Grocery Cross-Shopper Behavior - Drake International Grocery... · KROGER • Kroger leads in...

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Grocery Cross-Shopper Behavior © 2013 ClickIQ, Inc. All rights reserved. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and/or retrieval system, without permission in writing from the publisher.

Transcript of Grocery Cross-Shopper Behavior - Drake International Grocery... · KROGER • Kroger leads in...

Page 1: Grocery Cross-Shopper Behavior - Drake International Grocery... · KROGER • Kroger leads in grocery spend compared to other grocery retailers, but even Kroger only captures just

Grocery Cross-Shopper Behavior

© 2013 ClickIQ, Inc. All rights reserved. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and/or retrieval system, without permission in writing from the publisher.

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Background 6 Key Terms 7 Methodology 8 Executive Summary 9-11 Executive Summary – Key Retailers 12 Implications 13 Grocery Spending & Frequency Habits 14

Monthly Cross-Shopper Grocery Spend 15

Grocery Shopping Frequency (past month) 16

Cross-Shopper Grocery Shopping Habits 17

Cross-Shopper Grocery Shopping Frequency by Income 18

Why Grocery Cross-Shoppers Shop Every Week, Same Day 19

Why Grocery Cross-Shoppers Shop Multiple Stores, Same Day 20 Where Do Cross-shoppers Grocery Shop? 21

Where Do Grocery Cross-Shoppers Shop 22

Where Do Grocery Cross-Shoppers: Shop by Region 23

Where Do Grocery Cross-Shoppers: Shop Most Often 24

Which Grocers maintain greatest loyalty amongst Cross-Shoppers - By Region 25

Cross-Shopper Dollars Spent at Retailers Shopped 26

Table of Contents

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Table of Contents (cont.)

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Shopping Preparation 27

Shopping Preparation 28

Mobile App Usage for Lists 29

Printed Coupon Source 30

Online / Mobile Coupon Source 31 Store Selection 32

Grocery Store Selection: Importance of Store Factors for Cross Shoppers 33

Main Grocery Store Selection Importance of Factors for Cross-Shoppers 34

How Cross-Shoppers Shop for Groceries 35

How Cross-Shoppers Shop for Groceries by Income 36

Cross-Shopper Private Label Purchase Decisions 37

Cross-Shopper Private Label Purchase Decisions by Income 38

Cross-Shopper Grocery Selection: Importance of Food Factors 39

Cross-Shopper Store Selection: Size of Trip 40

Cross-Shopper Grocery Store Selection: Large / Stock-Up Trip 41

Cross Shopper Grocery Store Selection: Small / Fill-In Trip 42

Cross-Shopper Store Selection: Type of Items Needed 43

Reasons for Cross-Shopping Behavior 44

Cross-Shopper Grocery Basket 45

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Table of Contents (cont.)

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Retailer-Specific Cross-Shopping 46

Grocery Categories Purchased Most Often (Among Cross-Shoppers Who Shop at Walmart Most Often)

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Reasons for Cross-Shopping Behavior: (Among Cross-Shoppers Who Shop at Walmart Most Often)

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Grocery Categories Purchased Most Often: (Among Cross-Shoppers Who Shop at Kroger Most Often)

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Reasons for Cross-Shopping Behavior: (Among Cross-Shoppers Who Shop at Kroger Most Often)

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Grocery Categories Purchased Most Often: (Among Cross-Shoppers Who Shop at Publix Most Often)

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Reasons for Cross-Shopping Behavior: (Among Cross-Shoppers Who Shop at Publix Most Often)

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Grocery Categories Purchased Most Often: (Among Cross-Shoppers Who Shop at a Local Grocer Most Often)

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Reasons for Cross-Shopping Behavior: (Among Cross-Shoppers Who Shop at a Local Grocer Most Often)

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Table of Contents (cont.)

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Qualifiers & Demographics 55

Cross-Shopper Grocery Responsibility 56

Cross-Shopper Past Month Grocery Store Department Purchases 57-58

Cross-Shopper Age/Gender Distribution 59

Cross-Shopper Household Size 60

Cross-Shopper Education 61

Cross-Shopper Marital Status 62

Cross-Shopper HH Income 63

Cross- Shopper Employment 64

Cross Shopper Geographic Region 65 APPENDIX 66

Where Grocery Cross-Shoppers Shop Most Often 67

Grocery Cross-Shopper Category Past Month Purchases 68

Cross-Shopper Past Month Beer/Wine/Alcoholic Beverage Purchasing by Grocer 69

Cross-Shopper Grocery Selection Importance Factors 70

Importance of Availability of Alcoholic Beverages to Cross-Shoppers 71

Contact Us 72

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Executive Summary

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On average, cross-shoppers shop for groceries 5.8 times per month, spending an average of $377 per month

• Among cross-shoppers, grocery shopping accounts for 71% of total monthly food spend

More than half of cross-shoppers shop for groceries on a weekly basis, but not necessarily on the same day of the week

• Those who do shop on the same day each week do so out of convenience or routine, and are not necessarily driven by store deals or coupons

The majority of cross-shoppers shop for groceries at multiple stores on the same day

• A good portion of cross-shoppers exhibiting this behavior are out to get the lowest price

• Others consciously purchase different items in different stores, fully taking advantage of retailer differentiation

Walmart leads over other grocery retailers with 60% of cross-shoppers shopping for groceries at the retailer in the past month

• Walmart consistently leads in every region, ranging from 47% shopping the retailer for groceries in the East, to 74% in the South

• Kroger and Target follow with 27% & 24% grocery trips, respectively

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Executive Summary

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Cross-shoppers spend less than 40% of their grocery dollars at any one store

Kroger (west region) & Publix (south region) retain a larger percentage of grocery shoppers, followed more distantly by Walmart

Most cross-shoppers prepare a written list prior to grocery shopping

• Nearly a quarter prepare different lists for different stores

• Only a few cross-shoppers use online & mobile app resources for their grocery list preparation

Low prices / promotions will always matter to cross-shoppers

• When forced to choose what is MOST important when selecting a retailer, everyday low pricing and sales/promotions combined account for more than half of responses

• Many cross-shoppers go to more than one store to get the best price, while one quarter of cross-shoppers shop specifically at a particular store regardless of price

• Store cleanliness, convenience, and friendliness are also important when it comes to attracting and retaining shoppers

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Executive Summary

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Shopper needs also drive retailer selection:

• Number of items needed (large vs. small trip) factors into the decision on where to shop for most grocery cross-shoppers

• Type of items needed (fresh produce vs. dry goods) matters a majority of the time as well

• Low prices drive the stock-up trip, while convenient store location trumps pricing on the fill-in trip

Cross-shopping occurs for a variety of reasons, including better pricing, promotions and lack of product availability at a preferred retailer

• Cross-shoppers tend to pick up ‘a few more items’ when shopping outside of their primary grocery store

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Executive Summary – Key Retailers

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WALMART • Walmart drives significant grocery shopping traffic, but is chosen as the store shopped

most often by less than half of their overall shoppers • Cross-shoppers who shop Walmart love the low prices, but seek higher quality/freshness

(especially on fresh produce and meat), as well as better selection and convenience, at other grocery retailers

KROGER • Kroger leads in grocery spend compared to other grocery retailers, but even Kroger only

captures just half of its shoppers’ grocery trips • Cross-shoppers that shop Kroger are satisfied with product availability, selection and

quality/freshness, but look for lower prices and better sales elsewhere, particularly on dry goods and beverages

PUBLIX • Publix ranks very high among grocery retailers shopped and percentage of grocery dollars

spent • Cross-shoppers that shop Publix are highly satisfied with selection and convenience, but

look elsewhere for lower-priced packaged goods, mainly to Walmart

LOCAL GROCERS • Local Grocers continue to survive against the bigger chains • Cross-shoppers who shop these local grocers compete mainly with Walmart for packaged

goods, but their key competitor for fresh produce is the local farmer’s market

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Why Grocery Cross-Shoppers Shop Multiple Stores, Same Day

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Yes, 65%

No, 33%

Don't Know,

2%

In the last month, have you shopped for groceries at more than one store on the same day? Answers based on ‘yes’ (n=788)

Past month cross-channel shopping for groceries is prevalent among nearly 2/3 of consumers - Most of these consumers are looking to get the best prices, while others shop for different items at different

stores - A smaller portion indicate they are unable to find what they are looking for, a possible indication of stock

issues, or grocer product exclusivity

43%

34%

15%

6%

2%

I typically buy different items onsale to get the best prices at

different stores

I typically purchase different typesof items at different stores

I could not find something Ineeded at one store and had to go

to another

I simply forgot something and itwas more convenient to shop at a

different store

Other

What was the main reason why you shopped for groceries at more than one store on the same day?

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Cross-Shopper Grocery Basket

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64%

24%

12%

I sometimes pick up a few more items I only pick up the item(s) I need I almost always pick up a few more items

When you go to another store besides [Preferred Retailer], which of the following best describes your purchasing habits? (n=1209)

Over three-fourths of cross-shoppers pick up ‘a few more items’ at least some of the time when shopping outside of their primary grocery store

Retailers need to understand what’s in the basket in order

to take advantage of this cross-shopping behavior

*

Answers specific to primary grocery store selected.

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About ClickIQ ClickIQ is a full service market research firm specializing in custom marketing research, which means the vast majority of the studies we conduct are developed specifically to meet the needs and requirements of our clients. At ClickIQ, our researchers work closely with our clients to insure we deliver actionable insights they can trust at the greatest value possible. Based in Minneapolis, Minnesota, ClickIQ delivers its marketing research solutions to some of the best known and most respected companies across the U.S.

About this Study ClickIQ offers a free monthly newsletter, IQ Insights, for sharing relevant and current shopper insights to its readers. Each edition is based on actual research ClickIQ conducts over the previous days/weeks. In the summer of 2012, one of the studies it conducted was on how grocery shoppers shopped for groceries in the southeast, primarily between Walmart and Publix. The information was so insightful and the interest so overwhelming, it was decided then ClickIQ would conduct a more comprehensive national study and the insights offered to the public. We have attempted to share as much detail as possible in this report. If you have any questions regarding this study or if you are interested in learning how a custom project with ClickIQ can benefit your company, please contact us using the information below:

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