Half of New Grocery Shoppers Don’t Return After the First Month

Why Grocery Customer Retention Remains a Challenge for Retailers

Winning over new grocery shoppers is only half the battle. The real challenge is grocery customer retention, which remains a major hurdle. Many retailers attract first-time buyers, but struggle to keep them coming back.

Half of New Shoppers Disappear After the First Month

According to a new report from cashback app Upside, 50% of new grocery shoppers vanish after their first month. This insight comes from an analysis of 75 million transactions over two years.

The report, titled “Winning the Uncommitted Customer,” highlights the problem many grocers face. While stores believe their customers are loyal, the data tells a different story.

In fact, 93% of grocery shoppers do not commit to one store or brand. They shop around, seeking better deals, convenience, or variety. As a result, building lasting loyalty proves difficult.

The Real Cost of Uncommitted Shoppers

The Upside report reveals that uncommitted shoppers generate 72% of grocery industry revenue. Yet, these shoppers are hard to convert into loyal customers. Retailers must compete fiercely to win every visit.

Dr. Thomas Weinandy, a senior economist at Upside, explains the risk. “A visit—even with a loyalty membership—does not guarantee the shopper will return,” he said.

Loyalty programs help, but they are not enough. To improve grocery customer retention, grocers must focus on winning each transaction. Earning just one extra trip per month can boost revenue significantly.

Loyalty Programs Help, But Aren’t the Only Solution

Upside’s research shows that loyalty programs reduce customer churn. Only 14% of loyalty program members leave within a month. In contrast, 31% of non-members disappear in the same period.

However, loyalty programs alone won’t solve the problem. Shoppers today are value-driven, digital, and opportunistic. They chase the best promotions and avoid long-term commitments.

Therefore, retailers must get creative. Personalized deals, targeted discounts, and seamless digital experiences help improve customer loyalty.

Winning Every Trip is the Key to Growth

“Acquiring new customers is costly,” said Tyler Renaghan, VP of Grocery at Upside. “But keeping them? That’s where the real opportunity lies.”

To boost grocery customer retention, grocers must build lasting habits. That means providing great value from the very first trip. Over time, these positive experiences turn casual shoppers into loyal customers.

Conclusion

Improving grocery customer retention takes more than just loyalty programs. It requires consistent value, personalized offers, and a relentless focus on every transaction.

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