evolution : knowing : listening : understanding grocery shoppers
SHOPPER TREND REPORT
SHOPPER INSIGHTS | REPORTS | CONSULTANCY | STRATEGY Issue 35 | August 2015
Sainsbury’s edges ahead of Asda as Co-op returns to growth Lloyds Pharmacy to buy Sainsbury’s pharmacies for £125m Channel Series – High Street Discounters 2015 Online Packaging Testing Lidl TV adspend accelerates 400% as Tesco and Morrisons tumble Morrisons buyers are “on the GCA radar” Is Private Label doomed?
EVOLUTION REPORT
COMING SOON Channel Series 2015 – Bulk Discounters In this series of reports we look in detail at six different channels within the UK Food & Grocery market. This report looks in detail at the Bulk Discounter channel as a whole, then in more detail at Amazon, Costco, Makro & Ethnic Superstores. This penultimate instalment of our in-depth channel series covers a multitude of themes in this area.
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This report will tell you: Who shops at Bulk Discounters, how often they visit and on which days of the week. Which retailer shoppers visit primarily; and the other retailers in their store repertoire How shopper perceptions of Bulk Discounters compare to the other channels in terms of Price and Quality. This report also explores whether Bulk Discounter shoppers plan to shop at this channel more/the same/less in the future How shoppers choose their primary store and which characteristics are important to each demographic/typology including: Location, Price, Quality, Value, Range and Parking. How the different retailers are perceived in terms of Price, Quality, Value and Range (by those who shop there and those who don’t) Where shoppers would prefer to shop if the barrier of Price was removed, how loyal are shoppers to their primary store? Shopper’s attitudes to shopping for Food & Groceries online at Amazon, and how interested they would be in an Amazon same day delivery service (Food & Grocery) Which categories shoppers wouldn’t buy from a Bulk Discounter and why Individual retailer profiles including: shopper share, primary store by demographics, drivers to that retailer, how likely are the different demographics/typologies to visit that retailer (indexed against the channel) and preferred retailer
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For further information contact… t. 0113 394 4670 e. craig.bradley@evolution-insights.com
01 | Issue 35 | August 2015
GREETINGS Michael Symonds
In this month’s issue...
Research Manager
Welcome to Issue 35 of our Shopper Trend Report The latest industry data shows that Sainsbury’s has overtaken Asda to become the UK’s secondbiggest supermarket as sales at the Walmartowned chain continue to fall much faster than any of its major rivals. Sainsbury’s has previously pulled ahead of Asda for brief periods over the past few years, but generally that has been at Christmas, when Sainsbury’s benefits from shoppers seeking out the quality fresh food it is known for. This is the first time since 2003 that Sainsbury’s has pulled ahead of Asda outside of Christmas. The Co-op enjoyed its first rise in sales in just over a year, indicating that a turnaround effort may be starting to gain traction. Sales rose by a healthy 1%, the chain’s fastest pace of growth in two years, helping it to maintain its 6.3% market share. The Co-op has been opening more convenience stores, cutting prices and recently announced plans to put 1,000 more staff on its shop floors in an attempt to win over shoppers. Morrisons, which has a market share of 10.9%, was the best performer of the big four grocers for the third period in a row with sales falling by just 0.1%.
WHAT’S NEW: Evolution’s new website – Evolution Shopper
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FOOD & GROCERY NEWS Sainsbury’s edges ahead of Asda as Co-op returns to growth Lloyds Pharmacy to buy Sainsbury’s pharmacies for £125m
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EVOLUTION REPORT: Channel Series – High Street Discounters 2015
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PRIMARY RESEARCH: Channel Series – High Street Discounters 2015
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EVOLUTION REPORT CATALOGUE 2015
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INNOVATION IN RESEARCH: Online Packaging Testing
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FOOD & GROCERY NEWS Lidl TV adspend accelerates 400% as Tesco and Morrisons tumble Morrisons buyers are “on the GCA radar”
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WHAT’S NEW: Evolution Consumer _________________________________________ EVO COMMENT: Is private label doomed?
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
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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 | Issue 35 | August 2015
For all your shopper enquiries call us on 0113 394 4670 email on info@evolution-insights.com
‘BIG FOUR’
FOOD & GROCERY NEWS
Sainsbury’s edges ahead of Asda as Co-op returns to growth According to latest grocery share figures, Sainsbury’s has edged its market share ahead of Asda in the 12 weeks to 19 July, retaking its position as the second largest supermarket. Sainsbury’s market share now stands at 16.5% despite a 0.3% fall in sales, while Asda’s share fell to 16.4%. The Co-operative sales increased by 1% in the period, its first rise since July 2014, while growth accelerated at Waitrose, with sales increasing 3%. Morrisons was the best performer among the ‘big four’ retailers, although sales dipped by 0.1%. Meanwhile, sales were down 0.6% at Tesco and 2.7% at Asda. Discounters Aldi and Lidl continued to take market share from the competition, with sales increasing by 16.6% at Aldi and 11.3% at Lidl. Kantar said both have moved to new market share highs of 5.6% and 4% respectively. Source: Talking Retail
Lloyds Pharmacy to buy Sainsbury’s pharmacies for £125m Owner of Lloyds Pharmacy, Celesio, has announced that it is to buy Sainsbury’s pharmacy business for £125m. Under the terms of the deal, Lloyds Pharmacy will acquire 281 pharmacies in total, including 277 in-store pharmacies and four located in hospitals, all of which will be rebranded as Lloyds Pharmacy. Sainsbury’s will receive commercial annual rent payments from Lloyds Pharmacy for each location, while approximately 2,500 Sainsbury’s pharmacy colleagues will transfer to Lloyds Pharmacy under TUPE. Sainsbury’s chief executive Mike Coupe said: “Pharmacy services are incredibly popular with Sainsbury’s customers and we are delighted to be teaming up with Lloyds Pharmacy to develop our offer.” Source: Talking Retail
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EVOLUTION REPORT
RECENTLY RELEASED Channel Series 2015 – High Street Discounters In this series of reports we look in detail at six different channels within the UK Food & Grocery market. This report looks in detail at the High Street Discounter channel as a whole, then in more detail at Poundland, Home Bargains, Wilkinson, B&M, Poundworld, 99p Stores and Pound-Stretcher. This instalment of our in-depth channel series covers a multitude of themes in this area.
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This report will tell you: Who shops at High Street Discounters, how often they visit and on which days of the week Which retailer shoppers visit primarily; and the other retailers in their store repertoire How shopper perceptions of High Street Discounters compare to the other channels in terms of Price and Quality Reasons why shoppers think that High Street Discounters are cheaper than other channels How shoppers choose their primary store and which characteristics are important to each demographic/typology including: Location, Price, Quality, Value, Range and Parking How the different retailers are perceived in terms of Price, Quality, Value and Range (by those who shop there and those who don’t) Where shoppers would prefer to shop if the barriers of Price and Location were removed, how loyal are shoppers to their primary store
Which shoppers are willing to travel further to their primary store, why, and which stores they pass en–route (or do they just go there because it’s the closest store to their home) Which categories shoppers wouldn’t buy from a High Street Discounter and why Individual retailer profiles including: shopper share, primary store by demographics, drivers to that retailer, how likely are the different demographics/typologies to visit that retailer (indexed against the channel), preferred retailer and which retailers they pass en-route to their primary store
For further information contact… t. 0113 394 4670 e. craig.bradley@evolution-insights.com
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EVOLUTION REPORT
REPORT SNIPPETS Channel Series 2015 – High Street Discounters
QUALITY
High Street Discounters are perceived to be the Worst Quality of all the channels (6th out of 6)
Drivers in order of importance
DRIVERS
LOCATION
SHOPPER SHARE
1st
2nd
3rd
4th
5th
6th
Over half of Poundworld primary shoppers have a different High Street Discounter closer to their home.
Wilko, Home Bargains, B&M Bargains & Pound Stretcher (Non single-price retailers) make up 61% of the Shopper Share for this channel
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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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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 Discount Supermarket Convenience High Street Discounters Bulk Discounters Click & Collect Online
Phased between June – Nov 2015
Published June 2015 Published June 2015 Published June 2015 Published July 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
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INNOVATION IN RESEARCH 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 large 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.
For further information contact‌ 09 | Issue 35 | August 2015
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.
Michael Symonds t. 0113 394 4670 e. craig.bradley@evolution-insights.com
FOOD & GROCERY NEWS
Lidl TV adspend accelerates 400% as Tesco and Morrisons tumble Lidl spent more than double the amount of Tesco in the first half of this year, increasing its marketing investment by a whopping 408% compared with the same period last year. The discounter, which has been shedding its Germanic image with campaigns focusing on quality and 'affordable luxury', spent £26.4m on TV advertising between 4 January and the end of June, industry data has shown. Whilst TV is just one part of the marketing mix, that figure was more than double the spend of any other major grocer in the UK over the period apart from Asda, which spent £18.1m. Market leader Tesco spent £12.8m in the first six months of this year on TV ads - less than half Lidl's investment and a 19% drop compared with the same period in 2014. Meanwhile, Morrisons had the greatest spending decline of the big four, reducing spend by 23%, while Sainsbury's, which said it connected with customers across a wide range of platforms alongside TV, dipped by 2%. Source: Marketing Magazine
Morrisons buyers are “on the GCA radar” Buyers at Britain’s fourth largest supermarket chain have attempted to secure one-off payments from around 20 suppliers in a possible breach of a code backed by the government. Only “a handful” of these efforts were blocked by the supermarket’s legal team. The government-backed code forbids these sorts of demands and cites that supermarkets mustn’t “vary any supply agreement retrospectively”, unless in very select circumstances. An internal email from Morrisons’ legal team, seen by The Guardian, also instructs buyers to take advice on how to continue demanding one-off payments from suppliers while still satisfying regulators. Last week, the grocery watchdog said it had called for explanation from Morrisons after a letter sent to suppliers, revealed by The Guardian, asked for a lump sum payment” in order to facilitate the grocer’s half year profits. The GCA said that at this stage it “has no evidence that Wm Morrison has breached the code.” Source: Retail Gazette Issue 35 | August 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
In-home filming
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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
BLOG
EVO COMMENT
Is private label doomed? In fact, should the question be…is private label causing the demise (well relative demise) of the Big 4? The large retailers have always tried to cater to every shopper, especially those on a budget. So rather than restricting them to only buying Brands, shoppers have a three tier choice of an own label alternative in many categories. These (own label products) though are perceived as poorer quality alternatives…but a few years ago they were the only alternative…not any more. The retailers even appear to motivate shoppers to try and discover one at an acceptable quality…making clear the trade-off between Price & Quality. The problem they now have is that the Discounters have thrown a spanner into the works!! I often read that shoppers are drifting (well running) to the Discounters purely as a money saving exercise, to me this only tells half the story. One of the most important drivers is that they are offering alternative products to the main Brands, which are not only cheaper…but actually of an equal or better quality than the well-known brands.
The stigma of offering a lower tier own brand to a friend has always been in the minds of the shopper, but these alternatives appear to be seen in a totally different light. The shopper is no longer seen as a having money troubles by offering these alternatives…but of being adventurous in trying a lookalike or foreign alternative. Our recent Discounter Channel research saw that nearly three quarters of Discounter shoppers think they are cheaper because they offer foreign brands, and they don’t see these brands as being inferior! And with their perception that the prices are 25% cheaper compared to the Supermarkets, having great locations, fast moving carparks and manageable store sizes…the Big 4 have a lot of work to do to combat their rise…is it even possible? So to summarise, there is no Stigma to shopping at Lidl anymore…there is about buying Everyday Value! Craig Bradley Managing Director - Evolution Insights
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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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