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© 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
3.9 The average number of channels used in the
last month
60% shop around different channels for product
range
95% Use 2 or more channels per month
4.9 channels that shoppers would like to use by
2016-17 vs 3.9 today
24 times per month people shop for food and
groceries
90% Have used a supermarket in the last month
54% Have used a food discounter in the past
month
34% Have used a hypermarket in the last month
Source: IGD ShopperVista
The shopper has changed
© IGD 2014
Shoppers
Three points of view
Shoppers
Retailers
Suppliers
© IGD 2014
Shoppers
Three points of friction
Chase for loyalty
Backing the
winners
Complexity V efficiency
© IGD 2014
Supermarkets Hypermarkets
Convenience
Discounters
Online
Specialists
Blurring of channels
Foodservice
© IGD 2014
Why use multiple channels?
© IGD 2014
© IGD 2014
Savvy evolution in the past year
Source: IGD ShopperVista, main grocery shoppers May’14
28% have been checkout split
shoppers
44% have been reduced-to-clear
shoppers
24% have been discount requesting
shoppers
15% have been set budget shoppers
© IGD 2014
Value simplicity
56% 66%
Convenience stores
Base: All main shoppers June’14; all past moth convenience store shoppers Mar-May’14
% who find it easy to compare prices and find the best value in store
2012 2014
41% want more
round £ offers or zones
57% like price
marked packs
© IGD 2014
Coupon culture
55% of shoppers say they’ve used
COUPONS when food and
grocery shopping in the last month*
Source: IGD ShopperVista, main grocery shoppers May’14; *claim to have done this in the last month
Recent retailer coupon activity
© IGD 2014
Multi-store missions
Multi-store missions during
same trip
41% of high street discount
shoppers bought food from another store on their most recent shopping 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
+
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 ... More choice More brands
In food discounters
In food discounters
In high street 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
Base: All main shoppers xxx
22% 23% 24%
19%
27%
© IGD 2014
Online fresh
% shoppers who say they prefer to shop certain departments online or in-store
Pre
fer to
bu
y o
nlin
e
No
p
refe
ren
ce
P
refe
r to b
uy
in-s
tore
Which, if any, of the following would encourage you
to buy more FRESH FOOD 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 Base: All main shoppers Jun’14
Trust revival in GB
Higher trust
© IGD 2014
Top five trends at a glance
#1 Simpler pricing and promotions
#2 Multi-store trip
#3 Discount desire
#5 Fresh categories online
#4 Coupons
© IGD 2014
Where do we go next?
Deep understanding
Teams with the right capability
Underpin with effective technology
Build an integrated supply chain
Work closely with partners
