K I N G SURVEY
R E TA I L
S O L U T I O N S
Traditional Retail Categories Are Blurring
Consumer Behaviors and Attitudes Towards Grocery, Fresh Meal, Clothing, and Service Purchases
Retail design firm King Retail Solutions (“KRS”), in conjunction with the University of Arizona Center for Retailing, conducted a four-part study to better understand US consumers’ current and evolving shopping habits and purchasing motivators, specifically as relates to grocery, fresh-prepared meal, clothing , and services purchases. We’ve all seen the expansion of each of these categories at retail establishments ranging from supermarkets and convenience stores to big box and department stores. The results of this survey illustrate the changing retail landscape and shoppers’ embrace of a blurred retail environment. The study also analyzes demographic variances and suggests that category blurring will continue to thrive, making the embrace of new sales channels both an opportunity for retailers and a source of added competition as retailers compete outside of traditional channels (ex. grocery stores competing with quick service restaurants).
U.S. CONSUMER SURVEY: FALL 2013 Survey conducted by King Retail Solutions, in conjunction with the University of Arizona Center for Retailing, Fall 2013. Multi-generational respondents included ~400 millennials, ~400 gen-x, and ~400 baby boomers. Equal parts male/female. (www.kingrs.com)
LET’S START WITH GROCERY In the preceding 12 months: 77%
BOUGHT GROCERIES FROM A NON-GROCER
62%
BOUGHT FRESH MEALS FROM A NON-RESTAURANT
57%
BOUGHT CLOTHING FROM A NON-CLOTHIER
20%
BOUGHT A SERVICE FROM A NON-SERVICE PROVIDER
In the coming 12 months: 96%
WOULD BUY GROCERIES FROM A NON-GROCER
92%
WOULD BUY CLOTHING FROM A NON-CLOTHIER
88%
WOULD BUY FRESH MEALS FROM A NON-RESTAURANT
74%
WOULD BUY A SERVICE FROM A NON-SERVICE PROVIDER
Which groceries are they buying at non-grocery stores?
59%
77%
42%
CANNED/BOXED
82%
FRESH FRUIT/VEG
54%
38%
49%
22%
PEOPLE W/ KIDS
FROZEN
DAIRY
BREAD
73%
PEOPLE W/O KIDS
MEAT
IN THE PRECEDING 12 MONTHS, 24% OF SHOPPERS MADE A GROCERY LIST INTENDING TO FULFILL THE ENTIRE LIST AT A NON-GROCERY: 79%
BIG BOX
25%
PHARMACY DOLLAR STORE C-STORE
WWW.KINGRS.COM
of people bought groceries from a non-grocer
52%
81% WOMEN
71% MEN
of people buy groceries from a non-grocer more than once a month
58%
PEOPLE W/ KIDS
55% WOMEN
18% 7%
49%
PEOPLE W/O KIDS
49% MEN
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“It can’t all be about one-stop-shop, but if it’s a retailer they appreciate, they are going to shop there and if new, non-traditional items are available for sale, they are going to buy those items. Expanding what you sell is only a part of the equation; delivering a valuable shopping experience is the real challenge.” ANDREW SWEDENBORG, EVP, KING RETAIL SOLUTIONS
REGARDLESS OF GENERATION, GENDER, INCOME, OR LOCALE EXCEPT:
SHOPPERS WERE ASKED TO RANK THEIR DECISION MAKING FACTORS IN CHOOSING WHERE TO BUY GROCERIES (INCLUDING GROCERY STORES)*:
1. 2. 3. 4. 5.
Cost Convenience Quality Selection Access to Non-Grocery Items
BABY BOOMERS, THOSE MAKING $50K-$100K, AND RURAL DWELLERS:
value quality above convenience
* In Order Of Importance
57%
MILLENNIALS
40% GEN X
The millennial generation is already comfortable shopping at c-stores, pharmacies, and other non-traditional venues for groceries. In fact, urban, male, millennials (YOUNG CITY GUYS) are the demographic most likely to purchase some groceries at a convenience store (72% do it) or pharmacy (49% do it).
36%
BABY BOOMERS
AT 57%, MILLENNIALS ARE MORE LIKELY THAN GEN X (40%) AND BABY BOOMERS (36%) TO BUY GROCERIES AT A CONVENIENCE STORE AT 47%, MILLENNIALS ARE MORE LIKELY THAN GEN X (37%) AND BABY BOOMERS (36%) TO BUY GROCERIES AT A PHARMACY
BIG BOX 60%
BAKERY/DELI 32%
C-STORE 72%
FARMERS MARKET/ LOCAL STAND 9%
PHARMACY 49%. $ STORE 28%
DISCOUNT STORE 4% DEPARTMENT STORE 9%
Where are people buying groceries? 66%
BIG BOX
43%
C-STORE PHARMACY
30%
DOLLAR STORE
30% 17%
BAKERY/DELI/RESTAURANT
11%
FARMERS MARKET/LOCAL STAND DISCOUNT STORE DEPARTMENT STORE WWW.KINGRS.COM
7% 5%
MAKE MORE, BUY MORE. In the past 12 months… PEOPLE MAKING: <$25K
73%
$25-$50K
75%
$50-$100K $100-$150K >$150K
76% 79% 83%
…bought groceries from a non-grocer.
SUBURBAN
URBAN
RURAL
79% 76% 73% Suburban people (79%) are slightly more likely than urban (76%) and rural (73%) dwellers to buy groceries from a non-grocer.
Top 20 favorite places to buy groceries (THAT AREN’T GROCERY STORES)
FARMERS MARKET/ FOOD STALLS
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MOVING FROM GROCERY ONTO CLOTHING REGARDLESS OF GENERATION, GENDER, INCOME, OR LOCALE EXCEPT:
SHOPPERS WERE ASKED TO RANK THEIR DECISION MAKING FACTORS IN CHOOSING WHERE TO BUY CLOTHING (INCLUDING CLOTHING STORES)*:
1. 2. 3. 4. 5.
MILLENNIALS:
Cost Quality Selection Convenience Access to Non-Clothing Items
value quality so much that it shifts the overall results
GEN X & BABY BOOMERS:
value selection above quality
* In Order Of Importance
Where are they buying clothing? 81%
BIG BOX DOLLAR STORE
15%
PHARMACY
13%
LOCAL VENDOR/EVENT
9%
SERVICE PROVIDER
7%
RESTAURANT
5%
CONVENIENCE STORE
4%
Top 10 favorite places to buy clothing (THAT AREN’T CLOTHING STORES)
WWW.KINGRS.COM
THEY SAY THEY HAVE THE SAME VALUES, BUT PEOPLE WITH KIDS ARE MORE LIKELY THAN PEOPLE WITHOUT KIDS TO BUY CLOTHING FROM A NON-CLOTHING STORE.
62%
PEOPLE WITH KIDS
53%
PEOPLE WITH OUT KIDS
...AND NOW FRESH PREPARED FOODS SHOPPERS WERE ASKED TO RANK THEIR DECISION MAKING FACTORS IN CHOOSING WHERE TO BUY FRESH-PREPARED MEALS (INCLUDING RESTAURANTS)*:
1. 2. 3. 4. 5.
Top 20 favorite places to buy fresh prepared meals (THAT AREN’T RESTAURANTS):
Quality Cost Convenience Selection Access to Non-Fresh Prepared Meal Items
* In Order Of Importance
REGARDLESS OF GENERATION, GENDER, INCOME, OR LOCALE EXCEPT: WOMEN:
Value selection over convenience INCOME $100-$150K:
$$ Value convenience over cost INCOME >$150K:
$$$ Value selection & convenience over cost IT SEEMS THE MORE ONE MAKES, THE LESS COST MATTERS IN FRESH PREPARED MEAL PURCHASES.
Where they buy fresh prepared… 74%
GROCERY
44%
BIG BOX
28%
C-STORE PHARMACY
35% MEN
9%
23% WOMEN
THE FELLAS ARE MORE LIKELY THAN THE LADIES TO BUY A FRESH MEAL FROM A CONVENIENCE STORE. PAGE 5
LAST BUT NOT LEAST: SERVICES REGARDLESS OF GENERATION, GENDER, INCOME, OR LOCALE EXCEPT:
SHOPPERS WERE ASKED TO RANK THEIR DECISION MAKING FACTORS IN CHOOSING WHERE TO BUY SERVICES (INCLUDING SERVICE PROVIDERS) *:
1. 2. 3. 4. 5.
Cost Quality Convenience Selection Access to Non-Service Items
BABY BOOMERS, WOMEN, PEOPLE WITH INCOME >$100K/YEAR, AND URBAN DWELLERS ALL
value quality over cost
* In Order Of Importance
Top 10 favorite places to buy services
Where they buy services… 52%
BIG BOX
32%
PHARMACY DEPARTMENT STORE
14%
GROCERY
14%
(THAT AREN’T SERVICE PROVIDERS) BIG BOX
PHARMACY
11%
CONVENIENCE STORE
BIG BOX
IMPULSE CHECKS: PHARMACY
Millennials tend to make more impulse buys… GROCERIES
FRESH PREPARED
CLOTHING
SERVICES
CLUB
DEPARTMENT STORE
22% 17%
18%
18% 12%
16% 10% 10%
9%
10%
PHARMACY 9% 5%
MILLENNIAL
GEN X
BOOMER
[THIS GENERATION] SAID THE MAJORITY OF GOODS BOUGHT FROM NON- STORES WERE IMPULSE PURCHASES.
WWW.KINGRS.COM
CLUB
GROCERY
GROCERY
DEFINITIONS SURVEY TAKERS WERE GIVEN THESE EXPLANATIONS/DEFINITIONS…
Bakery/Deli/Restaurant (e.g., Starbucks, Panera, Cracker Barrel) Discount Store (e.g., Ross, TJ Maxx, Tuesday Morning) Clothing includes athletic apparel/gear; sleepwear; logo clothing for a sports team, band, school etc.; underclothes or socks; general fashion such as dresses, tops, and pants; logo clothing for a retailer (e.g., Hard Rock Café shirt); etc. Services are non-tangible purchases such as pedicures, oil changes, massages, hair cuts, and health exams/treatments. For the purposes of this survey, an example of buying a service at a non-service-specific store would be getting your HAIR CUT inside a PHARMACY... or getting your FLU SHOT at a GROCERY STORE. Fresh Prepared Meals include grab-and-go, takeout, or other ready-to-eat meals
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NOTES
WWW.KINGRS.COM
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