The Grocery Shopper Journey - Ali Chapman, Analyst Diana Sheehan, Director September 2017
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The Grocery Shopper Journey Ali Chapman, Analyst Diana Sheehan, Director September 2017
Data Source: About the ShopperScape® Survey
Who? How and When? What? Coverage
‒ 4,000 primary household ‒ Fielded online the third week of ‒ Monthly and quarterly tracking ‒ 200+ retailers across all sectors
shoppers per month every month questions on retailers and of retail
‒ Representative sample ‒ Survey fielded through LSR venues shopped, products ‒ 81+ category groups (e.g.,
of ~50,000 unique primary access panel purchased, where spend the candy/gum, non-carbonated
household U.S. shoppers most, near-term spending beverages; women’s casual
annually; 80:20 female:male outlook, and household clothing)
ratio financial health
‒ 7 major departments
‒ New questions each month on (e.g., food/groceries)
timely, topical, and seasonal
issues (including key holiday
periods) affecting shopping
behavior
Note about Hispanic Shoppers: Hispanic shoppers are the survey respondents who self-identify as being of Spanish, Hispanic or
Latino origin or descent; because the ShopperScape® survey is administered only in English, the ShopperScape® sample of Hispanic
shoppers should be considered as representative of only acculturated Hispanics.
Kantar Retail © 2017
2
Data Definitions: Shoppers
‒ Shoppers of retailers are defined as those who shopped the retailer in any past four-week period, unless
otherwise noted
‒ Retailers indicate individual banners (i.e., ‘Safeway’ indicates those who have shopped the Safeway banner,
not including other Albertsons/Safeway banners, such as Randall’s or Vons), unless otherwise noted
Kantar Retail © 2017 3Shoppers and Shopping Behavior Today: Overall Context
4Retailer Rationalization Stalls, Category Contraction Eases, Spending Sentiment Continues to
Improve
Average Number of Retailers Average Number of Categories Percent Planning to Spend
Shopped in Past Four Weeks Purchased in Past Four Weeks Same/More at Retail vs. YA
(Q1-Q3 of each year*) (three-month moving average)
16.5
76%
14.0 14.2
11.1
9.4 9.4
49%
2009 2016 2009 2016 2009 2016
Kantar Retail © 2017
Source: Kantar Retail ShopperScape®, January 2007-December 2016 5Fractured Shopper Base Will Persist …
Four groups that exist in separate retail, media, and geographic spheres
Stronger Job and Income Gains
Stronger Spending Intentions
Younger
= 28% = 21%
= 14% = 37%
Have Not Have
= 31% = 20%
Older
= 15% = 34%
Note: Older households 50 years old or older, Younger households 49 years old or younger; Have Nots:Understanding Nuances of Western Regions Will Make a Difference
Key differences present in race/ethnicity and income
Demographic Profile of Shoppers
West South Central
All Shoppers Midwest Shoppers West Shoppers
ShoppersGrocery Shopping in the West
8Where Are People Shopping throughout the West Coast?
More likely to shop at select FMCG retailers; supermarkets more regional
Top Five Mass/Club/Discount/Drug Retailers Shopped Top Five Supermarket Retailers Shopped by Region
by Region
West South West South
Midwest West Midwest West
Central Central
Target
Dollar Tree
Dollar General
Source: Kantar Retail ShopperScape®, August 2016 –July 2017 Kantar Retail © 2017 9Other Fracture Points: Fill-In Trips Increase at Expense Of Other Trips
Primary Reason for Last Grocery/HH Essentials/HBC Trip
(most recent trip to any mass/club/discount/drug/supermarket retailer to buy groceries/HH essentials/HBC products)
5% 5% 5% 5% 4% 4% Special occasion
4% 4% 4% 4% 4% 4%
8% 8% 8% 7% 7% Browsing
9%
11% 11% 12% 11% Coupon items
12% 12%
Sale items
13% 13% 14%
15% 14% 15%
Immediate use
25% 27% 27% Fill-in
23% 23% 24%
32% 33% 34% 34% 34% 33% Stock-up
2011 2012 2013 2014 2015 2016
Note: Arrows indicate significant difference between 2011 and 2016 year to date (95% confidence level)
Kantar Retail © 2017
Source: Kantar Retail ShopperScape®, Feb/May/Aug/Nov 2012–2016 10Trip Missions Vary Greatly at Western Grocers
H-E-B wins big trips, shoppers cherry pick Ralph’s for fill-in, Meijer and Safeway draw shoppers through sales
Primary Reason for Last Grocery Trip, by Retailer Shopped on Trip
All Store
Meijer Ralph’s Albertsons Safeway H-E-B
Types
Stock-up trip 33% 38% 27% 22% 27% 47%
Fill-in trip 27% 20% 35% 25% 25% 25%
Immediate use 14% 9% 7% 18% 23% 13%
Specific sale items 11% 19% 14% 17% 16% 3%
Specific coupons 7% 8% 9% 10% 6% 4%
Special occasion 4% 4% 4% 7% 2% 5%
Browsing/new items 4% 3% 4% 1% 2% 3%
Kantar Retail © 2017
Source: Kantar Retail ShopperScape®, February/May/August/ November 2016 11H-E-B Earns Shopper Loyalty
Nearly six in 10 H-E-B shoppers spend the most on groceries there
Food and Grocery Capture Rates
(share of retailers’ past four-week shoppers that report spending the most on food and groceries there)
57%
41% 39%
33%
16%
H-E-B Ralphs Meijer Safeway Albertsons
Other most frequently WMSC: Costco: Kroger: WMSC: WMSC:
cited store of preference 15% 9% 20% 10% 20%
Source: Kantar Retail ShopperScape®, August/ November 2016 and February/May 2017 Kantar Retail © 2017 12Shoppers Have Different Store-Choice Priorities
Winning for the right reasons means true differentiation; H-E-B differentiates through fresh
Top Three Reasons for Choosing Retailer as Preferred Grocery Store
Meijer Ralph’s Albertsons Safeway H-E-B
1) Convenient location 1) Convenient location 1) Convenient location 1) Convenient location 1) Convenient location
(54%) (75%) (81%) (73%) (63%)
2) Lower everyday 2) Lower everyday 2) Lower everyday 2) Better sales/ 2) Lower everyday
prices (45%) prices (39%) prices (26%) promotions (35%) prices (54%)
3) Better sales/ 3) Better sales/ 3) Better sales/ 3) Frequent shopper/ 3) Higher quality fresh
promotions (37%) promotions (29%) promotions (23%) rewards program (36%)
(23%)
Source: Kantar Retail ShopperScape®, August/November 2016, February/May 2017 Kantar Retail © 2017 13Center Store Is Still a Destination for Boomers, Less So for Millennials
Millennials’ demands for natural/organic and prepared foods draws them towards the perimeter
How Shoppers Typically Shop the Supermarket
Millennial Grocery
Shoppers:
44%
Exclusively/ Center Store
Primarily Shop
Perimeter
Boomer Grocery Departments Exclusively/Primarily/ Equally
Shoppers: Shop Center Store
34%
55% 49% 59%
All Shoppers:
38%
Kantar Retail © 2017
Source: Kantar Retail ShopperScape®, February 2017 14The Value / Price Conversation ...
15Shoppers Agree Value Is More Than Just Price
But price is uniquely central to the grocery value proposition
How Shoppers Define Value When Shopping in General How Shoppers Define Value When Shopping for Groceries
(% of shoppers agree with each statement) (% of shoppers agree with each statement)
29% 34%
71% 66%
Value is about what you get, not what you pay Value is about what you get, not what you pay
Value is about paying a low price for an item Value is about paying a low price for an item
Kantar Retail © 2017
Source: Kantar Retail ShopperScape®, May and July 2017 16When Grocery Shopping, Price and Convenience Overshadow Assortment
Specialty assortment however can’t be ignored: 27% of shoppers recognize importance of local, 21%
of organic
Defining Value When Grocery Shopping
(% of shoppers rank factor as important for non-perishable, fresh foods, HH cleaning/paper products, or HBC)
Retailer offers everyday low prices 66%
Products I want to buy are often on sale 53%
Products I want are always in stock 50%
Can get all the products I need at one retailer 45%
Can buy in just the right quantity for my household needs 42%
Retailer offers high quality products 42%
Retailer's assortment of products aligns with my needs 31%
Good selection of locally made products 27%
Retailer offers high quality private label products 22%
Good selection of natural/organic products 21%
Price-related factor
Good selection of products not available elsewhere 20% Convenience-related factor
Retailer rewards me with personalized discounts or unique perks 17% Assortment-related factor
Can capitalize on additional savings from digital rebate apps 7%
Kantar Retail © 2017
Source: Kantar Retail ShopperScape®, November 2016 17Assortment Is Especially Important to West South Central Shoppers, Sales Less So
Defining Value When Grocery Shopping
(% of shoppers rank factor as important for non-perishable, fresh foods, HH cleaning/paper products, or HBC)
Indexed vs. All Shoppers
West South
All Shoppers Midwest Shoppers West Shoppers
Central Shoppers
Everyday low prices 66% 99 105 99
Products I want to buy are often on sale 53% 102 86 98
Products I want are always in stock 50% 98 100 98
Can get all the products I need at one retailer 45% 100 106 96
Can buy in just the right quantity 42% 94 105 92
Retailer offers high quality products 42% 96 103 97
Retailer's assortment aligns with my needs 31% 93 118 98
Good selection of locally made products 27% 99 94 98
Source: Kantar Retail ShopperScape®, November 2016 Kantar Retail © 2017 18H-E-B Dominates Value in Non-Perishables
Convincing nearly half of its shoppers that H-E-B is best for the category
Share of P4W Shoppers Who Perceive Retailer as Best Value for Non-Perishable Foods
H-E-B 49%
Walmart 38%
ALDI 34%
Kroger* 31%
Costco 28%
Publix 22%
Ahold/Delhaize* 19%
Alb/Swy* 17%
Target 9%
Dollar General 7%
Family Dollar 6%
Amazon 3%
CVS 2%
*All banners
Kantar Retail © 2017
Source: Kantar Retail ShopperScape®, November 2016 19H-E-B’s Perceived Value Amplified Even More So in Fresh
H-E-B demonstrates clear expertise in fresh
Share of P4W Shoppers Who Perceive Retailer as Best Value for Fresh Foods
H-E-B 56%
Kroger* 42%
Publix 42%
Alb/Swy* 30%
ALDI 29%
Ahold/Delhaize* 27%
Walmart 27%
Costco 24%
Target 5%
Family Dollar 3%
CVS 1%
Dollar General 1%
Amazon 1%
*All banners
Kantar Retail © 2017
Source: Kantar Retail ShopperScape®, November 2016 20Walmart Wins ‘Best Value’ for Household Cleaning/Paper Products, Yet H-E-B Leads Among
Supermarkets
Share of P4W Shoppers Who Perceive Retailer as Best Value for HH Cleaning/Paper Products
Walmart 45%
Costco 35%
H-E-B 27%
Target 20%
Dollar General 18%
Alb/Swy* 18%
Kroger* 17%
Family Dollar 12%
Publix 11%
ALDI 10%
Ahold/Delhaize* 9%
CVS 7%
Amazon 3%
*All banners
Kantar Retail © 2017
Source: Kantar Retail ShopperScape®, November 2016 21Walmart Is Clear Leader for HBC, But H-E-B Follows Next
Share of P4W Shoppers Perceive Retailer as Best Value for HBC Products
Walmart 46%
H-E-B 24%
CVS 23%
Target 23%
Costco 16%
Kroger* 15%
Publix 11%
Dollar General 9%
Family Dollar 8%
Amazon 7%
Ahold/Delhaize* 7%
Alb/Swy* 5%
ALDI 4%
*All banners
Kantar Retail © 2017
Source: Kantar Retail ShopperScape®, November 2016 22Topics and Trends in Grocery Retailing Today
23Shoppers Are Noticing More Private Label and Feeling Empowered
Attitudes Toward Private Label
(share of shoppers who strongly/somewhat agree with each statement)
Share of shoppers who say, Share of shoppers who say,
“there are a lot more options for buying “buying private label products makes me
private label now vs. before” feel like a smart shopper”
Ralphs 82% Ralphs 58%
Albertsons 79% Albertsons 44%
Safeway 74% Safeway 41%
Meijer 74% Meijer 44%
H-E-B 73% H-E-B 38%
Caution, small sample size for Ralph’s, no stat testing done
Note: Arrows indicate significant difference vs. all shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, February 2017 Kantar Retail © 2017 24Private Label Demand Differs Across the Western Grocers
Meijer and Ralphs shoppers place the greatest importance on private label, while Albertsons shoppers the least
Importance of Private Label at Retailer, According to Shoppers
(share of retailers’ shoppers who say ‘good private label is extremely/somewhat important’ to retailer satisfaction)
Extremely important Somewhat important
77% 75%
72% 73% 71%
65%
48% 43%
46% 50% 44% 39%
29% 32%
26% 24% 27% 27%
All Shoppers Meijer Ralphs Safeway H-E-B Albertsons
Caution, small sample size for Ralph’s, no stat testing done
Note: Arrows indicate significant difference vs. all shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, February 2017 Kantar Retail © 2017 25Where Private Label Matters Most and Where National Brands Have Greater Opportunities
Performance Gap: Private Label
(share of retailers’ shoppers who say ‘good private label is available at retailer’ minus share say ‘good private label is extremely important’)
Retailer Overdelivers on Private Label Is a
50%
Private Label Expectations Differentiator
Share of shoppers say good private label is
45%
40%
available at retailer
35%
30% Share of shoppers say good private label is extremely important
Private Label Is Retailer Underdelivers on
25% Less Important Private Label Expectations
20%
15%
15% 20% 25% 30% 35% 40%
Note: Small sample sizes for Southeastern Grocers, Delhaize, Sprouts, ShopRite, and Wegmans
Kantar Retail © 2017
Source: Kantar Retail ShopperScape®, February 2017 26Eating Healthier Foods Is the Most Elementary Path to Health and Wellness
Within grocery channel, other elements matter too
Ways in Which Shoppers Approach Health & Wellness
2015 2016 2017
Eating healthier foods 60%
Exercising 53%
Taking vitamins/supplements 53%
Cooking more at home 45%
Completing routine MD visits 41%
Making time for myself 34%
Using OTC meds for minor illnesses 19%
Better work-life balance 18%
Monitor health activity w/ personal devices 13%
Learning a new skill or hobby 11%
Spending less time with screens 11%
Reducing alcohol consumption of shoppers are engaged in
10%
Quitting smoking health & wellness activity
6%
Other 1%
None of these 9%
Kantar Retail © 2017
Source: Kantar Retail ShopperScape®, January 2015, 2016, 2017 27Grocery Shoppers Prioritize Various Approaches to Health & Wellness
Ways in Which Shoppers Approach Health & Wellness
All Shoppers Meijer Ralph’s Albertsons Safeway H-E-B
Eating healthier foods 60% 101 104 101 108 110
Exercising 53% 103 119 115 109 101
Taking vitamins/supplements 53% 103 103 108 103 91
Cooking more at home 45% 95 92 107 113 106
Completing routine MD visits 41% 103 93 104 116 96
Making time for myself 34% 106 85 110 95 96
Source: Kantar Retail ShopperScape®, January 2017 Kantar Retail © 2017 28Natural/Organic Is Key in Health & Wellness Conversation
Shoppers associate natural and organic with being healthy
Share of Shoppers Link Natural/Organic with Health
(share of retailers’ shoppers define natural or organic as being ‘healthy/good for me’)
Define natural/organic as being healthy Do not define natural/organic as being healthy
Organic Natural
51% 51%
Note: Logos indicate retailer shoppers are significantly more likely to choose answer option vs. all shoppers (95% confidence level) e.g., Safeway shoppers are significantly more
likely to define organic as being healthy
Source: Kantar Retail ShopperScape®, February 2017 Kantar Retail © 2017 29Natural/Organic Assortment Will Be Necessary at Key Western Accounts
Importance of Natural/Organic at Retailer, According to Shoppers
(share of retailers’ shoppers say ‘wide assortment of natural/organic is extremely/somewhat important’ to retailer satisfaction)
Extremely important Somewhat important
63%
59% 58%
51% 51% 49%
38%
37% 37%
32% 31% 33%
25% 23% 22%
19% 20% 17%
All Shoppers Ralphs Meijer Safeway Albertsons H-E-B
Caution, small sample size for Ralph’s, no stat testing done
Note: Arrows indicate significant difference vs. all shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, February 2017 Kantar Retail © 2017 30In-Store Services Are Just Beginning, Shopper Interest Shows the Long-Term Potential
Use and Interest of In-Store Services
(among all primary household shoppers; use and interest in service at any retailer)
Use Very Interested Somewhat Interested
Immunizations 14% 13% 21%
Albertsons and Safeway
shoppers are significantly
Wine/spirits/beer tasting events 7% 18% 22%
more likely to already be using
immunization services in
Exercise classes 5% 11% 17%
store: two in 10 shoppers use
the service.
Cooking classes 4% 16% 24%
Nutritionist/dietitian available 4% 15% 23%
Crafting classes 3% 11% 21%
Classes run by nutritionist/dietician 3% 13% 20%
Personal shopping with nutritionist/dietician 2% 11% 18%
Kantar Retail © 2017
Source: Kantar Retail ShopperScape®, February 2017 31Prepared Foods, the Cornerstone Service at Grocery, Appeals to Shoppers’ Changing Notion
of Value
Prepared foods offers a holistic value proposition, saving shoppers time and providing a stress-free experience
Top Five Reasons for Buying Prepared Foods Restraint of Time
(share of prepared foods buyers that say factor is among top three reasons) (share of shoppers say they’d like to cook more at home,
but they don’t have the time)
To save time 55%
To treat myself 26% 26%
More convenient/less wasteful
25%
when cooking for one or two
So I don't have to think as
25%
much about what to cook
To try something different 25%
Note: Logos indicate retailer shoppers are significantly more likely to strongly/somewhat agree with statement vs. all shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, November 2016 Kantar Retail © 2017 32Prepared Foods Most Important to Ralph’s Shoppers; Least Important to H-E-B
Importance of Prepared Foods at Retailer, According to Shoppers
(share of retailers’ shoppers say ‘good prepared foods are extremely/somewhat important’ to retailer satisfaction)
Extremely important Somewhat important
54%
47% 50%
46% 46%
38%
27%
29%
31% 28% 30%
30%
27%
16% 21% 18% 15%
9%
All Shoppers Ralphs Meijer Safeway Albertsons H-E-B
Caution, small sample size for Ralph’s, no stat testing done
Note: Arrows indicate significant difference vs. all shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, February 2017 Kantar Retail © 2017 33Actionable Insights
Identify the real competitive landscape: Looking at channels in isolation has become a losing
strategy. Shoppers purchase in a channel-less environment, and manufacturers and retailers need
to adapt strategies to compete more effectively without boundaries.
Understand how your shoppers define value: Price remains the go-to strategy for retailers and
manufacturers to drive traffic in-store, yet shoppers are demanding more. Determine where your
categories/brands fit in the price/value equation and create communication strategies accordingly.
Recognize the private label paradox: Develop a strategy for how to engage with your retailer’s
private label, especially for the natural/organic portfolio. Expect further integration of premium
brands. We cannot continue looking at this space as adversarial, particularly as brands.
Services and experiences will continue to expand and evolve: From health & wellness, to meal
kits, to online grocery, retailers are relying on service and experience to differentiate their bricks &
mortar stores from eCommerce platforms and small format stores.
Source: Kantar Retail analysis Kantar Retail © 2017 34For further information please refer to
www.kantarretailiq.com
Contact: Contact:
Diana Sheehan Ali Chapman
Director Analyst
T: +1 (617) 912 2819 T: +1 (617) 912 2814
diana.sheehan@kantarretail.com ali.chapman@kantarretail.com
@kantarretail @kantarretail
www.kantarretail.com www.kantarretail.com
Kantar Retail © 2017 35Albertsons and Safeway Shoppers Show Greater Use and Interest in In-Store Services
Use of In-Store Services
(among past four-week shoppers, use of service at any retailer)
All Shoppers Albertsons Shoppers Safeway Shoppers
22%
20%
14%
12% 11%
9% 9% 10%
7% 7% 6%
5% 6%
4% 4%
Immunizations Wine/spirits/beer tasting Exercise classes Cooking classes Nutritionist/dietitian
events available
Kantar Retail © 2017
Source: Kantar Retail ShopperScape®, February 2017 39Albertsons and Safeway Shoppers Show Greater Use and Interest in In-Store Services
Interest In-Store Services
(among past four-week shoppers, interest in service at any retailer)
All Shoppers Albertsons Shoppers Safeway Shoppers
29%
24%
22% 22%
19% 18% 19%
16% 18%
15% 15%
13%
10% 11% 11%
Immunizations Wine/spirits/beer tasting Exercise classes Cooking classes Nutritionist/dietitian
events available
Kantar Retail © 2017
Source: Kantar Retail ShopperScape®, February 2017 40You can also read
