ALL ABOUT A Quad GROCERY Infographic SHOPPERS Report€¦ · Infographic Report ALL ABOUT GROCERY...
Transcript of ALL ABOUT A Quad GROCERY Infographic SHOPPERS Report€¦ · Infographic Report ALL ABOUT GROCERY...
A Quad Infographic Report
ALL ABOUT GROCERY
SHOPPERS
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TABLE OF CONTENTS
Overview ..........................................................3
Industry Snapshot ....................................... 4-5
Spending ...................................................... 6-7
Coupon Habits ............................................ 8-9
In-Store Signage Trends ......................... 10-11
Technology .............................................. 12-13
Multicultural Shoppers ........................... 14-16
Future of Grocery Shopping .................. 17-18
Conclusion .....................................................19
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OVERVIEW
COMPETITION AND CONVENIENCE FOR GROCERY STORE SHOPPING“First we eat, then we do everything else.” Food writer M.F.K. Fisher’s words will always be true, but how Americans shop for food has changed. And you don’t need to be an industry expert to know delivery and mobile are reshaping retail grocery completely.
E-commerce hasn’t hit food stores quite as hard as other brick-and-mortar retailers. But nearly all grocers have pick-up options and are looking for best ways to deliver on-demand fresh food to homes. Many new competitors specialize in this growing service.
Mobile has transformed the in-store experience with things like, 1:1 offers, loyalty programs, self-checkout and personalized digital signage. Software that tracks consumers helps managers optimize store layout, and today’s consumers have higher expectations for what’s on the shelves.
Through it all, though, traditional grocery shopping is healthy across demographics. This report digs into segmentation, trends and what’s next. Then it ends with a way to tie everything together for success.
Because while Ms. Fisher’s sentiment won’t change, today’s shoppers demand convenience — so they have more time to “do everything else.”
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Industry Snapshot
Even with revenue in the hundreds of billions of dollars, grocers are up against new challenges. Digital deals, organic products and social responsibility change the ways stores operate to make a profit. The sector remains near the top of all retail, though, and those brands who evolve will thrive.
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MAJOR MARKET SEGMENTATION
GROCERS — SNAPSHOT
Source: IBISWORLD.COM
Source: First Research
GLOBAL MARKET
$2 TRILLION
Source: First Research
U.S. GROCERY MARKET REVENUE $608 BILLION
Source: U.S. Census Bureau, January to December 2018
Grocery is the 2ND LARGEST Retail Sector
Source: U.S. Census Bureau, January to December 2018
US Retail Sales
$5.9 TRILLION
35% Other Foods18.1% Beverages12.8% Dairy Products9.4% Other Non-Food ItemsSource: IBIS 2019
9.1% Fresh and Frozen Meat6.4% Frozen Foods5.5% Drugs and Health Products3.7% Fruit and Vegetables
55 Million Bought Organic Food in Spring 2017
Earnings MORE THAN $70,000–19.1%Earnings EQUAL TO $30,000 to $70,000–36.3%Earnings LESS THAN $30,000–44.6%
TOP 5 CHALLENGES FOR GROCERY INDUSTRY• Organic Trend• Socially Conscious Millennial• Voice Search Surge• Busy Parents• Digital ShoppersSource: Orbital Shift, March 2018
2019 Estimated Grocery Sales Revenue By Products
Source: Orbital Shift, March 2018
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Spending
Households spent more on food last year than ever before. And, that number will keep going up for both groceries and dining out, across all age demographics. Retailers need to think about price, convenience and the in-store shopping experience to help consumers decide where to spend their money.
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$109 per week on groceries
spend an average of
Source: Super Market News 2018
3.2
Estimated Online Food and Beverage annually will happen by 2022 or 2024
TOP 5food away from home went up in 2019
GROCERY SHOPPER SPENDING
2.2 TRIPS
to the grocery store each week per household
average
Source: Super Market News 2018
Source: Nielsen 2018
Source: Bureau of Labor Statistics 2019
Source: Bureau of Labor Statistics 2019
$100BILLION
.6%spending went up
in 2019
%
Source: Bureau of Labor Statistics 2017
AVERAGE
ANNUAL FOOD AT HOME SPENDING
$4,363~6%
5%Source: U.S. Department of Agriculture, USA Today 2017
of budget on groceries
of budget on dining out
Decision Factors by Chief Shopper
Source: Quad® 2018 Research Study Chief Shopper n=1,654 Millennials n=558 Gen-X n=448 Boomers n=507 Seniors n=140
Average Americans SpendFood at home
lowest everyday prices 18%
pleasant atmosphere 8%always shop there 6%
friendly employees 6%
close to home 14%
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Coupon Habits
It’s not just shoppers who benefit from coupons — marketers get valuable data when users redeem offers. And consumers don’t stick to one channel to find the best deals. Whether apps, retail inserts, email or direct mail, coupons convert new customers and give loyal shoppers reasons to buy more.
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IN-STORE DISPLAY36%
GROCER COUPONS
49%
Ad Insert
56%
DIRECT MAIL
31%email
MOBILE DEVICE
25%
Source: Quad/Graphics Customer Focus® 2018 Research Study Chief Shopper n=1,654 Millennials n=558 Gen-X n=448 Boomers n=507 Seniors n=140
Source: Quad/Graphics Customer Focus® 2018 Research Study *Chief Grocery Shoppers are those who purchase 60% or more of their households’ groceries
27%
Product Packaging
seek coupons from a variety of souces to save both PRINT & DIGITAL 51%
AVOID retail price — wait for sales notice or use coupons 46%
SWITCH BRANDS of products used regularly with a COUPON 37%
use grocery COUPONS REGULARLY or weekly 43%
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In-Store Signage Trends
Brick-and-mortar grocery stores are creating more welcoming experiences, and spotlighting what customers want. Digital can enhance aisles with augmented reality and dynamic shelf labels. With digital convenience and on-premise savings, the in-store experience is more personal and valuable.
Sale
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IN-STORE SIGNAGE TRENDS
Experiential environments that are welcoming and
look high-end
Mobile Scan-&-Go CheckoutIn-Store displays drive awareness, adoption, shopping bags and instructions
Source: Chain Store Age, May 2018
Source: Business Insider January 2018
Source: SmartLabel, June 2018
Augmented Reality on signage helps link consumers online and provide product information –Nutritional facts – About 28,000 products
now use SmartLabel
E-Ink Dynamic Electronic Shelf Labels • Allows grocers to
update pricing in real time over the internet
• By 2024 the ESL market is expected to grow more than $1.25 billion
Source: MarketWatch, December 2018
Customer-facing technology like digital signage is a priority for
North American retailers in 2018
1 5in
Source: eMarketer
One additional sign on-premise increases sales revenue by
4.75% on averageSource: visualogistix, March 2016
More than 2/3 of customers say that signage indicates the quality of a business and their productSource: visualogistix, March 2016
In-store advertising drives more sales
70% of the timeSource: visualogistix, March 2016
Global digital signage sales worldwide is forecasted to be worth $33 billion in 2023Source: eMarketer
digital signage advertising spurs customers to make an unplanned purchaseSource: visualogistix, March 2016
1 5in
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Technology
Mobile has completely changed the in-store experience — checkout, packaging, displays and signage have evolved to take advantage of personal devices. Grocers can use data from apps and other digital behavior to personalize and speed up shopping.
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GROCERY SHOPPERS & TECHNOLOGY
of U.S. retailers consider
digital devices e.g. signage and magic mirrors, one of the top 10 technologies for 2020
Source: eMarketer
1/3 of millennials have used
a mobile app to engage with a store in the past 12 months
Source: FMI U.S. Grocery Shopper Trends, 2018
51% of shoppers are likely
to scan a QR code or label for information
Source: FMI U.S. Grocery Shopper Trends, 2018
46%either have digital signage/
kiosks in place or are in the upgrade process; and another third have plans to start upgrading in 12–24 months.
Source: eMarketer
1/3
Usage of apps provided by the grocery store rose from 15% in 2017 to 22% in 2018Source: FMI U.S. Grocery Shopper Trends, 2018
Five Tech Trends
Source: https://www.fooddive.com/news/5-tech-trends-that-will-shape-grocery-in-2018/514576/
• Artificial Intelligence• Voice Ordering• Blockchain
• Rapid Checkout• Mobile App Enhancements
Online & Offline Consumer Paths
DESKTOPRESEARCH
IN-STORE BROWSING
THE PRODUCT
PERSONALIZEDREMINDERS
!
PERSONALIZEDEXPERIENCE
MORE PURCHASES
$
$IN-STORE
TECHNOLOGYIN-STORE
BROWSINGMORE
PURCHASES
Source: https://kibocommerce.com/wp-content/uploads/The-State-of-Omnichannel-Commerce.pdf
Source: Quad/Graphics Customer Focus 2018 Research Study
In-Store Mobile Offers Influence Shoppers to… consider a product 31%
try a product 21%purchase a product 19%
buy more of a product 12%
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Multicultural Shoppers
While all American ethnic groups will grow in the coming years, the Hispanic population will increase the most. Companies should look to these trends to plan their inventory and marketing as buying power shifts a bit more to African-Americans, Asian-Americans and Hispanics.
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Population Growth by Ethnicity
MULTICULTURAL SHOPPERS
Total White Non-Hispanic
Black
HISPANIC BUYING POWER
$1.7 TRILLION
Source: www.statista.com, 2017
AFRICAN-AMERICAN BUYING POWER
$1.2 TRILLION
Source: Nielsen, February 2018
ASIAN-AMERICAN BUYING POWER
$968 BILLION
Source: NBC News, May 2018
Source: Nielson
+1%
+42% +56% +142% +167%
Asian Hispanic
Combined, African-Americans, Asian-Americans and Hispanics spent an estimated on fresh productsSource: https://www.grocerydive.com/news/grocery--ethnic-shopper-grocery-needs/535501/, 2017
$40 billion
Source: Nielsen: A Fresh Look Into Multicultural Consumers, 2017
Annual Trips per Basket
African-American 51Asian-American 49
Hispanic 49Non-Hispanic White 49
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MULTICULTURAL SHOPPERS cont.
Source: Nielsen: Asian-American Total Consumer Report, 2016
69%more fresh seafod than the total populaion
72%more fresh vegetables, 23% more frequently than the rest of the population
29%more fresh fruits, 9% more frequently than the total population
On average, Asian-Americans Purchase
79% with someone50% spouse/partner34% children25% another adult21% shop aloneSource: Statista 2018
91% Grocery store80% Mass merchant48% Club store44% Dollar store22% Natural/organic store30% Hispanic/ethnic storeSource: Statista 2018
• Meat (pork and poultry cuts)• Seafood• Greens• Cabbage• Green BeansSource: Statista 2018
Who They Bring to Store–HispanicsWhere They Shop–Hispanics
African-American Brand Loyalty
African-American Shopper Purchases at a Higher Rate
buy based on QUALITY, not price
BRAND they like, they stick to it
gladly SWITCH brands to use coupon
6277
53Source: http://beauthentic.motivateroi.com/buying-power-and-shopping-habits-of-the-african-american-segment
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Future of Grocery Shopping
Technology is not the only thing changing grocery — new generations prefer and expect different ways to search, prepare and pay for food. Brands will need to change the products themselves in ways the industry has never experienced before.
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FUTURE OF GROCERY SHOPPING
62%of shoppers agree they want alternatives to traditional, in-store grocery shopping
BUY ONLINE, PICK UP IN STOREOver the next 5 years, 66% of shoppers will use BOPUS more
MEAL KITS27% completely agree they want grocery stores to develop meal kits for purchase in store
DRONE DELIVERYCustomers would want to opt-in for drone delivery
SCAN & GO44% consumers are completely likely to use Scan & Go in the future
VOICE ORDERINGPurchases on Amazon Echo
Grocery Delivery Services21% of shoppers buy 1–5% of their groceries online
All Sources: Field Agent’s May 2017 Survey
household supplies 38packaged foods, snacks 15
ready to eat meals 8beverages 8
hot, ready-to-eat food/meals 56snacks 46
grocery essentials 45cold, ready-to-eat foods/mealscold, ready-to-eat foods/meals
cold, ready-to-eat foods/meals
4139
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DASH BUTTONS56% would be highly likely to buy fresh groceries for delivery to home
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CONCLUSION
MARKETING TO THE NEW GROCERY SHOPPERThe way stores sell groceries is changing to a degree we haven’t experienced since refrigeration came on the scene. And while physical and digital retail spaces evolve, marketing channels are ahead of the game. With all the available channels and tactics and the various vendor and agency partners that go along with them, things can be very complex for grocery marketers.
Quad’s integrated offering can help tie any or all of the following services together. We’ll reduce complexity, and increase process efficiencies and marketing spend effectiveness. But most importantly, we’ll help your brand stand out and make your life easier.
• Media Planning• Campaign Planning• Workflow Solutions• Creative Services• Content Production Services• Retail Inserts, Catalogs & Direct Mail• In-Store Signage• Packaging
To find out EXACTLY how we’re helping grocery retailers with everything from strategy through fulfillment, contact Quad today.
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