Abstract
Overview
Introduction
Grocery shopping in Europe and North America is changing as shoppers focus on
value and product range. This has encouraged the development of new forms of
retail channel which consumers are using in new and different ways. This
report explores attitudes towards the different factors shaping the retail
environment and how shoppers are behaving as a result of this.
Scope
- Analysis of consumer attitudes and behaviors with regard to shopping -
including store selection and in-store choices
- Key data including grocery shopping frequency and value share of different
store formats
- Detailed recommendations offering practical strategies based on the trends
and insights uncovered in the report
- Covers countries across Europe and North America; France, Germany, Italy,
Netherlands, Spain, Sweden, UK and the US
Report Highlights
Grocery shopping in Europe, North America and indeed around the world is
changing in two main ways. Firstly, shoppers' attitudes towards the different
elements of the retail offer are shifting. And secondly, these changing
attitudes are encouraging the development of new forms of retail channel which
shoppers are using in new and different ways
With a 15% share of French grocery retailing and more than 4,000 outlets by
2007, discounter store share of value sales has grown by 50% over 2002-07,
while the number of outlets has almost doubled. More than two-thirds of the
French public are now customers of one of the discounters, a number that has
also significantly increased
The paradox balance between offering range variety and simplifying the
shopping experience is an important issue for retailers to resolve.
Manufacturers and retailers therefore need to find the "choice sweet spot" by
editing the choices for their targeted customer while manipulating the number
of choices and then assessing customer reaction
Reasons to Purchase
- Understand the attitudes driving shopping patterns including store choice
and point of purchase behavior
- Obtain consumer survey and store format data allowing you to identify the
changing priorities of today' s shoppers in developed consumer societies
- Improve your marketing and in-store proposition by following specific
actionable recommendations and by identifying industry best practice
Table of Contents
- Overview
- Catalyst
- Summary
- EXECUTIVE SUMMARY
- TREND: Value has become the most important influence over store choice
- TREND: The desire to trade-up is also shaping shopping behavior
- TREND: The types of shopping trip are changing
- INSIGHT: Stores have become more specialized in response to the key
trends shaping shopper preferences
- INSIGHT: Differentiation is noticeable through private label,
convenience and healthier eating
- INSIGHT: Although most people demand range, for many expanding choice
is now too great
- INSIGHT: Retailers are adapting to new patterns of grocery shopping
- ACTION: Boost your value offerings
- ACTION: Help supermarkets to compete other than on price
- ACTION: Focus on in-store tactics
- Table of Contents
- List of Tables
- List of figures
- THE FUTURE DECODED
- INTRODUCTION: Grocery shopping in Europe, North America and indeed
around the world is changing in two main ways
- Shoppers' attitudes towards the different elements of the retail offer
are shifting
- Changing attitudes are encouraging the development of new forms of
retail channel which shoppers are using in new and different ways
- TREND: Value has become the most important influence over store choice
- Evidence points to a growth in value-oriented shoppers
- The changing nature of the store mix accentuates the influence of value
- TREND: The desire to trade-up is also shaping shopping behavior
- The rise of the ' sacrificial consumer' reflects the tendency to both
trade-up and trade-down
- The emerging demand for superior customer service reflects the quality
and experience focused shopper
- Take-outs and implications: mass market grocery retailing is all about
value-for-money
- TREND: The types of shopping trip are changing
- The average number of shopping trips is increasing
- Differences in the frequency of grocery shopping by demographic are
minimal
- A demographic group that is one of the fastest-growing shopper
segments is men
- Take-outs and implications: FMCG industry players need to respond to
the growing diversity and spontaneity associated with grocery shopping
- INSIGHT: Stores have become more specialized in response to the key
trends shaping shopper preferences
- The rise of grocery discounters reflects the trend towards price-led
value
- The continuing rise of convenience stores has been an established
feature of developed consumer markets
- Specialist natural food stores still account for a small proportion of
sales but are gaining in popularity
- More specialist types of store that cater to the specific needs of
their target market tend to be rewarded with greater customer loyalty
- Supermarkets and even hypermarkets are under pressure as consumers
switch to specialist stores
- Take-outs and implications: it is no longer a case of making products
available for retail but ensuring the right products are available in the
most appropriate channel formats
- INSIGHT: Differentiation is noticeable through private label,
convenience and healthier eating
- Private labels are increasingly considered credible options in the
same manner as ' famous brands'
- Private label is satisfying shoppers' contradictory demands for
premium goods offering good value
- The depth and quality of home meal solutions is a big draw for
convenience driven consumers
- Natural & organic ranges become an increasingly important factor
shaping store choices and point-of-purchase behavior
- Freshness is a key trend with particularly strong relevance for
retailers
- There are potential problems associated with expanding ranges
- Take-outs and implications: leading retailers are responding to big
issues influencing consumers at large
- INSIGHT: Although most people demand range, for many expanding choice is
now too great
- More than half of European and US shoppers agree that there is too
much choice
- Overwhelmed by choice, consumers are ' speed shopping' and deliberately
using a screening filter
- This is leading to a more passive approach to shopping
- Take-outs and implications: the paradox balance between offering range
variety and simplifying the shopping experience is an important issue for
retailers to resolve
- INSIGHT: Retailers are adapting to new patterns of grocery shopping
- Experiments at Wal-Mart reflect the success of fresher, healthier
offerings in traditional supermarkets
- Discount natural & organic stores are emerging
- Tesco is targeting an unmet need with Fresh & Easy stores in the US
- Take-outs and implications: the speed of change in the grocery retail
landscape is increasing, creating evermore new product development and
sales opportunities for manufacturers to seize
- ACTION POINTS
- ACTION: Boost value offerings through emerging distribution
opportunities and new product concepts
- Make concerted efforts to supply discounters
- Develop value brands
- Develop ' everyday luxury' products
- Take-outs and implications
- ACTION: Help supermarkets to compete on factors other than price
- Learn from the success of natural food specialists
- Work with retailers to offer best practice meal solutions
- Help to reinvigorate center store sales
- Understand that retailers will want to use private label
- Supply innovative private label products
- Take-outs and implications
- ACTION: Develop products for convenience stores
- ACTION: Focus on in-store tactics to ease choice complexity and
communicate with shoppers
- Increase in-store advertising
- Use in-store marketing to target men
- Recognize when choice can be simplified
- Take-outs and implications
- APPENDIX
- Methodology
- Further reading and references
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: Consumer survey: countries ranked by the growth of
value-oriented shoppers
- Table 2: Consumer survey: the changing role of value in choosing
grocery products among European and US consumers, by country
- Table 3: Consumer survey: European countries and the US ranked by the
growth of trading-up-oriented shoppers
- Table 4: Consumers survey: the changing role of trading-up in choosing
grocery products among European and US consumers, by country
- Table 5: Consumer survey: European countries and the US ranked by the
growth of value-oriented and trading-up-oriented shoppers
- Table 6: Consumer survey: European and US consumers' willingness to
pay extra for better customer service by age group and country
- Table 7: Consumer survey: European and US consumers' willingness to
pay extra for better customer service by gender and country
- Table 8: Types of US grocery shopping trip by frequency and value
- Table 9: Types of US grocery shopping trip by day of the week
- Table 10: Consumer survey: average frequency of European and US based
grocery shopping by country
- Table 11: Consumer survey: the composition of European and US grocery
shopping frequency by country
- Table 12: Composition of grocery shopping frequency by age group
- Table 13: Composition of grocery shopping frequency by household income
- Table 14: Value share of discounters in western Europe, by country,
2002-07
- Table 15: Value share of convenience stores by country, 2002-07
- Table 16: Value share of specialist natural food stores by country,
2002-07
- Table 17: Specialist natural food store chains in Germany
- Table 18: Value share of supermarkets and hypermarkets in France,
Germany and the UK, 2002-07
- Table 19: The development of private label, 1970s to 2000s
- Table 20: Potential winners and losers from the fresh trend
- Table 21: Consumer survey: the extent that European and US shoppers
believe there is too much choice when shopping, by age and country
- Table 22: Consumer survey: the extent that European and US shoppers
believe there is too much choice when shopping, by gender and country
- Table 23: Presence of private label in different US grocery store
formats, 2002-07
- Table 24: Consumers who seek discounts and express satisfaction from
value, by country, 2005
- Table 25: Penetration of US private label by type of shopping trip
- Table 26: Industry opinion: ways in which private label could be
better promoted
- List of Figures
- Figure 1: Value is an increasingly important motivator of consumer
behavior
- Figure 2: The changing role of trading-up in choosing grocery products
- Figure 3: Spanish and Dutch consumers embark on the most grocery store
visits per week
- Figure 4: The composition of grocery shopping frequency varies by
country
- Figure 5: Examples of US premium private labels
- Figure 6: Supermarket traffic at the perimeter versus the center store
- Figure 7: Discount natural & organic stores are emerging across
Europe and the US
- Figure 8: Tesco Fresh & Easy
- Figure 9: Two Buck Chuck wines are a real draw for shoppers seeking
price-led value
- Figure 10: Charmin Basic and the possible private label response
- Figure 11: Larger pack sizes have strong value credentials
- Figure 12: Giant Eagle' s Market District range reflects an emerging
product concept: ' everyday luxury'
- Figure 13: Products that suggest a more personal nature can help mass
market retailers counter the selling points of smaller, more specialist
stores
- Figure 14: Featuring actual farmers is a way that Waitrose has
personalized its marketing in the UK
- Figure 15: Best practice meal solutions in the US include Eat Local,
Central Market, Apron' s
- Figure 16: Whole Foods Market meal solutions
- Figure 17: Products developed specifically for the convenience store
market
- Figure 18: Convenience and premium: Harrods 102 convenience store
- Figure 19: In-store marketing; end aisle display and floor advertising
- Figure 20: Helping store navigation: Best Cellars
- Figure 21: Helping consumer choice: Hormel' s Custom Kitchen
- Figure 22: Color blocking and unique shapes can be used to create
visual contrast