Upload
katielittler01
View
29
Download
1
Tags:
Embed Size (px)
Citation preview
How are the discounters affecting the UK High St?
To listen to the 15 minute webinar recording of ‘How are the discounters affecting the UK High Street’
please click here
We are talking to shopper across the channels
For this High St study, we spoke to shoppers, online, in November 2014:
We asked their general opinions and also feedback on their last visit to the following retailers (within 7 days of visit):
SupermarketsAsda 732Tesco 750Morrisons 750Sainsbury’s 750The Coop 500Budgens 100Waitrose 400Food DiscountersAldi 357Lidl 400Fixed price DiscountersPoundland 40099p Store 250Frozen SpecialistsIceland 396Farmfoods 250OtherWilkinsons 250 WHSmith 400Boots 400
NB They must have purchased less than 30 items on that visit (i.e. excluding ‘mega basket’ customer)
*not part of High St study but some comparisons included.
Our High St study – the objectives
• Aims to understand shopping trips, across the UK High St– Store repertoire– Drivers to store– Share of wallet
• We DON’T focus on the ‘mega baskets’ (over 30 items)
• We DO deep dive into a category understanding– Category drivers– Category perceptions
• And gain critical insights AT ACCOUNT LEVEL– Shopper behaviour– Shopper profiles– Price and value
Source: him! High St research 2014
% of UK adults who have visited in last 7 days
Source: him! High St research 2014
The way people grocery shop is evolving:19% (net) say they are visiting a larger no of retailers vs last year
Supermarkets
96%
Food discount
ers
41%
Convenience stores
71%
Variety discount
ers
30%
The omni-channel shopper
UK adults now use 3 different retailers in a typical week
What’s driving growth in Omni-channel shopping?
Growth in online• improved experience• become normalised / trusted
Growing standards of Discounters
• A new credible channel
Changing lifestyles & shopping habits• Poor economy led to price comparisons• Smaller, more frequent
Where has the Food Discounter growth come from?
They’re steadily attracting a larger & broader customer base
But ultimately, their growth comes from gaining a larger share of their customers wallet
Source: him! High St research 2014
Jul-13 Oct-13 Jul-14 Nov-14
19%22%
27%
46%
% of shoppers are Food Discounters who are on a ‘main shop’
Food discounter now OVER-index on upper-middle class shoppers
vs the UK population!
37% 2013
41% 2014
vs
Why are the discounters doing so well? Discounters are increasingly focusing on ‘quality’
More premium ranges messages – focused as much on ethics & quality of products as price
A simple price message
Lidl v Tesco
Source: him! High St research 2014
Why are the discounters doing so well? They’re introducing ‘premium’ and local ranges to attract a broader shopper base
Aldi selling "super premium" range of wines and spirits at heavily-reduced prices for
Christmas
Aldi focusing on ‘British’
Source: him! High St research 2014
4. Pre-wrapped bread
3. Chilled dairy
1. Fruit & veg
2. Packaged grocery
5. Frozen
Source: him! High St research 2014
Top categories bought at hard discounters
Why are the discounters doing so well? They’ve invested in fresh
Aldi’s award winning ‘Specially Selected’ own label range is very popular with shoppers
Why are the discounters doing so well? They’ve invested in ‘quality’ own label
Why are the discounters doing so well?People enjoy shopping in them!
Discounters
Supermarkets
Convenience store
46%
40%
30%
% who find shopping in the stores ‘enjoyable & stress-free’ No frills / easy to shop
policy (limited range)
Bursts of unusual product
Exciting WIGIG promotions & products
Feel good factor - everyone loves a bargain!
Source: him! High St research 2014
Voted the Christmas campaign most likely to actually affect shopping habits
Why are the discounters doing so well?They’re investing in building a trustworthy, approachable brand
Using humour to have light-hearted pokes at their competitors, and win trust.
Why are the discounters doing so well?Partly due to changing lifestyles & shopping habits
Source: him! High St research 2014
“The real issue for Tesco, Morrisons and Sainsbury’s is not so much the
discounters, it’s that people are shopping differently.
They want luxurious top-end food from around the world but then they are thrifty and
are looking for good value in pre-prepared food.”
Mark Price Waitrose’s MD
BUT supermarkets have started to ‘wake up’. Let the battle commence!
Source: him! High St research 2014
…2016 could be a very different year