evolution : knowing : listening : understanding grocery shoppers
SHOPPER TREND REPORT
SHOPPER INSIGHTS | REPORTS | CONSULTANCY | STRATEGY Issue 37 | October 2015
Supermarket habits shoppers find most annoying Morrisons boss is buoyant about the future Morrisons pilots new logo as boss Potts ramps up transformation plan Channel Series 2015 – Online Grocery Shopping Waitrose unveils new Kings Cross store Aldi steps up supermarket war by launching online shopping
Online shopper decision making hierarchy
EVOLUTION REPORT
COMING SOON Channel Series 2015 – Online Delivery and Click & Collect Although Online Delivery is still the most common across retailers, Click & Collect is becoming increasingly available. Almost all Online retailers now provide a Click & Collect service alongside their home delivery, compared to in 2012 where only Tesco and Asda (under trail) provided Click & Collect for Groceries. This report looks into themes surrounding the uptake of each delivery method, comparisons between the two and shoppers’ perceptions of the services.
This report will cover the following subjects:
Channel penetration Online Shopper Channel Penetration Retailer Penetration Drivers to Online Delivery Most Important Factor in Choosing a Delivery Slot Receiving Alerts on Deliveries Late Deliveries Returning Grocery Items Tracking Orders Receiving Substitute Items Demand for Faster Delivery Previous Experience with Click & Collect Pick-Up Point Location Importance in the Location of the Pick-Up Point Reasons for Using Click & Collect Over Online Delivery Buying More In-Store Expected Cost of Click & Collect
For further information contact… t. 0113 394 4670 e. craig.bradley@evolution-insights.com
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| Issue 37 | October 2015
GREETINGS Michael Symonds
In this month’s issue...
Research Manager
Welcome to Issue 37 of our Shopper Trend Report Well it is that time of year again and the Christmas chocolates have started to make an appearance on the supermarket shelves. In the news David Potts, Morrisons CEO gave a vote of confidence to the business by buying more shares in the company… Is he crazy or very clever? Only time will tell… In other Morrisons news, the Bradford based grocer has pledged to pay 90,000 of it’s staff more than the Chancellor’s living wage from next year… I’m sure this was a much needed boost after all the recent bad news. Aldi have just announced that they will start online wine deliveries from early next year. However, the discounter’s UK and Ireland chief executive ruled out the possibility of selling fresh food online in the immediate future as Aldi prioritises the expansion of its bricks and mortar estate over ecommerce growth. Recent industry data showed that Tesco, Asda and Morrisons were the worst performing food retailers in the last three months – despite committing hundreds of millions of pounds to price cuts. Tesco’s market share now stands at 28.2%, its lowest level for a decade.
Michael Symonds
REVEALED: Supermarket habits shoppers find most annoying
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FOOD & GROCERY NEWS Morrisons boss is buoyant about the future Morrisons pilots new logo as boss Potts ramps up transformation plan
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EVOLUTION REPORT: Channel Series 2015 – Online Grocery Shopping
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PRIMARY RESEARCH: Channel Series 2015 – Online Grocery Shopping
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EVOLUTION REPORT CATALOGUE 2015
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FOOD & GROCERY NEWS Waitrose unveils new Kings Cross store Aldi steps up supermarket war by launching online shopping _________________________________________ ONLINE SHOPPER DECISION MAKING HIERARCHY
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INNOVATION IN RESEARCH: Behavioural and Real Time research
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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
FOOD & GROCERY NEWS The Co-op launches local supplier initiative in Yorkshire Tesco to bring back vinyl
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WHAT’S NEW: Evolution Consumer Issue 37 | October 2015 |
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REVEALED
SUPERMARKET HABITS SHOPPERS FIND MOST ANNOYING
We are more than just a research agency, we bring consumers and insight to life through a range of innovative research methodologies… Moving products around so you spend longer in the store trying to find what you want Lowest priced option often at the highest point so shorter people can’t reach Online or in-store exclusives. Creates a sense of immediacy when selecting products, so consumers will usually spend more than intended, as a feeling of missing out Making it difficult to work out the best offer, frequently with ready-packaged fruit and vegetables portrayed as having discounts versus loose Offers such as three for £10 when you only wanted one or two Pumping out the smell of bread baking to lure you in or make you hungry Slow music to make you move more slowly round the aisles High-sugar or higher-priced brand items at eye level for children Putting deals at the entrance of the store such as biscuits to make impulse buys Putting fruit, vegetables and flowers at the front of the store. We know this is to create an atmosphere of health and also provide smells and pleasant imagery providing positive vibes to make us buy more. This is annoying because these are the items that we want to put on top of the shopping not at the bottom where it is going to get crushed If you only want the essentials, such as bread, milk, fruit and vegetables; they are placed as far away from each other as possible to make you travel round the store Packaging. Is that “finest” or “Taste the difference” really better? In many tests and reviews this isn’t the case but are we conned into spending more because we are sucked into thinking they are better quality
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| Issue 37 | October 2015
‘BIG FOUR’
FOOD & GROCERY NEWS
Morrisons boss is buoyant about the future Morrisons CEO David Potts and Finance Director Trevor Strain have made a public show of confidence in the faltering supermarket by buying up 373334 shares between them. The dynamic investment, which cost Potts almost half a million pounds of his own money, comes despite recent poor performances by the ‘big four’ member. Morrisons recently shut 11 loss making supermarkets, in addition to the ten closed earlier this year, and offloaded almost its entire chain of unprofitable convenience stores. Another poignant misfortune came recently when credit rating agency Moody’s downgraded the rating for the business. Morrisons is but one major supermarket that is struggling to maintain its profits and market share in the face of increasingly dangerous discounters such as Aldi and Lidl. Since taking over as CEO in March Potts has axed 720 head office jobs, as well as 45 positions in the supermarket’s leadership team. Source: Retail Gazette
Morrisons pilots new logo as boss Potts ramps up transformation plan Morrisons is testing a new fascia as boss David Potts ramps up his bid to rejuvenate the embattled grocer. The new logo features an upper-case M with lower-case lettering, a move away from its current format of all capital letters. Yellow shapes, resembling leaves, have been added above the middle ‘I’, seemingly to create a tree. The year Morrisons was founded, 1899, has also been added to the logo, which was put in place at the grocer’s recently refurbished Merrion Centre supermarket in Leeds recently. A Morrisons spokesman told Retail Week there were no plans in place at this stage to roll the logo out to more stores. The spokesman added: “Our recently relaunched Merrion Centre store features a variation of the Morrisons logo. We are constantly listening to customers to ensure that we reflect their changing needs and what makes Morrisons better and different.” Source: Retail Week Issue 37 | October 2015 |
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EVOLUTION REPORT
RECENTLY RELEASED Channel Series 2015 – Online Grocery Shopping This section of our channel series investigates shopper perceptions, attitudes and behaviours in relation to Online Grocery Stores. The Online Grocery Channel has changed across the years. Delivery costs have continued to decline and retailers have been working upon improving and simplifying the Online shopping experience, so it comes as no surprise that the Online Grocery Channel is one of the fastest growing channels in Food & Grocery. Due to our past extensive reports we are able to comment and compare against previous years of Online trends and behaviours in this report. This report will cover the following subjects: Channel penetration Drivers to the channel Primary store (including how shoppers define primary store) Shoppers share Retailer drivers Overall perceptions of the Online retailers (Quality, Price, Range and Value) Virtual shopper share The Online Shopper Decision Making Hierarchy How shoppers conduct their online grocery shop (starting points, devices used, preferred filtering methods, all touch points used) Abandoning a shopping cart Substitute items Average budget for a Main Online Shop Reading and influence of product reviews Future trends Barriers to purchase Online Shopper Typologies Shopper profiles for each Online Retailer
For further information contact… t. 0113 394 4670 e. craig.bradley@evolution-insights.com
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| Issue 37 | October 2015
EVOLUTION REPORT
REPORT SNIPPETS Channel Series 2015 – Online Grocery Shopping
47% of household primary shoppers use the Online channel every month to buy Food & Groceries
38% of Online shoppers use their favourites list to begin their online shop
39% of shoppers said they have abandoned a shopping cart online
73% of Young Families have used the online channel in the past month
Shoppers perceive the following retailers to be the‌ Cheapest
Best Quality
Best Value
Best Range
Issue 37 | October 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 37 | October 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 Discount Supermarket Convenience High Street Discounters Bulk Discounters Online Click & Collect
Phased between June – Nov 2015
Published June 2015 Published June 2015 Published June 2015 Published July 2015 Published August 2015 Published September 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 37 | October 2015 |
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FOOD & GROCERY NEWS
Waitrose unveils new Kings Cross store Waitrose has opened a new branch and cookery school in London's Kings Cross. Housed in the restored Grade II-listed Midland Goods Shed, the store marks the completion of the latest phase in the redevelopment of King’s Cross. The cookery school is the retailer’s third in the UK and its second in London following the opening of the first Waitrose cookery school in London’s Finchley Road in 2010. The branch is also the first ever Waitrose to feature a working beer pump, which will be supplied by Camden Brewery, and forms part of the shop’s wine bar. Waitrose said the new store has been designed to allow the Victorian architecture to be sensitively refurbished and restored, breathing new life into the former railway passenger terminal and goods depot. Much of the structure’s original brick and iron work has been retained. The cookery school will feature tutored sessions on the latest food trends. In addition to ‘Lazy lunchtime’ courses of 90 minutes and bite-size two hour sessions held after work, longer classes running from 10am to 3pm will provide more intensive learning at the weekends. Source: The Retail Bulletin
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| Issue 37 | October 2015
Aldi steps up supermarket war by launching online shopping Aldi plans to launch an online store in Britain following a year of "record sales" which has seen the German discounter become the sixth biggest supermarket in the UK. The grocer said it will begin selling wine by the case online from early next year, followed by "special buy" non-food items in the spring, offering customers home delivery and collection from third party locations. The announcement came as Aldi reported a 31pc rise in full-year sales to a record £6.93bn last year. That's the equivalent of £31m in extra sales every week. However, the grocer said operating profit fell by £11m to £260.3m after it cut prices in a bid to attract customers and keep the pressure on the UK's main supermarket chains. “We refuse to be beaten on price by anyone. We’re maintaining a significant price gap of at least 15pc on an average basket of goods – people are seeing that value at the checkout, tasting the quality at home and coming back to do a full weekly shop, time and time again," said Matthew Barnes, chief executive of Aldi UK and Ireland. Source: The Telegraph
ONLINE SHOPPER DECISION MAKING HIERARCHY Intellectual property of
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For more information contact Craig Bradley - 0113 394 4670 craig.bradley@evolution-insights.com Issue 37 | October 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 real-life 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 11
| Issue 37 | October 2015
Michael Symonds t. 0113 394 4672 e. craig.bradley@evolution-insights.com
TRENDS
THE ‘CHUBBY GROCER’ Mark Price: The 'Chubby Grocer' helping Waitrose buck industry trends Inside a yawning, former railway shed above the main line out of King’s Cross station, a small army of men is working flat out. Everywhere, there is activity. Shelves going in here, lighting over there, more fixtures and fittings arriving at the door. Within a few days, says Mark Price confidently, this will be the new Waitrose King’s Cross branch. Seeing my smirk, he points out he has got form for this sort of thing: it will be the 179th new Waitrose to open since he became MD in April 2007. That does include branches at Welcome Break services, petrol stations and in the Middle East but even so, it’s going some. This is the 100th new store within the M25. Yet, as I read a headline in another newspaper, “Supermarkets cut space for the first time in a decade”, it shouldn’t be like this. Waitrose is cited in the article, which is based on research by analysts at Bernstein. According to them, the total floor space owned by Britain’s biggest eight supermarkets groups, which includes Waitrose, has contracted by 1%. It was a “remarkable” turn of events, “a major change in trend”, said Bernstein. Not where Waitrose and Price are concerned: “We’re adding space. In the first half of the year, we opened five new branches, including one acquisition, two relocations and one convenience store. In the second half, we plan six core branches, two major redevelopments and one convenience.”
He’s irrepressible, is Price. He was born in 1961, and joined John Lewis, owner of Waitrose, after leaving university in 1982 (he studied archaeology at Lancaster). His enthusiasm for the group, for his division, for the John Lewis partnership structure and style of working, remains undimmed. He’s not like other supermarket bosses. Indeed, his nickname — one he gave himself — of the “Chubby Grocer” says so. They do triathlons and Iron Man contests, and pride themselves on being stick thin and ultra-disciplined; he revels in the fact that he loves the food he sells, and wears his waistline as a badge of honour. But few of them can match his success, or his longevity (he was made Waitrose marketing director in 1998). He could choose to leave, to go and manage one of his rivals, but he refuses, preferring to stay and earn less money within John Lewis. When I ask how many job offers he’s had down the years, he grins. “A few. I get a good few every year.” Source: Evening Standard
Issue 37 | October 2015 |
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