Table of Contents
Executive Summary
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- The market
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- Figure 1: Market segmentation of the supermarket sector, NI and RoI, 2014
- Forecast
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- Figure 2: Index total grocery retail sales, IoI, NI and RoI, 2009-19
- Market factors
- Consumer confidence on an upward trend, while food prices continue to fall
- Weak personal finances and higher cost of groceries to influence purchases
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- Figure 3: How consumers rate their current financial situation, NI and RoI, December 2014
- Changing household sizes means more main shoppers
- Decline in Irish consumers shopping online for home delivery
- More seasonal opportunities for retailers
- Changing attitudes to the ‘big shop’
- Companies, brands and innovations
- The consumer
- Women are the primary grocery shoppers
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- Figure 4: Who is responsible for grocery retailing in a household?, NI and RoI, October 2014
- Most grocery shopping conducted in-store
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- Figure 5: How consumers do their main grocery shop, NI and RoI, October 2014
- Aldi the retailer of choice for the main shop in RoI, Tesco in NI
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- Figure 6: Stores that consumers do their main grocery shopping with (in-store), NI and RoI, October 2014
- Children an influence on household grocery spending
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- Figure 7: Average amount that consumers spend each week for household groceries, NI, October 2014
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- Figure 8: Average amount that consumers spend each week for household groceries, RoI, October 2014
- Overall strong usage of own-label goods
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- Figure 9: Types of own-brand goods that consumers have purchased in the last 12 months, NI and RoI, October 2014
- Three quarters notice an improvement in the quality of discounter goods
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- Figure 10: Agreement with statements relating to discount retailers, RoI, October 2014
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- Figure 11: Agreement with statements relating to discount retailers, NI, October 2014
- What we think
Issues and Insights
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- What impact have changes in consumer prices had on the groceries market?
- The facts
- The implications
- How much do Irish consumers spend on average for groceries?
- The facts
- The implications
- Who are the key retailers consumers use when shopping for groceries?
- The facts
- The implications
- What share of the market do own-brand goods account for?
- The facts
- The implications
- How have Irish attitudes to discounters changed?
- The facts
- The implications
Trend Application
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- Let's Make a Deal
- The Nouveau Poor
- Patriot Games
Market Overview
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- Key points
- Upward trends in consumer confidence bode well for retailers
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- Figure 12: Consumer confidence index, NI, September 2011-14
- Figure 13: Consumer sentiment index, RoI, November 2011-14
- Falling food prices welcome news to grocery shoppers
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- Figure 14: Consumer price index vs food inflation, UK (including NI), October 2009-14
- Figure 15: Consumer price index vs food inflation, RoI, October 2009-14
- Consumer finances are still ‘just ok’
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- Figure 16: How consumers rate their current financial situation, NI and RoI, December 2014
- Consumer spending on groceries higher in RoI than NI
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- Figure 17: Monthly household spend on groceries, RoI, April 2013-November 2014
- Changing households likely to mean more primary shoppers
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- Figure 18: Household size projections (2008 based), NI, 2009-33
- Figure 19: Household sizes, RoI, 1991-2011
- Online grocery shopping for home delivery declines in 2014
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- Figure 20: Consumers purchasing groceries (for home delivery) online in the last 12 months, NI and RoI, 2011-14
- Retailers can capitalise on seasonal opportunities
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- Figure 21: Consumers agreement with statements relating to Halloween (October 2014) and Christmas (December 2014), NI and RoI
- Innovative Christmas marketing by discounters
- NI consumers’ shopping habits moving away from ‘big shop’ mentality
- RoI consumers moving back to ‘big shop’ behaviour
- Expansion of top-tier and own-label ranges by the discounters appealing to Irish shoppers
Market Size and Forecast
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- Key points
- Grocery market sees return to growth in 2014
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- Figure 22: Estimated total grocery retail sales, IoI, NI and RoI, 2009-19
- Recovery in RoI to be more sedate compared to NI
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- Figure 23: Index total grocery retail sales, IoI, NI and RoI, 2009-19
- Own-brand grows its market share from 35% to 46% between 2009 and 2014
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- Figure 24: Estimated total retail sales of own-label groceries, IoI, NI and RoI, 2009-19
- Tesco losing market share to discounters
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- Figure 25: Market segmentation of the supermarket sector, RoI, 2012 and 2014
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- Figure 26: Market segmentation of the supermarket sector, NI, 2012 and 2014
Strengths and Weaknesses
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- Strengths
- Weaknesses
Companies and Innovations
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- Key facts
- Innovations
- The new Morrison’s Match & More card
- Easy recipe ingredient shopping
- Tesco replenishment development
- New Sainsbury’s supermarket app aiming to integrate virtual and physical shopping
- Tesco and BT join forces to offer Tesco customers free Wi-Fi
- Company profiles
- Aldi (RoI only)
- Asda (NI only)
- Centra
- Costcutter
- Dunnes Stores
- Iceland
- Lidl
- Londis Ireland
- Mace (NI)
- Mace (RoI)
- Marks & Spencer
- Sainsbury’s (NI only)
- Spar (NI only)
- Spar (RoI only)
- SuperValu (Superquinn as well)
- Tesco
- The Co-operative (NI only)
The Consumer – Who Shops for Groceries?
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- Key points
- Irish women the primary grocery shoppers
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- Figure 27: Who is responsible for grocery retailing in a household, NI and RoI, October 2014
- Significant number of men are grocery shopping
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- Figure 28: Consumers with main responsibility for grocery shopping in a household, by gender, NI and RoI, October 2014
- Grocery shopping duties correspond to age in RoI
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- Figure 29: Consumers with main responsibility for grocery shopping in a household, by age, NI and RoI, October 2014
The Consumer – How do Irish Consumers Shop?
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- Key points
- In-store the dominant grocery shopping channel
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- Figure 30: How consumers do their main grocery shop, NI and RoI, October 2014
- NI consumers more likely to buy groceries online
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- Figure 31: Consumers who do their main grocery shop online, by age, NI and RoI, October 2014
The Consumer – Where do Irish Consumers Shop?
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- Key points
- Aldi leads the main in-store shop in RoI, Tesco dominates NI
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- Figure 32: Stores that consumers do their main grocery shopping with (in-store), NI and RoI, October 2014
- More childless consumers shop at Tesco
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- Figure 33: Consumers who do their main grocery shop with Tesco (in-store), by presence of own children, NI and RoI, October 2014
- Irish men a key market for Tesco
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- Figure 34: Consumers who do their main grocery shop with Tesco (in-store), by gender, NI and RoI, October 2014
- Irish multiples more likely to be used by mature consumers in RoI
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- Figure 35: Consumers who conduct their main grocery shop in-store at Dunnes Stores or SuperValu, by age, RoI, October 2014
- Household income affects patronage, but discounters popular amongst ABC1s
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- Figure 36: Consumers who conduct their main grocery shop in-store at Aldi or Lidl, by social class, RoI, October 2014
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- Figure 37: Consumers who conduct their main grocery shop in-store at Sainsbury’s or Asda, by social class, NI, October 2014
- Tesco leads online grocery retailing across Ireland
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- Figure 38: Stores that consumers do their main grocery shop with (online), NI and RoI, October 2014
- Consumers mainly top-up at discounters and multiples
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- Figure 39: Stores that consumers use for top-up grocery shopping, NI and RoI, October 2014
- Dunnes attracts younger top-up shoppers - more mature consumers use SuperValu
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- Figure 40: Consumers who top-up shop at Dunnes Stores or SuperValu, by age, RoI, October 2014
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- Figure 41: Consumers shop at SuperValu, main shop and top-up shop, by age, RoI, October 2014
- Convenience store top-ups more likely in NI
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- Figure 42: Convenience stores used by consumers for top-up shopping, NI and RoI, October 2014
- M&S attracting more affluent top-up shoppers
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- Figure 43: Consumers who have top-up shopped at M&S, by social class, NI and RoI, October 2014
The Consumer – Average Weekly Grocery Expenditure
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- Key points
- Average weekly spend in NI higher with children in household
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- Figure 44: Average amount that consumers spend each week for household groceries, NI, October 2014
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- Figure 45: Consumers spending £51-60 and £101 or more on groceries each week, by presence of own children, NI, October 2014
- Average weekly spend €90-104 in RoI
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- Figure 46: Average amount that consumers spend each week for household groceries, RoI, October 2014
The Consumer – Usage of Own-label Products
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- Key points
- Fresh fruit and vegetables most commonly bought own-label products
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- Figure 47: Types of own-brand goods that consumers have purchased in the last 12 months, NI and RoI, October 2014
- Few branded options available when buying fruit and vegetables
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- Figure 48: Consumers that have purchased own-label fruit and vegetables in the last 12 months, by age group, NI and RoI, October 2014
- Two thirds of consumers have bought own-brand bread
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- Figure 49: Consumers that have purchased own-label bread in the last 12 months, by gender, NI and RoI, October 2014
- RoI consumers more likely to buy cupboard staples than NI consumers
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- Figure 50: Consumers that have purchased own-label Cupboard staples (eg sugar, flour) in the last 12 months, by gender and social class, NI and RoI, October 2014
- NI consumers more likely to use own-brand soft drinks than RoI
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- Figure 51: Consumer Price Index, UK (including NI), all goods vs soft drinks, January 2013-October 2014
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- Figure 52: Consumer Price Index, RoI, all goods vs soft drinks, January 2013-October 2014
- Usage of own-label alcohol stronger in NI
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- Figure 53: Consumers that have purchased own-label Cupboard staples (eg sugar, flour) in the last 12 months, by gender and social class, NI and RoI, October 2014
- Strong usage of non-food own-label products
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- Figure 54: Consumers that have purchased own-label personal care items and cleaning products in the last 12 months, NI and RoI, October 2014
The Consumer - Attitudes towards Discount Retailers
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- Key points
- Two thirds of consumers do more of their shopping at discounters
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- Figure 55: Agreement with statements relating to discount retailers, RoI, October 2014
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- Figure 56: Agreement with statements relating to discount retailers, NI, October 2014
- Majority of consumers noticing an improvement in the choice of brands available at discounters
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- Figure 57: Agreement with the statement ‘The choice of brands available at discount supermarkets has improved in the last 12 months’, by age group, NI and RoI, October 2014
- Three quarters noticing an improvement in the quality of fresh produce
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- Figure 58: Agreement with the statement ‘'The quality of fresh fruit and vegetables at discount supermarkets has improved in the last 12 months’, by age group, NI and RoI, October 2014
- Chilled ready meals deemed to be lacking in variety
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- Figure 59: Agreement with statements relating to discount supermarkets, NI and RoI, October 2014
- Discounters attracting consumers with non-grocery ranges
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- Figure 60: Agreement with the statement ‘I sometimes visit discount supermarkets specifically to buy non-grocery items I have seen advertised in advance (eg electricals, clothing, homewares)’ by age group, NI and RoI, October 2014
- Impulse purchases prevalent in discount supermarkets
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- Figure 61: Agreement with the statement ‘I sometimes buy non-grocery items (eg electricals, clothing, homewares)’ I did not plan to buy when shopping at discount supermarkets, by presence of children in household, NI and RoI, October 2014
- Discounters unable to fulfil shopping needs of Irish consumers
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- Figure 62: Agreement with the statement ‘I cannot buy all the groceries I need at discount supermarkets’ by age group and social class, NI and RoI, October 2014
Appendix
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- NI Toluna tables
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- Figure 63: Who is responsible for grocery retailing in a household?, by demographics, NI, October 2014
- Figure 64: If consumers do their main grocery shop in-store or online, by demographics, NI, October 2014
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- Figure 65: Stores that consumers do their main grocery shopping with (in-store), by demographics, NI, October 2014
- Figure 66: Stores that consumers do their main grocery shopping with (in-store), by demographics, NI, October 2014 (continued)
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- Figure 67: Stores that consumers do their main grocery shopping with (in-store), by demographics, NI, October 2014 (continued)
- Figure 68: Stores that consumers do their main grocery shopping with (in-store), by demographics, NI, October 2014 (continued)
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- Figure 69: Stores that consumers do their main grocery shopping with (online), by demographics, NI, October 2014
- Figure 70: Stores that consumers use for top-up grocery shopping, by demographics, NI, October 2014
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- Figure 71: Stores that consumers use for top-up grocery shopping, by demographics, NI, October 2014 (continued)
- Figure 72: Stores that consumers use for top-up grocery shopping, by demographics, NI, October 2014 (continued)
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- Figure 73: Stores that consumers use for top-up grocery shopping, by demographics, NI, October 2014 (continued)
- Figure 74: Average amount that consumers spend each week for household groceries, by demographics, NI, October 2014
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- Figure 75: Average amount that consumers spend each week for household groceries, by demographics, NI, October 2014 (continued)
- Figure 76: Average amount that consumers spend each week for household groceries, by demographics, NI, October 2014 (continued)
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- Figure 77: Types of own-brand goods that consumers have purchased in the last 12 months, by demographics, NI, October 2014
- Figure 78: Types of own-brand goods that consumers have purchased in the last 12 months, by demographics, NI, October 2014 (continued)
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- Figure 79: Types of own-brand goods that consumers have purchased in the last 12 months, by demographics, NI, October 2014 (continued)
- Figure 80: Types of own-brand goods that consumers have purchased in the last 12 months, by demographics, NI, October 2014 (continued)
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- Figure 81: Agreement with the statement ‘The quality of ready meals at discount supermarkets has improved in the last 12 months’, by demographics, NI, October 2014
- Figure 82: Agreement with the statement ‘The quality of fresh fruit and vegetables at discount supermarkets has improved in the last 12 months’, by demographics, NI, October 2014
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- Figure 83: Agreement with the statement ‘The quality of fresh bakery products at discount supermarkets has improved in the last 12 months’, by demographics, NI, October 2014
- Figure 84: Agreement with the statement ‘The choice of brands available at discount supermarkets has improved in the last 12 months’, by demographics, NI, October 2014
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- Figure 85: Agreement with the statement ‘I cannot buy all the groceries I need at discount supermarkets’, by demographics, NI, October 2014
- Figure 86: Agreement with the statement ‘I would like to see a bigger choice of non-grocery items (eg newspapers/magazines, greetings cards, homewares) at discount supermarkets’, by demographics, NI, October 2014
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- Figure 87: Agreement with the statement ‘The choice of items available within certain ranges (eg chilled ready meals) at discount supermarkets is too limited’, by demographics, NI, October 2014
- Figure 88: Agreement with the statement ‘I would shop less at discount supermarkets if I had more money’, by demographics, NI, October 2014
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- Figure 89: Agreement with the statement ‘I sometimes buy non-grocery items (eg electrical, clothing, homewares) I did not plan to buy when shopping at discount supermarkets’, by demographics, NI, October 2014
- Figure 90: Agreement with the statement ‘I sometimes visit discount supermarkets specifically to buy non-grocery items I have seen advertised in advance (eg electricals, clothing, homewares)’, by demographics, NI, October 2014
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- Figure 91: Agreement with the statement ‘I do more of my grocery shopping at discount supermarkets than I did 12 months ago’, by demographics, NI, October 2014
- Figure 92: Agreement with the statement ‘I am less tempted to buy additional grocery items that I do not really need at discount supermarkets’, by demographics, NI, October 2014
- RoI Toluna tables
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- Figure 93: Who is responsible for grocery retailing in a household, by demographics, RoI, October 2014
- Figure 94: If consumers do their main grocery shop in-store or online, by demographics, RoI, October 2014
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- Figure 95: Stores that consumers do their main grocery shopping with (in-store), by demographics, RoI, October 2014
- Figure 96: Stores that consumers do their main grocery shopping with (in-store), by demographics, RoI, October 2014 (continued)
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- Figure 97: Stores that consumers do their main grocery shopping with (in-store), by demographics, RoI, October 2014 (continued)
- Figure 98: Stores that consumers do their main grocery shopping with (online), by demographics, RoI, October 2014
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- Figure 99: Stores that consumers use for top-up grocery shopping, by demographics, RoI, October 2014
- Figure 100: Stores that consumers use for top-up grocery shopping, by demographics, RoI, October 2014 (continued)
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- Figure 101: Stores that consumers use for top-up grocery shopping, by demographics, RoI, October 2014 (continued)
- Figure 102: Stores that consumers use for top-up grocery shopping, by demographics, RoI, October 2014 (continued)
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- Figure 103: Average amount that consumers spend each week for household groceries, by demographics, RoI, October 2014
- Figure 104: Average amount that consumers spend each week for household groceries, by demographics, RoI, October 2014 (continued)
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- Figure 105: Average amount that consumers spend each week for household groceries, by demographics, RoI, October 2014 (continued)
- Figure 106: Types of own-brand goods that consumers have purchased in the last 12 months, by demographics, RoI, October 2014
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- Figure 107: Types of own-brand goods that consumers have purchased in the last 12 months, by demographics, RoI, October 2014 (continued)
- Figure 108: Types of own-brand goods that consumers have purchased in the last 12 months, by demographics, RoI, October 2014 (continued)
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- Figure 109: Types of own-brand goods that consumers have purchased in the last 12 months, by demographics, RoI, October 2014 (continued)
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- Figure 110: Agreement with the statement ‘The quality of ready meals at discount supermarkets has improved in the last 12 months’, by demographics, RoI, October 2014
- Figure 111: Agreement with the statement ‘The quality of fresh fruit and vegetables at discount supermarkets has improved in the last 12 months’, by demographics, RoI, October 2014
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- Figure 112: Agreement with the statement ‘The quality of fresh bakery products at discount supermarkets has improved in the last 12 months’, by demographics, RoI, October 2014
- Figure 113: Agreement with the statement ‘The choice of brands available at discount supermarkets has improved in the last 12 months’, by demographics, RoI, October 2014
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- Figure 114: Agreement with the statement ‘I cannot buy all the groceries I need at discount supermarkets’, by demographics, RoI, October 2014
- Figure 115: Agreement with the statement ‘I would like to see a bigger choice of non-grocery items (eg newspapers/magazines, greetings cards, homewares) at discount supermarkets’, by demographics, RoI, October 2014
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- Figure 116: Agreement with the statement ‘The choice of items available within certain ranges (eg chilled ready meals) at discount supermarkets is too limited’, by demographics, RoI, October 2014
- Figure 117: Agreement with the statement ‘I would shop less at discount supermarkets if I had more money’, by demographics, RoI, October 2014
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- Figure 118: Agreement with the statement ‘I sometimes buy non-grocery items (eg electrical, clothing, homewares) I did not plan to buy when shopping at discount supermarkets’, by demographics, RoI, October 2014
- Figure 119: Agreement with the statement ‘I sometimes visit discount supermarkets specifically to buy non-grocery items I have seen advertised in advance (eg electricals, clothing, homewares)’, by demographics, RoI, October 2014
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- Figure 120: Agreement with the statement ‘I do more of my grocery shopping at discount supermarkets than I did 12 months ago’, by demographics, RoI, October 2014
- Figure 121: Agreement with the statement ‘I am less tempted to buy additional grocery items that I do not really need at discount supermarkets’, by demographics, RoI, October 2014
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