graham.mclean@igd.com
UK & Ireland Customer Controller
+44 (0) 7809 583453
© IGD 2014
IGD is a research and training charity
that helps the food and consumer goods
industry deliver the needs of the public
© IGD 2014
Our sources of thinking
© IGD 2014
© IGD 2014
“I think once
people discover
value for
money they
will stay with
it, and why
shouldn’t
they?”
Chief executive, major
UK grocery retailer
© IGD 2014
© IGD 2014
The shopper has changed
90%
95%
Have used a supermarket in the last month
Use 2 or more channels per month
54%
60%
Have used a food discounter in the past
month
34%
shop around different channels for product
range
3.9
Have used a hypermarket in the last month
The average number of channels used in the
last month
24
4.9
times per month people shop for food and
groceries
channels that shoppers would like to use by
2016-17 vs 3.9 today
Source: IGD ShopperVista
© IGD 2014
Three points of view
Shoppers
Shoppers
Retailers
Suppliers
© IGD 2014
Three points of friction
Shoppers
Chase for
loyalty
Complexity
V efficiency
Backing
the
winners
© IGD 2014
Blurring of channels
Supermarkets
Hypermarkets
Foodservice
Specialists
Online
Convenience
Discounters
© IGD 2014
Why use multiple channels?
© IGD 2014
© IGD 2014
Savvy evolution in the past year
24% have been
discount requesting
shoppers
44% have been
reduced-to-clear
shoppers
28% have been
checkout split
shoppers
Source: IGD ShopperVista, main grocery shoppers May’14
15% have been
set budget
shoppers
© IGD 2014
Value simplicity
% who find it easy to compare prices
and find the best value in store
56%
66%
Convenience stores
41% want more
round £ offers or
zones
57% like price
marked packs
2012
2014
Base: All main shoppers June’14; all past moth convenience store shoppers Mar-May’14
© IGD 2014
Coupon culture
55% of shoppers say they’ve used
COUPONS when food and
Recent retailer coupon activity
grocery shopping in the last month*
Source: IGD ShopperVista, main grocery shoppers May’14; *claim to have done this in the last month
© IGD 2014
Multi-store missions
Multi-store missions during
same trip
+
61% of discount shoppers visit
2 or more grocery stores on the
same trip
59% of discount shoppers visit
another grocery store on their last
shopping trip
41% of high street discount
shoppers bought food from
another store on their most recent
shopping trip
Base: all main shoppers, May’14; all past moth food discount shoppers Apr-June’14; all past month high street discount shoppers Jan-March’14
© IGD 2014
Discerning discount shoppers
% of discounter shoppers extremely satisfied or very satisfied with in-store elements
Base: all main shoppers, May’14; all past moth food discount shoppers Apr-June’14
© IGD 2014
Expansion fever
Shoppers want ...
In food
discounters
More choice
More brands
In high street
discounters
In food
discounters
In high street
discounters
32% say a
bigger branded
range would
encourage them
to start, or to
shop more, for
food & grocery
in the channel
Base: all main shoppers, May’14; all past moth food discount shoppers Apr-June’14; all past month high street discount shoppers Jan-March’14
© IGD 2014
Online advance
24%
23%
22%
Base: All main shoppers xxx
27%
19%
© IGD 2014
Online fresh
% shoppers who say they prefer to shop certain
departments online or in-store
Which, if any, of the following would encourage you
to buy more FRESH FOOD online?
Prefer to buy
in-store
No
preference
Prefer to buy
online
ShopperVista Online Channel Focus; Base: all shoppers who say they prefer to buy fresh in-store rather than online, Feb-Apr’14
© IGD 2014
Trust revival in GB
Higher trust
Base: All main shoppers Jun’14
© IGD 2014
Top five trends at a glance
#1 Simpler pricing and promotions
#2 Multi-store trip
#3 Discount desire
#4 Coupons
#5 Fresh categories online
© IGD 2014
Where do we go next?
Deep understanding
Work closely with partners
Build an integrated supply chain
Teams with the right
capability
Underpin with effective
technology
© IGD 2014