THE DECLINE OF THE BIG WEEKLY SHOP?
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- Betty Flowers
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1 THE DECLINE OF THE BIG WEEKLY SHOP? Mail audience insights reveal a shift in supermarket shopping behaviours
2 CONTEXT MATTERS New ways of watching films and television have created a shift in tastes. The highest-octane form of entertainment is no longer the Hollywood blockbuster but the box-set binge. Six episodes of Breaking Bad back to back makes a trip to the cinema seem comparatively underwhelming. This approach acknowledges that people do not have fixed preferences: context matters. Hence when distribution changes, people s tastes and behaviours change accordingly. Rory Sutherland, Vice-chairman of Ogilvy Group The Spectator, January 2015 Source: Rory Sutherland, Vice-chairman of Ogilvy Group, The Spectator, January 2015
3 IS THE SAME PATTERN BEING PLAYED OUT IN SUPERMARKETS? Do people do big weekly shops because they want to, or because that s what you do when shops happen to be big? Source: Rory Sutherland, Vice-chairman of Ogilvy Group, The Spectator, January 2015
4 SPENDING OVER #1 29.2BN A YEAR ON GROCERIES Source: Kantar World Panel Data 52 w/e Feb 2015
5 28P OF EVERY 1 SPENT IN SUPERMARKETS 5.7BN MORE THAN HEAVY COMMERCIAL TV VIEWERS Source: Kantar World Panel Data 52 w/e Feb 2015
6 1,000 MAIL READERS 500 MAILONLINE USERS 1,000 GB REP PANEL WEIGHTED TO NRS AIR & TGI FIELD WORK: JANUARY 2015
7 GHOST STORES AND THE RISE OF THE DISCOUNTERS
8 22m Tesco site in Chatteris, Cambridgeshire will be mothballed. One of 49 planned Tesco stores across the UK to be cancelled.
9 CONVENTIONAL EXPLANATION FOR DECLINE OF TESCO & THE BIG SHOP Shoppers have increasingly sought out the LIDL& ALDI UNDERCUT TESCO S PRICES German-owned food retailers as they open rafts of new stores offering low prices. SO PEOPLE HAVE DESERTED TESCO TO SAVE MONEY COMBINED WITH A GREATER PREFERENCE FOR ONLINE SHOPPING Sainsbury's, Asda, Morrisons and Tesco, saw sales drop as shoppers flock to cheaper rivals Aldi and Lidl. ERA OF ONCE A WEEK BIG SHOP AT A MEGASTORE IS NEARING AN END Source:
10 OVER HALF NOW VISIT DISCOUNTERS GB: 30% % % GB: 27% 60% OF MAIL READERS WHO (TOP-UP) SHOP AT ALDI ARE ABC1, 38% ARE AB % % Source: Mail Matters Supermarket Panel Q31. Which of these supermarkets, if any, do you shop at on a regular basis? Q31. Big/Main Shop or smaller / top-up shops, in store or online.
11 ONLINE GROCERY SALES GROWTH 30% OF MAIL READERS GROCERY SHOPPING ONLINE (50% OF MAILONLINE USERS) ONLINE SHOPPING STILL ONLY ACCOUNTS FOR UNDER 5% OF TOTAL SALES - EXPECTED TO RISE TO 8% BY 2019 Source: Mail Matters Supermarket Panel Q20. Thinking about the type of supermarket shopping you do, can you select the statement below that best describes your general behaviour over the last few years?q21. You said that you are doing less of the big /main weekly shop in favour of more regular smaller/top up shopping - what has promoted you to do this?
12 When it comes to the all important in-store shop, has it simply become a race to be the cheapest?
13 WHAT MOTIVATES CONSUMERS TODAY?
14 SHOPPER PRIORITIES FINELY BALANCED HOW MUCH MONEY I SPEND 43% QUALITY OF THE GROCERIES I BUY 47% Source: Mail Matters Supermarket Panel Q26. What would you say is your main priority as a supermarket shopper?
15 COMPLEX REACTIONS BEYOND PRICE What are consumers concerned with when deciding where to grocery shop? VFM 80% (GB:84%) DEALS & OFFERS 71% (GB: 60%) LOCALITY 83% (GB:79%) QUALITY PRODUCTS 74% (GB: 65%) FRESH PRODUCTS 72% (GB: 65%) LOYALTY CARDS 60% (GB: 50%) CHEAP PRICES 60% (GB: 65%) PRODUCT RANGE 68% (GB: 65%) Source: Mail Matters Supermarket Panel Q36. Thinking about the supermarkets you regularly use whether in-store or online, which of the following factors are important in choosing where to shop for your: Big main shop/top-up shop? Base: Mail Print Readers, GB Pop
16 ALDI BRAND PERCEPTIONS QUALITY 19% 22% RANGE 21% FRESH Source: Mail Matters Supermarket Panel Q40. Which words or phrases do you associate with these supermarkets? Base: Regular Mail Readers
17 ANCHORED IN CHEAP PRICES 74% CHEAP PRICES Source: Mail Matters Supermarket Panel Q40. Which words or phrases do you associate with these supermarkets? Base: Regular Mail Readers
18 A quest for cheap prices and the rise of discounters is not sufficient to explain this change alone
19 CHANGING SHOPPING BEHAVIOUR IN CONTEXT
20 CONSUMERS INCREASINGLY SUROUNDED BY SMALLER CONVENIENCE STORES Source: Telegraph.co.uk
21 SHOPPING IN SMALLER BATCHES 59% % % % % 2015 MAILONLINE 88% GB POPULATION 84% Source: Mail Matters Supermarket Panel Q19. - How often do you visit a supermarket store (whether a big out-of-town store, or a much smaller local store but not including online) for: A big / main shop (where you buy most of your shopping for a week or more).
22 WHAT S DRIVING THIS CHANGE? 29% of Mail audience Shopping more little & often Easy to Visit A Local/ Smaller Store Regularly 34% (GB: 36%) Source: Mail Matters Supermarket Panel Q20. Thinking about the type of supermarket shopping you do, can you select the statement below that best describes your general behaviour over the last few years?q21. You said that you are doing less of the big /main weekly shop in favour of more regular smaller/top up shopping - what has promoted you to do this?
23 INCREASED VISITS = VARIED STORE REPERTOIRES Source: Mail Matters Supermarket Panel Q31. Which of these supermarkets, if any, do you shop at on a regular basis?
24 WHAT S DRIVING THIS CHANGE? 29% of Mail audience Shopping more little & often Easy To Visit A Local/ Smaller Store Regularly 34% (GB: 36%) I Want To Cook Fresh Food From Scratch 39% (GB: 35%) Take Advantage Of Regular Deals And Offers 48% (GB: 29%) I Don t Want To Waste Food By Throwing It Away 50% (GB Pop: 44%) Source: Mail Matters Supermarket Panel Q20. Thinking about the type of supermarket shopping you do, can you select the statement below that best describes your general behaviour over the last few years?q21. You said that you are doing less of the big /main weekly shop in favour of more regular smaller/top up shopping - what has promoted you to do this?
25 TAKING ADVANTAGE Always look out for Supermarket offers and promotions: Mail Print 76% MailOnline 75% Quals Pops 71% 71% With all the supermarket offers and discounts, I think I get more for my money : Mail Print 53% MailOnline 52% Quals Pops 40% 45% Source: Mail Matters Supermarket Panel Q27 How much do you agree with the following statements?
26 SOME IMPLICATIONS FOR COMMS MESSAGES Consumer shopping behaviour has progressively altered Convenience shopping has adapted into comparison shopping Crucial to communicate beyond price
27 READ ALL ABOUT IT
28 MAIL BRANDS: ESSENTIAL TOOLS, TIPS & HINTS 60% GB 47% 70% GB 45% 71% GB 67% Source: Mail Matters Supermarket Panel 2015.? Q47. Where, if at all, do you tend to find out about special offers or promotions on food and groceries. Q46. We'd like you to think about the different ways in which supermarkets may advertise to you.
29 POWERFUL COMPANIONS TO TV CAMPAIGNS Attention Grabbing (1 st ) New Ideas & Inspiration (1st) Highlighting Offers (=2 nd ) Encourages Me To Buy (=2 nd ) Highlighting Offers (6 th ) Attention Grabbing (5 th ) New Ideas & Inspiration (6 th ) Encourages Me To Buy (1 st ) Easy To Refer Back To (1 st ) Highlighting Offers (1 st ) Detailed Product Info (1 st ) Trusted Source (1 st ) Highlighting Offers (=2 nd ) Encourages Me To Buy (=2 nd ) Attention Grabbing (2 nd ) Detailed Product Info (2 nd ) Fuelling Conversations (=1 st ) New Ideas & Inspiration (5 th ) Highlighting Offers (5 th ) Attention Grabbing (4 th ) Easy To Refer Back To (=2 nd ) Encourages Me To Buy (=2 nd ) Trusted Source (2 nd ) Fuelling Conversations (=1 st ) Source: Mail Matters Supermarket Panel 2015.? Q47. Where, if at all, do you tend to find out about special offers or promotions on food and groceries. Q46. We'd like you to think about the different ways in which supermarkets may advertise to you.
30 MAIL BRAND TRUST 88% 87% 83% 77% 61% 60% 58% 58% 48% 44% 39% 36% 32% 27% Source: Mail Matters Supermarket Panel Q51. If you saw supermarket advertising on any of the below sources, to what extent would you trust this advertising?
31 Newsbrands remain essential for driving inspiration, signposting deals and fuelling conversations - within a highly trusted advertising environment
32 PREMATURE OBITUARY?
33 DEATH OF THE BIG WEEKLY SHOP? 71% % % % % 2015 MAILONLINE 74% GB POPULATION 68% Source: Mail Matters Supermarket Panel Q19. - How often do you visit a supermarket store (whether a big out-of-town store, or a much smaller local store but not including online) for: A big / main shop (where you buy most of your shopping for a week or more).
34 15% 20% 23% 23% 23% 21% 43% 34% 42% 38% 39% 35% 31% 36% 29% 34% 51% 52% 68% 68% IN 10 MAIL BRAND USERS SHOP AT TESCO 57% doing a regular big shop at Tesco Source: Mail Matters Supermarket Panel Q31. Which of these supermarkets, if any, do you shop at on a regular basis? Q31. Big/Main Shop or smaller / top-up shops, in store or online.
35 CONVENIENCE STORE EXPERIENCE Experience frequently disappointing: limited choice, often run out of essentials, long queues, higher prices etcetera Usage can also involve a little guilt: I should be using the independent corner shop Source: Voodoo Research. Base: Mail Print Readers
36 PREPARED TO PUT THE LEG WORK IN 48% of Mail Readers prepared to travel further than regular supermarket to take advantage of a deal/offer being offered at another supermarket (GB POP: 43%) Source: Mail Matters Supermarket Panel Q27 How much do you agree with the following statements? Q39. How likely would you be prepared to travel further than your regular supermarket location to take advantage of a great deal/offer you are aware is being offered at another supermarket?
37 IN THIS ERA OF CONVENIENCE, MAIL READERS HAVEN T ABANDONED THE BIG WEEKLY SHOP. THEY ARE CHERRY PICKING AT MORE SUPERMARKETS THAN EVER, ACROSS A VARIED REPERTOIRE - BIG AND SMALL, FROM DISCOUNTERS TO MORE UPMARKET STORES.
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