evolution : knowing : listening : understanding grocery shoppers
SHOPPER TREND REPORT
SHOPPER INSIGHTS | REPORTS | CONSULTANCY | STRATEGY Issue 34 | July 2015
Tesco suppliers rate it the worst of the Big Four supermarkets New Tesco scheme to tackle food waste NEW Evolution Report: Channel Series 2015 – Discount Supermarkets ShopperTrack Discounter Lidl turns out to be the biggest spender
Ferrero to gorge on Thornton’s for £112m
EVOLUTION REPORT
COMING SOON Channel Series 2015 - Convenience This section of our channel series looks into primary shoppers’ behaviours and perceptions of Convenience stores. With the rise of the Top-Up shop in the Food & Grocery market, Convenience stores have experienced an increase in demand. Our in-depth research will examine the shopper habits (spend, frequency of visits, barriers to category purchase), perceptions (of Price, Quality, Value and Range), and drivers towards retailers in this channel. The report also examines how shoppers view Convenience stores when compared to Large Supermarkets.
This report will tell you:
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The channel penetration of Convenience store against other channels The frequency of visits to Convenience retailers (Tesco Express, Tesco Metro, Sainsbury’s Local, M&S Simply Food, Little Waitrose, M Local and Symbol Groups)
Shopping missions that are carried out at Convenience stores The shopper share of Convenience retailers The virtual shopper share of Convenience retailers Shopper’s perceptions of the Price, Quality, Range and Value of Convenience Retailers Which Convenience Retailer is closest to the shoppers home The main reasons for the shoppers choice of Convenience Store How much a shopper spends at a Convenience Store, by mission What categories are bought from Convenience Stores The categories shoppers would not buy from a convenience store, and their barrier to purchase (out of categories they normally buy) Situations where shoppers would choose to shop at a Convenience Store over a Large Supermarket
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Price perceptions of Convenience Stores compared to a Large Supermarket
For further information contact… t. 0113 394 4670 e. craig.bradley@evolution-insights.com
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| Issue 34 | July 2015
GREETINGS Michael Symonds
In this month’s issue...
Research Manager
Welcome to Issue 34 of our Shopper Trend Report It’s been another turbulent month in the UK food & grocery market…
There was more bad news for Tesco when their suppliers’ rated them the worst of the big four supermarkets in complying with a code ensuring fair treatment of food manufacturers and farmers, according to a confidential survey. There are strong reports that Ocado is poised to close a deal with an international retailer that will enable it to expand its international footprint. In February, Chief Exec Tim Steiner said that the etailer had developed Ocado Smart Platform to target international online retail business opportunities. Ocado has previously been linked to deals with Carrefour of France and Safeway of the US. Any such deal would massively assure shareholders. In other news it has emerged that convenience store owners have invested £162m of their own money in the past three months in the wake of changing grocery shopping habits; in attempts to better meet time-poor customers’ needs, small food shop owners are self-funding their stores. Money well spent or money down the drain??
WHAT’S NEW: Evolution’s new website – Evolution Shopper
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FOOD & GROCERY NEWS Tesco suppliers rate it the worst of the Big Four supermarkets New Tesco scheme to tackle food waste
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EVOLUTION REPORT: Channel Series – Discount Supermarkets 2015
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PRIMARY RESEARCH: Channel Series – Discount Supermarkets 2015
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EVOLUTION REPORT CATALOGUE 2015
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INNOVATION IN RESEARCH: ShopperTrack
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FOOD & GROCERY NEWS Discounter Lidl turns out to be the biggest spender Ferrero to gorge on Thornton’s for £112m
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WHAT’S NEW: Evolution Consumer
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 2015
Issue 34 | July 2015 |
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NEW WEBSITE
WHAT’S NEW
Evolution Insights has just launched a brand new re-vamped website. We are more than just a research agency, we bring consumers and insight to life through a range of innovative research methodologies…
The site will show you… • Our innovative methodologies • A comprehensive lists of our reports • Our consulting credentials • The brands we work with • Client testimonials • The latest shopper news & comment • How you can receive free research
Go on, take a look, we would love to hear your feedback… evolution-insights.com 03
For all your shopper enquiries call us on 0113 394 4670 email on info@evolution-insights.com | Issue 34 | July 2015
‘BIG FOUR’
FOOD & GROCERY NEWS
New Tesco scheme to tackle food waste Tesco suppliers rate it the worst of the Big Four supermarkets Britain’s biggest retailer has found itself the worst-rated of the UK supermarket in complying with an industry code that ensures fair treatment of food manufacturers and farmers, according to a survey commissioned by the grocery industry watchdog. Britain's Groceries Code Adjudicator (GCA) said a survey of 1,145 suppliers found that 4% of Tesco's suppliers felt that the market leader never complied with the code of practice (although that was an improvement on its 6% rating a year ago). The findings highlight the challenges facing Tesco Boss Dave Lewis, who is attempting to amend the grocer’s relationship with its suppliers following last year's £263m accounting scandal, which related to the booking of supplier payments. In February the GCA opened a formal investigation into Tesco's relations with its suppliers. Source: Retail Gazette
Tesco has announced the launch of a new scheme to redistribute unsold food in its stores to people in need. The retailer has partnered with UK food redistribution charity FareShare and Irish social enterprise FoodCloud to trial the ‘FareShare FoodCloud’ initiative, which allows Tesco store managers to record the amount of surplus food they have at the end of each day, and notify charities via an app. If the charity then confirms it wants the food, it can be collected free of charge and turned into meals for those in need. Beneficiaries will come from the wide range of charities FareShare works with including homeless hostels, women’s refuges and breakfast clubs for disadvantaged children. Tesco said the scheme is already in place at Tesco stores in Ireland and will now be piloted in ten Tesco stores around the UK. It said new figures recently published showed that 55,400 tonnes of food was thrown away at Tesco stores and distribution centres in the UK over the past year, of which around 30,000 tonnes could have been eaten. Source: Talking Retail Issue 34 | July 2015 |
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EVOLUTION REPORT
JUST RELEASED Channel Series 2015 – Discount Supermarkets
This report will tell you:
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This section of our channel series investigates shopper perceptions, attitudes and behaviours in relation to Discount Supermarkets. Discount Supermarkets have the second highest penetration of all the channels, and continue to increase their share of the Food & Grocery market; our in-depth research explores a multitude of themes in this area. The Discount Supermarket report will cover channel penetration, primary store (including how shoppers define primary store), shopper share, drivers to store, barriers to purchase (by category) and overall perceptions of the different retailers (Quality, Price, Range and Value).
The penetration of shoppers that visit a Discount Supermarket regularly, alongside the shopper share of each retailer. Shopper perception of Price and Quality by channel. The frequency of visits carried out by shoppers at a Discount Supermarket. How shoppers define primary store and which retailer is their primary store based on their own definition. Which retailer shoppers would prefer to shop at if money/location were no object. The drivers to primary store and their importance including: Parking, Location, Range, Value, Quality, Price and Location. Shopper perception of Value, Quality, Price and Range of each retailer. Which retailers are closest to shoppers’ homes and whether they choose to pass other stores on route to their primary store and why. Barriers to purchasing 12 proxy categories at a Discount supermarket. Shoppers’ perception of the Discount Supermarket channel, and how they view it in relation to Large Supermarkets
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For further information contact… t. 0113 394 4670 e. craig.bradley@evolution-insights.com
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| Issue 34 | July 2015
EVOLUTION REPORT
REPORT SNIPPETS Channel Series 2015 – Discount Supermarkets
SHOPPER
BARRIERS
The main barrier to buying categories in this channel is that they don’t have all the brands that shoppers want
Drivers in order of importance
DISCOUNTER
DRIVERS
1st
2nd
22%
3rd
4th
5th
6th
of Shoppers have one or more
Discount Supermarkets closer to their home than their primary store
DISCOUNTER
LOCATION Home
SHOPPING
FREQUENCY
An average shopper visits a Discount Supermarket 4 times per month (across missions)
x x
x x
Issue 34 | July 2015 |
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EVOLUTION SUBSCRIPTION
REPORT CATALOGUE 2015 Health & Product Information
Explores shoppers’ attitudes to health and healthy eating, nutrition labels and how healthy shoppers are in their own opinion. We will also provide an overview of the drivers associated with buying healthy products
Published January 2015
Loyalty Cards & Price Matching
This is a new report that will look into the main retailers offering of loyalty cards in terms of what they offer and how they work, who used them and if they are redeemed. Brand match is a concept that has been taken up by most of the large retailers, so we will look at how individual retailers define their brand match, what they offer in return, and what shoppers think of it.
Published January 2015
In-store Decision Making 2015
The Decision Making 2015 report will provide a detailed look into the Shopper Decision Hierarchy, i.e. how shoppers make decisions when confronted with a number of products in-store. We will describe the types of planning that Shoppers will do prior to the shop, and how each of them will influence their decision making in-store – from being faced with a category selection, all the way down to the selection of a single product. Of course, the order of the hierarchy is not the same for every shopper in each category, but we have ascertained the most typical SDH in 11 different categories (Inc. Cereal, Crisps and yogurts).
Published March 2015
Planning 2015- The use of lists and pre shop knowledge
In our Planning 2015 report we will explore the extent that shoppers pre-plan before entering the store. We examine what characteristics shoppers know about the items they plan to buy and if those who use a shopping list will know more or less characteristics about the item they plan to buy than shoppers who don’t use a list. We will also give insight into how likely a shopper is to pick up an unplanned product on impulse from different locations in store.
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| Issue 34 | July 2015
Published March 2015
EVOLUTION SUBSCRIPTION
REPORT CATALOGUE 2015 Channel Series (7 Individual Reports)
These reports will give a holistic view on where shoppers go, how frequently and most importantly why they choose the different channels to fulfil their shopping needs. This collection will be comprised of the seven following reports:
Supermarket Discounter Convenience Click & Collect High Street Discounter Non-Standard Grocery Online
Phased between June – Nov 2015
Published June 2015 Published June 2015
Shopper Missions (6 Individual Report)
These reports takes an in-depth look at Shopper Missions and examines shoppers’ behaviour across all missions in relation to frequency, patterns, channel, planning, spend and more. The Mission reports are made up of four separate reports, of which one will be split into three occasions:
Not Published Phased between Aug – Oct 2015
Main shop Top-up Meal for Tonight Breakfast On the go Lunch On the go Snacking On the go
The Use of Digital Devices for Food & Grocery Shopping
The Digital Shopping report looks at how these technologies are being adopted by shoppers. Specifically, we will look at technology penetration and usage, apps, contactless payment and social media – all in relation to the Food & Grocery sector.
Not Published Due Nov 2015
Issue 34 | July 2015 |
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INNOVATION IN RESEARCH ShopperTrack ShopperTrack is a new methodology that allows mobile apps to recognise when a mobile device is near small wireless sensors called iBeacons. The iBeacon can transmit data to a mobile device and vice-versa using Bluetooth.
This technology allows you to track how shoppers navigate a store and where dwell time is whilst they are on their in-store journey. ShopperTrack has the ability to identify where shoppers have stopped in-store (e.g. promotional ends) ; we can then push an exit survey to the shopper to see if they bought the product. Please note: This methodology is in it’s infancy and requires respondents to install an app on their smartphone
For further information contact‌ 09
| Issue 34 | July 2015
Michael Symonds t. 0113 394 4670 e. craig.bradley@evolution-insights.com
FOOD & GROCERY NEWS
Discounter Lidl turns out to be the biggest spender Budget stores are opening at the rate of more than five a week following a cost of living squeeze that has transformed shopping habits. Chains like Aldi, Lidl, Poundland, Iceland, Home Bargains and Farmfoods are fast becoming the biggest names on the high street with growth overtaking the big four supermarkets. And while Tesco, Sainsbury’s, Morrisons are cutting thousands of staff and abandoning opening ‘big box’ stores, their discount rivals are racing to open new outlets. The budget chains have opened 1,367 units over the last five years, which represents growth of 48 per cent and takes the total to 4,217. By contrast the big four - Tesco, Asda, Sainsbury’s and Morrisons - opened 582 full size supermarkets, taking the total to 2,316. The changes have been described by industry leaders as the biggest to hit grocery shopping since the arrival of the chain supermarkets in the 1950s. Source: The Daily Mail
Ferrero to gorge on Thornton’s for £112m Ferrero, the biggest chocolate producer in the world, has taken a 29.9% piece of Thornton’s with a promise to buy the rest of the business. CEO Jonathan Hart stepped down earlier this year, following a string of disappointing earning updates, following unprecedented reductions in major supermarket orders and problems with a new centralised warehouse. In a sweet deal, the Nutella maker has now reached an agreement on the terms of a recommended cash offer, valuating Thornton’s at approximately £111.9m. Commenting on the offer, Paul Wilkinson, Chairman of Thorntons said: “Ferrero is offering our shareholders an attractive premium to the average price of Thorntons’ shares over the last three months. Although the prospects for Thorntons as an independent company remain strong as the Company embarks on the next phase of its strategy, the Board of Thorntons also recognises the potential benefits to the brand and the business, including employees and all stakeholders from combining with the Ferrero Group.” Source: Retail Gazette Issue 34 | July 2015 |
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CONSUMER
WHAT’S NEW www.evolutionconsumer.com We are more than just a research agency, we bring consumers and insight to life through a range of innovative research methodologies‌
Packaging testing
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In-home filming
Online communities
V-logs
Remote eye tracking
Bulletin board focus groups
For all your consumer enquiries call us on 0113 394 4670 email on info@evolutionconsumer.com | Issue 34 | July 2015
SEE HOW WE CAN HELP
CONTACT US 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.
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Consulting
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Get in touch and find out more +44 (0) 113 394 4670 evolution-insights.com info@evolution-insights.com
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