© IGD 2014
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© IGD 2014
IGD’s Four for ’14 are still those to plan for
The hunt
for value
Evolving
channel mix
Inspiration,
new and loyalty
Trust and
transparency
© IGD 2014
More shoppers feel the worst is behind them...
Source: IGD ShopperVista, January 2014
% of shoppers who say they will...
0%
5%
10%
15%
20%
25%
DEC'12 MAR'13 JUN'13 SEP'13 DEC'13
Focus on quality in
next year
Be better off in the
next year
Christmas’13
Christmas’12
© IGD 2014
Source: IGD ShopperVista, base: all main shoppers, Jan’14
...with January confidence at its highest level to date
17
24 22
28
24
30
26
31 31 33
21
32
27 30
25
37
31
38 40
38 36
40 43
37
47 48
0%
10%
20%
30%
40%
50%
60%
0
20
40
60
Confidence index Grocery price increase expectation index
© IGD 2014
Recovery won’t be evenly spread
Base: All main shoppers Oct-Dec’13
© IGD 2014
Recovery won’t be evenly spread
Discounter fanatics – visited a food discounter in the last month
Total: 47%
North West: 57%
Scotland: 54%
(London 37%)
Provenance promoters – willingness to pay extra for country of origin
Total: 20%
Scotland: 37%
(South West: 13%)
Organic endorsers – purchased organic food in the last month
Total: 21%
London: 33%
(Wales: 15%)
Online enthusiasts – purchased groceries online in the last month
Total: 24%
South East: 29%
London: 29%
(North East: 17%)
Regional shopper behaviour
Base: All main shoppers Oct-Dec’13
© IGD 2014
London will be the focus of much attention
Images: Thinkstockphotos, January 2014
Higher-than-average wealth
Vibrant, diverse food culture Opportunity to “showcase” capability
Large, fast-growing population
© IGD 2014 IGD ShopperVista December 2013
It’s all relative, though...more expect to be worse off overall
46% 51% 49% 46% 45% 42% 40% 40% 43%
38% 38% 41% 39%
42% 34% 39% 36% 42%
42% 44% 45% 42% 46% 46%
44% 43%
12% 15% 12% 17% 14% 16% 16% 15% 15% 15% 16% 15% 18%
Dec'12 Jan'13 Feb'13 Mar'13 Apr'13 May'13 Jun'13 Jul'13 Aug'13 Sep'13 Oct'13 Nov'13 Dec'13
Better off
About the same
Worse off
Personal financial expectations for the next 12 months
© IGD 2014
Cost of living concerns still persist
Base: all main shoppers, all shoppers expecting to be worse off Jan’14
I will be worse off...
Food prices (81%)
Utility bills
(80%)
Fuel prices (56%)
Wages 46%
Taxes & benefits
(31%)
Job security (17%)
© IGD 2014
Savvy shopping is cemented as the new norm...
Base: all main shoppers, all shoppers expecting to be worse off Jan’14
Jan'13 Jan'14
Main priorities for food and grocery shopping in 2014
64% 68%
47% 48%
47% 46%
28% 26% 23% 21% 19%
© IGD 2014
...but it continues to evolve
Base: all British grocery shoppers, Jan’13
© IGD 2014
The search for the best deals drives multichannel
Online promotional cherry pickers
2010 6%
2013 30%
Base: all main grocery shoppers, Oct’13
© IGD 2014
Multi-store missions move mainstream
visited 2+ grocery stores on the same trip in March
42% “I now shop at [discounter] and then go across the road for the rest at [supermarket]”
“I go to three stores in one big round trip, so as not to spend any more on petrol”
© IGD 2014
Majority use 1+ stores for their main shop
Base: all main grocery shoppers, October’13
% using same or different supermarkets for main shop
Always loyal
Sometimes switch
Often switch
Motivations for switching
Promotional disappointment
Price comparison
Retailer proliferation
Discounter improvement
© IGD 2014
Food discounters are moving mainstream...
Base: all British grocery shoppers, Jan’14
JAN'11 JAN'12 JAN'13 JAN'14
USED IN
THE
PAST
MONTH
MY
MAIN
STORE
39% 41%
46%
51%
5% 5%
9% 12%
Food discounters
© IGD 2014
“It’s won awards and lost a bit of
stigma”
...as shoppers continue to discover the benefits
“It’s quicker to get round and the checkout’s a
lot quicker”
“They have things that are a bit different”
“They’ve decided which one offers the best value”
Source: IGD ShopperVista
© IGD 2014
Growing levels of connectivity
Base: all main grocery shoppers, Oct’13
© IGD 2014
Growing levels of connectivity among shoppers
47%
15%
60%
35%
2012 2013
% of shoppers who own a smartphone or tablet device
Base: all main grocery shoppers, Oct’13
© IGD 2014
The benefits of technology are already apparent
% of shoppers who say technology (mobile, tablet & computer) helps them with each of the following for their food and grocery shopping
Saving time 74%
Saving money 69%
Product sourcing 63%
Following a healthier diet 49%
Source: IGD ShopperVista, Oct’ 2013
© IGD 2014
..but most engagement is in the pre-shop phase
30
47 % say they are using the internet to search for recipes for meal inspiration
% say they are using the internet to search for the best deals and then shopping from a variety of stores
40 % say they are checking their loyalty points online or on a mobile app
% say they are watching food channels online
Established shopper engagement using technology
23
© IGD 2014
21
Focusing on promotions could grow engagement
56% I’m in
different parts of the store
54% I enter a
competitors store
56% I’m near another
store that has better offers
(if I redeem the offer quickly)
53% When I’m
nearby to a good offer
% who would like to be notified of special offers on my mobile phone when...
Base: all main grocery shoppers, Oct’13
© IGD 2014
95%
18% 14%
95%
20% 16%
91%
25% 18%
Jun'13 Oct'13 Jan'14
More shoppers trial click & collect services Used in the last month
Home delivery
Click & collect
Used both
© IGD 2014 IGD ShopperVista Channel Focus, past month online shoppers Nov-Jan 2014
19% 16%
63%
39%
20% 18%
63%
38%
20% 22%
64%
34%
Jun'13 Oct'13 Jan'14
And more shoppers are using tablets for their shop Used in the last month
© IGD 2014
Disappointment with promotions
30%
40%
50%
Dec'10 Feb'11 Apr'11 Jun'11 Aug'11 Oct'11 Dec'11 Feb'12 Apr'12 Jun'12 Aug'12 Oct'12 Dec'12 Feb'13 Apr'13 Jun'13 Aug'13 Oct'13 Dec'13
Type of promotions available Level of savings provided Promotions in stock Types of promoted products
Period of decreased satisfaction
with promotions
% who are extremely or very satisfied
Base: All main shoppers Dec’13
© IGD 2014
Brand challenge – waning influence of a name
Base: all British grocery shoppers, indexed to 2006/2005
0
25
50
75
100
125
2006 2007 2008 2009 2010 2011 2012 2013
Brand name as a driver of product choice
© IGD 2014
...as price and quality perceptions of PL improve
Base: those who’ve bought more standard private label in the last six months, May’13
Reasons for buying more standard private label
67%
63%
60%
50%
42%
Tighter budgets
Price inflation
Forensic shopping
Quality improvements
Range expansion
© IGD 2014
© IGD 2014
...as they move towards becoming exclusive brands
1 Base: those who have bought more private label in the past six months, others based on: all British grocery shoppers, May’13
identify the improved ‘branding’ of private label products as a reason for
buying more1
believe private label is made by different
companies to brands
do not associate supermarket discount or
venture brands as a private label option
© IGD 2014
A year on from ‘horsegate’
Source: IGD ShopperVista, December 2013
30%
40%
50%
60%
70%
80%
90%
100%
NOV'12 MAR'13 JUN'13 SEP'13 DEC'13
...OF REASONABLE
QUALITY
...THAT ARE SAFE TO
EAT, DRINK OR USE
...THAT DO WHAT
THEY'RE MEANT TO
© IGD 2014
I trust British grocery companies to...
11% 6%
15% 16%
11% 13%
24 34
23 21
10 6
2009 2013
Do the right thing at all times
Do the right thing almost
always - mistakes happen
Do the right thing as it's
usually in their own interests
Follow the law, but not do
the right things voluntarily
Follow the law, but exploit
loop holes
I don't trust them at all
Base: all main grocery shoppers, April 2009 and July 2013
© IGD 2014
Desired transparency
Base: all main grocery shoppers, July’13
Knowledge of how grocery products are made
2011 2013
Know a lot/a little
Would like to know a lot/a little
34%
19%
56%
12%
© IGD 2014
Desired transparency
Base: all main grocery shoppers, July’13
... % who can imagine restricting to fully traceable items
% who would boycott products that have not met high ethical standards
2010 2013
60%
73%
2010 2013
60% 75%
© IGD 2013
The value agenda still strong
Base: all main grocery shoppers, Sep’13
Most important driver of product choice
15%
37%
19%
41%
SEP'12 SEP'13
Quality Price
© IGD 2013
The value agenda still strong
Base: all main grocery shoppers, Sep’13
17%
39%
26%
46% Sep'12 Sep'13
Quality assurance
standards
Locally produced
items
Willingness to pay extra for....
40%
60%
80%
SEP'10 SEP'11 SEP'12 SEP'13
Standard
Value
% purchased private label in the last month
© IGD 2014
0%
10%
20%
30%
40%
50%
60%
70%
5-A-Day Low fat Low salt Free from
preservatives
Functional
foods
Added Omega
3
Healthy eating vulnerability is emerging
20
11
64% 60%
56%
45% 43%
36%
41%
36% 33%
20
12
20
13
35% 34%
28% 35% 34%
28% 35%
34% 28%
Base: All main shoppers Oct -Dec’13
© IGD 2014
Affordability is a growing concern for shoppers Top ten barriers to eating a healthy diet compared to 2008
Younger families
1 Health foods are too expensive
2 Conflicting messages about what’s healthy
3 Healthy foods are not on promotion
4 I like to comfort eat
5 Promotions encourage me to buy ‘unhealthy’ foods
Base: all British grocery shoppers, May’13,
© IGD 2014
29%
20% 20%
42%
19%
57%
26% 23% 23% 22%
2008 2013
Affordable healthy options are a priority today
Source: IGD ShopperVista, base: main shoppers, Feb’13
Cheaper
products
More choice in
supermarkets
Healthier snack
foods
Clearer
labelling
Healthier fast
foods
What would make it easier for you to choose a healthier diet?
© IGD 2014
Shoppers feel empowered to influence sustainability
Base: all main shoppers, Aug'13, 7% none of these
© IGD 2014
..but responsibility falls to industry
Base: all main shoppers, Aug'13
% agree
Expect food and grocery companies to constantly
check that suppliers provide healthy products
and act responsibly
believe food and grocery companies should just
get on with doing the right thing for their health
Want to be inspired by food and grocery products that are healthy and that impact the environment
positively
© IGD 2014
IGD’s Four for ’14 are still those to plan for
The hunt
for value
Evolving
channel mix
Inspiration,
new and loyalty
Trust and
transparency
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