analytics aligns with the market's direction towards data-driven, targeted marketing.

However, the technology adoption curve varies across demographics. While 32% of respondents want more digital coupons, retailers must ensure their tech solutions are accessible and user-friendly for all customer segments, including those less tech-savvy.

Looking ahead, we can expect further innovations in this space, potentially including AR-enhanced shopping experiences, AI-driven predictive shopping lists and blockchain for transparent supply chain tracking. Retailers and tech providers who can stay ahead of these trends will likely gain a significant competitive advantage in the evolving grocery landscape.

Recent survey results, commissioned by United Natural Foods, Inc., reveal consumer interest in grocery discounts, highlighting strong demand for retail technology solutions

PROVIDENCE, R.I.--(BUSINESS WIRE)-- With food prices remaining high, many consumers are turning to their smartphones for digital coupons at local grocery stores over traditional paper circulars. According to a new survey from United Natural Foods, Inc. (NYSE: UNFI) (the “Company” or “UNFI”) and Swiftly, 43% of Americans use digital coupons at their local grocery store via a smartphone app versus just 23% who physically cut coupons from a paper circular. What’s more, nearly half of Americans (45%) report they rely on deals and promotions as part of their everyday grocery shopping experience, and (49%) desire more deals on things they want or already buy.

UNFI recently launched its UNFI Media Network (UMN) for independent and regional grocery retailers across the United States. UMN combines UNFI's expansive scale and breadth of supplier offerings with Swiftly's advanced technology platform, personalization engine, closed-loop reporting, and analytics capabilities. It brings retail technology solutions to UNFI’s extensive network of more than 30,000 retail customer locations and approximately 11,000 brand partners, to help them compete in an increasingly digital-first world. (Graphic: Business Wire)

The findings point to a growing demand for retail technology solutions that connect consumers to brand offerings at the time and place when they’re ready to buy, such as the UNFI Media Network™ (UMN), powered by Swiftly. This survey was conducted online within the United States by The Harris Poll on behalf of UNFI from June 25-27, 2024, among 2,092 adults ages 18 and older.

Louis Martin, UNFI’s President of Wholesale, said, “We partner with our customers every day to help them compete in today’s retail marketplace. Our retail media network accelerates our ability to help independent grocers create more value by better connecting them to their shoppers via tailored promotions and cutting-edge digital touchpoints. The results of this survey are a meaningful validation of our strategy and reaffirm the importance of our focus to help our customers leverage retail media to more impactfully reach today’s consumers.”

UNFI recently launched the first-of-its-kind retail media network for independent and regional grocery retailers across the United States. UMN combines UNFI's expansive scale and breadth of supplier offerings with Swiftly's advanced technology platform, personalization engine, closed-loop reporting, and analytics capabilities. It brings retail technology solutions to UNFI’s extensive network of more than 30,000 retail customer locations and approximately 11,000 brand partners, to help them compete in an increasingly digital-first world. The goal of UMN is to empower UNFI’s retail customers to connect more meaningfully and personally with their consumers while simultaneously providing unique opportunities for UNFI suppliers to showcase their brands and build their brand equity.

“In partnering with UNFI, we are building one of the leading retail media networks in the U.S. that’s dedicated to ensuring the growth and success of today’s independent and regional grocer,” said Henry Kim, Chief Executive Officer (CEO) at Swiftly. “Our advanced platform is well regarded amongst key brands and retailers for its turnkey, industry-leading technology and proven success helping partners digitally transform their businesses. This data shows how vital that platform is becoming for grocers of all sizes to engage with consumers.”

Additional survey findings revealed:

• Price is a sticking point for shoppers.
  Just 8% of Americans say they don’t care about finding ways to save money at their local grocery stores, and only 12% say price does not factor into purchasing decisions.
• Greater emphasis on digital
  Nine in 10 Americans (92%) know whether their local grocery store offers digital coupons and nearly a third (32%) wish their local grocery store offered more digital coupons.

To learn more about UMN, visit https://www.unfi.com/unfi-media-network.

Survey Methodology

This survey was conducted online within the United States by The Harris Poll on behalf of UNFI from June 25-27, 2024, among 2,092 adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/-2.5 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact cdavis@UNFI.com.

About UNFI

UNFI is North America's premier grocery wholesaler delivering the widest variety of fresh, branded, and owned brand products to more than 30,000 locations throughout North America, including natural product superstores, independent retailers, conventional supermarket chains, ecommerce providers, and food service customers. UNFI also provides a broad range of value-added services and segmented marketing expertise, including proprietary technology, data, market insights, and shelf management to help customers and suppliers build their businesses and brands. As the largest full-service grocery partner in North America, UNFI is committed to building a food system that is better for all and is uniquely positioned to deliver great food, more choices, and fresh thinking to customers. To learn more about how UNFI is delivering value for its stakeholders, visit www.unfi.com.

About Swiftly

Swiftly is a leading provider of technology and retail media and technology solutions for retailers worldwide. Founded in 2018, Swiftly offers innovative solutions that drive retail engagement and enable retailers to own the digital relationship with their customer. Swiftly's Retail Tools, Mobile Platforms, Analytics Tools, and Retail Media Network enables retailers to accelerate sales and build loyalty while enabling brands to reach more shoppers and amplify campaigns using the power of 1st party data. Trusted by hundreds of iconic brands, Swiftly is democratizing retail technology and giving retailers the tools they need to compete in today's crowded marketplace. To learn more visit www.swiftly.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the Company’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties and are based on current expectations and management estimates; actual results may differ materially. The risks and uncertainties which could impact these statements include those described in the Company’s filings under the Securities Exchange Act of 1934, as amended, including its annual report on Form 10-K for the year ended July 29, 2023, filed with the SEC on September 26, 2023, and other filings the Company makes with the SEC. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company is not undertaking to update any information contained in this press release to reflect subsequently occurring events or circumstances. Any estimates of future results of operations are based on a number of assumptions, many of which are outside the Company’s control and should not be construed in any manner as a guarantee that such results will in fact occur. These estimates are subject to change and could differ materially from final reported results.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240730162185/en/

For Media:

UNFI

Charles Davis

215-539-1696

cdavis@unfi.com

Swiftly

5WPR

swiftly@5wpr.com

Source: United Natural Foods, Inc.

FAQ

What percentage of Americans use digital coupons for grocery shopping according to UNFI's survey?

According to the survey, 43% of Americans use digital coupons at their local grocery store via a smartphone app.

How many retail customer locations does UNFI's network include?

UNFI's network includes more than 30,000 retail customer locations.

What is the UNFI Media Network (UMN)?

The UNFI Media Network (UMN) is a retail media network launched by UNFI for independent and regional grocery retailers across the United States, combining UNFI's scale with Swiftly's technology platform.

What percentage of Americans rely on deals and promotions for everyday grocery shopping?

According to the survey, 45% of Americans report they rely on deals and promotions as part of their everyday grocery shopping experience.