M A R C H 7 , 2 0 11
FOOD SHOPPING SHIFTS Here are the trends in food retail that will define the future of the category. These trends will challenge “classic” channels and manufacturers; and embolden others to seize the opportunity.
© A L L R I G H T S R E S E R V E D 2 0 11
FOOD AVAILABLE EVERYWHERE IMPACTS SHOPPERS
SANDWICHES @ DUANE READE
FRESH FOOD @ TARGET
Compared to a few years ago, 3/4 are noticing food being sold in more different stores and 1/2 say they are actually buying food in more places -- especially 18-34 year olds and Hispanic Shoppers. (SEE APPENDIX TABLES 1A) TOTAL January 2011 1504
18-34
35-54
55+
Caucasian
Hispanic
441
584
479
1006
200
African American 198
% Notice food being sold in more places
77
75
76
80
75
80
82 E
% Buy food in more places
49
59 CD
49 D
41
45
60 E
54 E
Base: Total Respondents
A %
AGE
B %
C %
ETHNICITY
D %
E %
F %
Q: Have you noticed that food products are sold in more different types of stores today compared to a few years ago? Q: Are you buying food in more stores compared to a few years ago? FOOD SHOPPING SHIFTS | MARCH, 2011
2
Š ALL RIGHTS RESERVED 2011
G %
SHOPPERS ACT ON THEIR PRIORITIES What shoppers notice (or look for) partially reflects their priorities, but a solid 2/3 like what they see in the food stores they shop. (SEE APPENDIX TABLES 2A,3A)
»! Noticed most heavily by 70%-73% of shoppers was expanded selection of store brands and organic/natural food. »! 73% notice, and almost all like, the increased visibility of nutritional information. »! Over half (56%) noticed more specialty food stores opening and 1/3 notice smaller supermarket formats – 2/3 like both. »! New store services (i.e. reporting the origin of fresh foods and health-ratings) are noticed early by nearly half of shoppers, and ! already find them appealing. »! Fewer notice improvements in customer service (40%), but everyone (89%) wants a pleasant experience.
3 © ALL RIGHTS RESERVED 2011
FOOD RETAILING TRENDS
“I’VE NOTICED THIS”
“I LIKE THIS”
%
%
Expanded store brand selection in food
73
78
More visible nutritional information
71
86
70
62
64
74
56
63
49
82
42
74
41
80
40
89
More small supermarkets opening
34
69
Registered dietitians in aisles to answer questions
15
63
Base: Total Respondents (n=1504)/ Varies by trend noticed
Expanded selection of organic and natural foods Healthier options added by convenience and fast food chains (i.e. fruit, salad) More specialty food stores opening (i.e. Whole Foods) Stores letting you know where fresh food was grown Stores rating foods based on how healthy they are More food retailers supporting charitable or community causes Customer service in food stores is improving
Q: Which of the following have you noticed/liked about food stores? FOOD SHOPPING SHIFTS | MARCH, 2011
DEMO PREFERENCES SHAPE FOOD RETAIL FUTURES Young, Hispanic and African American Shoppers have unique attitudes and behaviors that will help shape the future of food retail:
(SEE APPENDIX TABLE 2A)
»! More 18-34 year olds already buy food in more places and notice and like smaller supermarket formats. »! More Hispanic and African American Shoppers already buy food in more places and notice and like dieticians in the aisles – satisfying their hunger for information to make healthier choices. »! Overall, more Hispanic and African American Shoppers noticed many of the features/services (SEE APPENDIX TABLE 2A) that support healthier eating.
4 © ALL RIGHTS RESERVED 2011
KEY DIFFERENCES BY AGE TOTAL
18-34
35-54
55+
A %
B %
C %
D %
% Buying food in more places (n=1504)
49
59 CD
49 D
41
% Noticing smaller supermarkets (n=1504)
34
47 CD
28
28
% Liking expansion of smaller supermarkets (n=511)
69
73 D
69
63
KEY DIFFERENCES BY ETHNICITY TOTAL
CAUCASIAN
HISPANIC
AFRICAN AMERICAN
A %
B %
C %
D %
% Buying food in more places (n=1504)
49
45
60 B
54 B
% Noticing dietitians in aisles to answer questions (n=1504)
15
11
23 B
24 B
% Liking dietitians in aisles to answer questions (n=226)
63
51
72 B
69 B
FOOD SHOPPING SHIFTS | MARCH, 2011
INSIGHTS TO ACTIVATE Here are the trends in food retail that will define the future of the category. These trends will challenge “classic” channels and manufacturers, and embolden others to seize the opportunity.
1.! Who owns food shopping? Many can. If ever you doubted that shoppers will buy anything
everywhere, this Food category report proves it. Half of all shoppers feel they are buying food in more places now than they were a year ago. This comes two weeks after the PULSE we published on Gift Cards, which showed the same results – as gift cards are sold in more places, more people buy them.
2.! Transparency will define trust for food retail. Transparency about where the produce is grown and the fish farmed is as important to shoppers today as good service.
3.! Nutrition guidance is a big win, especially with African American and Hispanic Shoppers. Over ! of all shoppers welcome nutrition counseling and guidance in food stores, but it becomes an even bigger opportunity with minority shoppers, who are the majority in many communities.
4.! Small store formats make modest gains. Small formats have been expanding, and 1/3 of shoppers have noticed. Many say they like them, but the size of the store is not as important as the transparency around food and nutrition.
5.! Store brands are popular. In the top 5 things shoppers have noticed, and like, is the expansion of retailers’ brands.
TO THE SMART EXAMPLES 5 © ALL RIGHTS RESERVED 2011
FOOD SHOPPING SHIFTS | MARCH, 2011
SMART EXAMPLES: KROGER & GIANT EAGLE »! Kroger’s private label produce, Fresh Selections, comes packaged with a 16-digit code so shoppers can trace the product’s origin, learn how it was grown, and where. These details can be accessed in-store with the HarvestMark mobile app, or on harvestmark.com.
»! Giant Eagle’s Market District format offers an instore nutritionist to help guide purchase decisions. It further supports healthy nutrition by offering a variety of free educational events such as “Tour of the Store” where shoppers can learn how to read food labels, shop for soy or Gluten free products.
T O T H E A P P E N D I X TA B L E S 6 © ALL RIGHTS RESERVED 2011
HOW AMERICA SHOPS® SMART MOVES & GOTTA SEE | 1Q 2011
APPENDIX TABLES TABLE 1
REACTIONS TO FOOD AVAILABLE EVERYWHERE
»! A: By Demographics »! B: By Retailer Shoppers
TABLE 2
FOOD RETAILING TRENDS (NOTICED)
»! A: By Demographics »! B: By Retailer Shoppers
TABLE 3
FOOD RETAILING TRENDS (LIKED)
»! A: By Demographics Only
7 © ALL RIGHTS RESERVED 2011
FOOD SHOPPING SHIFTS | MARCH, 2011
TABLE 1A: REACTIONS TO FOOD AVAILABLE EVERYWHERE TOTAL January 2011 1504
Men
Women
18-34
35-54
55+
<$50K
739
765
441
584
479
722
% Notice food being sold in more places
77
73
81B
75
76
80
78
% Buy food in more places compared to a few years ago
49
46
53 B
59 EF
49F
41
49
Base: Total Respondents
A %
GENDER
B %
C %
AGE
D %
E %
F %
G %
INCOME $50k$99K 566
ETHNICITY 216
1006
200
African American 198
75
77
75
80
82 J
49
52
45
60 J
54 J
H %
$100K+ Caucasian I %
J %
Q: Have you noticed that food products are sold in more different types of stores today compared to a few years ago?
8
© ALL RIGHTS RESERVED 2011
How America Shops® The PULSE of Shopping Life is based on national survey conducted in January 2011
Hispanic K %
L %
TABLE 1B: REACTIONS TO FOOD AVAILABLE EVERYWHERE TOTAL
IN THE PAST WEEK
IN THE PAST 3 MONTHS
MASS MERCH.
DRUG STORE
WAREHOUSE CLUB
DOLLAR STORE
SUPERMARKET
DEPARTMENT STORE
Total
Total JCP Macy’s Kohl’s
Total
WMT
TGT
Total CVS
WG
Rite Aid
1504
949
766
379
1079
182
272
90
574
166
216
907
142
105
1132
311
164
152
147
940
874
110
101
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
% Notice food being sold in more places
77
79
80
78
79
75
81
76
81
78
83
81 OT
80
82
78
82
83
80
81
77
82 OT
87
78
82
% Buy food in more places compared to a few years ago
49
61 52 G 46
45
51
54
56
49
56 OT
48
49
50
52
65 OP
57
58
51
55 O 52
46
47
Base: Total Respondents
55 O 56
Total Costco Sam’s Total
Dollar Family SafeAlbertTotal Kroger Publix Gen. Dollar way son’s
ONLINE
Q: Have you noticed that food products are sold in more different types of stores today compared to a few years ago?
9
© ALL RIGHTS RESERVED 2011
How America Shops® The PULSE of Shopping Life is based on national survey conducted in January 2011
162
TABLE 2A: FOOD RETAILING TRENDS (NOTICED) TOTAL
GENDER
AGE
INCOME
ETHNICITY
January 2011
Men
Women
18-34
35-54
55+
<$50K
$50k$99K
1504
739
765
441
584
479
722
566
216
1006
200
198
A %
B %
C %
D %
E %
F %
G %
H %
I %
J %
K %
L %
Expanded store brand selection in food
73
70
76 B
66
74 D
78 D
73
74
70
75 K
67
72
More visible nutritional information
71
68
74 B
65
69
78 DE
72
69
73
69
76
75
Expanded selection of organic and natural foods
70
66
74 B
68
69
73
68
71
73
69
70
72
Healthier options added by convenience and fast food chains (i.e. fruit, salad)
64
61
68 B
66
64
64
66I
66I
56
63
64
74 JK
More specialty food stores opening (i.e. Whole Foods)
56
53
58
64 EF
52
52
55
54
62
51
62 J
70 J
Stores letting you know where fresh food was grown
49
48
50
52
46
48
48
49
50
47
52
50
Stores rating foods based on how healthy they are
42
43
40
47 EF
38
41
43
40
42
38
48 J
51 J
More food retailers supporting charitable or community causes
41
39
42
51 EF
37
36
41
40
43
36
54 J
46 J
Customer service in food stores is improving
40
41
39
43 E
36
43 E
43 H
37
39
35
50 J
53 J
More small supermarkets opening
34
36
32
47 EF
28
28
36 H
31
34
27
42 J
53 JK
Registered dietitians in aisles to answer questions
15
18C
13
26 EF
12
10
16
14
18
11
23 J
24 J
Base: Total Respondents
10 Š ALL RIGHTS RESERVED 2011
$100K+ Caucasian Hispanic
Q: Which of the following have you noticed about food stores?
How America ShopsÂŽ The PULSE of Shopping Life is based on national survey conducted in January 2011
African American
TABLE 2B: FOOD RETAILING TRENDS (NOTICED) TOTAL
IN THE PAST WEEK
IN THE PAST 3 MONTHS
MASS MERCH.
Total WMT
DRUG STORE
TGT
Total CVS
WG
1504 A %
949 B %
766 C %
379 D %
1079 E %
182 F %
272 G %
Expanded store brand selection in food
73
78
77
77
75
70
78F
More visible nutritional information
71
73
74
75
73
69
Expanded selection of organic and natural foods
70
74
73
79 C
74
64
69
68
69
68
56
59
Stores letting you know where fresh food was grown
49
Stores rating foods based on how healthy they are
Base: Total Respondents
WAREHOUSE CLUB
Rite Aid
SUPERMARKET
Dollar Family SafeAlbert Total Costco Sam’s Total Total Kroger Publix Gen. Dollar way -son’s
ONLINE
DEPARTMENT STORE
Total
Total JCP Macy’s Kohl’s
574 I %
166 J %
216 K %
907 L %
142 M %
105 N %
1132 O %
311 P %
164 Q %
152 R %
147 S %
940 T %
874 U %
110 V %
101 W %
162 X %
71
78
76
80
76
77
70
76
78
76
76
75
75
76
80
78
82
73
68
74
68
73
73
65
76
73
77
73
69
76
72
73
72
74
70
71
69
72
76
79
75
73
69
66
74
74
76
79
76
73
76
74
84 X
70
62
67
72
66
65
67
69
65
70
67
68
64
64
60
66
69
76
66
66
58
66 59 H 54 BC
56
47
61
62
56
56
51
58
58
60
63
62
64
56
60
58
69
59
49
50
49
49
43
46
49
52
48
49
50
51
43
50
53
52
53
56
50
53
55
52
52
42
42
42
41
42
38
42
42
44
37
44
44
45
50
41
42
41
42
45
41
41
43
39
43
More food retailers supporting charitable or community causes
41
42
42
46
41
35
43
34
42
36
40
42
40
48
41
43
43
47
44
40
43
37
43
39
Customer service in food stores is improving
40
41
42
41
40
36
38
44
40
36
40
42
44
34
39
43
45
45 48 O
39
41
46
46
39
More small supermarkets opening
34
33
33
38
33
32
31
33
35
31
33
34
36
34
32
37
37
37
39
33
33
33
34
27
Registered dietitians in aisles to answer questions
15
14
15
19 B
14
10
11
10
14
10
13
16
12
17
13
16
19
19
25 OP
14
16
9
Healthier options added by convenience and fast food chains (i.e. fruit, salad) More specialty food stores opening (i.e. Whole Foods)
11 © ALL RIGHTS RESERVED 2011
90 H %
DOLLAR STORE
Q: Which of the following have you noticed about food stores?
How America Shops® The PULSE of Shopping Life is based on national survey conducted in January 2011
15 X 18 X
TABLE 3A: FOOD RETAILING TRENDS (LIKED) TOTAL
GENDER
AGE
INCOME
ETHNICITY
January 2011
Men
Women
18-34
35-54
55+
<$50K
$50k$99K
1504
739
765
441
584
479
722
566
216
1006
200
198
A %
B %
C %
D %
E %
F %
G %
H %
I %
J %
K %
L %
Customer service in food stores is improving (n=602)
89
86
92 B
80
90 D
95 DE
87
91
89
89 K
81
92 K
More visible nutritional information (n=1067)
86
80
90 B
77
86 D
92 DE
82
88 G
90 G
86
83
90
Stores letting you know where fresh food was grown (n=737)
82
79
84
72
82 D
90 DE
81
80
87
81
79
85
More food retailers supporting charitable or community causes (n=617)
80
73
85 B
73
84 D
83 D
78
83
74
78
79
85
Expanded store brand selection in food (private labels) (n=1097)
78
78
79
78
78
78
79
78
76
78
79
85
Convenience stores and fast food chains offering healthy options (i.e. fruit, salad) (n=963)
74
67
80 B
69
73
78 D
74
73
75
71
80J
79 J
Stores rating foods based on how healthy they are (n=631)
74
71
77
64
77 D
81 D
72
75
77
73
74
76
More small supermarkets opening (n=511)
69
68
71
73 F
69
63
66
71
77
66
73
71
More specialty food stores opening (i.e. Whole Foods) (n=842)
63
60
67 B
63
66
61
62
64
68
59
66
73 J
Registered dietitians in aisles to answer questions (n=226)
63
61
67
57
68
72
59
65
74
51
72 J
69 J
Expanded selection of organic and natural foods (n=1053)
62
56
66 B
64
61
61
60
63
64
56
69 J
72 J
Base: Total Respondents
12 Š ALL RIGHTS RESERVED 2011
$100K+ Caucasian Hispanic
Q: Of the trends in food retailing that you noticed, which do you like?
How America ShopsÂŽ The PULSE of Shopping Life is based on national survey conducted in January 2011
African American
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