A detailed look at Deferred Grocery Shopping in Ireland Growing the success of Irish food & horticulture Growing the success of Irish food & horticulture Research Approach Household Diary 3rd June-20th June 2014 • 658 households over 2 weeks. • 6,833 individual shopping trips. • Tesco=142, Dunnes=117, SuperValu=115, Lidl=112, Aldi=153, Centra=219, BWG=218, Forecourts=248 2 Setting the Grocery Context 3 Current Shopper Climate Mature recession Connected Shopper Rise of Aldi & Lidl Dispersed Shopping 4 Current Climate: Detail Mature Recession ● Forest of deals and offers at POS in every category Shoppers navigate by aisle ends and special price signage ● Value of deals scrutinized to avoid: Poor quality Wastage (especially fresh fruit and veg) Being ripped off “..it was only when I was looking at my receipt when I got home it was two for 3.50. so they were actually 50 cent dearer to buy the two together. And I have found that so many times I do feel you get conned into buying stuff” Self control strategies to inhibit impulsive swooping on offers Mental or actual shopping list ● Shops own brand considered / adopted across many categories Realistic alternative (especially premium own brand) Note: With a two tier recovery (Dublin vs outside), those outside will hold onto the need to value shop longer. 5 Current Climate: Detail Rise of Aldi & Lidl ● Mainstream acceptance of discounters: Key component of grocery shopping in many households Sense of fitting with the economic climate ● Clear rationale for use recently/frequently updated (NB. Newsworthy and relevant, mind share possibly greater than actual share of shopping): Fresh bread (Lidl) Really cheap veg (Aldi) Some also buy Irish meat there (Aldi) ● ‘Breadline’ consider use a necessity, others register as part of ‘smart shopping’ nowadays. ● Recent TV ads support sense of ‘coming of age’: Brands take on ‘character’ not just price defined 6 Evolution of Discounter Shopping Reading flyers Practical non-food Cautious trial (Embarrassed to be seen with bag) Selected food areas ‘Fun’ nonfood Experimentation Intermittent (Smart shopper discount chic) Discounter is my main Deluxe range treats Fresh fruit & veg jaw drop price Continue split trips Fresh bread Lidl Not worth hassle (petrol/price benefit queried/time consuming) Regular split shopping Over time Role of Aldi & Lidl continues to evolve. Actual role varies by region social class and local store repertoire. NB. Some over claim in usage evidence. Key transition point 7 Current Climate: Detail Dispersed shopping ● Many now split their main shopping between a number of retailers to avail of better value: Due to incomplete offer (i.e. some branded items not available) ● Minority claim to have returned to a more simplified one store approach (not worth hassle of visiting several stores). But most consider dispersed shopping the smart thing to do ● Given that most also conduct regular top up trips this can result in a much wider repertoire of retailers on weekly basis. ● However, online shopping still has many barriers to overcome – not least the ‘smartness’ of spreading the shop over different stores. 8 Current Climate: Detail Informed shopper ● Regular active scanning of supermarket flyers and newspaper ads: Welcomed deal information ‘Anchor’ products can drive store selection in very directed way (especially meat and wine). There is a seasonal aspect here. It’s worth stressing that some products have a bigger anchoring influence, not just because of their perceived price, but because of their perceived significance. ● Meat: The central part of every meal. We often refer to a meal by its meat constituent, rarely the other elements Poor quality can be a real problem – not just unpleasant, but dangerous For Mum, a sense of success can be tied to buying good quality meat at the right price ● Wine: A symbol of modern Ireland and our connection with European values A significant part of alcohol consumption at home An area of experimentation, discovery and delight where trial of new cheaper options is always worthwhile 9 Anchors ● Main Weekly Stock-Up ● Store selection can be motivated by a range of ‘missions’, some of which are quite broad and habitual: Where much of the selection is based on past behaviour, convenience and a ‘large basket’ trip. However, store level missions can have a much more narrowly defined focus where the store is selected based on a specific destination, product or offer for example: Often resulting from the effective communication of an ‘anchor Offer Swooping product’ offer (alcohol, meat, nappies). So much so that in some households there is a weekly routine of checking the flyers and newspaper ads before planning their supermarket trips. ● NB: even where the initial focus is narrowly focused on one category, a store level mission may lead to shopping of other categories. 10 10 Who are grocery shoppers? 11 Profile Of Households Base: All Households – 658 Social Class % ABC1 C2DE F1F2 Household Size 0 Accommodations Type % 1 person 24 2 people 29 3 people 13 4 people 21 0 % Broadband Access % 0 41 Detached/ semidetached 73 Terraced 15 Apartment/flat 11 Yes 73 No 23 52 7 5 people 7 6+ people 6 Not stated 12 1 N/S 4 Grocery Shopping Headlines 13 Despite good intentions impulse purchasing is alive and well Base: All households - 658 46% always have a shopping list when doing their main stock-up shop and try to stick to it. (53% among shoppers from 5+ person households). 83% normally buy some product on their grocery shopping trip that they hadn’t planned to. (Rises to 90% among 3-4 people households). 41% feel guilty if they go over budget when grocery shopping. (46% among females, 30% of males). 68% spend more on grocery shopping than they’d originally planned to. (Higher among those living in the Dublin and ROL regions) 14 A natural desire for brands and quality is evident….however brands have been damaged Base: All households - 658 73% believe that quality is more important than price when buying food or drink (rises 78% among ABC1s) 77% want to choose their preferred brand as long as the price doesn’t seem too much. 62% find the quality of private label food and drink products is as good as, if not better than leading brands. (Rises to 68% among working class). Only 56% agree that price is the most important thing when buying food and drink for the household – note 53% check the relative prices of brands when in a supermarket 15 Shopping is like a military exercise Base: All households - 658 60% plan their shopping for food and drink on-the-go now and buy in bulk in the supermarket rather than buying them in a convenience store. (Rises to 72% among larger households). 2 in 3 tend to organise top-up shops around routines - way to / from work, or around children’s extra-curricular activities (eg classes, sports, etc 49% go to a variety of stores to get products at different prices/offers. (58% among C2DE and 66% among households with 5+ people). 16 The savvy shopper Base: All households - 658 37% are sceptical about so-called ‘bargains’ (Highest among Dunnes Stores most often shoppers at 49%) 35% regularly compare the advertised offers (e.g. in brochures, leaflets, ads) between supermarkets 72% always let friends / family know if they come across a good bargain when grocery shopping 17 Irishness has a role, most likely deeper than just country the country Base: All households - 658 42% look out for country of origin information when buying food or drink and always try to buy Irish. (Higher among females, farmers, those living in Dublin and Supervalu most often shoppers) % look out for county of origin x store used most often % SuperValu / Superquinn 47 Centra 46 Tesco 42 Dunnes Stores Spar Aldi Lidl 40 35 34 33 18 Reassurance and brand building important Base: All households - 658 59% are always reassured when they see the Bord Bia quality mark. (Higher among those aged 45+, farmers and also those living in the Dublin area). 19 But limited attention, especially if online takes off Base: All households - 658 33% always read the labels for nutritional information (40% of females, 17% males). 14% have ordered groceries online and liked the experience. 20 21