Table of Contents
Executive Summary
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- The issues
- Supermarkets continue to dominate, but lose slight share
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- Figure 1: Distribution of expenditures on food and beverages for off-premise consumption, by channel, 2015-15
- iGen/Millennials comprise the largest percentage of grocery shoppers
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- Figure 2: Grocery shopping responsibility (any shop), by generation (%), March 2015
- 44% of shoppers are shopping less often at supermarkets
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- Figure 3: Statements related to food/drink shopping (change in supermarket shopping), March 2015
- Food/drink retailers appear to be getting by on being good enough
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- Figure 4: Correspondence analysis – Characteristics associated with various food/drink shopping locations, March 2015
- The opportunities
- Snacking, budgets, and fans of fresh boost opportunity for engagement
- While low prices carry a strong appeal, other benefits should be considered
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- Figure 5: Factors influencing where consumers buy food/drink (any rank), March 2015
- Millennials are particularly drawn to convenience, healthy/fresh
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- Figure 6: Choosing a nonsupermarket location, by generation, March 2015
- What it means
The Market – What You Need to Know
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- Supermarkets continue to dominate, but lose slight share
- 44% of shoppers are shopping less often at supermarkets
- iGen/Millennials comprise the largest percentage of grocery shoppers
- Snacking, budgets, and fans of fresh may be boosting shopping frequency
Market Breakdown
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- Supermarkets continue to dominate, but lose slight share
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- Figure 7: Distribution of expenditures on food and beverages for off-premise consumption, by channel, 2015-15
Market Perspective
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- 44% of shoppers are shopping less often at supermarkets
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- Figure 8: Statements related to food/drink shopping (change in supermarket shopping), March 2015
- Search for low prices leads supermarket exodus, but a range of factors come into play
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- Figure 9: Statements related to food/drink shopping (change in supermarket shopping), March 2015
- Consumers are increasing their spend on food away from home
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- Figure 10: Share of total food expenditures, 2005-15
Market Factors
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- iGen/Millennials comprise the largest percentage of grocery shoppers
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- Figure 11: Grocery shopping responsibility (any shop), by generation (%), March 2015
- Two thirds of men take sole responsibility for HH shopping
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- Figure 12: Grocery shopping responsibility, by gender (%), March 2015
- Snack habits, budgets, and an interest in fresh may boost shopping frequency
Key Players – What You Need to Know
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- Dollar sales at supercenters/warehouse clubs grow 61% from 2005-15
- Specialty food/other grocery segment grows 72% from 2005-15
- Supermarkets lose 3% share from 2005-15
- Internet retailers see limitations to adoption
What’s Working?
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- Dollar sales at supercenters/warehouse clubs grow 61% from 2005-15
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- Figure 13: Expenditures on food and drinks at supercenters and warehouse clubs*, at current prices, 2005-15
- Specialty food/other grocery segment grows 72% from 2005-15
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- Figure 14: Expenditures on food and beverages at specialty food stores/other grocery stores*, at current prices, 2005-15
What’s Struggling?
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- Supermarkets lose 3% share from 2005-15
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- Figure 15: Distribution of expenditures on food and beverages for off-premise consumption – Supermarkets*, 2015-15
- Internet retailers see limitations to adoption
What’s Next?
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- Expansion of shopping tech will answer questions and encourage sharing
- Hybrid in-store/online shopping
- Focusing on the shopper experience
The Consumer – What You Need to Know
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- Less than half of shoppers use supermarkets as their primary channel
- 29% of Millennials visit six or more food/drink shopping locations
- Price leads location choice, followed by freshness, proximity, and brand
- Online retailers will need to prove efficacy to ease shoppers into a change
Primary Shopping Location
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- Less than half of shoppers use supermarkets as their primary channel
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- Figure 16: Primary shopping location for food and drink, by generation, March 2015
- Hispanics particularly drawn to mass merchandisers
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- Figure 17: Primary shopping location for food and drink, by Hispanic origin, March 2015
- More than a quarter of shoppers primarily buy food/drink at mass
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- Figure 18: Primary shopping location for food and drink (nonsupermarket locations), March 2015
Shopping Frequency
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- Nearly a third of Millennials visit six or more locations
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- Figure 19: Repertoire of types of frequent (at least one time per week) shoppers by location, by demographics, March 2015
Shopper Profiles per Channel
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- Frequent supermarket shoppers
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- Figure 20: Food and drink shopping frequency – Frequent supermarket shopper (once per week or more or more often), CHAID tree output, March 2015
- Figure 21: Food and drink shopping frequency – Frequent supermarket shopper (once per week or more often), CHAID table output, March 2015
- Frequent mass merchandiser shoppers
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- Figure 22: Food and drink shopping frequency – Frequent mass merchandisers (net) shopper (once per week or more often)**, CHAID tree output, March 2015
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- Figure 23: Food and drink shopping frequency – Frequent mass merchandisers (net) shopper (once per week or more often)*, CHAID table output, March 2015
- Frequent natural store shoppers
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- Figure 24: Food and drink shopping frequency – Frequent natural store (net) shopper (once per week or more often)**, CHAID tree output, March 2015
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- Figure 25: Food and drink shopping frequency – Frequent natural store (net) shopper (once per week or more often)*, CHAID table output, March 2015
- Frequent convenience store shoppers
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- Figure 26: Food and drink shopping frequency – Frequent convenience store shopper (once per week or more often), CHAID tree output, March 2015
- Figure 27: Food and drink shopping frequency – Frequent convenience store shopper (once per week or more often), CHAID table output, March 2015
- Frequent dollar store shoppers
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- Figure 28: Food and drink shopping frequency – Frequent dollar store (once per week or more often), CHAID tree output, March 2015
- Figure 29: Food and drink shopping frequency – Frequent dollar store (once per week or more often), CHAID table output, March 2015
Factors Influencing Where Consumers Buy Food/Drink
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- Price leads location choice, followed by freshness, proximity, and brand
- Millennials/Hispanics appear willing to invest a bit more for quality
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- Figure 30: Factors influencing where consumers buy food/drink (any rank), March 2015
Choosing a Nonsupermarket Location
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- Low prices are the strongest draw from supermarkets
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- Figure 31: Choosing a nonsupermarket location, by primary food/drink shopping location, March 2015
- Millennials are particularly drawn to convenience, healthy/fresh
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- Figure 32: Choosing a nonsupermarket location, by generation, March 2015
Characteristics Associated with Shopping Locations
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- Mass offers convenience/affordability
- Supermarkets get by on being good enough
- Internet retailers still appear as an unfamiliar novelty
- Farmers markets lead for experience
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- Figure 33: Correspondence analysis – Characteristics associated with various food/drink shopping locations, March 2015
Limitations to Online Shopping
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- Waving delivery charges may encourage online trial
- Online retailers will need to prove efficacy to ease shoppers into a change
- Adoption will start slow, pick up with experience
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- Figure 34: Limitations to food/drink shopping online, by demographics, March 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
Appendix – Market
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- Expenditures on food and beverages for off-premise consumption
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- Figure 35: Expenditures on food and beverages for off-premise consumption, at current prices, 2005-15
- Share of total food expenditures
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- Figure 36: Share of total food expenditures, 2005-15
- Expenditures on food and beverages for off-premise consumption, by channel
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- Figure 37: Expenditures on food and beverages for off-premise consumption, by channel, at current prices, 2015-15
- Figure 38: Expenditures on food and beverages for off-premise consumption, by channel, at current prices, 2015-15 (continued)
- Figure 39: Expenditures on food and beverages at supermarkets, at current prices, 2005-15
- Figure 40: Expenditures on food and drinks at supercenters and warehouse clubs, at current prices, 2005-15
- Figure 41: Expenditures on food and beverages at specialty food stores/other grocery stores, at current prices, 2005-15
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- Figure 42: Expenditures on food and beverages at convenience stores, at current prices, 2005-15
- Figure 43: Expenditures on food and beverages at other retailers, at current prices, 2005-15
- Figure 44: Expenditures on food and beverages at nonstore retailers, at current prices, 2005-15
Appendix – Consumer
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- Characteristics associated with various food/drink shopping locations
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- Figure 45: Characteristics associated with various food/drink shopping locations, March 2015
- Mean shopping frequency
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- Figure 46: Supermarkets and food stores (net any store), by demographics, trend analysis
- Attitudes/opinions about food
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- Figure 47: Attitudes/opinions about food, by demographics, November 2013-December 2014
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- Figure 48: Attitudes/opinions about food, by demographics, trend analysis
- Grocery shopping expenditures
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- Figure 49: Grocery shopping expenditures, by demographics, November 2013-December 2014
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- Figure 50: Grocery shopping expenditures, by demographics, trend analysis
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