specialists in understanding supermarket shoppers
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Shopper Trend Report Shopper Insights | Reports | Consultancy | Strategy
One in five UK supermarkets must close to restore profit growth
Waitrose posts weekly sales rise of 4.2% Morrisons’ Christmas pudding better than Fortnum & Mason
On-the-go shopper missions
Family spending power at all-time high
Contactless payments up 150% in last six months
Issue 27 | December 2014
Just released Digital: The use of smartphones and digital devices for grocery shopping 2014
The digital landscape is growing at an exceptional rate, with new technologies being introduced into our daily lives on a regular basis. Digital media allows the user to turn into shopper mode on a greater number of occasions, at more remote locations - the shopper no longer has to be in-store, or sat at their home PC, to interact with a retailer or brand. This report looks at how these technologies are being adopted by shoppers This report will:
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Online grocery shopping (primarily on a smartphone): Who does it, when, why and how; Who doesn’t do it and why; What devices are used and how. Apps: Which retailer apps shoppers have and how often they use them Contactless payment: Awareness; Bank cards and mobile Wallets; Ownership and use; Drivers & barriers; Occasions of use Social media: How shoppers interact with retailers and brands on various social media platforms
Smartphones: Awareness and usage of using smartphones for various grocery shopping related activities e.g. creating lists, scanning items and ‘checking out’
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For further information contact… t. 0113 394 4670 e. craig.bradley@evolution-insights.com
Greetings…
Michael Symonds
Research Manager, Evolution Insights
Welcome to Issue 27 of our Shopper Trend Report As we enter the busiest and most crucial trading period, the big 4 will be pinning their hopes on a better Christmas than last year. However sales growth will not be easy to come by, there will be pressure from both Aldi and Lidl as they have expanded aggressively over the last year and are edging ever closer to the mainstream. Online is likely to play a key role in food & grocery shopping this Christmas, with more shoppers recognising the convenience this channel offers in such a busy shopping period. Click & collect is also likely to shine this year as more retailers promise a next day service. We have some exciting news in the form of our new research operation. Due to demand we have decided to launch Evolution Consumer that can address any consumer related research in the food & grocery sector from January 2015. We will be launching the website in December before the Christmas break. We would like to wish all our readers a very Merry Christmas and a prosperous 2015.
Michael 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.
In this month’s issue... EVO COMMENT: Sainsbury’s Trials New Shopping App
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FOOD & GROCERY NEWS
One in five UK supermarkets must close to restore profit Waitrose posts weekly sales rise of 4.2% Morrisons’ Christmas pudding beats Fortnum & Mason in blind tasting
EVOLUTION REPORT: Recently released On-the-go shopper missions 2014
PRIMARY RESEARCH: Evolution report On-the-go shopper missions 2014
EVOLUTION REPORT CATALOGUE
FOOD & GROCERY NEWS
Family spending power at all-time high Tesco app scans Twitter profiles to provide users with gift inspiration Contactless payments up 150% in last six months
EVO COMMENT: The Annual Retailers Christmas Advert-Off, 2014
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4 5 6 7 8
INNOVATION IN RESEARCH: Bulletin Board Focus Groups
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NEW IN 2015: Evolution Consumer
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© Evolution Insights Ltd 2014
Issue 27 | December 2014
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EVO COMMENT
Sainsbury’s Trials New
Shopping App Sainsbury’s recently announced the trial of a new app, the four features include: a shopping list, in-store product locator, barcode scanner and mobile payment platform. Let’s examine the features in more detail.
The shopping list feature is not a bad idea; it will certainly save some time when doing a big shop, my concern would be how much information (down to SKU level) would one have to put in to make the locator effective. Let’s assume the functionality would send me to the standard fixture position, and not say a gondola end, that would mean that brand spend could be considered wasteful in this area. The use of in-store Wi-Fi could be a problem, I personally don’t like to connect to open non-secure Wi-Fi source; and I hate the slow procedure for signing up to free Wi-Fi. If Sainsbury’s Wi-Fi is anything like Asda’s, shoppers can enjoy a lengthy registration followed by verification emails, to then receive a snail speed connection. Let’s say I’ve compiled my shopping list, the Wi-Fi is working and I’m at the fixture, at the correct product…I then have to try and scan the product. If you have ever tried to use a bar code scanner on a mobile phone, you will know that it is highly temperamental and sometimes inaccurate or it can’t find the product. What happens when I am buying fruit and vegetables, which would need to be weighed and barcoded at the fixture for me to be able to scan them? So I’ve compiled my shopping list, connected to the Wi-Fi, found the product, and scanned the barcode, where am I going to put everything? The promotional picture shows someone putting them in their own bag as they shop; this leads to a couple of further questions: do I have to take my own bag, and is there going to be a specific bagging area? And what do I do if I have a trolley full of products? Let’s say I’ve got over all of the potential hurdles listed above. I have my goods in my bag and I now do a mobile transaction, I’ve then got my fingers crossed that the Wi-Fi stays up, and my battery life is good and I’m walking out of the store, how’re they going to check that I’ve paid? If any transactional scheme is open to abuse it’s this one. Maybe an assistant is suspicious that I haven’t paid for all of my items, do I have to hand my phone over to be checked? Sounds like a lot of potential issues for shoppers to be happy to dealing with; for the sake of saving time…although I’m not convinced self-scanning is quicker than a trained checkout person!
Terri Hampsey Shopper Insight Analyst
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Issue 27 | December 2014
FOOD & GROCERY NEWS ©
One in five UK supermarkets must close to restore profit growth Supermarket chiefs need to take drastic action by shutting one in five of their stores if the financial health of the mainstream grocery chains is to recover from the damage being wreaked by altered shopping habits and the onslaught of the discounters, according to industry analysts. A large closure programme is the only viable solution to bring about a return to profitable growth for the UK supermarket industry, the analysts said in a report. With 56% of Tesco’s stores bigger than 40,000 sq ft, the report concludes the market leader has the biggest problem on its hands. Profits at Tesco, Sainsbury’s and Morrisons, have gone into reverse as weak food sales are exacerbated by the runaway growth of Aldi and Lidl. Further pressure is coming from structural changes in the market such as the growth of online and convenience store retailing.
Waitrose posts weekly sales rise of 4.2% on demand for seasonal lines Customers gearing up for Christmas helped total sales rise by 4.2% at Waitrose last week, despite tough comparatives with last year. The retailer’s Christmas advert featuring a girl making gingerbread biscuits boosted sales of bakery items with sales of ginger rising by 17% and cake decorations by 15%. In addition, mincemeat sales grew by 60%. More than 150 branches are providing free in-store gingerbread icing stations to encourage children to try baking. Stationery sales, including cards and wrapping paper, rose by 12%, while Christmas cracker sales climbed by 15%. Elsewhere, hot meat pies were in demand with sales up 50% and the Waitrose Indian ready meal selection had its best week ever with sales rising by 64%. Waitrose also opened its new-look Waitrose Food & Home store in the week which features its second cookery school. The retailer said sales at the store had “exceeded all expectations”.
Sainsbury’s recently reported a first half loss of £290m as it counted the cost of pulling the plug on 40 new supermarket projects and wrote down the value of its underperforming stores All the major grocers have now taken a scythe to prices or sent out millions of money-off vouchers in an attempt to fend off Aldi and Lidl. Source: The Guardian
Morrisons’ Christmas pudding beats Fortnum & Mason in blind tasting Stocking up with the tastiest food and drink for Christmas doesn’t have to break the bank, according to a series of festive taste tests in which supermarket own-brand puddings, sparkling wine and champagne trumped more expensive products from upmarket rivals. Morrisons’ M Signature jewelled fruit Christmas pudding clinched the top spot in blind tastings carried out by the consumer group Which?, beating a rival from Fortnum & Mason which was described as tasting like “citrus bathroom cleaner”. At £3.99 the Morrisons pudding was the cheapest of the 11 tested from supermarkets and leading brands. It scored 85% it was hailed as “simply majestic”, having a “great depth of flavour”. As well as tasting better, it was less than half the price of Fortnum & Mason’s St James Christmas pudding which cost £10. Source: Retail Week
Source: Retail Bulletin
Issue 27 | December 2014
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Recently released On-the-go shopper missions 2014 The on-the-go mission is defined as food/and or drinks purchased and consumed outside of the home, on the same day, this includes quick service restaurants but excludes items brought from home. The food service sector has seen an increase in consumer spending regarding convenience foods; this is a direct consequence of consumer lifestyles becoming busier in recent years. Retailers are adapting their product offering in a bid to increase market share in the lucrative convenience sector. Not only are the ranges available to shoppers becoming more varied and extensive the number of c-stores is rising too with many retailers increasing their presence on high streets, and other shopper hubs such as train stations. This research will be an extensive study on UK shoppers ranging from attitudes to behaviour to consumption.
This report will tell you:
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Investigate the breakfast, lunch and snacking on-the-go missions looking into the key characteristics of each. Provide detailed insight into shopper motivation, behaviour and attitude with regards to each mission. Identify shopper circumstances and barriers to purchase such as cost and calories. Uncover the importance of factors such as health, price, taste, ‘fill factor’, and quality to different segments.
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For further information contact… t. 0113 394 4670 e. craig.bradley@evolution-insights.com
PRIMARY RESEARCH ©
On-the-go shopper missions 2014
Breakfast
items brought from home average spend
£4.26
Yogurt
26% Museli
for this mission
brought items from home to have as part of their Breakfast
Lunch
15% 48% Digestives fruit
water
items brought from home average spend
22%
£4.27 for this mission
brought items from home to have as part of their Lunch
Snacks
40%
16%
fruit
water
items brought from home average spend
18%
£2.63 for this mission
brought items from home to have as part of their Snack
25%
18%
fruit
water
Issue 27 | December 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)
March 2014
Published March 2014
Published April 2014
Published May 2014
Published May 2014
Published August 2014
Published August 2014
Published
September 2014
What, when, why, who & how
Published
Online Shopping
Published
What, when, why, who and how
November 2014
November 2014
Retailer Choice - How influenced are shoppers by the knowledge of a retailer’s price positioning
Published
Digital – The Use of Digital Devices
Published
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 27 | December 2014
November 2014
November 2014
FOOD & GROCERY NEWS ©
IN BRIEF
Family spending power at all-time high According to the latest Asda Income Tracker for October, discretionary incomes – the income left after taxes and essentials like rent, utilities and bills have been deducted – increased year on year for the thirteenth month in a row. The data showed that the average UK household had £176 a week of discretionary income in October, £8 a week higher than the same month a year before. This figure is the highest seen by the Income Tracker, surpassing the £174 peak last seen in January 2010. Asda said wages grew 1.3% in the three months to September compared with the
Tesco app scans Twitter profiles to provide users with gift inspiration
Tesco launches free WiFi internet in stores
previous year, while the cost of essentials like food and fuel fell year on year by 1.4% and 4.8% respectively. Source: Talking Retail
Contactless payments up 150% in last six months
Tesco is offering customers free wireless internet access at its stores in the UK and Republic of Ireland, following a new partnership with BT. The service has been rolled out to 806 Tesco Extra and Superstores in the UK and 113 stores in the Republic of Ireland. BT said the service will also use its ‘superfast’ Wi-Fi service where available, boosting bandwidth up to 76Mb where possible.
Aldi plans China move
Aldi is planning to expand into China, taking the German discounter into its fourth continent. The family owners of the firm are reported to have agreed to the move but no timeframe has been set. Analysts at the Planet Retail consultancy say Aldi is not likely to start operations in east Asia before 2018.
Why Waitrose is moving to a social-first strategy
Users of the ‘Secret Scan-ta’ app are invited to input the Twitter handle of the person they are buying the gift for to provide inspiration for presents. It assesses the person’s account by looking at the people and organisations they follow before suggesting suitable gifts via a link to the Tesco Clubcard website, where the products can be purchased. The app was created by social media agency We Are Social and Tesco’s digital marketing manager Katie Aust said it will “give the buyer a bit of genuine insight into what the recipient is really interested in”. Secret Scan-ta also incentivises using Tesco’s Clubcard, as users who input their Clubcard vouchers at the start of their search will have the value of their vouchers doubled and deducted from the gift’s price if they make the purchase.
New figures have shown that the number of contactless transactions rose by more than 150% in the last six months. According to figures released by payment processing company Worldpay, 6.65 million contactless transactions were processed in April 2014 compared to 16.69 million in October 2014. The data also shows that total transaction volumes using contactless have increased by 1,591% in the past two years. Supermarkets dominate the ‘tap and go’ payments market, accounting for 44% of all contactless transactions. Fast food outlets have also taken to contactless in significant number, processing 24% of all transactions
The idea behind the festive push is to get people to bake something to give to a friend, share the photo using the #bakeitforward hashtag and nominate a friend to do the same. As an added incentive, Waitrose will be rewarding some of the people that get involved with treats such as bottles of champagne and Christmas hampers.
Tesco expects Black Friday sales to exceed traditional Boxing Day sales Tesco has said that it expects its sales on this year's Black Friday to surpass those of its Boxing Day sales for the first time ever. The supermarket is to run its biggest ever Black Friday event this year, offering discounts of up to 70%.
Source: Retail Bulletin
Source: Retail Week
Issue 27 | December 2014
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EVO COMMENT
©
The Annual Retailers Christmas Advert-Off, 2014 Its mid-November, which means that we have all been seeing our screens littered with Christmas adverts for a couple of weeks now. Yes, the Coca-Cola advert has been on, which as we all know, officially marks the beginning of the Christmas period... !
The Christmas ad has become crucial for retailers – people look forward to seeing them, and a good Christmas campaign can help sales no end (just ask John Lewis). And one bad idea can have people remembering it for all the wrong reasons *cough, Asda 2012*. Almost all of the grocery retailers have now released their offering for this year’s Christmas-advert-off (Morrisons had not been released at the time of writing). So, which are good, and which are… meh? Here’s a run-down of what we have seen so far:
5/10 After a scandalous few months for the retailer, a boost in Christmas sales is essential. In a bid to show that they are still in touch with the average family, Tesco focuses on families getting ready for Christmas, culminating with the big Christmas tree light switch on. A bit safe, but probably for the best right now.
5/10 The Story of Christmas Smiles’ – Focuses on family time at charismas, mixed with showing off some of its exclusive Christmas range of products, including a profiterole cake (yum). Cute but not that memorable, not surprising though considering what happened a couple of years ago.. I would like to see something a bit better next year.
5/10 Controversial. For those that have seen it, I am sure you would agree that as an advert, it is shot beautifully, with a limited dialogue which emits a deep level of emotion, and obviously is very respectfully done. But, what claim does Sainsbury’s have to WWI? I’m failing to see the link. Have they just romanticised a horrific part of history for commercial gain? I’m conflicted, so 5/10
7/10 The Waitrose advert focuses on the trials and tribulations of a shy school girl who is asked to help bake gingerbread for a stall at the school fete. But really, the point of the advert to remind everyone that Waitrose is a Partnership, which obviously equates to better customer service. Obviously. Nice story and true to the Waitrose message.
6/10 Using the tagline ’Everyone’s coming to us this Christmas’, and featuring Jools Holland, Aldi plays on its increasing popularity with shoppers. Showcasing their extensive product range, they demonstrate how they can compete with the Big 4 in terms of the Christmas trimmings. A decent mix of product display and family fun.
6/10 A large table of people in Hertfordshire get the chance to sample a range of Christmas goodies without knowing where they came from. Whispers around the table can be heard – ‘It’s either Marks & Spencers or Waitrose’, ‘M&S?’, ‘Yeah, that’s what I thought’. But a card at the end reveals that in fact – shock horror – everything is actually from Lidl. The food does look pretty good though.
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Laura Sanderson – Senior Shopper Insight Analyst Issue 27 | December 2014
INNOVATION IN RESEARCH ©
Bulletin Board Focus Groups (BBFG) A BBFG is very similar to a message board or chat room. It is comprised of participants who have been recruited according to a screening criteria to participate in a discussion online.
Respondents are recruited in the same way as for traditional focus groups. Discussions can be designed to last as long as needed to accomplish the research objectives. However, 3-7 days are the most common lengths. A minimum number of participants for an active group would be 10. What makes a BBFG unique from other methodologies is that the respondents need not be present at the same time. Participants can "log-in" at times convenient to them to take part in the discussion. As a result participants often provide more in-depth feedback and well thought out responses. One of the key benefits of online qualitative research is the ability to access people living all over the country at no extra cost. Using cuttingedge technology, we can talk to and involve people wherever they happen to be, anywhere in the country or world. It's highly effective, flexible and convenient and a major addition to our repertoire of qualitative research methodologies.
For further information contact… Michael Symonds
Michael Symonds t. 0113 394 4672 t. 0113 336 6000 e. michael.symonds@evolution-insights.com e. michael.symonds@evolution-insights.com
Key benefits of BBFG Group members can participate from any Internet-connected computer at any convenient time. This means your focus group can include senior executives and decision makers who are difficult to convene. Participation requires no travel and can be conducted across time zones, from anywhere in the world. This eliminates travel costs and the need to co-ordinate many people's schedules. You can obtain more information from fewer groups. Up to 20 individuals can participate, in contrast to the 8 or so participants in faceto-face groups. You can observe the exchange and modify the questions while the group is in progress, allowing you to take advantage of unexpected turns in the discussion. Group members can remain anonymous to all but the moderator and client, so they tend to be more candid in their comments. By using graphics, sound and even video, participants can evaluate web sites, logos, commercials -anything that can be sent over the internet. Transcripts are available almost immediately in text format, avoiding costly transcription. With participant approval, quotes can be used for referrals and endorsements. Issue 27 | December 2014
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NEW IN 2015
Coming January 2015
We are more than just a research agency, we bring consumers and insight to life through a range of innovative research methodologies‌
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Issue 27 | December 2014
Remote eye tracking
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CONTACT US Š
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
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