Table of Contents
Executive Summary
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- Overview
- The insights
- Shopping location and product mix drive shopper segments
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- Figure 1: Black food and drink shopper segments, July 2018
- Walmart and traditional supermarkets are the leading primary shopping locations
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- Figure 2: Food and drink primary and also shopped shopping locations, July 2018
- Saving time in store is more valuable than shopping at home
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- Figure 3: Attitudes toward food and drink shopping – convenience, July 2018
- Online ordering is of interest to shoppers that already visit the most stores
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- Figure 4: Food and drink shopping trends of interest, by food and drink segments, July 2018
- Better for you food and drink items are a draw for most Black shoppers
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- Figure 5: Food and drink shopping trends of interest – Product based trends, July 2018
- Buying favorite products on deal is the best aspect of food and drink shopping
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- Figure 6: Attitudes toward food and drink shopping – Deals and shopping multiple stores, July 2018
- What it means
The Market – What You Need to Know
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- Black households will spend $72 billion on food and drink in 2018
- More singles and kids in Black households impact where and how shoppers buy groceries
- Black household incomes on the rise, but still lag behind the average
- Average weekly grocery spend in Black households on par with total households
- Everyone is spending more money on food at and away from home
The Black Population by the Numbers
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- Black population growth forecast outpaces the total market
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- Figure 7: US population by race, 2013-23
- Black household growth shows modest increases
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- Figure 8: US household population estimates, by race and Hispanic origin, 2007-17
- Half of Black households are headed by a single person
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- Figure 9: Household composition, by race and Hispanic origin, 2017
- More single adults drive down number of people in Black households
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- Figure 10: Average number of people in US households, by race and Hispanic origin, 2017
- Black unemployment falls to historic lows; high underemployment remains
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- Figure 11: Unemployment and underemployment rates, by total and Black workers aged 16+, 2000-17
- Black household income inches upward, but lags behind other groups
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- Figure 12: Median household income, by race and Hispanic origin, in inflation adjusted dollars, 2002-17
Market Size
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- Higher incomes, low prices spur at-home food and drink spending increases
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- Figure 13: Black household expenditures for food and drink at home, at current prices, 2013-18
- Black household expenditure share to total remains flat
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- Figure 14: Black vs total household expenditures for food and drink, at current prices, 2013-18
Market Perspective
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- Average grocery spend reflects household size and composition
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- Figure 15: Average weekly grocery spending, by total and Black households, April 2017-June 2018
- Walmart is the leading store among all grocery shoppers
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- Figure 16: Leading supermarkets shopped in the last four weeks, by total and Black shoppers, April 2017-June 2018
Market Factors
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- Black consumer spending on food rises as prices fall
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- Figure 17: Average annual expenditures on food at home and away from home, total and Black households 2007-17
- Figure 18: Percent change on consumer prices indexes, 2007-17
- Black consumers spend the greatest share of food budget on meats
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- Figure 19: Percent share of annual spending on food at home, total and Black households, 2017
Key Trends – What You Need to Know
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- Store upgrades and product mix spur shopping visits across store types
- Distrust in online ordering services may stem use among Black shoppers
- Retailers look to in-store technology and image adjustments to expand shopping base
What’s Working?
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- Upgraded options from discount retailers spur shopping visits
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- Figure 20: Black shopper visits at leading grocery and food stores, 2014-18
What’s Struggling?
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- Meal kits move in store to stave off sagging sales
- Online grocery shopping slowly catching on among Black shoppers
What’s Next?
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- Aldi revamps all US stores to compete against Walmart
- Traditional grocers introduce cashier-less shopping
- Dollar Tree store expansion in jeopardy
The Consumer – What You Need to Know
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- Black shopper segments show differences in food and drink needs
- Moms assume food and drink shopping for the entire house
- Walmart tops supermarkets as the #1 food and drink shopping location
- Natural, healthy food and drink trends hold Black shoppers’ interest
- Black shoppers are happy with their preferred store locations
- Few Black shoppers shop online, but most will try with the right incentives
- Product mix at stores close to home influences where Black shoppers buy
- Convenience is a nice to have, but not a necessary factor when shopping for groceries
Food and Drink Shopping Responsibility
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- More single-headed households translates to greater share shopping on their own
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- Figure 21: Grocery shopping responsibility, total and Black, July 2018
- Single consumers shop on their own; women assume most responsibility after marriage
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- Figure 22: Grocery shopping responsibility by gender and marital/partnered status, July 2018
- Moms least likely to get, or accept, help in buying household groceries
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- Figure 23: Grocery shopping responsibility, parental status and gender, July 2018
Black Food and Drink Shopper Segmentation
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- Shopper segments highlight category innovation vs personal lifestyle
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- Figure 24: Black food and drink shopper segments, July 2018
- The Variety Shopper is always on the hunt for the next new product or service
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- Figure 25: Profile of Variety Shopper segment, July 2018
- The Traditional Shopper needs the sensorial, in-person experience
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- Figure 26: Profile of Traditional Shopper segment, July 2018
- Chore Shopper makes the process as easy as possible
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- Figure 27: Profile of Chore Shopper segment, July 2018
Food and Drink Shopping Locations
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- Product mix and low prices make Walmart the store to beat
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- Figure 28: Food and drink shopping locations, any shopping, July 2018
- Black shoppers over index for primarily shopping at Walmart vs the general market
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- Figure 29: Food and drink primary shopping locations, July 2018
- Price- and brand-conscious shoppers look to discount stores for bargains
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- Figure 30: Food and drink shopping locations, primary and secondary, July 2018
- Parents see Walmart as the go-to store for food and drink
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- Figure 31: Demographic profile of traditional supermarket and Walmart food and drink shoppers, July 2018
- Product selection and habit drive Traditional Shoppers to supermarkets
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- Figure 32: Primary food and drink shopping locations, by food and drink segments, July 2018
- Variety Shoppers don’t have a strong retail preference beyond Walmart
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- Figure 33: Secondary food and drink shopping locations, by food and drink segments, July 2018
Food and Drink Trends of Interest
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- Better-for-you food and drink is a viable segment among Black consumers
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- Figure 34: Food and drink trends of interest, July 2018
- Variety Shoppers engaged in the experience more open to all trends
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- Figure 35: Food and drink trends of interest, by food and drink segments, July 2018
- Young shoppers focus on meal ingredients; older shoppers focus on convenience
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- Figure 36: Food and drink trends of interest, by age group, July 2018
- Married parents with kids want to make meal time easier
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- Figure 37: Food and drink trends of interest, by parental and marital/partnership status, July 2018
Food and Drink Shopping Behavior
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- Make a list. Head to the stores. Repeat.
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- Figure 38: Food and drink shopping behavior, July 2018
- Variety Shoppers prioritize retail environment and product selection over convenience
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- Figure 39: Food and drink shopping behavior, by food and drink segments, July 2018
- Moms do not deviate from their grocery shopping plan
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- Figure 40: Food and drink shopping behavior, by gender and parental status, July 2018
Online Grocery Shopping Trial Incentives
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- Most Black shoppers don’t shop online, but can be convinced to try
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- Figure 41: Online grocery shopping trial incentives, July 2018
- Value of online ordering for first-time users balanced between expected added convenience and cost
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- Figure 42: TURF Analysis – Online grocery shopping trial incentives, July 2018
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- Figure 43: Table – TURF Analysis – Online grocery store shopping trial incentives, July 2018
- Upper-middle-income households measure the value of online shopping with potential added benefits
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- Figure 44: Online grocery shopping trial incentives, by household income, July 2018
- Variety Shoppers looking for optimal product selection more open to online shopping
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- Figure 45: Online grocery shopping trial incentives, food and drink shopping segments, July 2018
Food and Drink Shopping Influences
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- Convenience and product mix top price for Black food and drink shoppers
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- Figure 46: Food and drink shopping influences, July 2018
- Low food prices may shift value from price to product mix
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- Figure 47: Food and drink shopping influences, by food and drink shopping segments, July 2018
- Moms travel to their preferred stores to find specific items on their lists
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- Figure 48: Food and drink shopping influences, by gender and parental status, July 2018
- “Also shopped” stores offer complementary product mix as preferred stores
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- Figure 49: Food and drink shopping influences, by secondary locations, July 2018
Attitudes toward Food and Drink Shopping
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- Price and product mix surpass convenience for most Black shoppers
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- Figure 50: Attitudes toward food and drink shopping, July 2018
- Sales promotions on must-have brands more important than low prices on alternatives
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- Figure 51: Attitudes on food and drink shopping – Price and promotion, by food and drink segments, July 2018
- Convenience holds greatest value to engaged shoppers
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- Figure 52: Attitudes on food and drink shopping – Convenience, by food and drink segments, July 2018
- Specialty stores are appealing, but only for certain occasions and products
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- Figure 53: Attitudes on food and drink shopping – Store and product, by food and drink segments, July 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 54: Black household expenditures for groceries, at current prices, 2013-18
- Figure 55: Black household expenditures for groceries, at inflation-adjusted prices, 2013-18
- Figure 56: Black and total household expenditures for groceries at current prices, 2013-18
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Appendix – The Consumer
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- Figure 57: Average weekly grocery spending, by total and Black households, April 2017-June 2018
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- Figure 58: Leading supermarkets shopped in the last four weeks, by total and Black shoppers, April 2017-June 2018
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- Figure 59: Black shopper visits at leading grocery and food stores, 2014-18
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