Grocery Cross-Shopper Behavior - Drake International Grocery... · KROGER • Kroger leads in...
Transcript of Grocery Cross-Shopper Behavior - Drake International Grocery... · KROGER • Kroger leads in...
Grocery Cross-Shopper Behavior
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Background 6 Key Terms 7 Methodology 8 Executive Summary 9-11 Executive Summary – Key Retailers 12 Implications 13 Grocery Spending & Frequency Habits 14
Monthly Cross-Shopper Grocery Spend 15
Grocery Shopping Frequency (past month) 16
Cross-Shopper Grocery Shopping Habits 17
Cross-Shopper Grocery Shopping Frequency by Income 18
Why Grocery Cross-Shoppers Shop Every Week, Same Day 19
Why Grocery Cross-Shoppers Shop Multiple Stores, Same Day 20 Where Do Cross-shoppers Grocery Shop? 21
Where Do Grocery Cross-Shoppers Shop 22
Where Do Grocery Cross-Shoppers: Shop by Region 23
Where Do Grocery Cross-Shoppers: Shop Most Often 24
Which Grocers maintain greatest loyalty amongst Cross-Shoppers - By Region 25
Cross-Shopper Dollars Spent at Retailers Shopped 26
Table of Contents
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Table of Contents (cont.)
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Shopping Preparation 27
Shopping Preparation 28
Mobile App Usage for Lists 29
Printed Coupon Source 30
Online / Mobile Coupon Source 31 Store Selection 32
Grocery Store Selection: Importance of Store Factors for Cross Shoppers 33
Main Grocery Store Selection Importance of Factors for Cross-Shoppers 34
How Cross-Shoppers Shop for Groceries 35
How Cross-Shoppers Shop for Groceries by Income 36
Cross-Shopper Private Label Purchase Decisions 37
Cross-Shopper Private Label Purchase Decisions by Income 38
Cross-Shopper Grocery Selection: Importance of Food Factors 39
Cross-Shopper Store Selection: Size of Trip 40
Cross-Shopper Grocery Store Selection: Large / Stock-Up Trip 41
Cross Shopper Grocery Store Selection: Small / Fill-In Trip 42
Cross-Shopper Store Selection: Type of Items Needed 43
Reasons for Cross-Shopping Behavior 44
Cross-Shopper Grocery Basket 45
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Table of Contents (cont.)
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Retailer-Specific Cross-Shopping 46
Grocery Categories Purchased Most Often (Among Cross-Shoppers Who Shop at Walmart Most Often)
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Reasons for Cross-Shopping Behavior: (Among Cross-Shoppers Who Shop at Walmart Most Often)
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Grocery Categories Purchased Most Often: (Among Cross-Shoppers Who Shop at Kroger Most Often)
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Reasons for Cross-Shopping Behavior: (Among Cross-Shoppers Who Shop at Kroger Most Often)
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Grocery Categories Purchased Most Often: (Among Cross-Shoppers Who Shop at Publix Most Often)
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Reasons for Cross-Shopping Behavior: (Among Cross-Shoppers Who Shop at Publix Most Often)
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Grocery Categories Purchased Most Often: (Among Cross-Shoppers Who Shop at a Local Grocer Most Often)
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Reasons for Cross-Shopping Behavior: (Among Cross-Shoppers Who Shop at a Local Grocer Most Often)
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Table of Contents (cont.)
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Qualifiers & Demographics 55
Cross-Shopper Grocery Responsibility 56
Cross-Shopper Past Month Grocery Store Department Purchases 57-58
Cross-Shopper Age/Gender Distribution 59
Cross-Shopper Household Size 60
Cross-Shopper Education 61
Cross-Shopper Marital Status 62
Cross-Shopper HH Income 63
Cross- Shopper Employment 64
Cross Shopper Geographic Region 65 APPENDIX 66
Where Grocery Cross-Shoppers Shop Most Often 67
Grocery Cross-Shopper Category Past Month Purchases 68
Cross-Shopper Past Month Beer/Wine/Alcoholic Beverage Purchasing by Grocer 69
Cross-Shopper Grocery Selection Importance Factors 70
Importance of Availability of Alcoholic Beverages to Cross-Shoppers 71
Contact Us 72
Executive Summary
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On average, cross-shoppers shop for groceries 5.8 times per month, spending an average of $377 per month
• Among cross-shoppers, grocery shopping accounts for 71% of total monthly food spend
More than half of cross-shoppers shop for groceries on a weekly basis, but not necessarily on the same day of the week
• Those who do shop on the same day each week do so out of convenience or routine, and are not necessarily driven by store deals or coupons
The majority of cross-shoppers shop for groceries at multiple stores on the same day
• A good portion of cross-shoppers exhibiting this behavior are out to get the lowest price
• Others consciously purchase different items in different stores, fully taking advantage of retailer differentiation
Walmart leads over other grocery retailers with 60% of cross-shoppers shopping for groceries at the retailer in the past month
• Walmart consistently leads in every region, ranging from 47% shopping the retailer for groceries in the East, to 74% in the South
• Kroger and Target follow with 27% & 24% grocery trips, respectively
Executive Summary
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Cross-shoppers spend less than 40% of their grocery dollars at any one store
Kroger (west region) & Publix (south region) retain a larger percentage of grocery shoppers, followed more distantly by Walmart
Most cross-shoppers prepare a written list prior to grocery shopping
• Nearly a quarter prepare different lists for different stores
• Only a few cross-shoppers use online & mobile app resources for their grocery list preparation
Low prices / promotions will always matter to cross-shoppers
• When forced to choose what is MOST important when selecting a retailer, everyday low pricing and sales/promotions combined account for more than half of responses
• Many cross-shoppers go to more than one store to get the best price, while one quarter of cross-shoppers shop specifically at a particular store regardless of price
• Store cleanliness, convenience, and friendliness are also important when it comes to attracting and retaining shoppers
Executive Summary
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Shopper needs also drive retailer selection:
• Number of items needed (large vs. small trip) factors into the decision on where to shop for most grocery cross-shoppers
• Type of items needed (fresh produce vs. dry goods) matters a majority of the time as well
• Low prices drive the stock-up trip, while convenient store location trumps pricing on the fill-in trip
Cross-shopping occurs for a variety of reasons, including better pricing, promotions and lack of product availability at a preferred retailer
• Cross-shoppers tend to pick up ‘a few more items’ when shopping outside of their primary grocery store
Executive Summary – Key Retailers
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WALMART • Walmart drives significant grocery shopping traffic, but is chosen as the store shopped
most often by less than half of their overall shoppers • Cross-shoppers who shop Walmart love the low prices, but seek higher quality/freshness
(especially on fresh produce and meat), as well as better selection and convenience, at other grocery retailers
KROGER • Kroger leads in grocery spend compared to other grocery retailers, but even Kroger only
captures just half of its shoppers’ grocery trips • Cross-shoppers that shop Kroger are satisfied with product availability, selection and
quality/freshness, but look for lower prices and better sales elsewhere, particularly on dry goods and beverages
PUBLIX • Publix ranks very high among grocery retailers shopped and percentage of grocery dollars
spent • Cross-shoppers that shop Publix are highly satisfied with selection and convenience, but
look elsewhere for lower-priced packaged goods, mainly to Walmart
LOCAL GROCERS • Local Grocers continue to survive against the bigger chains • Cross-shoppers who shop these local grocers compete mainly with Walmart for packaged
goods, but their key competitor for fresh produce is the local farmer’s market
Why Grocery Cross-Shoppers Shop Multiple Stores, Same Day
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Yes, 65%
No, 33%
Don't Know,
2%
In the last month, have you shopped for groceries at more than one store on the same day? Answers based on ‘yes’ (n=788)
Past month cross-channel shopping for groceries is prevalent among nearly 2/3 of consumers - Most of these consumers are looking to get the best prices, while others shop for different items at different
stores - A smaller portion indicate they are unable to find what they are looking for, a possible indication of stock
issues, or grocer product exclusivity
43%
34%
15%
6%
2%
I typically buy different items onsale to get the best prices at
different stores
I typically purchase different typesof items at different stores
I could not find something Ineeded at one store and had to go
to another
I simply forgot something and itwas more convenient to shop at a
different store
Other
What was the main reason why you shopped for groceries at more than one store on the same day?
Cross-Shopper Grocery Basket
45
64%
24%
12%
I sometimes pick up a few more items I only pick up the item(s) I need I almost always pick up a few more items
When you go to another store besides [Preferred Retailer], which of the following best describes your purchasing habits? (n=1209)
Over three-fourths of cross-shoppers pick up ‘a few more items’ at least some of the time when shopping outside of their primary grocery store
Retailers need to understand what’s in the basket in order
to take advantage of this cross-shopping behavior
*
Answers specific to primary grocery store selected.
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About this Study ClickIQ offers a free monthly newsletter, IQ Insights, for sharing relevant and current shopper insights to its readers. Each edition is based on actual research ClickIQ conducts over the previous days/weeks. In the summer of 2012, one of the studies it conducted was on how grocery shoppers shopped for groceries in the southeast, primarily between Walmart and Publix. The information was so insightful and the interest so overwhelming, it was decided then ClickIQ would conduct a more comprehensive national study and the insights offered to the public. We have attempted to share as much detail as possible in this report. If you have any questions regarding this study or if you are interested in learning how a custom project with ClickIQ can benefit your company, please contact us using the information below:
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