graham.mclean@igd.com
+44(0)7809 583453
© IGD 2014
IGD’s Four for ’14 are still those to plan for
The hunt
for value
Trust and
transparency
Inspiration,
new and loyalty
Evolving
channel mix
© IGD 2014
More shoppers feel the worst is behind them...
% of shoppers who say they will...
25%
20%
Christmas’13
Focus on quality in
next year
15%
10%
Christmas’12
Be better off in the
next year
5%
0%
DEC'12 MAR'13 JUN'13
Source: IGD ShopperVista, January 2014
SEP'13
DEC'13
© IGD 2014
...with January confidence at its highest level to date
Confidence index
Grocery price increase expectation index
60
60%
47 48
40
24
22
31 31
30
28
20
38
37
24
33
32
27
26
17
40
38
40
36
50%
43
37
40%
31
30
25
30%
21
20%
10%
0
Source: IGD ShopperVista, base: all main shoppers, Jan’14
0%
© IGD 2014
Recovery won’t be evenly spread
Base: All main shoppers Oct-Dec’13
© IGD 2014
Recovery won’t be evenly spread
Discounter fanatics – visited a food
discounter in the last month
Provenance promoters – willingness
to pay extra for country of origin
Total: 47%
North West: 57%
Scotland: 54%
(London 37%)
Total: 20%
Scotland: 37%
(South West: 13%)
Regional shopper
behaviour
Organic endorsers – purchased
organic food in the last month
Total: 21%
London: 33%
(Wales: 15%)
Base: All main shoppers Oct-Dec’13
Online enthusiasts – purchased
groceries online in the last month
Total: 24%
South East: 29%
London: 29%
(North East: 17%)
© IGD 2014
London will be the focus of much attention
Large, fast-growing population
Higher-than-average wealth
Vibrant, diverse food culture
Opportunity to “showcase” capability
Images: Thinkstockphotos, January 2014
© IGD 2014
It’s all relative, though...more expect to be worse
off overall
Personal financial expectations for the next 12 months
12% 15% 12%
17% 14% 16% 16% 15% 15% 15% 16% 15% 18%
42% 34% 39%
Better off
36% 42% 42%
42%
44% 45%
46% 46% 44% 43%
About the same
46%
51% 49%
46% 45%
42% 40% 40% 43% 38%
38% 41% 39%
Worse off
Dec'12 Jan'13 Feb'13 Mar'13 Apr'13 May'13 Jun'13 Jul'13 Aug'13 Sep'13 Oct'13 Nov'13 Dec'13
IGD ShopperVista December 2013
© IGD 2014
Cost of living concerns still persist
Food
prices
(81%)
Job
security
(17%)
Utility
bills
(80%)
I will be
worse
off...
Taxes &
benefits
(31%)
Fuel
prices
(56%)
Wages
46%
Base: all main shoppers, all shoppers expecting to be worse off Jan’14
© IGD 2014
Savvy shopping is cemented as the new norm...
Main priorities for food and grocery shopping in 2014
68%
64%
Jan'13
48%
47%
Jan'14
47% 46%
28%
Base: all main shoppers, all shoppers expecting to be worse off Jan’14
26%23%
21% 19%
© IGD 2014
...but it continues to evolve
Base: all British grocery shoppers, Jan’13
© IGD 2014
The search for the best deals drives multichannel
Online promotional cherry pickers
2010
6%
2013
30%
Base: all main grocery shoppers, Oct’13
© IGD 2014
Multi-store missions move mainstream
42%
visited 2+
grocery stores
on the same
trip in March
“I go to three
stores in one big
round trip, so as
not to spend any
more on petrol”
“I now shop at
[discounter] and
then go across the
road for the rest
at [supermarket]”
© IGD 2014
Majority use 1+ stores for their main shop
% using same or different
supermarkets for main shop
Motivations for
switching
Promotional disappointment
Often
switch
Price comparison
Always loyal
Retailer proliferation
Sometimes
switch
Discounter improvement
Base: all main grocery shoppers, October’13
© IGD 2014
Food discounters are moving mainstream...
Food discounters
51%
46%
39%
41%
USED IN
THE
PAST
MONTH
9%
5%
5%
JAN'11
JAN'12
Base: all British grocery shoppers, Jan’14
JAN'13
12%
MY
MAIN
STORE
JAN'14
© IGD 2014
...as shoppers continue to discover the benefits
“It’s won awards
and lost a bit of
stigma”
“It’s quicker to
get round and
the checkout’s a
lot quicker”
“They’ve decided
which one offers
the best value”
“They have things
that are a bit
different”
Source: IGD ShopperVista
© IGD 2014
Growing levels of connectivity
Base: all main grocery shoppers, Oct’13
© IGD 2014
Growing levels of connectivity among shoppers
% of shoppers who own a smartphone or
tablet device
2012
2013
60%
47%
35%
15%
Base: all main grocery shoppers, Oct’13
© IGD 2014
The benefits of technology are already apparent
% of shoppers who say technology (mobile, tablet & computer) helps them with each of the following for
their food and grocery shopping
Saving time
74%
Saving money
69%
Product sourcing
63%
Following a healthier diet
49%
Source: IGD ShopperVista, Oct’ 2013
© IGD 2014
..but most engagement is in the pre-shop phase
Established shopper engagement using technology
47
30
23
% say they are using the
internet to search for
recipes for meal
inspiration
% say they are using
the internet to
search for the best
deals and then
shopping from a
variety of stores
40
% say
they are
watching
food
channels
online
% say they are
checking their
loyalty points
online or on a
mobile app
© IGD 2014
21
Focusing on promotions could grow engagement
% who would like to be notified of special offers on my mobile phone when...
56%
I’m in
different
parts of
the store
54%
I enter a
competitor
s store
Base: all main grocery shoppers, Oct’13
56%
I’m near another
store that has
better offers
(if I redeem the
offer quickly)
53%
When I’m
nearby to a
good offer
© IGD 2014
More shoppers trial click & collect services
Used in the last month
95% 95%
91%
Jun'13
18% 20%
Home
delivery
Oct'13
Jan'14
25%
Click &
collect
18%
14% 16%
Used
both
© IGD 2014
And more shoppers are using tablets for their shop
Used in the last month
Jun'13
Oct'13
Jan'14
63% 63% 64%
39% 38%
19% 20% 20%
16% 18%
34%
22%
IGD ShopperVista Channel Focus, past month online shoppers Nov-Jan 2014
© IGD 2014
Disappointment with promotions
% who are extremely or very satisfied
Type of promotions available
Level of savings provided
Promotions in stock
Types of promoted products
Period of decreased satisfaction
with promotions
50%
40%
30%
Dec'10
Feb'11
Apr'11
Base: All main shoppers Dec’13
Jun'11
Aug'11
Oct'11
Dec'11
Feb'12
Apr'12
Jun'12
Aug'12
Oct'12
Dec'12
Feb'13
Apr'13
Jun'13
Aug'13
Oct'13
Dec'13
© IGD 2014
Brand challenge – waning influence of a name
Brand name as a driver of product choice
125
100
75
50
25
0
2006 2007 2008 2009 2010 2011 2012 2013
Base: all British grocery shoppers, indexed to 2006/2005
© IGD 2014
...as price and quality perceptions of PL improve
Reasons for buying more standard private label
67%
Tighter budgets
63%
Price inflation
60%
Forensic shopping
50%
Quality improvements
Range expansion
42%
Base: those who’ve bought more standard private label in the last six months, May’13
© IGD 2014
© IGD 2014
...as they move towards becoming exclusive brands
do not associate
supermarket discount or
venture brands as a
private label option
believe private label is
made by different
companies to brands
identify the improved
‘branding’ of private label
products as a reason for
buying more1
1
Base: those who have bought more private label in the past six months, others based on: all British grocery shoppers, May’13
© IGD 2014
A year on from ‘horsegate’
100%
90%
...OF REASONABLE
QUALITY
80%
70%
...THAT ARE SAFE TO
EAT, DRINK OR USE
60%
50%
40%
...THAT DO WHAT
THEY'RE MEANT TO
30%
NOV'12
MAR'13
Source: IGD ShopperVista, December 2013
JUN'13
SEP'13
DEC'13
© IGD 2014
I trust British grocery companies to...
2009
2013
10
6
23
24
11%
15%
11%
Base: all main grocery shoppers, April 2009 and July 2013
21
34
13%
16%
6%
Do the right thing at all times
Do the right thing almost
always - mistakes happen
Do the right thing as it's
usually in their own interests
Follow the law, but not do
the right things voluntarily
Follow the law, but exploit
loop holes
I don't trust them at all
© IGD 2014
Desired transparency
Knowledge of how grocery products are made
Know a lot/a little
Would like to know a lot/a little
56%
34%
19%
2011
Base: all main grocery shoppers, July’13
12%
2013
© IGD 2014
Desired transparency
... % who can imagine restricting to fully
traceable items
60%
75%
2010
2013
73%
60%
2010
2013
% who would boycott products that have not met high
ethical standards
Base: all main grocery shoppers, July’13
© IGD 2014
The value agenda still strong
Most important driver of product choice
SEP'12
SEP'13
37%
15%
19%
Quality
Base: all main grocery shoppers, Sep’13
41%
Price
© IGD 2013
The value agenda still strong
Willingness to pay extra for....
Sep'12
Sep'13
39%
46%
26%
17%
Quality assurance Locally produced
standards
items
% purchased private label in the last month
80%
Standard
60%
Value
40%
SEP'10 SEP'11 SEP'12 SEP'13
Base: all main grocery shoppers, Sep’13
© IGD 2013
Healthy eating vulnerability is emerging
70%
64%
60%
60%
56%
50%
45%
40%
43%
36%
30%
41%
36%
33%
35% 34%
28%
10%
35%
34%
28%
Functional
foods
Added Omega
3
2011
2012
2013
20%
35%34%
28%
0%
5-A-Day
Base: All main shoppers Oct -Dec’13
Low fat
Low salt
Free from
preservatives
© IGD 2014
Affordability is a growing concern for shoppers
Top ten barriers to eating a healthy diet compared to 2008
1
Health foods are too expensive
2
Conflicting messages about what’s healthy
3
Healthy foods are not on promotion
4
I like to comfort eat
5
Promotions encourage me to buy ‘unhealthy’ foods
Base: all British grocery shoppers, May’13,
Younger families
© IGD 2014
Affordable healthy options are a priority today
What would make it easier for you to choose a healthier diet?
2008
2013
57%
42%
29%
26%
20%
Cheaper
products
20%
23%
More choice in Healthier snack
supermarkets
foods
Source: IGD ShopperVista, base: main shoppers, Feb’13
23%
Clearer
labelling
19%
22%
Healthier fast
foods
© IGD 2014
Shoppers feel empowered to influence sustainability
Base: all main shoppers, Aug'13, 7% none of these
© IGD 2014
..but responsibility falls to industry
% agree
believe food and grocery
companies should just
get on with doing the right
thing for their health
Base: all main shoppers, Aug'13
Want to be inspired by
food and grocery products
that are healthy and that
impact the environment
positively
Expect food and grocery
companies to constantly
check that suppliers
provide healthy products
and act responsibly
© IGD 2014
IGD’s Four for ’14 are still those to plan for
The hunt
for value
Trust and
transparency
Inspiration,
new and loyalty
Evolving
channel mix
© IGD 2014