Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Specialist retailers’ sales grow 1.5% in 2015
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- Figure 1: Market size and forecast: consumer spending at specialist food and drink retailers (incl. VAT), 2010-20
- Butchers and off-licences take the largest share of sales
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- Figure 2: Share of specialist food and drink retailers’ sales, 2014
- Price deflation continues to impact the sector
- Companies, strategies and innovations
- Foodservice grows in importance
- Innovative approaches to convenience
- Non-standard society
- The consumer
- 62% of consumers have shopped at a food and drink specialist
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- Figure 3: Usage of food and drink specialists, December 2015
- Satisfaction with food and drink specialists
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- Figure 4: Attitudes towards specialists, December 2015
- What they buy and where
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- Figure 5: What they bought and where they bought it, December 2015
- What would encourage more frequent shopping at specialists
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- Figure 6: Factors that would encourage greater use of food and drink specialists, any rank, December 2015
- How specialist food and drink retailers are used
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- Figure 7: How they choose to shop at specialist food and drink retailers, December 2015
- What we think
Issues and Insights
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- The growth of c-stores; help or hindrance?
- The facts
- The implications
- Do Aldi and Lidl now pose the greatest threat?
- The facts
- The implications
- Should specialists be improving online?
- The facts
- The implications
The Market – What You Need to Know
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- Market size and forecast
- Number of specialists continues to decline
- Channels to market
- Price deflation
- Modest growth in total food retailers’ sales
- Consumer confidence
Market Size and Forecast
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- Specialists’ sales begin to grow again
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- Figure 8: Market size and forecast: consumer spending at specialist food and drink retailers (incl. VAT), 2010-20
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- Figure 9: Market size and forecast: consumer spending at all specialist food and drink retailers (incl. VAT), at current and constant prices, 2010-20
- Forecast methodology
Channels to Market
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- Number of specialists continues to decline
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- Figure 10: Number of UK enterprises, by specialist type, 2011-14
- Butchers and off-licences take the largest share of sales
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- Figure 11: Share of specialist food and drink retailers’ sales, 2014
- Figure 12: Share of specialist food and drink retailers’ sales, 2011-14
Market Drivers
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- Price deflation
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- Figure 13: CPI for food and alcoholic beverages, 2010-16
- Growth of the discounters
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- Figure 14: Grocery sector market shares for Aldi and Lidl, 2010-15
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- Figure 15: People who shop more or the same at Aldi and Lidl, December 2013-August 2015
- All food retailers’ sales
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- Figure 16: All food retailers: Sales, 2010-20
- Consumer confidence
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- Figure 17: Consumers’ perceived financial health index, 2010-16
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- Figure 18: Consumers’ perceived financial health, by age, January 2016
- Figure 19: Consumers’ perceived financial health, by region, January 2016
Key Players – What You Need to Know
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- Preserve of the Independent
- Food service – the way forward
- Specialist delis and ready prepared meals
- The premium end of the market
- Other developments
Competitive Strategies
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- Figure 20: Key financials of the key food and drink specialist retailers, 2013-15
- Foodservice option is increasingly important
- Specialists offering delivery lead growth
- The rise and rise of subscription services
- Mergers and acquisitions
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Launch Activity and Innovation
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- Drinks retailers
- Text for wine service for busy customers
- New hybrid wine store
- Butchers and greengrocers
- Mock meat butchers
- Raw meat vending machine
- Butcher Shop of the Year 2015-2016
- Graze enters retail arena
- Cornish pasty drive-thru
- Bakeries and confectioners
- 100% gluten-free bakery store
- Doughnut courier service
- Purity and provenance
- New artisan micro-bakery
- Artisan bakery chain grab-and-go concept
- Mr Crisp
- Krispy Kreme broadcasting live video to Twitter followers
- Not-for-profit bakery
- Health food stores
- ‘Holland & Barrett More’
The Consumer – What You Need to Know
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- Bakers are most popular specialist
- Overall, specialists attract consumers with a higher income
- Specialists are delivering on quality, but struggling on convenience
- Specialists are the second most popular destination for meat and fish
- Health food shops attract a quarter of visits
- Price is a driving factor for food and drink
- Young consumers prioritise convenience
- Consumers go to specialists when they can’t get what they want in supermarkets
- Specialists leveraging consumer trust
- Over-55s like to shop around
Use of Food and Drink Specialists
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- Bakers are the most popular specialist
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- Figure 21: Usage of food and drink specialists, December 2015
- Choice of specialists differs by gender
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- Figure 22: Usage of food and drink specialists, by gender, December 2015
- Specialists attract consumers with a higher income
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- Figure 23: Usage of food and drink specialists, by age and affluence, December 2015
- Specialists are most popular in Scotland, London and the North
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- Figure 24: Usage of food and drink specialists, by region, December 2015
- Bakeries are popular in Scotland and Wales
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- Figure 25: Usage of bakeries, by region, December 2015
- Butchers popular across the board
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- Figure 26: Usage of butchers, by region, December 2015
- Use of delicatessens varies widely by region
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- Figure 27: Usage of delicatessens, by region, December 2015
- Confectionery stores lack popularity in the South West and East Midlands
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- Figure 28: Usage of confectionery shops, by region, December 2015
- Londoners love health food shops
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- Figure 29: Usage of health food shops, by region, December 2015
- Scotland most popular for fishmongers
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- Figure 30: Usage of fishmongers, by region, December 2015
- Consumers spend the most at butchers
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- Figure 31: Usage of food and drink specialists, December 2015
Attitudes towards Specialists
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- Delivering on quality but struggling on convenience
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- Figure 32: Attitudes towards specialists, December 2015
- Bakeries perform best on location and value for money
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- Figure 33: Attitudes towards bakeries, December 2015
- Butchers deliver high satisfaction levels
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- Figure 34: Attitudes towards butchers, December 2015
- Confectionery shops deliver the goods
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- Figure 35: Attitudes towards confectionery shops, December 2015
Key Driver Analysis
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- Methodology
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- Figure 36: Key drivers of overall satisfaction with specialist retailer store, December 2015
- Figure 37: Overall satisfaction with specialist retailer store – key driver output, December 2015
Where They Buy Different Types of Product
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- Meat is the most popular product to buy from a specialist
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- Figure 38: What they bought and where they bought it, December 2015
- Discounters in second place for alcohol sales
- Health food specialists account for a quarter of visits
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- Figure 39: Where they buy health foods or supplements, December 2015
- Convenience stores are popular for bread, milk and confectionery
What Would Encourage Greater Use of Specialists
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- Price a driving factor when it comes to buying food and drink
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- Figure 40: What would encourage greater use of food and drink specialists, December 2015
- Getting customers involved
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- Figure 41: What would encourage greater use of food and drink specialists, any rank, December 2015
- Young consumers prioritise convenience
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- Figure 42: Customer profiles of factors (any ranking) that would encourage greater use of food and drink specialists, December 2015
How They Use Specialist Food and Drink Retailers
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- Finding items the supermarkets don’t stock
- Specialists are leveraging additional trust
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- Figure 43: How they choose to shop at specialist food and drink retailers, December 2015
- Younger consumers more likely to buy on impulse from specialists
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- Figure 44: How they choose to shop at specialist food and drink retailers, by age, December 2015
- Over-55s prefer to shop around
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- Figure 45: How they choose to shop at specialist food and drink retailers, by age, December 2015
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast Methodology
- Key Driver Analysis
- Interpretation of results
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- Figure 46: Overall satisfaction with specialist retailer store – key driver output, December 2015
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- Figure 47: Satisfaction with specialist retailer store, December 2015
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