Woolworths
Trolley Trends
Understanding changes to household expenditure over
the past 25 years and today’s customer
FOREWORD
Bernard Salt
KPMG PARTNER AND SOCIAL RESEARCHER
Meet the modern Aussie household. It is different to
anything you have seen, experienced or been part of
previously in Australia. It is being shaped by powerful global,
technological and behavioural forces. And in line with these
morphing familial forces, there is an increasing appetite for
a different engagement with food and with supermarkets.
The modern household can be a single or a couple or a
family or it can be a family that is extended with stay-athome kids or indeed it might be an elderly couple. This is
different to the largely homogenous family of the mid to late
20th century. But it’s more than the form of the household
that has changed. The household is busier and more
demanding of time efficiencies. It is also feeling the pinch
- facing more financial pressure.
The Australian household is global in its composition: out
with Anglo primacy; in with an eclectic fusion of Anglo,
Mediterranean and Asian influences. And is that an Arabic
or is that a Persian influence that is now ascendant in our
biggest cities?
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We demand food to be packed for one, for two and for more.
We demand fresh food be today fresh and we demand an
array of culinary options displayed from all parts of the
globe. In fact, we Australians of the 21st century are just a
little proud of our cosmopolitan approach when it comes to
food. It’s the way we welcome migrant newbies, through our
palate. It’s almost as if we’re saying “welcome to Australia.
What have you got to eat?” And our embrace of pasta
and cappuccino and bok choy and dukkah says it all. The
Australian palate has come a long way and has developed
a taste for high adventure. And what better place to tempt
those adventurous tastes than in the supermarket.
Some people love supermarket shopping to such an extent
that they’re in and out of the store several times every week.
That’s not a supermarket; that’s an extension of the kitchen.
And with fluid lives being led at a fast and furious pace that
is exactly what is required; a big, convenient, exotic, kitchen
extension within easy reach of the family home. That’s the
kind of food shopping that the modern Australian household
really wants.
FOREWORD
Tjeerd Jegen
MANAGING DIRECTOR OF WOOLWORTHS SUPERMARKETS
At Woolies, our obsession with our customers is at the
heart of everything we do. From bringing new products to
our shelves that reflect the changing palate of the nation, to
offering more ways for customers to save every day, we are
determined to offer the best range, price and service of any
Australian supermarket.
There is no question that Australia has changed
substantially in the past 25 years – nowhere is this more
apparent than in the way we eat. Clearly, the first step
to cultural integration in Australia is through the taste
buds, and today our multicultural community is strongly
reflected in what we put in our shopping trolleys.
This report is a look at Australia through the shopping
habits of Woolworths’ customers with context provided by
an analysis of the ABS’s Household Expenditure Surveys,
Census and Reserve Bank of Australia.
Food shopping is a reality for almost every Australian
and offers a unique way of tracking the changes in their
lives. With more than 19 million customers shopping at a
Woolworths store every week, the trends that we see at
the checkout provide a clear indicator of who we are as a
nation.
have our finger on the pulse to ensure we are giving our
customers what they want and need.
We understand the financial pressures Australians face
– 72% of our customers are concerned about increases
in their cost of living. Our customers are managing their
household budgets more closely than ever before.
As a result, demand for more savings everyday has become
the single most important factor in where customers
choose to shop, ranked higher than shopping experience
or inspiration. Customers still want to choose from a wide
range of high quality foods, but they want it at the lowest
price.
This report provides a unique insight into how our
community and spending habits have changed over the last
quarter of a century – and shaped the way we shop and eat.
Woolworths is proud to have been a part of this journey
alongside our customers.
While shopping for food and drink is a necessity that
accounts for the second largest portion of most household
budgets, the items that we choose to purchase once they
arrive in store are very much discretionary. Our job is to
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TROLLEY TRENDS
The new cosmopolitan
AUSTRALIA
“Australia’s cosmopolitan society has evolved in response to our changing
demographics, with a fusion palate that is equally comfortable with chops and
chips, as with green chicken curry and basmati rice.’’
AUSTRALIA IS A VASTLY DIFFERENT NATION
TODAY TO WHAT IT WAS 25 YEARS AGO. THE
LAST 25 YEARS HAVE BEEN EXTRAORDINARILY
TRANSFORMATIONAL, BRINGING FAR GREATER
CHANGE THAN THE PRECEDING 25 YEARS.
Much like the contents of our shopping trolleys, there has been a
profound shift in the way we live our lives.
Cultural diversity is at an all time high as we embrace a
cosmopolitan community and a global approach to everything
from food to recreation to communication.
Australia has always prided itself on being a land of opportunity
and our society is a true reflection of this.
Today Australians are more educated, less traditional in their
outlook, harder working and are less likely to have exclusive
Anglo-Australian heritage.
In the same way that English breakfast tea gave way to
continental coffee in the late 1970s and ‘meat and three veg’
was replaced by spaghetti Bolognese in the 1980s, the way we
choose to live, shop and eat illustrates the changing face of
Australia.
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In less than 30 years, we have seen a major shift in our ethnic
demographic structure, with the number of Australian residents
that were born in Australia or England down seven percentage
points to 78% from 1986 to 2011.
Little surprise to note, when rice and noodles are now key
staples in our shopping trolleys, that there has been a significant
increase of Australian residents born in China and India.
Our ageing population is at an all time high, with the proportion
of Australians aged 65 years and over increasing by three
percentage points to a total of 14%. There is a decrease in the
number of people identifying with a religion by 10 percentage
points.
As a nation we are smarter – or at least more highly educated
– with the proportion of university qualified Australians having
almost quadrupled since 1986, from 6% to more than 21%.
Our family units are smaller and more likely to have both
partners working to accommodate the rising costs of living
and economic uncertainties that are key concerns for many
Australian families.
Source: KPMG Demographics, based on data from the Australian Bureau of Statistics,
Census of Population and Housing, 1986 and 2011
TROLLEY TRENDS
Share of Wallet
HOW AUSSIES ARE SPENDING
IN THE WAKE OF THE GLOBAL FINANCIAL
CRISIS, AUSTRALIANS HAVE TIGHTENED THEIR
PURSE STRINGS AND ARE INCREASINGLY
LOOKING FOR VALUE IN THEIR SPENDING.
The average Australian household earns two and a half times
more than it did in 1984 – and this statistic is mirrored by goods
and services expenditure patterns.
recreational and educational activities, with expenditure on
recreation overall now making up 13% of overall household
expenditure.
As a share of wallet, medical care and household service
expenditure have both risen since 1984. Clothing, tobacco,
household furnishing and equipment are all down at least
one percentage point and spending on fuel and utilities has
remained stable.
Housing costs (rent or mortgage payments) now occupy the
largest share of our wallets at 18%, and saw the single largest
increase in Aussie household expenditure since 1984, up 380%.
The generation gap has never been wider when it comes to how
we spend our money.
Households are allocating three percentage points less of their
overall budget to food and non-alcoholic drink compared to 25
years ago. However this category still accounts for our second
largest share of wallet (down from first place in 1984).
While Gen Y dedicate the largest share of their budget to
housing, and Gen X spend relatively evenly across most
categories, it is the Baby Boomers who seem to be making the
most of life, topping the list when it comes to money spent on
food and non-alcoholic beverages, recreation and items such as
luxury cars and premium alcohol.
Meanwhile, we have placed increased importance – and
budget – on lifestyle factors such as holidays, pets, technology,
Source: KPMG Demographics, based on data from the Australian Bureau of Statistics,
Household Expenditure Survey 1984 and 2009/10
The X Debt
Compared to 1984, the appetite for debt in Australia has
significantly increased, although moves have been made to
reduce this debt since the global financial crisis.
The proportion of dwellings with a mortgage has fluctuated
over the past 25 years, reaching a low in 1996 of 26% and a
high of 36% in 2011. Conversely there has been a significant
decline in the proportion of Aussies that own their home
outright. Higher income households are most likely to have
credit card debt.
However, it’s Gen X that has emerged as today’s Generation
Debt. Hardly surprising when you consider that Australians
passing through the 35-44 lifestage are passing through the
Decade of Stress.
The Decade of Stress comes about for several reasons. It is
in this decade that children arrive, that women often leave
the workforce, even if temporarily, and there are increased
household finance pressures. It is in this decade that careers
sometimes peak or don’t pan out as expected or hoped.
In the Decade of Stress there is a metabolism shift in both
men and women which delivers cumulative weight gain.
This period is, to many, the signal of the end of youth and
beginning of middle age. It’s not unexpected therefore, that
the peak age at which most people get a divorce in Australia
is slap-bang in the middle of the Decade of Stress.
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According to data from the Reserve Bank of Australia,
households headed by a person aged between 35-44 years
are the most likely to carry debt – credit cards, personal
loans, and loans for homes and investment properties.
More than half of all households headed by a Gen X have
a home loan and one third have credit card debt. In dollar
terms, households headed by a Gen X and who carry debt
have a median debt of $161,000.
Why are they feeling the pinch?
Gen X are likely to be impacted by the 15% increase over the
past 10 years in the number of dependent 15-24 year olds
that are studying full-time and living in the family home.
That may explain why households headed by a Gen X spend
more on food and non-alcoholic beverages than the average
Australian household, together with the fact that these
households typically have a higher than average number of
persons per household.
Compared to other generations, the median value of debt
decreases to $135,000 for 45-54 year olds and down again to
$73,000 for 55-64 year olds.
Under considerable financial pressure,
Generation X has emerged as today’s
Generation Debt
Source: KPMG Demographics, based on data from the Reserve Bank of Australia (RBA) 2013
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TROLLEY TRENDS
The Trolley Transformation
“The local ethnic food restaurant has emerged as an
extension of the family kitchen. Too tired to cook? Then call the local Thai,
Chinese or Indian restaurant and have something delivered.”
WE ARE WHAT WE EAT. THIS IS MADE
ABUNDANTLY CLEAR WHEN WE COMPARE THE
CHANGES IN AUSTRALIAN SHOPPING HABITS
OVER THE LAST 25 YEARS.
The shift to a more multicultural community is most noticeable
at the supermarket checkout, where the contents of our trolleys
reflect our new cosmopolitan society. Not surprising given the
first step to cultural integration in Australia is through the taste
buds.
In the 1980s, red meat, potatoes, fruit juice, margarine and tea
dominated – today’s trolley is filled with fish, chicken, rice, fresh
fruit, butter and coffee. Or, if it is tea, it is now a choice of one of
61 varieties.
The most noticeable change is that Australians are purchasing
significantly less red meat than 25 years ago. As a share of meat
wallet spend, it is down 16 percentage points from 1984 – a
dip that is largely attributed to specific dietary choices and
affordability.
spend on ‘side dishes’, it has dropped to 39%. Pasta, noodles
and rice are now the Aussie side dishes of choice, making up
61% of side dish purchases.
Fresh fruit and fresh vegetables are also a priority for today’s
families, with a three percentage point rise in share of fruit and
vegetable spend over the past 25 years, indicating an increasing
preference towards fresh food over canned, bottled or frozen
food.
Interestingly, Australians are eating out more than ever, with
31% of the dollars in our food and non-alcoholic beverage
expenditure being spent on restaurants, takeaway or school
lunches – up nine percentage points from 1984. The local ethnic
food restaurant has emerged as an extension of the family
kitchen. Too tired to cook? Then call the local Thai, Chinese, or
Indian restaurant and have something delivered.
In contrast, chicken has become a staple for most Australians,
rising by nine percentage points to constitute 21% of our food
and non-alcoholic beverage share of wallet.
The humble potato has taken the biggest hit when it comes to
popularity on the Aussie dinner plate. Our unequivocal favourite
side dish in the 1980s, accounting for a 72% share of wallet
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Source: KPMG Demographics, based on data from the Australian Bureau of Statistics,
Household Expenditure Survey 1984 and 2009/10
TROLLEY TRENDS
Source: Woolworths Customer Insights
TROLLEY TRENDS
The big weekly shop is dead
“In such a fluid world the family requires flexible meal solutions… On average,
Australians spend just 34% of their weekly food budget on their primary shopping
day. Some people visit their local supermarket every day of the week.”
GONE ARE THE DAYS OF THE BIG
WEEKLY SHOP.
Today, Australians are opting for more frequent visits to the
supermarket. For many busy households, it’s impossible to plan
meals seven days in advance as our frugal grandmothers did.
Today it’s a different story. Both partners work. Kids are coming
and going. There are events and outings and things to do and
last minute plans that pop up.
In such a fluid world the family requires flexible meal solutions.
Flexible means being able to drop into the supermarket on the
way to or from work, school, the gym or a visit to friends. Modern
shopping hours have brought convenience and flexibility to our
lives.
But our new penchant for multiple visits to the supermarket
is more than the need to adjust to ever-changing schedules.
Shockingly for some, many people like visiting the supermarket.
Some people love visiting the supermarket. They see a clean,
well-stocked, well-lit world of possibilities. A marketplace that
brings together food from around the world. Many shoppers
confess that they find visiting the supermarket as a pleasant
outing!
On average, Australians spend just 34% of their weekly food
budget on their primary shopping day. Some people visit their
local supermarket every day of the week.
Longer opening hours allow us to shop when it is convenient,
with a noticeable shift in shopping activity now that
supermarkets nationwide can open on Sundays (to varying
degrees).
In fact, Sunday is fast becoming the new Saturday for trips to
the supermarket, with 18% of Australians making Sunday their
primary shopping day – up three percentage points since last
year.
Source: Quantium research
What our shopping says about us
UNSURPRISINGLY, OUR AGE HAS A SIGNIFICANT
INFLUENCE ON WHEN AND HOW WE SHOP.
Older shoppers are more likely to follow a regular routine,
shopping on the same day of the week and spending the same
amount each time. Younger generations make more frequent
visits to the supermarket and show little allegiance to when they
visit or how much they spend each time.
Budget-conscious shoppers are most often found buying their
groceries on a Thursday. This is likely driven by the timing of
weekly and fortnightly payrolls and government benefits.
Where we live also impacts when and how we shop.
Regional Australia is less likely to spend the same amount on
each shopping trip, but it is more inclined to shop on the same
day every week compared to its urban counterpart.
Habitual shoppers – those who spend at least half of their
weekly budget on their primary shopping day – are most likely
to be baby boomers or older, perhaps in a nod to a time when it
was common to plan the week’s menu in advance.
South Australians and West Australians are more likely to shop
on the same day each week and spend 2% more of their weekly
food budget on their primary shopping day than the average
Australian.
Younger Australians are less likely to be habitual shoppers and
are more likely to spread their shopping budget over the week.
People living in our nation’s most affluent state, the ACT, are by
far the least likely to shop on the same day each week and are
the most unlikely group of Australians to seek out promotions.
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Source: Quantium research
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TROLLEY TRENDS
Aussie families
DEMAND VALUE FOR MONEY
“Meet the modern packed-to-the-rafters family household,
where the kids stick around for longer. The household food and beverage budget
expands and distorts for older households as a consequence.”
AUSTRALIAN HOUSEHOLDS ARE ON
THE MOVE. NOT GEOGRAPHICALLY BUT
DEMOGRAPHICALLY.
Increasing concern about financial pressures and the rising cost
of living has driven Australian families to look for savings in every
aspect of their spending - especially when it comes to shopping
for food.
Family budgets are under strain. Although food costs have
become more affordable, housing, recreation, household
services and medical costs have all increased their share of
Australian wallets.
Young households are shrinking as the number of children in
a typical family drops to one or two. But older households are
expanding as teenage and young adult children increasingly
remain in the family home until their mid-20s and beyond.
This extended nurturing phase has seen the number of children
in households increase to reach five million in 2011 (4,912,334).
This spike is attributed to children over 15-24 years of age, in full
time study, that are not flying the nest, as was the norm for
previous generations.
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In fact, the number of 15-24 year olds still living at home with
their parents is up 15% from 900,000 in 2001 to 1 million in 2011
(1,011,589).
The modern Australian workforce requires technical and
often tertiary training beyond secondary school. Teenagers
cannot leave home and get a job as easily today as they could a
generation ago. They are staying at home while they complete
further education and training. And while remaining in the family
home they are having their friends over and they are raiding the
pantry and the fridge.
Meet the modern packed-to-the-rafters family household,
where the kids stick around for longer.
The household food and beverage budget expands and distorts
for older households as a consequence.
This may partly explain why households headed by a person
aged 48-49 spend $3,548 more on food and non-alcoholic
beverages each year than the average Australian household.
By contrast, Frugals, Pre-Boomers and Gen Y are on or below
average when it comes to their food and beverage expenditure.
Source: KPMG Demographics, based on data from the Australian Bureau of Statistics, Census of
Population and Housing, 1986 and 2011; Household Expenditure Survey 1984 and 2009/10
TROLLEY TRENDS
Savvy Shoppers
SEEK OUT MORE SAVINGS
The proportion of items purchased on promotion
at Woolies is up 10% per annum over the past two years.
AUSTRALIANS ARE SAVVY SHOPPERS.
THEY LOOK FOR LOW PRICES, EMBRACE
PROMOTIONS AND SEEK OUT EVERY DAY
SAVINGS TO INCREASE THE POWER OF THEIR
DOLLAR.
More than a third of the items in Woolworths’ supermarket
trolleys are purchased on promotion.
Australians hunting for bargains are the big winners, with one
in four customers (25%) purchasing nearly half of the food and
drinks in their trolley on special.
Gen X, the most likely to have an established family and the
highest spend on food and non-alcoholic beverages, are
unsurprisingly among the most likely to purchase on promotion.
The big surprise is the Millenial shopper (born 1991-2006), who
tops the promotional shopper rankings. Their preference for
promotional offers probably stems from a combination of low
income and an interest in trialling new products, which are often
on promotion to attract attention in store.
West Australians are the most likely to buy goods on promotion,
closely followed by South Australia and NSW.
Over the past two years, Woolworths has increasingly delivered
more value to its customers as they tighten the purse strings,
with the proportion of items purchased on promotion up 10%
per annum.
Price has become the single most important driver of store
choice for supermarket shoppers, outranking shopping
experience and inspiration. Smart shoppers are clearly waiting
for supermarket specials and shopping for value for money as a
key priority.
Source: Quantium research
Since reducing the price of lamb, Woolies
has seen volume sales increase by 19%.
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FALLING IN LOVE WITH LAMB
ALL OVER AGAIN
The Aussie lamb roast – it was once as iconic as Vegemite or lamingtons.
Unfortunately, over the last decade, lamb consumption in Australia dropped by more than 25%. The
traditional Sunday lamb roast or mid week lamb chops and gravy were things of the past. For many
families, lamb had become a ‘special occasion’ food at best.
In August 2012, Woolworths slashed the price of the top ten most popular cuts of lamb by up to 30%,
in a move that offered customers deep discounts on an often-expensive family favourite.
Volume sales of lamb have increased by 19% since the price was reduced, which equates to a
whopping extra 6 million kilograms of lamb hitting Aussie dinner tables this year.
Source: Woolworths Customer Insights
TROLLEY TRENDS
Research
METHODOLOGY
In August 2013, Woolworths commissioned multi-layered
research to discover consumer sentiment among Australians.
The research included analysis of statistics from the Australian
Bureau of Statistics’ Household Expenditure Surveys and
Censuses of Population and Housing, the Reserve Bank of
Australia along with analysis of Woolworths Everyday Rewards
members’ shopping habits, trends and spending.
For this unique research piece, we consulted with Australia’s
leading social researcher, Bernard Salt KPMG who reviewed
the results of the Household Expenditure Survey (HES) to
understand changes to household expenditure over the past
25 years.
Analysis of the spending behaviour of Everyday Rewards
members, conducted by Quantium and reviewed by Managing
Director of Woolworths Supermarkets, Tjeerd Jegen, assessed
the habits of 9500 members over a 24-month period ending 31
July 2013.
About the Australian Bureau of Statistics – Household
Expenditure Survey
The Australian Bureau of Statistics (ABS) conducts a
Household Expenditure Survey (HES) approximately
every six years. The HES collects detailed information on
the expenditure, income, assets, liabilities and household
characteristics of households resident in private dwellings
throughout Australia.
This report focuses on the 1984 and 2009/10 HES, both of
which had a sample size of approximately 10,000 households.
Responses are weighted by geographies to ensure findings are
representative of Australia at the national, state and sub-state
level. The 1984 HES relates to the calendar year, whereas the
2009/10 HES relates to the financial year. Figures in this report
do not take into account inflation.
‘Share of wallet’ analysis as referred to throughout this report
is a way of showing how goods and services expenditure has
changed over time by establishing the relationship between
expenditure on different broad expenditure categories, as
a proportion of total goods and services expenditure. For
instance, in 1984, 6% of all goods and services expenditure
was spent on clothing and footwear. In 2009/10, this had fallen
to 4%. Australians are therefore spending a smaller ‘share of
wallet’ on clothing and footwear.
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Alignment of age cohorts and generations to HES data:
The age ranges of the three generations below have been
adopted in reference to HES data in this report in order to
match the age ranges from both the 1984 and 2009/10 HES:
• Baby Boomers defined as the 25-34 HES age range in
1984 & the 55-65 HES age range in 2009/10
• Gen X defined as the 35-44 HES age range in 2009/10
• Gen Y defined as the 25-34 age range in 2009/10
Other generations referred to in this report include:
• Frugals: born between 1916 and 1931
• Pre-boomer: born between 1931 and 1946
• Millenial: born between 1991 and 2006
About the RBA DATA
The distribution of debt data referred to in this report is
sourced from the Reserve Bank of Australia and has been
extracted from the HILDA (Household, Income and Labour
Dynamics in Australia) survey. The survey is based on
approximately 7000 households, where the household
characteristics such as age, education and labour force status
are based on the household reference person (chosen from
household members as the person with the highest income,
highest salary, labour force status, age and respondent
number). Households are only recorded as having debt
of a particular type if they had a positive balance in debt.
A household is considered to have debt if any household
member has that type of debt. For instance where the
household reference person is 55 years, if there is a person in
their twenties present (such as an adult child) then their debt
would be included as a type of household debt.
About the Quantium research
The Woolworths Trolley Trends report was compiled by
Quantium research based on sampled data from the Everyday
Rewards program over two years to 31 July 2013. The Everyday
Rewards program collects information on the purchasing
behaviour of about 7 million Australians. As Australia’s leading
data-driven strategy business, Quantium provides innovative
insights on market performance and customer engagement
for Woolworths as well as many of Australia’s other large
organisations.
TROLLEY TRENDS
Media
CONTACTS
For more information about Woolworths Trolley Trends please contact:
Woolworths Press Office
Ph - 02 8885 1033
Email - media@woolworths .com.au
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Published by Woolworths Limited August 2013
©Woolworths Limited 2013
Care is taken to ensure the accuracy of the information contained in this publication.
Please contact Woolworths Limited if you have any concerns.
For more information on the Woolworths Trolley Trends Report or Woolworths Supermarkets go to
www.woolworths.com.au