specialists in understanding supermarket shoppers
©©
Shopper Trend Report Shopper Insights | Reports | Consultancy | Strategy
Morrisons takes on Aldi & Lidl
Waitrose sales increase
Terry Leahy blames Tesco’s woes on Philip Clarke
Asda tags baskets to stop customers stealing them
Waitrose trials home scanning devices
Fuel prices at four year low
Issue 26 | November 2014
Coming soon Online Food & Grocery 2014… The Shopper Perspective The online grocery channel continues to rise in its share of the UK grocery market. Last year the online market was estimated to be worth around £5.4 billion, which has risen to just under £8 billion There are numerous reasons as to why we are seeing such a sharp increase in online grocery shopping. For one, technological developments are enabling shoppers the convenience of doing their shop anywhere and at any time – allowing them to make use of their time on the bus (or at their desk!), to carry out a relatively mundane, but necessary, task. Beyond this, a lot of people are enjoying the freedom of not having to traipse around the supermarket isles on their way home from work, or having to use the extra petrol in their cars, amongst other things.
This report will:
“
Look at the current penetration of the UK online grocery market See the demographic of current online shoppers See how loyal multi-channel shoppers are to retailers Look at both the drivers and dislikes of online shopping for current online shoppers. Specifically looking at: delivery, cost, retailer websites and personal situations Find out the barriers to online shopping for non-online shoppers
Touch on the shoppers’ journey around a retailer website and see how shopping trips are started and which features are used (favourites, categories etc.) Take a look in delivery method e.g. click & collect vs delivery
”
Missions and spend will also be covered and compared to shopping in-store
All of the above will also be looked at by age, gender, SEG, location, and main retailer used by the respondent, where appropriate. Any significant differences in results in any of these will be reported.
For further information contact… Dale Henry t. 0113 394 4671 e. dale.henry@evolution-insights.com
Greetings…
Michael Symonds
Research Manager, Evolution Insights
Welcome to Issue 26 of our Shopper Trend Report According to recent reports Tesco is eyeing a potential sale of a stake in its banking arm as it accelerates plans to raise billions of pounds in much-needed additional capital. The grocer is in the early stages of exploring a possible partial float of Tesco Bank, which could raise between £500m and £1bn. The company’s new boss Dave Lewis has been forced to consider the possible sale of the bank and several other prized assets including its Asian operations after the discovery of a big accounting black hole. Last month saw Morrisons launched their much anticipated loyalty scheme when they became the first of the ‘Big 4’ to price match Aldi and Lidl. A bold move by Dalton Philips… he personally has a lot riding on this decision.
Michael
In this month’s issue... FOOD & GROCERY NEWS
Morrisons takes on Aldi and Lidl Waitrose trials home scanning devices Waitrose sales increase driven by witches' hats and pumpkins
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CASE STUDY: Understand Front of Store shoppers
3
EVOLUTION REPORT: Recently released Supermarket Own Label in the UK Food & Grocery Market 2014
4
PRIMARY RESEARCH: Evolution report Supermarket Own Label in the UK Food & Grocery Market 2014
5
EVOLUTION REPORT CATALOGUE
6
FOOD & GROCERY NEWS
Terry Leahy blames Tesco woes on successor Philip Clarke Fuel prices at four year low Asda tags baskets after customers steal them
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TASTE TESTS: Best Christmas food 2014
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INNOVATION IN RESEARCH: Online Packaging Testing
9
IN FOCUS: Tesco in Crisis
10
Please note No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Evolution Insights Ltd. © Evolution Insights Ltd 2014
Issue 26 | November 2014
1
FOOD & GROCERY NEWS
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Morrisons unveils loyalty card to price match Aldi and Lidl Morrisons has announced the launch of a new price match and points card that will price match discount stores Aldi and Lidl. The retailer said the ‘Match & More’ scheme will offer a price match guarantee against Aldi and Lidl as well as Tesco, Sainsbury’s and Asda. If a comparable grocery shop is cheaper at any of these supermarkets, Match & More users will automatically get the difference back in points on their card. Shoppers will also be able to collect extra points on hundreds of featured products and fuel. Once 5000 Match & More points are accumulated, customers receive a £5 voucher at the till. Morrisons chief executive Dalton Philips said: “We’re launching Match & More, the most comprehensive price match and points scheme in the UK. Because it price matches the discounters, the Match & More card will provide the ultimate guarantee about Morrisons’ value-for-money.
Waitrose trials home scanning devices
Waitrose has partnered with US-based start-up Hiku to trial a home scanning solution for customers. The devices allow customers to scan products stocked by Waitrose in order to compile an online shopping basket, for example adding items as they are taken out of the fridge. The palm-sized Hiku device also has a voice to text recognition capability, meaning customers can speak product names as well as scanning their bar codes. Waitrose said employees and customer focus groups will be trialling the devices this month, with in-home trials planned for early 2015 Source: Talking Retail
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Issue 26 | November 2014
“We have learned from other price match programmes so our customers will not collect lots of small vouchers or have to redeem them through a website when they get home from their shop.” Morrisons said the ‘Match & More’ card is undergoing a phased roll out and will be in stores in time for the Christmas season. Source: The Retail Bulletin
Waitrose sales increase driven by witches' hats and pumpkins
Waitrose sales excluding petrol increased 4.2% last week as shoppers stocked up on Halloween treats, while John Lewis sales rose 8.3%. Sales of pumpkins increased 20%, while sales of Halloween mixed bags of sweets jumped 53%. Apple-bobbers drove sales of the fruit, which were up 14%, and sales of witches’ hats increased 22%. Sales of fireworks were up 12% ahead of Bonfire Night and Diwali celebrations. Warm weather drove sales of prepared salads and sushi, said Waitrose finance director Tom Athron. Sales at sister retailer John Lewis increased 8.3% to £83.6m in the week to October 25 as it was boosted by the launch of new Apple products. Source: Retail Week
CASE STUDY© Client
FMCG (Soft Drinks)
Brief
To understand the current front of store shopper and shopper behaviour in the main retailers Identify why the number of transactions is declining Identify where the opportunity lies for improving instant consumption Front of Store sales
Methodologies used… 5 Stores were filmed (3 Cameras per venue) 1 day of filming before the digital cooler was installed 1 day of filming during the digital installation period
In Store Filming 8 In-store intercept interview days
3 In-store interview days for Vox Pop
Intercept interviews
Vox Pops Quote from client “Thanks for being so flexible on this project…I’ve seen the Vox Pops and the interviews and they’re great, really good comments”
Issue 26 | November 2014
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Recently released Supermarket Own Label in the UK Food & Grocery Market 2014 Supermarket own label brands increasingly present grocery shoppers with a compelling alternative to national brands at the fixture. Retailers are closing the quality gap in the minds of many shoppers, while retaining strong value credentials. The strength of supermarket brands continues to grow notably, with retailers placing increasing importance on their own brands to foster store loyalty. The strength of private label naturally varies by category, retailer and shopper demographic, but no category is immune. This report presents the most up to date and authoritative analysis of the shopper perspective regarding private label goods versus national brands. Aimed at retailers, manufacturers and agencies alike, it offers detailed insight into shoppers’ attitudes, motivation and behaviour regarding private label goods versus national brands in food and grocery.
This report will tell you:
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Who buys own label and across which categories covering awareness, purchase and loyalty Which categories are shoppers more likely to buy own label How do shoppers perceive own label goods and the quality compared to branded goods Whether own label goods still carry a stigma or whether the change in the economic climate over recent years has changed perceptions For what reasons do shoppers not buy own label products How do shoppers feel about copycat products
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For further information contact… Dale Henry t. 0113 394 4671 e. dale.henry@evolution-insights.com
PRIMARY RESEARCH Š
Supermarket Own Label in the UK Food & Grocery Market 2014 Shoppers who have tried own label products (within a category that they regularly buy)
71%
70%
Yogurt
Museli
68%
65%
Ice Cream
Crisps
58%
Cat Food
53%
Tea Bags
69% Digestives
60% Blended Whiskey
52%
Instant Coffee
38%
Shampoo
Issue 26 | November 2014
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REPORT CATALOGUE 2014 Retailer drivers
In-store retailer choice Store & Channel repertoire
Shopper Typologies 2014
Different attitudes amongst key drivers Detailed shopper demographics
Promotions and the Impact on Brand Equity New Product Launches Over Promoted Categories In Relation to Own Label
Multi-channel shopping
Shopper Missions v’s Channels Role of channels Overview of shopper habits cross-channel
Health
Is it important for a shopper to know How influential on decision making
CSR - What impact on a shopper’s perception of brand? Do shoppers recognise any work done by brands What is the impact
Digital Vouchers & Coupons
How new technology is affecting coupons and vouchers Smartphone penetration of UK shoppers and use n relation to digital vouchers Who do shoppers trust with personal information in order to receive offers
Own Label vs. Brands
Proxy categories tested Where do brands fit in the eyes of the shopper
On-the-go Series (Breakfast, Snacking & Lunch) What, when, why, who & how
March 2014
Published March 2014
Published April 2014
Published May 2014
Published May 2014
Published August 2014
Published August 2014
Published
September 2014
Not published Due November 2014
Online Shopping
Not published
Retailer Choice - How influenced are shoppers by the knowledge of a retailer’s price positioning
Not published
Digital – The Use of Digital Devices
Not published
What, when, why, who and how
Driver to store choice | Knowledge of retailer position | Impact of retailer position
How shoppers use different forms of digital devices for shopping related activities
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Published
Issue 26 | November 2014
Due November 2014
Due November 2014
Due December 2014
FOOD & GROCERY NEWS ©
IN BRIEF
Ex-Tesco chief Terry Leahy blames woes on successor Philip Clarke’s weak strategy
Tesco eyes £1bn from banking sale
Former Tesco boss Sir Terry Leahy has spoken publicly for the first time about the scandal engulfing the supermarket by attacking his successor, Philip Clarke, for his management of the business. Sir Terry said the supermarket under Mr Clarke, who resigned earlier this year, “focused too much on what it isn’t rather than remembering what it is and working with that.” He added: “What it is, is a very big brand in the centre of the market, and clearly if you’re weak in the centre you can get
attacked from all sides. But if you’re strong in the centre and doing what you do well, it’s a good place to be – you can attract customers from all parts of the market.” However, he suggested that one of the most devastating periods in the supermarket’s history could be coming to an end after the uncovering of a £263m accountancy black hole which is the subject of a fraud investigation.
Fuel prices at four year low
Asda tags baskets after customers steal them to avoid paying for carrier bags
Source: The Independent
Tesco is considering the sale of part of its banking arm in a stock market listing worth up to £1bn. Reports suggest that the company is in the early stages of examining a potential partial float of Tesco Bank, which could raise between £500m and £1bn. Estimates from HSBC analysts have put the cost of turning the company around at up to £3bn, with the partial sale of Tesco Bank shares seen as an attractive option.
Aldi forced to drop 'Beluga' from its caviar
It was a fishy tale that turned out to be exactly that. Aldi has been forced to change the name of its cut-price "beluga" caviar after an investigation discovered none of the famed sturgeons were used in making the product.
Sainsbury's to be first to dispense hydrogen
Families are set to benefit from a new price war on the supermarket forecourts, as fuel prices fall to a four-year low. Asda have cut 2p off both unleaded and diesel, making the price of unleaded 120.7ppl and diesel 124.7ppl, their lowest prices since December 2010. Tesco and Morrisons also cut prices at their pumps by up to 2ppl, following a recent dip in wholesale costs. Andy Peake, Asda’s petrol trading director said: “Asda has led and will continue to lead on these price cuts as we know how important it is that we pass savings straight back into drivers’ pockets as soon as prices fall. No matter where customers live, they will benefit from the same fuel price with our national price cap of 120.7ppl for unleaded and 124.7ppl for diesel.” Source: Talking Retail
Asda decided to put the security tags, usually attached to alcohol or clothes, on the plastic baskets after customers started taking them home. The Dundee branch has seen baskets go missing after Scotland introduced a 5p tax for carrier bags last week. To cut down on litter, the Scottish Parliament brought in a minimum 5p charge for plastic bags. All shops have now been forced to charge for carrier bags. A spokesman for Asda told the Sun people nicking baskets could be arrested for theft. They said: "We reluctantly introduced security tags to ensure customers can do their shopping without disruption. “
Sainsbury’s is set to become the first supermarket to sell hydrogen on its forecourts for the new generation of environmentally-friendly vehicles. Dairy Crest recalls Whole British Milk Dairy Crest has recalled certain date codes of Morrisons and Supervalu from Budgens Whole British Milk as they have been contaminated with cleaning fluid during its production, according to the UK Food Standards Agency (FSA)
Sainsbury’s swaps Beckham for Sturridge to front ‘Active Kids’ drive
Sainsbury’s is to replace David Beckham with Liverpool FC striker Daniel Sturridge as the face of all its marketing on encouraging kids to lead healthier lifestyles.
Source: The Daily Star
Issue 26 | November 2014
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TASTE TESTS
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Best Christmas Food 2014 Iceland has crafted the best mince pies this year, while Asda sells delicious stuffing and Tesco is the place to buy fig puddings, the first of the Christmas taste tests for 2014 indicates. Researchers from Good Housekeeping magazine ate and drank their way through 175 festive foods across 12 categories from every major supermarket and high street shop selling Christmas favourites.
First taste tests for Christmas foods are in, and Good Housekeeping magazine has some surprises in this year's rankings
They ranked Iceland, the supermarket chain better known for its cheap frozen foods, above Waitrose, M&S and even Harrods for its mince pies. Caroline Bloor, consumer director of Good Housekeeping, said the mince pies were "astonishing" – and showed price had little to do with taste on some foods. A box of six Iceland Deluxe mince pies cost £1.59, compared with £2.50 for half a dozen at Waitrose. The runner-up in the mince pie category was Betty's, the famous Yorkshire tea rooms, which sold a dozen for £10.
Champagne
Mince Pies
Stilton
1st
1st
1st
1st
2nd
2nd
2nd
2nd
3rd
3rd
3rd
3rd
Christmas Cake
Smoked Salmon
Yule Log
Brandy Butter
1st
1st
1st
1st
2nd
2nd
2nd
2nd
3rd
3rd
3rd
3rd
Turkey
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Christmas Pudding
Stuffing
Mulled Wine
Cranberry Sauce
1st
1st
1st
1st
2nd
2nd
2nd
2nd
3rd
3rd
3rd
3rd
Issue 26 | November 2014
Batts
INNOVATION IN RESEARCH Š
Online Packaging Testing Evolution have developed a highly effective, flexible and convenient quantitative research methodology with an award winning market research technology provider
What makes this methodology unique from others is that we can test packaging concepts in numbers.
Our innovative online tool allows respondents to view your products in the same way as an in-store environment. It shows images of reallife shelves in supermarkets where we can add in images of the products you want to test.
We can mock up shelves to your requirements to identify which packaging stands out the most, products a shopper would choose within your category based on packaging, how much they would pay for your product/s and how easily shoppers can find your SKU/s when merchandised with competitor products in your category.
For further information contact‌ Michael Symonds t. 0113 394 4672 Michael Symonds e. michael.symonds@evolution-insights.com
t. 0113 336 6000
e. michael.symonds@evolution-insights.com
Issue 26 | November 2014
9
IN FOCUS
Milkmen and dairy farmers victims of the supermarket price war
Tesco's profits are not the only victim of the price war between Britain's supermarkets, it is putting pressure on suppliers across the country particularly in the dairy industry. The price of milk has fallen 50pc in recent months and this has led to a drop in farmgate prices of between 20pc and 30pc, according to the National Farmers' Union (NFU). Meurig Raymond, president of the NFU, described the situation as "extremely worrying" for farmers. “As a dairy farmer myself I know what farmers up and down the country are going through," Mr Raymond said. "These are extremely turbulent times. That is why it is absolutely vital that everyone in the dairy supply chain shows commitment at this time. "Milk processors, retailers and dairy farmers must work together to minimise the impact of the current price falls on dairy farmers and look to the future by opening up new markets for milk and creating new products." However, it is not the thousands of dairy farmers that are feeling the squeeze. One of Britain's finest traditions - the milkman - is also under threat. Last month, Dairy Crest announced it will close its glass bottling plant in Hanworth, London, within two years. That means Dairy Crest's 1,400 milkmen will no longer deliver fresh milk in glass bottles.
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Issue 26 | November 2014
The closure of the plant will exacerbate the sharp decline in the amount of milk Brits drink from glass bottles. In 1975, 95pc of milk was put into glass bottles, but by 2012 it was just 4pc. Mark Allen, chief executive of Dairy Crest, told milkmen that the company is doing "all we can to protect their livelihoods". However, milkmen fear the closure of the facility is another major setback. With a pint of milk now costing less than 50p in supermarkets, it is becoming increasingly uneconomical for households to justify paying for the milkman. Tony Fowler, a milkman covering Leicestershire and Nottinghamshire, said that so far this year he has lost 18 customers and another 72 have reduced their order . "This price war is the real issue with milk, even Waitrose is in there too," Mr Fowler said. This squeeze on milkmen could lead to the UK losing an "important" part of local communities, Mr Fowler said. He covers 104 miles and 22 villages on his 12-hour milk round, chatting to customers and helping out with domestic challenges on the way. "We are the eyes and ears for crime," he stated. "We provide the security of knowing someone will come to see you. We have an important role." For many in the UK, the arrival of the milkman with their doorstep delivery is an essential part of the day or week. However, doorstep delivery now accounts for just 7pc of milk purchases in the UK, and the sharp fall in supermarket prices is likely to lead to further falls. The supermarket price war has far wider consequences than the battle between the "big four" and the discounters. Source: The Telegraph
CONTACT USŠ
We are specialists in understanding supermarket shoppers Evolution Insights delivers off-the-shelf, tailored and bespoke research for manufacturers, retailers and agencies. Our research and analysis helps clients develop targeted shopper marketing initiatives designed to influence shoppers at the point of purchase. As a leading publisher of shopper research, we are ideally placed to offer your business actionable shopper insight.
Get in touch and find out more:
The Round Foundry Media Centre Foundry Street Leeds LS11 5QP
info@evolution-insights.com
0113 394 4670 www.evolution-insights.com
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