Convenience Store Shopper Stop Trends

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    IGD 2014www.shoppervista.igd.com | shopper@igd.com | +44 (0) 1923 851 956 | @igdshoppernews

    ShopperVista Channel Focus guide

    https://twitter.com/igdshoppernewshttps://twitter.com/igdshoppernews
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    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

    michael.freedman@igd.com

    01923 851 913

    mailto:shopper@igd.commailto:shopper@igd.com
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    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

    12

    3

    45

    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

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    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

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    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

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    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

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    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

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    51%

    63%68%

    7