SHOPPING EXPERIENCE. Canadian Shopper Insights Study Highlights
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1 CREATING A BETTER SHOPPING EXPERIENCE Canadian Shopper Insights Study Highlights Dec. 20,
2 Shopping Experience Study Highlights Shopping Experience is extremely/very important to 53% of shoppers A number of factors contribute to a positive Shopping Experience > Helpful staff, interior decor and an organized/uncluttered environment are most important, in most channels > Typical marketing program elements like special displays and product information are also important > Shoppers Drug Mart delivers the best overall shopping experience in the Drug Store channel, and the highest overall shopping experience score among all 8 channel leaders Out-of-store Advertising and In-store Signage both influence purchase decisions > Different kinds of advertising and signage have more/less influence on purchase decisions > In-store signage plays a very important role influencing purchases, as 70% of shoppers make at least one unplanned impulse purchase on each shopping trip Mobile technology improves the store experience by providing helpful information to make purchase decisions > Mobile use in store is still low, but those who ve used smart phone applications like QR codes find them just as helpful as talking to staff 2
3 RESEARCH BACKGROUND 3
4 Methodology Research Partner Data Collection Method Sample Size Qualifying Criteria Online survey conducted using a national consumer panel 2,332 completes (150+ per channel/retailer in Eng. Canada and 100+ per in Quebec) Between 18 and 65 years of age Not sensitively employed (self or anyone in household) by an advertising agency, PR firm, market research company, a radio or television station, a newspaper or magazine, a major department or retail store. Timing of Fieldwork May 3 May 26, 2011 Quotas & Weighting Gender, age and household composition (kids / no kids) quotas were imposed to ensure the sample was representative of Canadian population distribution. Oversampling was done in Quebec to ensure sufficient sample for Quebec-specific analysis by channel. Data was weighted back to true regional proportions in the analysis phase so the total sample view is representative of the Canadian population p 4
5 Retail Channel Definitions Shoppers evaluated Shopping Experience in 1 of 8 different retail channels, defined as follows: Grocery Store Department / Mass Merchandise Store Drug Store Consumer Electronics Store (e.g. Loblaws, Sobeys, Metro, Safeway, Foodland, No Frills, Maxi, Super C, Provigo, Real Canadian Super Store, Walmart, etc.) (e.g. Walmart, Canadian Tire, Zellers, The Bay, Real Canadian Super Store, Costco, Sears, etc.) (e.g. Shoppers Drug Mart, Rexall / Pharma Plus, London Drugs, IDA, Guardian, Jean Coutu, Remedy s RX, Uniprix, Familiprix, Brunet, etc.) (e.g. Best Buy, Future Shop, The Source, Apple, Sony Style, etc.) Specialty Apparel Store Hardware / Home Improvement Store Home Décor / Bargain Discount Store Housewares / Furniture store (e.g. Gap, H&M, Old Navy, Roots, Lululemon, American Eagle, Winners, etc.) (e.g. Home Depot, Lowes, Rona / Revy, Home Hardware, Tim-BR-mart, Canadian Tire, etc.) (e.g. Dollarama, Giant Tiger, LW / Liquidation World, The Bargain! Shop, Fields, Dollar Giant, Rossy, Korvette, etc.) (e.g. Home Outfitters, Home Sense, Leon s, The Brick, Bouclair, Sears Home, etc.) 5
6 SHOPPING EXPERIENCE 6
7 Importance of In-store Experience When Deciding Where to Shop The expected in-store experience (lighting, store cleanliness, organization, décor, friendly staff, etc.) is very important to consumers when they are deciding where to shop, with 53% saying it is extremely or very important. Importance of the In-Store Experience When Deciding Where to Shop Base: Total Sample (n=2332) 53% Q24. Generally speaking, how important are the following things when deciding what [INSERT CHANNEL EVALUATED] you will visit? 7
8 Relative Importance of Specific Elements of In-store Experience Staff helpfulness, interior decor/ambiance and an organized/uncluttered environment have the greatest influence on perceptions of the overall shopping experience However, in-store communications (combining in-store decor, special displays and fixtures, production information and directional signage) also play a significant role in shaping consumers impressions. Relative Importance (Derived) Base: Total Sample (n=2332) Staff helpfulness 19% Interior décor / in-store atmosphere or ambiance 15% Organized, uncluttered 14% Wide aisles 10% Special displays and fixtures 10% Product information 9% Cleanliness Directional signage Lighting 9% 8% 6% Q25. Now we d like to get your feedback on the in-store experience at some specific stores. For each statement, please drag the store logo to the appropriate place on the scale below based on how well you feel the statement describes that store, where 1 means does not describe at all and 5 means describes perfectly. You may give two or more stores the same rating if you wish. 8
9 Shopping Experience Channel Leaders Most Canadians believe Shoppers Drug Mart delivers the best overall shopping experience in the Drug Store channel, and the highest overall shopping experience score among all 8 channel leaders Retailer Ranking - % Saying Excellent / Very Good Base: Those evaluating retailer, e excluding don t know Rank Retail Channel Canada s #1 Channel Leaders % saying very good/excellent shopping experience 1 Drug Store 74 1 Hardware & Home Improvement 73 1 Consumer Electronics 68 1 Department or Mass Merchandise 64 1 Bargain Discount 61 1 Grocery 60 1 Specialty Apparel 59 1 Home Décor, Housewares, Furniture 55 Q25. Now we d like to get your feedback on the in-store experience at some specific stores. For each statement, please drag the store logo to the appropriate place on the scale below based on how well you feel the statement describes that store, where 1 means does not describe at all and 5 means describes perfectly. You may give two or more stores the same rating if you wish. Q26. And how would you rate the overall shopping experience at each of the following stores. Note: Lowe s evaluated among residents of AB & ON only; Jean Coutu evaluated by residents of QC only; Metro evaluated by respondents in ON & QC only; Apple Store not evaluated by respondents insk or Atl; Sobey s not evaluated by respondents in QC 9
10 ADVERTISING, IN-STORE SIGNAGE & UNPLANNED PURCHASES 10
11 Influence of Advertising vs. In-Store Signage on Purchase Decisions Consumers perceive in-store signage as being more influential than advertising on their actual purchase decisions. Influence on Purchase Decisions Base: Total Sample (n=2332) Extremely influential 4% 5% 21% 24% 17% 19% Very influential Somewhat influential 45% 48% Barely influential Not at all influential 23% 20% 11% 8% Advertising In-Store Signage Q28. And, how influential do you think advertising and in-store signage are on the purchases you make (e.g. what brands you buy)? 11
12 Influence of Specific In-Store & Out-of-Store Communications While consumers identify store flyers and coupons as being most influential, the next seven most influential communications are all in-store elements. % Saying Very or Extremely Influential Base: Total Sample (n=2332) Store flyers 57% Coupons 45% Directional signage & directories 32% End of aisle signage and displays 29% Department signage 28% How to buy / use product information signage g Shelf strips Stand alone merchandising displays Product information at shelf Television advertising Posters with a brochure / flyer holder Direct mail advertising Newspaper advertising Print / magazine advertising Shelf blades Directed advertising via Decorative signage that helps create the mood or atmosphere of the store Outdoor banners Digital signage Radio advertising Temporary 'handwritten' event / price signage Floor graphics QR bar codes you can scan with your smart phone to get more information Pop-up Internet advertising 25% 25% 25% 24% 24% 22% 19% 18% 18% 18% 14% 12% 12% 11% 10% 9% 8% 7% 7% Out-of-store advertising In-store communications Q29. And generally speaking, how influential are the following things on the purchases you make? Q30. And generally speaking, how influential do you think each of the following types of in-store signage are on the purchases you make? 12
13 Planned vs. Unplanned Purchases The importance of in-store communications is supported by the fact that 70% of shoppers make unplanned purchases, meaning they buy items not on their shopping list this is particularly true among women and consumers under 35. Incidence of Buying Items Not On Shopping List Base: Total Sample (n=2332) I had a complete list of items to purchase and only bought items on list I had a list of items to purchase but also bought some items not on list I had a list of items to purchase but also bought many items not on list I did not come to the store with any items in mind, I decided what to buy once in the store 30% 40% 8% 22% 70% Q8a. Please indicate which of the following best describes your most recent visit to a [INSERT CHANNEL EVALUATED]. 13
14 MOBILE TECHNOLOGY 14
15 Penetration & Perceived Helpfulness of In-Store Communication Elements While penetration is still low for digital screens & QR codes, those who have used them find them very helpful in making purchase decisions. In fact, QR codes & digital screens are perceived as being just as helpful as store staff. % Saying Have Ever Used While Shopping to Assist With Product Choices Base: Total sample (n=2332) % Saying Extremely / Very Helpful in Deciding What Products to Buy Base: Those who have used element Store staff Product packaging Printed product information available on or near the shelf Product information kiosks in store Product information on digital screens Internet websites accessible through your smartphone QR bar codes you can scan with smart phone to get more information Q22. Which of the following information sources, if any, have you ever used while shopping in a [INSERT CHANNEL EVALUATED] to assist you with your product choices? Q23. And how helpful are the following information sources to you personally when shopping in a [INSERT CHANNEL EVALUATED] and deciding which product to buy? 15
16 APPENDIX 16
17 Signage Reference Photos Shown to Respondents Decorative Signage that helps create a mood or atmosphere Department Signage Directional Signage & Directories Temporary handwritten event / price signage How to Buy / Use Product Information Signage Outdoor Banners 17
18 Signage Reference Photos Shown to Respondents Shelf Strips Product Information at Shelf Stand-alone Merchandising Displays Shelf Blades Shelf Blades End of Aisle Signage & Displays 18
19 Signage Reference Photos Shown to Respondents QR Bar Codes you can scan with your Smart Phone QR Bar Codes you can scan with your Smart Phone Posters with a Brochure / Flyer Holder Digital Signage Floor Graphics Floor Graphics 19
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