New ways of grocery shopping are no longer new but a way of life
New shopper research from www.pinkflamingoshopper.com reveals that 41% of those surveyed, regularly select their main shop from a repertoire of three or more grocers. The online study, of more than 100 UK grocery shoppers, confirms that shoppers have long since moved away from the traditional monthly main shop and are now visiting a supermarket two to three times per week.
Loyalty to one grocer continues to decline as shoppers look for best prices and value for money. Whilst shoppers may feel they are loyal to a particular store, their somewhat promiscuous behaviour has become embedded in their consciousness. 70% may shop in the same supermarket they did one year ago, however their repertoire has broadened with nearly half agreeing that they shop around more in different supermarkets than they did one year ago.
Helen Davies, Director of Pink Flamingo Shopper, a leading retail and shopper Insights Agency, said “changes in shopper habits are bedding in. It’s no longer new news that we are more likely to do a main shop once a week and visit a grocer two to three times a week. Now, more than ever, brands and retailers need to engage with shoppers, clearly and consistently and deliver a compelling reason, firstly why visit, and secondly, why buy”.
The latest Kantar Worldpanel Q1 data confirms the continued ascent of Aldi and Lidl (4.6% and 3.4% market share). The grocery shopping study identifies some interesting themes.
- 77% shop in Aldi or Lidl at some point during the year.
- More than one-third of those surveyed include Aldi and Lidl within their repertoire of stores in which to do their main shop.
- These are no longer for top up shops with 13% listing them as their main store of choice.
- Not surprisingly, the main reasons for shopping here are low prices and saving money.
- Although lack of choice and limited range are key reasons for not shopping there, the main reason is location; there simply isn’t a store near them.
- Whereas 70% of overall respondents shop in the same store they did one year ago, if we drill down into Aldi and Lidl shoppers this falls to 41% – these are new converts, supporting the market share increases we are seeing.
When we asked shoppers what the three main influencers for them were in choosing a supermarket, low prices and quality of fresh produce came out on top (60%), followed by choice (45%). Clearly the discounters are winning on price although shoppers are also citing the quality of their produce unprompted. Shoppers are looking after their wallets as they value consistent low prices far higher than special offers and promotions which reached the top 3 influencing factors for only 28% of respondents.
Low prices are the leading influence on grocery shopping decisions but shoppers aren’t actively price checking. Only 10% regularly use the internet to check grocery prices. It would seem that with a greater repertoire of grocers they visit, shoppers are more cognitively aware of pricing.
The use of mobile in store is on the rise in many categories but grocery seems to be lagging – only 14% acknowledge they have used their mobile in store to price check.
With smartphone penetration standing at over half the UK population (e-marketer 2013), the promotion of price checking apps and clear marketing to shoppers will be main drivers.
Technology and innovation are frequently touted to improve shopper experience but are shoppers aware of their existence and are they answering a specific need at the time?
When shoppers are focussed on grocery shopping their awareness of new technologies appears somewhat restricted. 69% have heard of contactless payment, and of these, more than half think retailers should introduce such systems. The shopper seems to be able to clearly see a benefit here and once aware they are supportive.
However, if we consider QR codes, which have been around shoppers for several years now, only 36% have heard of them. Possibly shoppers recognise the visual look of a QR code but the language has yet to become embedded in their vocabulary.
With the recent Eastleigh shopping centre trial for beacons announced, it is apparent that shoppers need far more communication to be aware of beacons and to understand their intrinsic use and value. Only 10% of those surveyed are consciously aware of beacons. Once aware though, they are positive. With less than 20% of those aware of Bluetooth messaging desiring retailers to use this platform, beacons fare much better with more than half supporting their use. This brings us back to ensuring technology is relevant and offering a clear benefit at the point of purchase.
Helen Davies comments, “in order to succeed, technology should facilitate the shopping process, magnify the experience but not be intrusive”.
April 2014