Convenience Store Shopper Stop Trends

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    IGD 2014www.shoppervista.igd.com | [email protected] | +44 (0) 1923 851 956 | @igdshoppernews

    ShopperVista Channel Focus guide

    https://twitter.com/igdshoppernewshttps://twitter.com/igdshoppernews
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    Convenience store shoppers your free guide

    Welcome to your free guide to convenience store

    shoppers, from the Channel Focus research streamofour ShopperVista insight service.

    We interview convenience store shoppers every day,and each quarter we publish insight and trackingreports based on interviews with a representativesample of 1,000 British convenience shoppers.

    The convenience channel is set to grow by more than30% over the next five years. This guide will help youget up-to-speed with your shoppers in one of thefastest growing sectors of the market.

    I hope you find it useful. If the convenience channel is

    a focus for you, contact us now for more details onhow our Channel Focus shopper research canhelp give you a competitive advantage

    ichael

    Guide author:

    Michael FreedmanShopper insight manager and

    convenience shopper expert

    [email protected]

    01923 851 913

    mailto:[email protected]:[email protected]
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    There are a broad range of c-store shopper missions to cater for. Topping-up on staple items is the

    primary shopping mission. However, missions differ by c-store segment and by geographic region

    Despite shoppers relatively established convenience store missions, opportunities exist for grocery

    companies to grow these further or even alter this established behaviour

    Shoppers still view c-stores as more expensive than other channels. Shoppers choose c-stores based

    primarily on where they can find the best value for money (focusing on both price and quality)

    C-store shoppers prioritise better quality ingredients as the added value benefit that appeals to them

    most when shopping for food and groceries, followed by more British or locally produced products

    Impulse shopping is high in convenience stores. Merchandising tactics influence most c-store shoppers.

    Events also provide a significant opportunity to interrupt established shopping behaviour

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    Convenience store shoppers five top takeaways

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    IGD 2014ShopperVista Channel Focus; all shoppers using a convenience store in the last month ; June-Aug13

    1

    Top-up on staple

    products

    2Buy a

    newspaper/magazine

    3Buy a snackbetween

    meals

    4

    Top-up on fruitand

    vegetables

    4 Buy a lotteryticket

    6 Buy alcohol

    7Buy something for

    eveningmeal

    8Use cashmachine or

    get cash back

    8Buy lunch coldfood-

    to-go

    10Buy cigarettesor

    tobacco

    Current missions Top 10

    5%

    9%

    May13 Aug13

    Do mainshoppingtrip

    Implications

    Developing a range of solutions to

    meet different shopper missions willbecome even more important in thefuture to help retailer differentiation

    There are opportunities to increasetrip frequencyfurther by providingsolutions for the wide range ofmissions that can be fulfilled in-store

    There are a broad range ofshopper missions we have

    identified more than 20 atconvenience stores

    Topping up on staple productssuch as bread, milk and eggsremains the main mission ofconvenience store shoppers

    Buying a newspaper, produce top-ups, lottery and food-to-go areother key convenience storeshopper missions

    Topping up remains the primary shopper mission

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    Ranking of top five missions by main convenience segment shopped at February 2014

    Multiples Co-operatives Symbols Independents Forecourts

    1 Staple top-up Staple top-up Staple top-up Staple top-up Petrol

    2 Snacks Newspapers Newspapers Newspapers Newspapers

    3 Newspapers Evening meal Snacks Tobacco Staple top-up

    4 Fruit andVegetables

    Fruit andVegetables

    Alcohol Stamps Snacks

    5 Evening meal Cash machine Lottery Alcohol Lunch

    Multipleshoppers, characterised by a younger, higher socialgroup profile, are more likely to go there to buy fruit and

    vegetables, an evening meal and food-to-go Symbolshoppers under-index on a range of shopper

    missions including snacks, evening meals and food-to-go

    Apart from petrol, forecourtshoppers primarily visit to buynewspapers, snacks and staple items and co-operativeshoppers are most likely to top-up on staple food products

    ShopperVista Channel Focus; all shoppers using a convenience store in the last month; Dec-Feb14

    Implications Understand the shopper profile

    and mission priorities forindividual c-store retailers andadapt your offer accordingly

    mission profiles change by c-store segment

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    and regions. London stores have different profiles

    All shoppers London

    C-store shopping behaviour

    Average number

    of missions

    Average

    number ofstores

    Average trip

    frequency perweek

    3.9

    3.02.57

    4.43.7

    2.71

    36%

    29%

    26%

    17%

    11%

    10%

    24%

    23%

    19%

    10%

    7%

    7%

    Fruit & vegetables

    Alcohol

    Tobacco

    Breakfast

    Main shopping

    trip

    Special occasion

    All shoppers London

    Selected c-store shopper missions

    The convenience channel is accelerating at rapid pace inLondon, with the city now showcasing best-in-class

    examples

    Londoners are shopping more frequently at c-stores,visiting more stores and conducting more missions thanall c-store shoppers

    With Londoners over indexing for online groceryshopping, it is no surprise that they are also more likely

    to go to c-stores to top-up on fresh fruit and vegetables As a higher proportion of people are working full-time,

    c-stores appear to be helping Londoners save time withbreakfast and conducting a main shopping trip

    Implications Higher population density in London may impact shopper missions,

    with lack of storage resulting in shoppers making smaller, morefrequent transactions

    London has many attributes that make it attractive to grocerybusinesses. But it also raises many challenges such as the diversityof the population. Merely being present in London does notguarantee success

    ShopperVista Channel Focus; all shoppers using a convenience store in the last month; Dec-Feb14

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    Opportunities exist to alter established missions

    ShopperVista Channel Focus; all shoppers using a convenience store in the last month, June-Aug13

    58%

    36%

    28%

    25%

    25%

    23%22%

    21%

    21%

    20%

    33%

    35%

    41%

    45%

    32%

    38%39%

    43%

    41%

    15%

    9%

    29%

    31%

    30%

    43%

    39%39%

    39%

    38%

    65%

    Likelihood of using c-stores for each mission

    Currently use

    1 Top-up on staple products

    2 Buy a newspaper/magazine

    3 Buy a snack between meals

    4 Top-up on fruit and vegetables

    4 Buy a lottery ticket

    6 Buy alcohol

    7 Buy something for evening meal

    8 Use cash machine or get cash back

    8 Buy lunch cold food-to-go

    10 Buy cigarettes or tobacco

    Would use Would not use

    Despite shoppers relatively established convenience storemissions, opportunities exist for grocery companies to growthese further or even alter this established behaviour

    Twice as many c-store shoppers would buy cold-food-to-go(41%) than currently buy them (21%)

    There are also significant opportunities to encourage moresnacking and topping up on fruit and vegetables

    Implications

    Effective merchandising tacticsto highlight alternativemissions will be important todrive store use to shoppers whocurrently under-index in certainmissions

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    Both price & quality are key drivers of store choice

    72%69%

    65%

    65%

    63%

    59%

    57%47%

    43%

    42%

    29%32%

    40%

    30%

    23%

    21%

    20%19%

    17%

    18%

    Product quality

    Prices

    Close to home - walking

    Opening hours

    Product range

    Ease of finding products

    Ease of getting around storePromotions

    Budgeting

    Ease of parking

    Extremely important Extremely or very importantTop drivers of c-store choice

    Seven in ten c-store shoppers state price and quality asextremely or very important in driving store choice, rising tomore than 70% of multiple shoppers. Promotions are moreimportant to multiple and co-operative shoppers

    Accessing stores is an important factor in store choice - theability to walk to a store from home is particularlyimportant to independent store shoppers

    Implications

    It is important to rememberthat more shoppers still expectto be worse off financially thanbetter off

    How are you helping your c-store partners to stand out forvalue?

    ShopperVista Channel Focus; all shoppers using a convenience store in the last month; Dec-Feb14

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    51%

    63%68%

    78% 75%

    9% 15% 16% 20%22%

    Multiples Symbols Co-operatives Independents Forecourts A lot or a little more

    expensive

    A lot more expensive

    A lot cheaper

    A lot or a little cheaper

    While shoppers still view c-stores as more expensive

    - No different

    Convenience versus other types of stores (e.g. supermarkets, hypermarkets, online)

    6%

    20%

    14%

    7%

    12%

    19%

    20%

    17%

    24%

    22%

    More than three in five (61%)believe convenience stores are alittle or a lot more expensive thanother channels

    Multiples (51%) are not perceivedto be as expensive compared toother segments

    Implications

    With many shoppers still feeling financially squeezed,becoming shoppers money saving ally by developingnew ideas to help shoppers save money and providingstrong value messages is likely to increase in importance

    Are there opportunities to introduce smaller pack sizesfor areas with a higher than average number of singlehouseholds?

    ShopperVista Channel Focus; all shoppers using a convenience store in the last month; Dec-Feb14

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    Better quality is prioritised for added value

    1. Better quality40%

    2. British or local 34%

    3. Brand name 33%

    4. More convenient/saves time 26%

    5. Added health benefits 22%

    Top 5 benefits that appeal to c-store shoppers when buying food and groceries apart from price and promotions

    Implications

    Can you create

    additional demand inyour category beyondprice by educatingshoppers on thequality ingredients atpoint of purchase?

    Brand

    C-store shoppers prioritise better quality as the added value benefit thatappeals to them most when shopping for food and groceries, particularly

    multiple shoppers and Londoners There is demand from c-store shoppers for British or locally produced

    products, ranked second, rising to 47% of Scottish shoppers and 42% ofWelsh shoppers (vs 20% of Londoners)

    Brand name is also a key driver of added value for shoppers ranked thirdoverall, rising to 37% of multiple shoppers (vs 24% for symbol shoppers)

    ShopperVista Channel Focus; all shoppers using a convenience store in the last month; Dec-Feb14; arrows denote higher ranking vs main store shoppers

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    Better quality: In-store excellence

    I bought some chicken breastsstuffed with mozzarella wrapped in

    parma ham. I thought thats really

    good. Its nicer quality. The individual

    packs of fresh chicken are very good.

    Its very good quality that you cook.

    Shopper, Londis, Ascot

    They have an extraordinary range of fruit and vegetables.

    The quality is excellent. Shopper, Londis, Ascot

    The breadis lovely here. We get

    their French bread. I would definitely

    pay more for that. Its authentic. It

    tastes lovely. Its better than at other

    stores. Shopper, Londis, Ascot

    The quality of meathere is very, very

    good. Shopper, Spar, West Malling

    These marshmallow

    cookiesare lovely. I only

    came in here to get some

    milk but they tempted me.

    Shopper, Spar, West Malling

    ShopperVista Channel Focus; all shoppers using a convenience store in the last month; Dec-Feb14

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    Merchandising influences most c-store shoppers

    % claim merchandising has an impacton their purchase decisions

    74

    Majority of shoppers buy some items onimpulse in convenience stores

    Impulse shopping is high in convenience stores as many as three in four (74%) claim to havepurchased an unplanned item on their last trip.This is very similar to main store shoppers where76% claim to impulse shop

    The majority of shoppers say that a storesmerchandising tactics had an influence on theirpurchasing decision on a recent visit to aconvenience store

    On shelf signs and labels and end of aisledisplays also rank highly in encouraging purchasedecisions

    Price marked packs (PMPs) also rank relativelyhighly among convenience store shoppers(There will be a focus on PMPs in the

    Convenience Channel Focus report in June14)

    Implications

    Having effective and innovativein-storemerchandising alongside a co-ordinated campaignof above and below the line advertisingcouldsignificantly influence product choice decisions

    ShopperVista Channel Focus; all shoppers using a convenience store in the last month; June-Aug13

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    and events provide and opportunity in c-stores too

    Implications

    What have you taken from your seasonal in-storeactivationthat particularly worked which could be broughtforward to forthcoming events? This will be essential inensuring successful execution of events in 2014

    There is a large opportunity for suppliers to work withretailers to use special occasion displays in-store to create

    a more rewarding shopper experience and increase sales

    % extremely or very important in store choice special

    occasion

    Sep-Nov 13 Dec-Feb 14 22-31

    Dec 13

    29% 32%

    40%

    The importance of special occasions has risen upshoppers agenda when selecting their main

    convenience store Christmas and New Yearappear to have been a

    more important driver of c-store choice this year c-stores became more important for shoppers thisChristmas

    Four in ten (40%) cited special occasions asimportant in c-store choice in the Christmas week

    (compared with 29% in the last quarter) C-store shoppers were more likely to go to c-stores

    in the Christmas week to top-up on fruit andvegetables (31% vs 24% for the quarter)

    Shopping for special occasions particularly appealsto under 45s (42% compared with just 22% of over45s)

    ShopperVista Channel Focus; all shoppers using a convenience store in the last month; Dec-Feb14

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    Five things you must consider

    The convenience channel is set to grow by more than 30% over the next few years what

    are you doing to make sure you understand your shoppers in this channel?

    The channel is evolving with more relevant store formats targeting new locations have

    you developed a dedicated channel management strategy to ensure you capture this

    forecasted growth?

    Shoppers are rapidly evolving in this channel with missions and preferences changing

    constantly do you know how you can tap into other c-store shopper missions to drive

    frequency of shop?

    Convenience store shopping is not just about distress purchases are you thinking about

    how to encourage increase in weight of purchase through effective merchandising?

    Shoppers rate convenience behind other channels when it comes to offering the best

    value for money can you create additional demand in your category beyond price by

    educating shoppers on the quality ingredients at point of purchase?

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    E | [email protected]

    T | +44 (0) 1923 851 956

    Channel Focus from IGD ShopperVista

    provides commercially focused, actionable

    insights on shoppers in three high-growth

    channels: convenience, discount and online

    Get in touch with us today for more

    information and begin capitalising onopportunities with your shoppers in these

    channels like never before

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