Table of Contents
Executive Summary
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- The issues
- Need! Don’t need! – Consumers hold dual attitudes towards the centre of the store
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- Figure 1: Attitudes towards centre-of-store products, September 2016
- Younger shoppers need an attitude adjustment: 18-34s most likely to negatively view centre-of-store
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- Figure 2: Attitudes towards centre-of-store products, by age, September 2016
- A more conservative mindset means a greater willingness to trade down
- Opportunities
- Connecting with the time-pressed, ‘no time to look around’ shopper by using placement suggestions
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- Figure 3: Attitude towards browsing when grocery shopping, by gender, September 2016
- Men and fathers could use a helping hand
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- Figure 4: Interest in innovations (tech related), fathers with children under-18 at home vs overall, September 2016
- Quebecers are more open to shelf-stable products
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- Figure 5: Agreement with statement “centre-of-store is filled with mostly ‘junk’ food” (any agree), Quebec vs overall population, September 2016
- What it means
The Market – What You Need to Know
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- Population shifts mean serving more diverse needs
- Engaging older shoppers increasingly important as the population ages
- Changes in household makeup leads to shoppers with varying grocery needs
- Economic conditions weigh on consumers’ minds
Market Factors
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- Population changes means catering to a more diverse consumer group
- Grocery retailers will need to consider a more diverse palette as immigration drives population growth
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- Figure 6: Region of birth of immigrants, by period of immigration, Canada, 2011
- Points of consideration include flavours, behaviours and health
- An aging population opens opportunities for centre-of-store
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- Figure 7: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
- Changing roles in the household will impact shopping behaviour
- The family structure is changing
- Retailers need to consider those who are playing a more supporting role
- Retailers are dealing with a more price-conscious consumer
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- Figure 8: Monthly movement in selected components of the Canadian Consumer Price Index, seasonally adjusted, Aug 2011-Aug 2016
Key Trends – What You Need to Know
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- Consumers stockpile pantry staples and snacks
- Grocery retailers expanding their reach by catering to a wider range of consumer needs
- Challenges are seen with both older and younger consumers
- Consumers look to retailers for greater assistance
- Demographics and mindful eating support interest in centre-of-store products
What’s Working?
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- Consumers are keeping their pantries stocked with staples and snacks
- Manufacturers of shelf-stables targeting men
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- Figure 9: Edge Cereal – Boxcar, August 2016
- Snacking keeps consumers returning to the centre of the grocery store
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- Figure 10: Kellogg’s Special K Nourish Dark Chocolate Chunks & almond chewy bars (Canada, March 2016)
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- Figure 11: Hippie Foods Hippie Snacks Coconut Chips (July 2015)
- Grocery retailers extending reach by inviting customers to dine in
- Catering to the increasingly diverse population draws customers in
What’s Struggling?
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- There are challenges with both older and younger consumers
- 18-34s perceive shelf-stable foods as processed
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- Figure 12: Associations with shelf-stable foods, women 18-34 vs overall population, September 2016
- Eating habits of over-55s do not necessarily align with centre-of-store products
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- Figure 13: Grocery department use (any rank), over-55s by overall, September 2016
What’s Next?
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- The power of suggestion through meal planning
- The tech connection resonates
- An increasingly diverse population brings about growth opportunities
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- Figure 14: Pimentel foods Basmati rice (September 2015)
- Canadians are looking to eat with purpose
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- Figure 15: Danone Raspberry Probiotic Yogurt (October 2016)
The Consumer – What You Need to Know
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- Canadian grocery shoppers prefer efficiency over browsing
- Sentiments about the centre-of-store are mixed
- Supermarkets are the preferred location though will need to do more to keep consumers engaged with the centre of the store
- Potential to increase engagement with centre-of-store by making it more interactive
About the Canadian Grocery Shopper
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- Both men and women hold primary responsibility for buying groceries
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- Figure 16: Grocery shopping responsibility, September 2016
- Shopping preference skews towards shopping efficiency over browsing
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- Figure 17: Attitude towards browsing when grocery shopping, September 2016
- The need for speed may be due to necessity for some
- Consumers may be thinking of meals by occasions
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- Figure 18: Attitude towards supermarkets organizing foods by occasions, men vs overall population, September 2016
- Guiding consumer choices can be mutually beneficial
- Technology is a welcome assistance
Spotlight on Centre-of-Store: What Consumers Buy
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- Pantry staples are purchased most often
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- Figure 19: Grocery department use (any rank), September 2016
- Pantry staples resonate more with women; convenience appeals to men
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- Figure 20: NEW! Olivieri Signature Formaggi Tortelloni, February 2016
- Young grocery shoppers are snacking
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- Figure 21: Select grocery department use (any rank), 18-24s vs overall population, September 2016
- Snacking appeals to Chinese Canadians
- Quebecers are buying starch staples and packaged baked goods
Sentiments toward Centre-of-Store Products
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- Centre-of-store items: good to have, love to hate
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- Figure 22: Attitudes towards centre-of-store products, September 2016
- Centre-of-store equates to shelf-stable – in their words
- Shelf-stables seen less positively than frozen foods
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- Figure 23: Associations with centre-of-store foods, September 2016
- Separating the good from the bad: strategies to increase engagement
- Promoting the ‘need to haves’: special consideration for 18-34s
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- Figure 24: Hodgson Mill Italian Quinoa and Brown Rice (April 2015)
- Figure 25: Pereg whole Grain Quinoa (May 2016)
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- Figure 26: Attitudes towards centre-of-store products, by age, September 2016
- Be real about the ‘goodies’, call a spade a spade: special consideration for parents
- Centre-of-store wins on convenience: special consideration for over-55s
- Perception of health is less of a barrier for Quebecers
Purchase Locations for Centre-of-Store Products
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- Supermarkets lead, though need to be aware of expanding horizons
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- Figure 27: Centre-of-store food purchase locations (any rank), September 2016
- Value and convenience of mass merchandisers are winning over parents
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- Figure 28: Ranked mass merchandiser “supercentres” 1st for centre-of-store purchases, mothers with children under-18 at home vs overall population, September 2016
- A lack of differentiation in offerings may be hurting supermarkets
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- Figure 29: Attitudes towards centre-of-store products, September 2016
- Owning the lane: supermarkets have a ‘fresh’ advantage
- Elevating the fresh perception of centre-of-store products
- Setting the stage with flyers
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- Figure 30: Attitudes towards store flyers, Mothers with children under-18 at home vs Overall population, September 2016
- Harnessing the power of private label
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- Figure 31: From the PC kitchen: Your grocery list for less, September 2016
Enhancing the Centre-of-Store Shopping Experience
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- Sampling gives shelf-stable and frozen foods life
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- Figure 32: Interest in innovations (in-store), September 2016
- Elevating the grocery shopping experience
- Making sampling more interactive
- Using tech to help navigation and increasing personalization
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- Figure 33: Interest in innovations (tech related), by age, September 2016
- Tech integrations will resonate with men and dads
Attitude towards Centre-of-Store: Canadians vs Americans
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- Canadians are less keen on keeping shelf-stables at hand
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- Figure 34: Attitude towards stockpiling shelf-stable foods, Canadian grocery shoppers vs American grocery shoppers, Canada September 2016, US January 2016
- Canadians less open to packaged produce
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- Figure 35: Grocery department use (any rank), Canadian grocery shoppers vs American grocery shoppers, Canada September 2016, US January 2016
- Logistical considerations may play a role
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- Figure 36: Grocery shopping responsibility, Canadians vs Americans, Canada September 2016, US January 2016
- Canadian drug stores are making headway in centre-of-store
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- Figure 37: Grocery purchase from drug store (any rank), Canadian grocery shoppers vs American grocery shoppers, Canada September 2016, US January 2016
Consumer Segmentation
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- Four target groups
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- Figure 38: Centre-of-store shopper segments, September 2016
- The Convenience Seeker (22%)
- The Mass Merchandiser Shopper (25%)
- The Anti Centre-of-Store Shopper (25%)
- The Disengaged Male Shopper (27%)
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
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