Belt Tightening in Retail
A quantitative study into shopping behaviour and attitudes
Contents
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Background
Page 4
Methodology
Page 5
Management Summary
Page 7
Section 1: People continue to cut back
Page 9
- Main Considerations for Shoppers
Page 10
- Importance of Value
Page 11
- Importance of Distance - Spend by Demographic
Page 12 Page 13
- Regional Pride
Page 14
- Local in Numbers
Page 16
Section 2: Individual Sector Data
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- Food & Groceries
Page 20
- Household Goods
Page 22
- Entertainment & Leisure - Furniture
Page 24 Page 26
- Mobile Phones
Page 28
- Opticians
Page 30
- Chemists
Page 32
- Fashion & Clothing
Page 34
- DIY/Home Improvements
Page 36
- Frequency of Visits
Page 38
Four Main Themes NS Local Media Initiatives
2
Page 19
Page 39 Page 39
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Background
Methodology
Belt Tightening in Retail is a UK-wide quantitative research project which gives a snapshot of shopping habits and behaviour during challenging times. Originally carried out in 2008, this latest edition compares and contrasts previous research, and is once again conducted on behalf of the NS by Continental Research.
The research was carried out by Continental Research through online interviews of a nationally representative sample covering quotas on age, gender, class and ITV region.
The research gives new insights into perceptions of the retail environment and considerations when purchasing products and deciding where to shop.
The online survey was weighted to correct demographic and media bias.
Covering nine retail sectors from Groceries and Household Goods to Mobile Phones and DIY/Home Improvements, the research gives a comprehensive outlook of the retail market from the perspective of the consumer. Local media, comprising 1,100 local newspapers and 1,600 associated websites, provides an unrivalled connection with local communities throughout the UK. Belt Tightening in Retail builds upon the previous NS research in Retail as we hit a downturn, Local Matters, which looks at why, when and how people engage with the community and the unique role of local media, and Loving Local, focussing on the role that local media can play within communities nationwide. We hope these findings add value to your communications planning process. To find out more log onto www.newspapersoc.org.uk or contact us on +44 (0)20 7632 7400 and we will be happy to help.
In total 2,559 interviews were conducted across all regions of the UK.
The research was carried out between 13-20 August 2012 across nine retail categories: • Groceries • Household Goods • Furniture • Entertainment & Leisure • Mobile Phones • Opticians • Chemists • Clothing & Fashion • DIY/Home Improvements The questionnaire covered six broad topics relevant to the retail industry: - Important factors when deciding where to shop - Sources of information in the retail purchase cycle - Distance travelled to shop - Media usage - Attitudes to shopping - Frequency of shopping Local Media refers to local newspapers and associated websites.
Lynne Anderson Communications & Marketing Director
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5
Management Summary The new research into retail provides relevant insights into consumer shopping habits: • People are doing their grocery shopping less frequently but closer to home, with local media continuing to outperform at all stages of the path to purchase, particularly influencing where to shop. • Looking across all nine retail categories, consumers are not prepared to travel as far to do their shopping as they were four years ago. In 2012, people travelled an average of 5.7 miles to do their shopping, compared to 6.1 miles in 2008. • Unsurprisingly, people are looking to maximise value wherever they can, with 87 per cent of survey respondents saying they have tightened their belts on the amount they spend. • Consumers are increasingly community-focused, with 65 per cent saying they feel part of their community, and 83 per cent saying they are proud of the area they live in. Eighty-four per cent of people agree the recession has made supporting the local community more important and 86 per cent prefer to buy from local suppliers. • Looking across paid for media channels during different stages of the path to purchase, local media performed strongly across all stages coming top for showing price range and providing special offers, and vouchers/coupons across all nine retail sectors.
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7
Section 1 People continue to cut back....
8
9
Cost and value main consideration for shoppers, as well as distance and location… Which of these are important in deciding where to buy? (%)
2008 (%)
Cost/Value For Money
90
Distance/Location
84
Atmosphere/Ambience
75
Opening Hours
73
Variety
72
89
Importance of value across categories…
Those who answered that cost/value was important in deciding where to buy (%) 75
Groceries
84
69
H/hold Goods
52
66
Clothing
76
63
Furniture
82
Level Of Service
68
76
DIY
61
Convenient/Free Parking
68
77
Mobile Phones
61
Delivery Options
65
Good Public Transport Ethical Considerations
29 20
72
59
Ents/Leisure
34
53
Opticians
31 Chemists
Source: Newspaper Society Retail Survey 2012/BDR Continental Base: All who shop in each category.
42
Source: Newspaper Society Retail Survey 2012/BDR Continental Base: All who shop in each category.
• The top two considerations are cost and location, which were the main considerations in 2008 • Atmosphere and ambience has become more influential when considering where to shop, increasing substantially in 2012 (75%) compared to 2008 (52%), perhaps with shoppers taking some of the other factors as read
• As you would expect with finances tight, cost and value is a key consideration across all categories • When shopping for glasses/non-prescription drugs, there is more of a compromise in value, with other factors deemed to be more important
• The other most comprehensive change in influencing where to buy is the ethical factor (down 11%) which shoppers now appear to be willing to trade off for other considerations such as atmoshere and ambience 10
11
Importance of distance consistent across categories…
Little difference by age or social grade
“I have tightened my belt on the amount I spend...” (% Agree)
Those who answered that distance/location was important when deciding where to buy (%)
59
Chemists
84
84
Female
90
90
53
DIY
Age 16-34
51
Opticians
45
Clothing
88
88
91 91
Age 35-54
49
H/hold Goods
Age 55+
84
84
44
Furniture
ABC1 Adults
40
Ents/Leisure Mobile Phones
Male
66
Groceries
85
C2DE Adults
34
85 90
90
Source: Newspaper Society/BDR Continental Base: All who gave opinion Sample: 2,136
Source: Newspaper Society Retail Survey 2012/BDR Continental Base: All who shop in each category.
On average 87% of the population are ‘belt-tighteners’
• The importance of distance varies according to category • Groceries, which has the highest shopping frequency, also has the heaviest weighting when consumers consider travel distance
• Overall nearly every socioeconomic group claims to be ‘tightening their belts’ on the amount they spend
• Leisure and entertainment has one of the lowest weightings but the actual distance travelled is relatively low
• Almost nine out of 10 people are watching what they spend • The over 55s are least likely to cut back on spending
12
13
People are attached to the area they live in…
..and they are proud of their area too
%
% North East
59
North East
81
Yorkshire
72
Yorkshire
88
Wales and West
69
Wales and West
83
South West
60
South West
83
South East
64
South East
87
Scotland
69
Scotland
85
Northern Ireland
66
Northern Ireland
76
North West
63
North West
80
Midlands
66
Midlands
80
London
60
London
84
East of England
56
East of England
79
Source: Newspaper Society/BDR Continental Base: All who gave opinion Sample: 1,552
Source: Newspaper Society/BDR Continental Base: All who gave opinion Sample: 1,728
• People feel part of their community, nowhere more so than in Yorkshire • Across every region in the UK over half of those interviewed agreed that they are attached to where they live
14
• As well as feeling part of their community, Yorkshire also boasts the proudest people in the UK, with 88% agreeing that they are proud of their area
15
People STILL love their local area
83%
86%
Agree that ‘they are proud of the area they live in’
Prefer to buy from local suppliers Sample: 1,645
Sample: 1,552
84%
92%
Agree ‘the recession has made supporting the local community more important’
Like ‘companies that involve themselves in the local community’
People are more economically positive on a local level
Sample: 1,648
22% Agree that ‘they feel part of their community’ Sample: 1,728
Sample: 1,654
Agree that the local economy is doing well Sample: 1,729
65%
Source: Newspaper Society/BDR Continental Base: All who gave opinion Sample: Mixed
Vs. 11% 16
Agree that the country is doing well Sample: 2,120
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Section 2 Individual Sector Data
18
19
Food & Groceries Cost/Value for Money
Most important factors in deciding where to shop (%):
• Cost and value are more important than ever in the grocery category the most frequent shopped for category
75
Distance/ Location
• As grocery retailers increase their secondary distribution through ‘local‘ outlets, people are travelling even shorter distances to shop
66
Convenient/ Free Parking
• What is clear is that the role of local media is the most effective at influencing where to shop
52
% Media across decision making process
%
40
40
30
30
20
20
10
10
Learn about new products
Distance to travel
Compare products and services
2008
3.3
Show price range
Deciding where to shop
2012
Promoting special offers/promotions
Containing vouchers/coupons
National Newspaper/ Website
Commercial Radio
Commercial TV
Local Newspaper/ Website
Outdoor
Cinema
Magazines
3.4 20
Source: Newspaper Society Retail Survey 2012/BDR Continental Base: Grocery Shoppers Sample Size: 2,030. ‘Distance to travel’: All respondents 2,559
21
Household Goods Cost/Value for Money
Most important factors in deciding where to shop (%):
• Three-quarters of consumers consider cost and value to be most important ahead of distance and parking for household goods (electrical products)
75
Distance/ Location
• People will travel just over six miles to purchase household goods
49
Convenient/ Free Parking
• Local media is the dominant media across all stages of the decision-making process
42
% Media across decision making process
%
40
40
30
30
20
20
10
10
Learn about new products
Distance to travel
Show price range
Compare products and services
2008
Deciding where to shop
2012
5.9
Promoting special offers/promotions
Containing vouchers/coupons
National Newspaper/ Website
Commercial Radio
Commercial TV
Local Newspaper/ Website
Outdoor
Cinema
Magazines
6.1 22
Source: Newspaper Society Retail Survey 2012/BDR Continental Base: Shop for household goods. Sample Size: 1,588. ‘Distance to travel’: All respondents 2,559
23
Entertainment & Leisure Cost/Value for Money
• Entertainment and leisure (books, DVDs, CDs etc.) is less driven by cost and value as other categories but remains the most important factor ahead of distance and location
Most important factors in deciding where to shop (%): 59
Distance/ Location
• Distance travelled to shop for entertainment and leisure is relatively short reflecting the fact that products are now available through a range of outlets such as supermarkets etc.
40
Variety
• Throughout the decision-making process local media is the most influential media
36
% Media across decision making process
%
40
40
30
30
20
20
10
10
Learn about new products
Distance to travel
Compare products and services
Deciding where to shop
2012
2008
5.3
Show price range
Promoting special offers/promotions
Containing vouchers/coupons
National Newspaper/ Website
Commercial Radio
Commercial TV
Local Newspaper/ Website
Outdoor
Cinema
Magazines
5.5 24
Source: Newspaper Society Retail Survey 2012/BDR Continental Base: Shop for ents & leisure. Sample Size: 1,874. ‘Distance to travel’: All respondents 2,559
25
Furniture Cost/Value for Money
• Cost and value dominate as considerations for a furniture buyer but delivery is far more important than in any other category
Most important factors in deciding where to shop (%): 63
Delivery Options
• Given the distribution and location of furniture outlets the distance travelled to purchase is further than any other categories but still less than 10 miles
47
Distance/ Location
• Local media is the most influential media channel across all stages of the purchase decision especially when deciding where to shop (39%) and showing the price range of products (36%)
44
% Media across decision making process
%
40
40
30
30
20
20
10
10
Learn about new products
Distance to travel
Compare products and services
2008
Show price range
Deciding where to shop
2012
Containing vouchers/coupons
National Newspaper/ Website
Commercial Radio
Commercial TV
Local Newspaper/ Website
Outdoor
Cinema
9.4 26
Promoting special offers/promotions
Magazines
9.9
Source: Newspaper Society Retail Survey 2012/BDR Continental Base: Shop for Furniture. Sample Size: 637. ‘Distance to travel’: All respondents 2,559
27
Mobile Phones Cost/Value for Money
• For mobile phone buyers cost and value is not as highly considered in comparison to other categories but overall is still the most important
Most important factors in deciding where to shop (%): 61
Level of Service
• Level of service and distance to retail outlets are the next in terms of deciding where to shop
36
Distance/ Location
• The distance travelled to an outlet is just under six miles reflecting the wide range of outlets for mobile phones
34
• Local media is very effective across all stages of decision-making especially when learning about new products (36%)
% Media across decision making process
%
40
40
30
30
20
20
10
10
Learn about new products
Distance to travel n/a
Compare products and services
Show price range
Deciding where to shop
2012
2008
Promoting special offers/coupons
Containing vouchers/coupons
National Newspaper/ Website
Commercial Radio
Commercial TV
Local Newspaper/ Website
Outdoor
Cinema
Magazines
5.8 28
Source: Newspaper Society Retail Survey 2012/BDR Continental Base: Shop for mobiles and answered question. Sample Size: 596 ‘Distance to travel’: All respondents 2,559
29
Opticians Cost/Value for Money
• Although cost is the more important factor when choosing where to shop for opticians it is lower when compared to other sectors
Most important factors in deciding where to shop (%): 53
• Distance is important and level of service is more influential in this sector when compared to other industries
Distance/ Location
51
Level of Service
• People will travel on average just under five miles to visit the opticians • Local media is the lead media across all stages of decision making for opticians
45
% Media across decision making process
%
40
40
30
30
20
20
10
10
Learn about new products
Distance to travel
Compare products and services
Deciding where to shop
2012
2008
4.6
Show price range
Promoting special offers/promotions
Containing vouchers/coupons
National Newspaper/ Website
Commercial Radio
Commercial TV
Local Newspaper/ Website
Outdoor
Cinema
Magazines
4.8 30
Source: Newspaper Society Retail Survey 2012/BDR Continental Base: Shop for opticians. Sample Size: 1,598 ‘Distance to travel’: All respondents 2,559
31
Chemists Distance/ Location
Most important factors in deciding where to shop (%):
• Distance is clearly the most important in deciding where to shop for non-prescription drugs
59
Cost/Value for Money
• This is reflected in the short distance people travel to buy products sold by chemists (3.3 miles)
42
Opening Hours
• Local media is the most effective media in helping people decide where to shop for non-prescribed products
41
% Media across decision making process
%
40
40
30
30
20
20
10
10
Learn about new products
Distance to travel n/a
Compare products and services 2008
Show price range
Deciding where to shop
2012
Promoting special offers/promotions
Containing vouchers/coupons
National Newspaper/ Website
Commercial Radio
Commercial TV
Local Newspaper/ Website
Outdoor
Cinema
Magazines
3.3 32
Source: Newspaper Society Retail Survey 2012/BDR Continental Base: Shop for chemists. Sample Size: 1,654 ‘Distance to travel’: All respondents 2,559
33
Fashion & Clothing Cost/Value for Money
• Cost and value are the most important factors in deciding where to shop but distance and variety are also important
Most important factors in deciding where to shop (%): 66
Distance/ Location
• Shoppers will travel a little further than other categories to shop for fashion and clothing, but still focus closer to home, reflecting on their value-seeking tendencies
45
Variety
• Local media is a key source across all stages of decision-making in where to shop for clothing and fashion
45
% Media across decision making process
%
40
40
30
30
20
20
10
10
Learn about new products
Distance to travel
Compare products and services
2008
Show price range
Deciding where to shop
2012
7.2
Promoting special offers/promotions
Containing vouchers/coupons
National Newspaper/ Website
Commercial Radio
Commercial TV
Local Newspaper/ Website
Outdoor
Cinema
Magazines
7.4 34
Source: Newspaper Society Retail Survey 2012/BDR Continental Base: Shop for clothing and answered question. Sample Size: 1,393. ‘Distance to travel’: All respondents 2,559
35
DIY/Home Improvements Cost/Value for Money
Most important factors in deciding where to shop (%):
• Cost, location and parking are the top three factors for consumers when deciding where to shop for DIY products
61
Distance/ Location
• The distance travelled is slightly higher than other categories but still close to where shoppers live
53
Convenient/ Free Parking
• Local media is effective at all stages of the decision-making process but is particularly influential when deciding where to shop
46
% Media across decision making process
%
40
40
30
30
20
20
10
10
Learn about new products
Distance to travel
Compare products and services
Show price range
Deciding where to shop
2012
2008
5.6
Promoting special offers/promotions
Containing vouchers/coupons
National Newspaper/ Website
Commercial Radio
Commercial TV
Local Newspaper/ Website
Outdoor
Cinema
Magazines
5.7 36
Source: Newspaper Society Retail Survey 2012/BDR Continental Base: Shop for DIY & answered question. Sample Size: 1,531. ‘Distance to travel’: All respondents 2,559
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Frequency of Visits Average grocery trips per month
Four Main Themes
2012
People are continuing to cut back - Belt-tightening across all retail sectors
2008
Cost/Value for money the #1 priority - Focused shopping behaviour especially looking for value
8.7 7.5
Locality more important than ever - Despite growth internet users continue to shop locally Consumers seek promotion & value messaging - Local media #1 paid-for media Source: Newspaper Society/ BDR Continental 2008/2012 Base: All grocery shoppers.
Newspaper Society’s Local Media Initiatives • 1 piece of copy - 1 order, 1 invoice • Advertising position and day of week guarantees in all daily titles • Contact the Communications & Marketing team on +44 (0)20 7632 7400 or CAM@newspapersoc.org.uk for more information
• Across all categories for frequency of shopping, grocery outlets were clearly the most visited, with an average of 7.5 visits per month • In other industry sectors, entertainment and leisure (1.7), chemists (1.5) and fashion and clothing (1.5) were the next in terms of frequency of visits, with furniture (0.6) visited the least per month • Consumers are now grocery shopping over one trip per month less than they were four years ago, supporting the fact that consumers are ‘tightening belts’ on spend
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• Connecting national advertising to local features • Local editorial alongside national advertising • Local press is most trusted medium and messages initiate response • log onto www.featurelink.org.uk for more information • The home of NS Communications & Marketing • Free consulting resource for advertisers and agencies to better understand the context and power of local media • check www.thewantedads.co.uk for more information
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