How Britain Shops: Food 2011

Verdict Research Limited, March 2011, Pages: 190

<Description><Introduction><Paragraph>How Britain Shops Food & Grocery provides a detailed overview of the shopping habits of consumers. It examines the demographic profile of who shops for food, where they shop, drivers of loyalty, whether they are satisfied with their current store and what stores should do to satisfy customers more.</Paragraph></Introduction><Scope><BulletPoint>Thorough analysis of how customers shop for food. Profiles of eight food & grocery retailers including: Tesco, Sainsbury's, Morrisons & Waitrose</BulletPoint><BulletPoint>Visitor and main user share data, conversion rates, customer loyalty rates and reasons for loyalty/disloyalty</BulletPoint><BulletPoint>Data is segmented regionally and by demographic and socio-economic group</BulletPoint><BulletPoint>Historic data is provided so trends can be analysed over a five year period</BulletPoint></Scope><Highlights><Paragraph>Tesco has experienced decline in both visitor and main user share. The retailer needs to address this loss to prevent further leakage of spend to competitors. Tesco's predicament is mainly a result of market saturation. Loyalty is therefore the key for the retailer to retain market share.</Paragraph><Paragraph>Price positioning is an ongoing concern for shoppers in the food & grocery sector with a 0.7 percentage point increase year-on-year in the importance of price as a driver of loyalty. The proportion of loyal main users identifying price – and making it the primary driver – has reached 48.0%.</Paragraph><Paragraph>Top-up shopping became increasingly popular in the period, driven by the expansion of Tesco and Sainsbury's in particular into the convenience market, pushing forward convenience as a driver of loyalty. Online shopping and click & collect facilities enhanced ease of shopping for consumers driving up expectations for retailers.</Paragraph></Highlights><PurchaseReasons><BulletPoint>How Britain Shops is one of the most comprehensive studies of its kind drawing on a nationwide survey of 6,000 shoppers</BulletPoint><BulletPoint>Use this report to understand what drives the loyalty of your customers and find out where else they are shopping - and why</BulletPoint><BulletPoint>Channel investment for maximum return by knowing which aspects of your retail proposition most need improving in the opinion of your customers</BulletPoint></PurchaseReasons></Description>

Executive Summary
Verdict view
Key findings
Main conclusions
Food & grocery share increases as consumers focus on essentials
Of the Big Four only Sainsbury's gains visitor share
Conversion rates up as retailers focus on transferring visitors to main usage to gain share
Ethical duo push loyalty to new high
Price still prime loyalty driver …
… but convenience a strong factor, too
Retailer highlights
Tesco struggles to increase share as Asda tempts its customers away
Asda wins favour, but not footfall
Sainsbury's outperforms other Big Four rivals
Morrisons loses momentum but not loyalty
New customers and renewed loyalty for The Co-operative
Waitrose a loyalty leader yet loses shoppers
Falling loyalty at Iceland as retailer fails to convert visitors to main users
Low prices at Aldi continue to win loyalty and boost conversion rates
SECTOR SUMMARY
Share of shoppers
Consumers focus on essentials leading to increased share of shoppers for food & grocery
Penetration of food & grocery shoppers
Increasing number of males shop for food & grocery
Retailer usage
Tesco, Asda and Morrisons struggle as Sainsbury's hits the right note with shoppers
Main user share by region
Conversion rates
Recover as retailers improve offer
Shopping around
Drop in shopping around as consumers become more loyal
Loyalty
Shoppers respond to improved retail offer with increased loyalty
Drivers of loyalty/ disloyalty
Convenience tempts a steadily price conscious customers
ALDI
Improving conversion from visitors but loyalty precarious
Conversion improving despite lower footfall
High levels of loyalty …
… but price-sensitive customers are the most fickle
Customers visit Asda for clothing
Visitors
Can't tempt affluent shoppers to trade down
Main users
Main user share recovers from dip
Conversion rates
Grows conversion as purse strings tighten once more
Loyalty
High loyalty bolstered by price positioning
Competitors
Aldi shoppers continue to spread their spend more than average
ASDA
Price promise strikes a note with main users but fails to attract new visitors
Converts existing visitors but neglects to attract further footfall
Increased loyalty …
… but price sensitive in nature
Limitations of offer
Visitors
Fails to increase footfall
Main users
Grows main user share through price promise
Conversion rates
Conversion soars into top position
Loyalty
Loyalty driven by low prices
Competitors
Less shopping around as visitor numbers fall
ICELAND
Falling loyalty and conversion of footfall to main usage
Visitor numbers up, main users steady
Lowest conversion
Loyalty falls …
… but big drop in shopping around
Visitors
Footfall hits peak level
Main users
Stagnant share of main users as visitors do not convert
Conversion rates
Weakest of profiled set
Loyalty
Sixth out of eight
Competitors
Decrease in shopping around indicates customers cannot afford to shop elsewhere
MORRISONS
Struggling with pace of development in multichannel and non-food
Visitors off top and conversion to main users down
High preference for Asda
Could pinch customers from Aldi
Visitors
Footfall slips from peak
Main users
Loss of main users from previous year's high
Conversion rates
Reduced conversion of visitors to main users
Loyalty
Improves year-on-year
Competitors
Morrisons customers shop around less
SAINSBURY'S
Outperforms competitors with rising footfall and loyalty
Ups visitors and conversion to main users
Attracts younger clientele – good for the future if they become loyal
Loyalty hits new high
Consumer shopping around declines
Visitors
Raises footfall to 2008 levels
Main users
Increase year-on-year
Conversion rates
Recovery continues
Loyalty
Hits new high
Competitors
Less shopping around sees Sainsbury's hold shoppers from competitors
TESCO
Risks losing shoppers as footfall declines
Falling visitor and main user numbers as conversion rates also decline
Convenience drives loyalty as expansion continues
Strong cross-shopping into non-food
Asda tempts main users
Visitors
Declining visitor share since 2009
Main users
Main user share continues to fall
Conversion rates
Previous recovery in conversion rate hits buffers
Loyalty
Five-year peak due to convenience score
Competitors
Shopping around declines but more main users visit Asda, Iceland and The Co-op
THE CO-OPERATIVE
Recovering loyalty and rising conversion boost main user share
Main user share highest since 2005
Convenience main driver of loyalty
Strong demographic skew in main users
Tesco and Sainsbury's expansion may steal share
Visitors
Footfall partly recovers
Main users
Increasing main users
Conversion rates
Strong improvement in conversion
Loyalty
Recovering loyalty figures
Competitors
Shoppers increasingly unlikely to shop around
WAITROSE
Loyalty recovers as footfall declines
Visitor and main user shares drop as consumers move to lower price retailers
Loyalty recovers from dip in 2010
Inspires loyalty among the young and less affluent classes
Sainsbury's tempts price-conscious consumers
Visitors
Slight dip in visitor share as shoppers try to curb spending
Main users
Continuing decline in core shoppers
Conversion rates
Conversion continues to weaken
Loyalty
Loyalty its strongest asset
Competitors
Price positioning pushes consumers to continue to shop around
APPENDIX
Methodology
Selection of parliamentary constituencies
Selection of enumeration districts
Selection of respondents
Post survey weighting
Further reading
Ask the analyst
Global Retail FreeView
Verdict Research consulting
Disclaimer

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