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8/10/2019 Convenience Store Shopper Stop Trends
1/15
IGD 2014www.shoppervista.igd.com | [email protected] | +44 (0) 1923 851 956 | @igdshoppernews
ShopperVista Channel Focus guide
https://twitter.com/igdshoppernewshttps://twitter.com/igdshoppernews8/10/2019 Convenience Store Shopper Stop Trends
2/15
IGD 2014
Convenience store shoppers your free guide
Welcome to your free guide to convenience store
shoppers, from the Channel Focus research streamofour ShopperVista insight service.
We interview convenience store shoppers every day,and each quarter we publish insight and trackingreports based on interviews with a representativesample of 1,000 British convenience shoppers.
The convenience channel is set to grow by more than30% over the next five years. This guide will help youget up-to-speed with your shoppers in one of thefastest growing sectors of the market.
I hope you find it useful. If the convenience channel is
a focus for you, contact us now for more details onhow our Channel Focus shopper research canhelp give you a competitive advantage
ichael
Guide author:
Michael FreedmanShopper insight manager and
convenience shopper expert
01923 851 913
mailto:[email protected]:[email protected]8/10/2019 Convenience Store Shopper Stop Trends
3/15
IGD 2014
There are a broad range of c-store shopper missions to cater for. Topping-up on staple items is the
primary shopping mission. However, missions differ by c-store segment and by geographic region
Despite shoppers relatively established convenience store missions, opportunities exist for grocery
companies to grow these further or even alter this established behaviour
Shoppers still view c-stores as more expensive than other channels. Shoppers choose c-stores based
primarily on where they can find the best value for money (focusing on both price and quality)
C-store shoppers prioritise better quality ingredients as the added value benefit that appeals to them
most when shopping for food and groceries, followed by more British or locally produced products
Impulse shopping is high in convenience stores. Merchandising tactics influence most c-store shoppers.
Events also provide a significant opportunity to interrupt established shopping behaviour
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Convenience store shoppers five top takeaways
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IGD 2014ShopperVista Channel Focus; all shoppers using a convenience store in the last month ; June-Aug13
1
Top-up on staple
products
2Buy a
newspaper/magazine
3Buy a snackbetween
meals
4
Top-up on fruitand
vegetables
4 Buy a lotteryticket
6 Buy alcohol
7Buy something for
eveningmeal
8Use cashmachine or
get cash back
8Buy lunch coldfood-
to-go
10Buy cigarettesor
tobacco
Current missions Top 10
5%
9%
May13 Aug13
Do mainshoppingtrip
Implications
Developing a range of solutions to
meet different shopper missions willbecome even more important in thefuture to help retailer differentiation
There are opportunities to increasetrip frequencyfurther by providingsolutions for the wide range ofmissions that can be fulfilled in-store
There are a broad range ofshopper missions we have
identified more than 20 atconvenience stores
Topping up on staple productssuch as bread, milk and eggsremains the main mission ofconvenience store shoppers
Buying a newspaper, produce top-ups, lottery and food-to-go areother key convenience storeshopper missions
Topping up remains the primary shopper mission
8/10/2019 Convenience Store Shopper Stop Trends
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IGD 2014
Ranking of top five missions by main convenience segment shopped at February 2014
Multiples Co-operatives Symbols Independents Forecourts
1 Staple top-up Staple top-up Staple top-up Staple top-up Petrol
2 Snacks Newspapers Newspapers Newspapers Newspapers
3 Newspapers Evening meal Snacks Tobacco Staple top-up
4 Fruit andVegetables
Fruit andVegetables
Alcohol Stamps Snacks
5 Evening meal Cash machine Lottery Alcohol Lunch
Multipleshoppers, characterised by a younger, higher socialgroup profile, are more likely to go there to buy fruit and
vegetables, an evening meal and food-to-go Symbolshoppers under-index on a range of shopper
missions including snacks, evening meals and food-to-go
Apart from petrol, forecourtshoppers primarily visit to buynewspapers, snacks and staple items and co-operativeshoppers are most likely to top-up on staple food products
ShopperVista Channel Focus; all shoppers using a convenience store in the last month; Dec-Feb14
Implications Understand the shopper profile
and mission priorities forindividual c-store retailers andadapt your offer accordingly
mission profiles change by c-store segment
8/10/2019 Convenience Store Shopper Stop Trends
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IGD 2014
and regions. London stores have different profiles
All shoppers London
C-store shopping behaviour
Average number
of missions
Average
number ofstores
Average trip
frequency perweek
3.9
3.02.57
4.43.7
2.71
36%
29%
26%
17%
11%
10%
24%
23%
19%
10%
7%
7%
Fruit & vegetables
Alcohol
Tobacco
Breakfast
Main shopping
trip
Special occasion
All shoppers London
Selected c-store shopper missions
The convenience channel is accelerating at rapid pace inLondon, with the city now showcasing best-in-class
examples
Londoners are shopping more frequently at c-stores,visiting more stores and conducting more missions thanall c-store shoppers
With Londoners over indexing for online groceryshopping, it is no surprise that they are also more likely
to go to c-stores to top-up on fresh fruit and vegetables As a higher proportion of people are working full-time,
c-stores appear to be helping Londoners save time withbreakfast and conducting a main shopping trip
Implications Higher population density in London may impact shopper missions,
with lack of storage resulting in shoppers making smaller, morefrequent transactions
London has many attributes that make it attractive to grocerybusinesses. But it also raises many challenges such as the diversityof the population. Merely being present in London does notguarantee success
ShopperVista Channel Focus; all shoppers using a convenience store in the last month; Dec-Feb14
8/10/2019 Convenience Store Shopper Stop Trends
7/15 IGD 2014
Opportunities exist to alter established missions
ShopperVista Channel Focus; all shoppers using a convenience store in the last month, June-Aug13
58%
36%
28%
25%
25%
23%22%
21%
21%
20%
33%
35%
41%
45%
32%
38%39%
43%
41%
15%
9%
29%
31%
30%
43%
39%39%
39%
38%
65%
Likelihood of using c-stores for each mission
Currently use
1 Top-up on staple products
2 Buy a newspaper/magazine
3 Buy a snack between meals
4 Top-up on fruit and vegetables
4 Buy a lottery ticket
6 Buy alcohol
7 Buy something for evening meal
8 Use cash machine or get cash back
8 Buy lunch cold food-to-go
10 Buy cigarettes or tobacco
Would use Would not use
Despite shoppers relatively established convenience storemissions, opportunities exist for grocery companies to growthese further or even alter this established behaviour
Twice as many c-store shoppers would buy cold-food-to-go(41%) than currently buy them (21%)
There are also significant opportunities to encourage moresnacking and topping up on fruit and vegetables
Implications
Effective merchandising tacticsto highlight alternativemissions will be important todrive store use to shoppers whocurrently under-index in certainmissions
8/10/2019 Convenience Store Shopper Stop Trends
8/15 IGD 2014
Both price & quality are key drivers of store choice
72%69%
65%
65%
63%
59%
57%47%
43%
42%
29%32%
40%
30%
23%
21%
20%19%
17%
18%
Product quality
Prices
Close to home - walking
Opening hours
Product range
Ease of finding products
Ease of getting around storePromotions
Budgeting
Ease of parking
Extremely important Extremely or very importantTop drivers of c-store choice
Seven in ten c-store shoppers state price and quality asextremely or very important in driving store choice, rising tomore than 70% of multiple shoppers. Promotions are moreimportant to multiple and co-operative shoppers
Accessing stores is an important factor in store choice - theability to walk to a store from home is particularlyimportant to independent store shoppers
Implications
It is important to rememberthat more shoppers still expectto be worse off financially thanbetter off
How are you helping your c-store partners to stand out forvalue?
ShopperVista Channel Focus; all shoppers using a convenience store in the last month; Dec-Feb14
8/10/2019 Convenience Store Shopper Stop Trends
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51%
63%68%
78% 75%
9% 15% 16% 20%22%
Multiples Symbols Co-operatives Independents Forecourts A lot or a little more
expensive
A lot more expensive
A lot cheaper
A lot or a little cheaper
While shoppers still view c-stores as more expensive
- No different
Convenience versus other types of stores (e.g. supermarkets, hypermarkets, online)
6%
20%
14%
7%
12%
19%
20%
17%
24%
22%
More than three in five (61%)believe convenience stores are alittle or a lot more expensive thanother channels
Multiples (51%) are not perceivedto be as expensive compared toother segments
Implications
With many shoppers still feeling financially squeezed,becoming shoppers money saving ally by developingnew ideas to help shoppers save money and providingstrong value messages is likely to increase in importance
Are there opportunities to introduce smaller pack sizesfor areas with a higher than average number of singlehouseholds?
ShopperVista Channel Focus; all shoppers using a convenience store in the last month; Dec-Feb14
8/10/2019 Convenience Store Shopper Stop Trends
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Better quality is prioritised for added value
1. Better quality40%
2. British or local 34%
3. Brand name 33%
4. More convenient/saves time 26%
5. Added health benefits 22%
Top 5 benefits that appeal to c-store shoppers when buying food and groceries apart from price and promotions
Implications
Can you create
additional demand inyour category beyondprice by educatingshoppers on thequality ingredients atpoint of purchase?
Brand
C-store shoppers prioritise better quality as the added value benefit thatappeals to them most when shopping for food and groceries, particularly
multiple shoppers and Londoners There is demand from c-store shoppers for British or locally produced
products, ranked second, rising to 47% of Scottish shoppers and 42% ofWelsh shoppers (vs 20% of Londoners)
Brand name is also a key driver of added value for shoppers ranked thirdoverall, rising to 37% of multiple shoppers (vs 24% for symbol shoppers)
ShopperVista Channel Focus; all shoppers using a convenience store in the last month; Dec-Feb14; arrows denote higher ranking vs main store shoppers
8/10/2019 Convenience Store Shopper Stop Trends
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Better quality: In-store excellence
I bought some chicken breastsstuffed with mozzarella wrapped in
parma ham. I thought thats really
good. Its nicer quality. The individual
packs of fresh chicken are very good.
Its very good quality that you cook.
Shopper, Londis, Ascot
They have an extraordinary range of fruit and vegetables.
The quality is excellent. Shopper, Londis, Ascot
The breadis lovely here. We get
their French bread. I would definitely
pay more for that. Its authentic. It
tastes lovely. Its better than at other
stores. Shopper, Londis, Ascot
The quality of meathere is very, very
good. Shopper, Spar, West Malling
These marshmallow
cookiesare lovely. I only
came in here to get some
milk but they tempted me.
Shopper, Spar, West Malling
ShopperVista Channel Focus; all shoppers using a convenience store in the last month; Dec-Feb14
8/10/2019 Convenience Store Shopper Stop Trends
12/15 IGD 2014
Merchandising influences most c-store shoppers
% claim merchandising has an impacton their purchase decisions
74
Majority of shoppers buy some items onimpulse in convenience stores
Impulse shopping is high in convenience stores as many as three in four (74%) claim to havepurchased an unplanned item on their last trip.This is very similar to main store shoppers where76% claim to impulse shop
The majority of shoppers say that a storesmerchandising tactics had an influence on theirpurchasing decision on a recent visit to aconvenience store
On shelf signs and labels and end of aisledisplays also rank highly in encouraging purchasedecisions
Price marked packs (PMPs) also rank relativelyhighly among convenience store shoppers(There will be a focus on PMPs in the
Convenience Channel Focus report in June14)
Implications
Having effective and innovativein-storemerchandising alongside a co-ordinated campaignof above and below the line advertisingcouldsignificantly influence product choice decisions
ShopperVista Channel Focus; all shoppers using a convenience store in the last month; June-Aug13
8/10/2019 Convenience Store Shopper Stop Trends
13/15 IGD 2014
and events provide and opportunity in c-stores too
Implications
What have you taken from your seasonal in-storeactivationthat particularly worked which could be broughtforward to forthcoming events? This will be essential inensuring successful execution of events in 2014
There is a large opportunity for suppliers to work withretailers to use special occasion displays in-store to create
a more rewarding shopper experience and increase sales
% extremely or very important in store choice special
occasion
Sep-Nov 13 Dec-Feb 14 22-31
Dec 13
29% 32%
40%
The importance of special occasions has risen upshoppers agenda when selecting their main
convenience store Christmas and New Yearappear to have been a
more important driver of c-store choice this year c-stores became more important for shoppers thisChristmas
Four in ten (40%) cited special occasions asimportant in c-store choice in the Christmas week
(compared with 29% in the last quarter) C-store shoppers were more likely to go to c-stores
in the Christmas week to top-up on fruit andvegetables (31% vs 24% for the quarter)
Shopping for special occasions particularly appealsto under 45s (42% compared with just 22% of over45s)
ShopperVista Channel Focus; all shoppers using a convenience store in the last month; Dec-Feb14
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14/15 IGD 2014
Five things you must consider
The convenience channel is set to grow by more than 30% over the next few years what
are you doing to make sure you understand your shoppers in this channel?
The channel is evolving with more relevant store formats targeting new locations have
you developed a dedicated channel management strategy to ensure you capture this
forecasted growth?
Shoppers are rapidly evolving in this channel with missions and preferences changing
constantly do you know how you can tap into other c-store shopper missions to drive
frequency of shop?
Convenience store shopping is not just about distress purchases are you thinking about
how to encourage increase in weight of purchase through effective merchandising?
Shoppers rate convenience behind other channels when it comes to offering the best
value for money can you create additional demand in your category beyond price by
educating shoppers on the quality ingredients at point of purchase?
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8/10/2019 Convenience Store Shopper Stop Trends
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T | +44 (0) 1923 851 956
Channel Focus from IGD ShopperVista
provides commercially focused, actionable
insights on shoppers in three high-growth
channels: convenience, discount and online
Get in touch with us today for more
information and begin capitalising onopportunities with your shoppers in these
channels like never before
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