Table of Contents
- Overview
- Catalyst
- Summary
- EXECUTIVE SUMMARY
- TREND: Value has become the most important influence over store choice
- TREND: The desire to trade-up is also shaping shopping behavior
- TREND: The types of shopping trip are changing
- INSIGHT: Stores have become more specialized in response to the key
trends shaping shopper preferences
- INSIGHT: Differentiation is noticeable through private label,
convenience and healthier eating
- INSIGHT: Although most people demand range, for many expanding choice
is now too great
- INSIGHT: Retailers are adapting to new patterns of grocery shopping
- ACTION: Boost your value offerings
- ACTION: Help supermarkets to compete other than on price
- ACTION: Focus on in-store tactics
- Table of Contents
- List of Tables
- List of figures
- THE FUTURE DECODED
- INTRODUCTION: Grocery shopping in Europe, North America and indeed
around the world is changing in two main ways
- Shoppers' attitudes towards the different elements of the retail offer
are shifting
- Changing attitudes are encouraging the development of new forms of
retail channel which shoppers are using in new and different ways
- TREND: Value has become the most important influence over store choice
- Evidence points to a growth in value-oriented shoppers
- The changing nature of the store mix accentuates the influence of value
- TREND: The desire to trade-up is also shaping shopping behavior
- The rise of the ' sacrificial consumer' reflects the tendency to both
trade-up and trade-down
- The emerging demand for superior customer service reflects the quality
and experience focused shopper
- Take-outs and implications: mass market grocery retailing is all about
value-for-money
- TREND: The types of shopping trip are changing
- The average number of shopping trips is increasing
- Differences in the frequency of grocery shopping by demographic are
minimal
- A demographic group that is one of the fastest-growing shopper
segments is men
- Take-outs and implications: FMCG industry players need to respond to
the growing diversity and spontaneity associated with grocery shopping
- INSIGHT: Stores have become more specialized in response to the key
trends shaping shopper preferences
- The rise of grocery discounters reflects the trend towards price-led
value
- The continuing rise of convenience stores has been an established
feature of developed consumer markets
- Specialist natural food stores still account for a small proportion of
sales but are gaining in popularity
- More specialist types of store that cater to the specific needs of
their target market tend to be rewarded with greater customer loyalty
- Supermarkets and even hypermarkets are under pressure as consumers
switch to specialist stores
- Take-outs and implications: it is no longer a case of making products
available for retail but ensuring the right products are available in the
most appropriate channel formats
- INSIGHT: Differentiation is noticeable through private label,
convenience and healthier eating
- Private labels are increasingly considered credible options in the
same manner as ' famous brands'
- Private label is satisfying shoppers' contradictory demands for
premium goods offering good value
- The depth and quality of home meal solutions is a big draw for
convenience driven consumers
- Natural & organic ranges become an increasingly important factor
shaping store choices and point-of-purchase behavior
- Freshness is a key trend with particularly strong relevance for
retailers
- There are potential problems associated with expanding ranges
- Take-outs and implications: leading retailers are responding to big
issues influencing consumers at large
- INSIGHT: Although most people demand range, for many expanding choice is
now too great
- More than half of European and US shoppers agree that there is too
much choice
- Overwhelmed by choice, consumers are ' speed shopping' and deliberately
using a screening filter
- This is leading to a more passive approach to shopping
- Take-outs and implications: the paradox balance between offering range
variety and simplifying the shopping experience is an important issue for
retailers to resolve
- INSIGHT: Retailers are adapting to new patterns of grocery shopping
- Experiments at Wal-Mart reflect the success of fresher, healthier
offerings in traditional supermarkets
- Discount natural & organic stores are emerging
- Tesco is targeting an unmet need with Fresh & Easy stores in the US
- Take-outs and implications: the speed of change in the grocery retail
landscape is increasing, creating evermore new product development and
sales opportunities for manufacturers to seize
- ACTION POINTS
- ACTION: Boost value offerings through emerging distribution
opportunities and new product concepts
- Make concerted efforts to supply discounters
- Develop value brands
- Develop ' everyday luxury' products
- Take-outs and implications
- ACTION: Help supermarkets to compete on factors other than price
- Learn from the success of natural food specialists
- Work with retailers to offer best practice meal solutions
- Help to reinvigorate center store sales
- Understand that retailers will want to use private label
- Supply innovative private label products
- Take-outs and implications
- ACTION: Develop products for convenience stores
- ACTION: Focus on in-store tactics to ease choice complexity and
communicate with shoppers
- Increase in-store advertising
- Use in-store marketing to target men
- Recognize when choice can be simplified
- Take-outs and implications
- APPENDIX
- Methodology
- Further reading and references
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: Consumer survey: countries ranked by the growth of
value-oriented shoppers
- Table 2: Consumer survey: the changing role of value in choosing
grocery products among European and US consumers, by country
- Table 3: Consumer survey: European countries and the US ranked by the
growth of trading-up-oriented shoppers
- Table 4: Consumers survey: the changing role of trading-up in choosing
grocery products among European and US consumers, by country
- Table 5: Consumer survey: European countries and the US ranked by the
growth of value-oriented and trading-up-oriented shoppers
- Table 6: Consumer survey: European and US consumers' willingness to
pay extra for better customer service by age group and country
- Table 7: Consumer survey: European and US consumers' willingness to
pay extra for better customer service by gender and country
- Table 8: Types of US grocery shopping trip by frequency and value
- Table 9: Types of US grocery shopping trip by day of the week
- Table 10: Consumer survey: average frequency of European and US based
grocery shopping by country
- Table 11: Consumer survey: the composition of European and US grocery
shopping frequency by country
- Table 12: Composition of grocery shopping frequency by age group
- Table 13: Composition of grocery shopping frequency by household income
- Table 14: Value share of discounters in western Europe, by country,
2002-07
- Table 15: Value share of convenience stores by country, 2002-07
- Table 16: Value share of specialist natural food stores by country,
2002-07
- Table 17: Specialist natural food store chains in Germany
- Table 18: Value share of supermarkets and hypermarkets in France,
Germany and the UK, 2002-07
- Table 19: The development of private label, 1970s to 2000s
- Table 20: Potential winners and losers from the fresh trend
- Table 21: Consumer survey: the extent that European and US shoppers
believe there is too much choice when shopping, by age and country
- Table 22: Consumer survey: the extent that European and US shoppers
believe there is too much choice when shopping, by gender and country
- Table 23: Presence of private label in different US grocery store
formats, 2002-07
- Table 24: Consumers who seek discounts and express satisfaction from
value, by country, 2005
- Table 25: Penetration of US private label by type of shopping trip
- Table 26: Industry opinion: ways in which private label could be
better promoted
- List of Figures
- Figure 1: Value is an increasingly important motivator of consumer
behavior
- Figure 2: The changing role of trading-up in choosing grocery products
- Figure 3: Spanish and Dutch consumers embark on the most grocery store
visits per week
- Figure 4: The composition of grocery shopping frequency varies by
country
- Figure 5: Examples of US premium private labels
- Figure 6: Supermarket traffic at the perimeter versus the center store
- Figure 7: Discount natural & organic stores are emerging across
Europe and the US
- Figure 8: Tesco Fresh & Easy
- Figure 9: Two Buck Chuck wines are a real draw for shoppers seeking
price-led value
- Figure 10: Charmin Basic and the possible private label response
- Figure 11: Larger pack sizes have strong value credentials
- Figure 12: Giant Eagle' s Market District range reflects an emerging
product concept: ' everyday luxury'
- Figure 13: Products that suggest a more personal nature can help mass
market retailers counter the selling points of smaller, more specialist
stores
- Figure 14: Featuring actual farmers is a way that Waitrose has
personalized its marketing in the UK
- Figure 15: Best practice meal solutions in the US include Eat Local,
Central Market, Apron' s
- Figure 16: Whole Foods Market meal solutions
- Figure 17: Products developed specifically for the convenience store
market
- Figure 18: Convenience and premium: Harrods 102 convenience store
- Figure 19: In-store marketing; end aisle display and floor advertising
- Figure 20: Helping store navigation: Best Cellars
- Figure 21: Helping consumer choice: Hormel' s Custom Kitchen
- Figure 22: Color blocking and unique shapes can be used to create
visual contrast
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