Europe Supermarkets Market Report 2022
£ 3,195 (Excl.Tax)
Description
“The grocery sector retained momentum in 2021 across Europe as society only gradually opened up, and over 2022 inflation has resulted in higher turnover, despite many shoppers trading down or buying less. Food retailers’ sales increased across the continent and the sector still presents good prospects for retailers as the market is shaped by shifting consumer priorities. Coupled with satisfying the demand for good value, retailers also need to address the rising popularity of loyalty/membership schemes, greater sustainability awareness and interest in rapid delivery services.”
– Utku Tansel, European Retail Analyst
This Report will look at the following areas:
- The impact of the cost-of-living crisis on the grocery retailing sector
- The performance of the major grocery retailers in 2021
- The main channels used to purchase food and drink and how this is evolving
- How grocery shopping behaviours have changed as a result of COVID-19 and the cost of living crisis
- The role of online and the impact of online-only specialists
- The impact of the cost of living crisis on consumer shopping behaviours and attitudes towards sustainability.
Table of Contents
-
Overview
- Areas covered in this Report
- Key issues covered in this Report
- Country coverage
- Consumer research coverage
- Definitions and technical notes
- Consumer spending definitions
- Retail sales
- Financial definitions
- Currencies
- Sales tax rates
- Figure 1: VAT rates around Europe, 2015-22
- Abbreviations
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Executive Summary – Europe – The Market
- Sector size and forecast
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- Figure 2: Europe: retail sales by food retailers, excluding VAT, 2017-23
- Consumer spending
- Food and non-alcoholic drink
- Figure 3: Europe: spending on food and non-alcoholic drinks, including VAT, 2017-22
- Alcohol, tobacco and narcotics
- Figure 4: Europe: spending on alcoholic drinks, tobacco and narcotics, 2016-21
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- Figure 5: Europe: spending on products for personal care, 2016-21
- Consumers still spending more on food than before the pandemic
- Figure 6: Europe Big 5: changes to spending habits, 2022
- Consumers beginning to feel the financial pinch…
- Figure 7: Europe: change in financial situation over the past year, 2022
- Cash-strapped consumers may restrict food spend
- Figure 8: Europe: change in financial situation over the past year, 2022
- Inflation
- Figure 9: Harmonised index of food and non-alcoholic drinks prices, annual % change, 2016-21
- Figure 10: Europe: harmonised index of alcohol, tobacco and narcotics prices, annual % change, 2016-21
- Online
- Figure 11: Europe: online grocery sales, including VAT, 2021
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- Figure 12: Europe Big 5: changes to spending habits as a result of the COVID-19 pandemic, 2022
- The retailers
- Figure 13: Europe: Leading food retailers, sales, 2017/18-2021/22
- Figure 14: Europe: Leading food retailers, outlets, 2017/18-2021/22
- Market shares
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- Figure 15: Europe: Leading food retailers’ shares of all food retailers’ sales, 2017/18-2021/22
- The five-year outlook for grocery retailing
- Figure 16: Outlook for grocery retailing, 2022
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Executive Summary – Europe – The Consumer
- The research
- Who shops for groceries
- Figure 17: Europe: who shops for groceries, by country, 2022
- Where they shop for groceries
- Primary shop
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- Figure 18: Europe: two most used retailers and proportion of shoppers where respondents spend the most money – Primary shop, by country, 2022
- Top-up shopping
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- Figure 19: Europe: two most used retailers for top-up shopping, by country, 2022
- Usage of grocery loyalty/membership schemes
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- Figure 20: Europe: participation in grocery loyalty/membership schemes, 2022
- Attitudes towards grocery shopping
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- Figure 21: Europe: attitudes towards grocery shopping, 2022
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Executive Summary – Europe – Innovations and Launch Activity
- Sustainability continues to rise on the agenda
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- Figure 22: E.Leclerc, France
- Pledge to help households cope with cost-of-living crisis
- Automated retail takes off
- Fast delivery could be a key differentiator going forward
- Figure 23: GoPuff Flyer
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- Figure 24: Gorillas delivery
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France
- Overview
- Key issues covered in this Report
- Market context
- Areas covered in this Report
- Executive summary
- The five year outlook for grocery retailing
- Figure 25: France: outlook for grocery retailing, 2022-27
- The market
- Inflation and Ukraine conflict are holding back the post-COVID recovery
- Pain for consumers despite government cap on energy price rises
- Price rises are boosting spending on food and drink
- Figure 26: France: consumer spending on food and drink (including VAT), 2017-22
- Grocers have remained resilient throughout the pandemic
- Figure 27: France: food retailers, sales (excluding VAT), 2017-23
- The consumer
- Low priced hypermarket operator Leclerc is most popular
- Figure 28: France: where they shop for groceries, primary and secondary shoppers, 2022
- Almost half of shoppers hold a Leclerc or Carrefour loyalty card
- Figure 29: France: participation in grocery loyalty/membership schemes, 2022
- Cost-of-living crisis is changing shopping behaviours
- Figure 30: France: attitudes towards grocery shopping, 2022
- The retailers
- Intense competition in a well populated grocery sector
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- Figure 31: France: leading grocers’ shares of all food retailers’ sales, 2021
- Online
- Issues and insights
- How can grocery retailers help their customers during the cost of living crisis?
- Keep offering low prices
- Avoid thinking about the “average customer”
- Use customer data
- Loyalty schemes will become increasingly important
- Market size and performance
- Figure 32: France: consumer spending on core in-home food and drink categories (including VAT), 2017-22
- Retail sector size and forecast
- Figure 33: France: food retailers, sales (excluding VAT), 2017-23
- Channels to market
- Figure 34: France: distribution of food and drink products by channel, 2017-20
- Market drivers
- Inflation and the Ukraine conflict are holding back the post-COVID recovery
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- Figure 35: France: key economic projections, 2019-24
- The conflict in Ukraine is hurting the French economy
- Inflation is causing hardship for both consumers and businesses
- But the French government has set a price shield on energy prices
- …which will continue into 2023
- Employment has held up well
- Inflation on food and drink is accelerating
- Figure 36: France: consumer prices * of food and drink, annual % change, 2017-21
-
- Figure 37: France: consumer prices* of food and drink, annual % change, 2021-22
- Consumer spending power is reducing
- Figure 38: France: financial confidence trend data, 2022
-
- Figure 39: France: expectations for the next year, 2022
- Price will become more important when shopping for food
- Figure 40: France: important factors when buying food and drink, 2022
- Who shops for groceries
- Figure 41: France: who shops for groceries by gender, 2021-22
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- Figure 42: France: who shops for groceries in the household, by age and gender, 2022
- Where they shop for groceries
- Leclerc and Carrefour are neck and neck
- Figure 43: France: where they shop for groceries, primary and secondary shoppers, 2022
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- Figure 44: France: where they shop for groceries, primary shop, 2021 vs 2022
- Figure 45: France: where they shop for groceries, primary shop, by net monthly household income, 2022
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- Figure 46: France: where they shop for groceries, secondary shop, 2021 vs 2022
- Figure 47: France: where they shop for groceries, secondary shop, by net monthly household income, 2022
- Usage of grocery loyalty/membership schemes
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- Figure 48: France: participation in grocery loyalty/membership schemes, 2022
- Attitudes towards grocery shopping
- The cost-of-living crisis prompts shoppers to reduce food waste
- Figure 49: France: attitudes towards grocery shopping, 2022
- Grocers should adopt new initiatives to help consumers with rising inflation
- Private label and discounters gain popularity
- Figure 50: France: attitudes towards grocery shopping, by net monthly household income, 2022
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- Figure 51: France: attitudes towards grocery shopping, by net monthly household income, 2022
- Sustainability issues remain a key concern for consumers
- Figure 52: France: attitudes towards grocery shopping, by age, 2022
- The retailers
- Leclerc continues to lead with its predominantly hypermarket based chain
- Carrefour 2026 – a new strategic plan
- The discount sector is thriving
- Casino needs to reduce debt
- Picard innovates
- Who to watch
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- Figure 53: France: leading grocers, sales (excl VAT), 2017-21
- Figure 54: France: leading grocers, outlets, 2017-21
- Market shares
- Figure 55: France: leading grocers’ shares of all food retailers’ sales, 2017-21
- Online
- Online retailing in France
- Online grocery retailing in France
- Figure 56: France: sales of food and non-food through drive click & collect operations (all operators), 2017-22
- Leading online players
- Figure 57: France: leading online grocery retailers by estimated sales (excluding VAT), 2017-21
- Figure 58: Leading online grocery retailers, drive locations, 2022
- Appendix – Data sources, research methodology and abbreviations
- Abbreviations
- Consumer research methodology
- Data sources
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Italy
- Overview
- Key issues covered in this Report
- Market context
- Areas covered in this Report
- Executive Summary
- The five-year outlook for grocery retailing
- Figure 59: Italy: Outlook for grocery retailing, 2022-27
- The market
- Energy and post-COVID recovery drives spending growth
- Figure 60: Italy: consumer spending on core in-home food and drink categories (including VAT), 2017-22
- Food retailers’ sales set to show marginal growth in 2022, all attributable to inflation
- Figure 61: Italy: Food retailers, sales (excluding VAT), 2017-23
- Grocers’ share of spend increases
- Figure 62: Italy: Estimated distribution of spending on food and beverages by channel, 2021
- Concerns over household finances impacts shopping habits
- Figure 63: Italy: issues affecting Italian consumers in the past two months, 2022
- The consumer
- Women more likely to do all the shopping, but men more likely to do some of it
- Figure 64: Italy: Who shops for groceries, 2019-22
- Rise of the discounters
- Figure 65: Italy: grocery retailers shopped at (net), 2020-22
- Shoppers have a broad portfolio of places where they buy groceries
- Figure 66: Italy: main versus other grocery shopping by retailer, 2022
- 80% use a loyalty scheme
- Figure 67: Italy: usage of grocery retailer loyalty/membership schemes, by retailer, 2022
- Cost of living pressures manifest themselves in many behavioural changes
- Improving loyalty scheme appeal can help to retain customers
- Figure 68: Italy: agreement with statements about grocery shopping, 2022
- The retailers
- Selex challenges Conad for market leadership…
- Discounters: Lidl closes the gap but Eurospin still leads, Aldi far behind
- Figure 69: Italy: TOP 10 GROCERS’ SHARES OF ALL FOOD RETAILERS’ SALES, 2021
- Online
- Issues and insights
- How should mainstream supermarkets react to the ongoing cost of living crisis?
- Push their loyalty schemes
- Promote own label
- Give them tips on saving money
- Show consumers ways to be sustainable and save money at the same time
- Provide more bulk-buying opportunities
- Move closer to consumers
- What can discounters do to hold on to market share gains?
- Keep opening new stores and churning estates
- Segment ranges to include more premium lines
- Utilise loyalty schemes to build long-term relationships with customers
- Market size and performance
- Figure 70: Italy: consumer spending on core in-home food and drink categories (including VAT), 2017-22
- Retail sector size and forecast
- Figure 71: Italy: food retailers’ sales (excluding VAT), 2017-23
- Channels to market
- Figure 72: Italy: estimated percentage distribution of consumer spending on food and drink by channel, 2017-21
- Market drivers
- The economy
- Figure 73: Italy: key economic indicators, 2021-24
- Inflation
- Figure 74: Italy: annual average consumer prices* of food and drink, annual % change, 2017-21
- Figure 75: ITALY: monthly average consumer prices* of food and drink, annual % change, 2021-22
- Consumer confidence bounces back after reaching record lows
- Figure 76: ITALY: TRENDS IN LEVELS OF CONSUMER CONFIDENCE*, 2021-22
- The impact of the cost of living crisis
- Figure 77: Italy: financial situation of Italian consumers, 2022
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- Figure 78: Italy: issues affecting Italian consumers in the past two months, 2022
- Retailer focus must remain on price
- Figure 79: Italy: important factors when buying food and drink, 2022
- Interest rate rises will further exacerbate cost of living pressures
- Who shops for groceries
- Figure 80: Italy: who shops for groceries, 2019-22
- Where they shop
- Rise of the discounters
- Figure 81: Italy: grocery retailers shopped at (net), 2020-22
- Usage of discounters is growing for main and secondary grocery shops
- Figure 82: Italy: grocery shoppers who shop at selected discounters*, 2020-22
- Shoppers have a broad portfolio of places where they buy groceries
- Figure 83: Italy: main versus other grocery shopping by retailer, 2021-22
- Retailers shopped at for main grocery shop
- Figure 84: Italy: retailer shopped at for main grocery shop, 2021-22
- Other grocery retailers shopped at
- Figure 85: Italy: other grocery retailers shopped at, 2021-22
- Retailers’ exposure to the cost of living crisis
- Figure 86: Italy: shoppers at leading grocery chains, by net monthly household income, 2022
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- Figure 87: Italy: shoppers at leading grocery chains, by financial situation, 2022
- Usage of grocery retailer loyalty schemes
- Four in five grocery shoppers belong to loyalty/membership schemes
- Figure 88: Italy: usage of grocery retailer loyalty/membership schemes, 2022
- Lidl over-indexes on loyalty card members relative to its market share
- Figure 89: Italy: usage of grocery retailer loyalty/membership schemes, by retailer, 2022
- Attitudes towards grocery shopping
- Cost of living pressures manifest themselves in many behavioural changes
- Reducing food waste: a relatively easy win
- Trading down is driving own label growth and rise of discounters
- Improving loyalty scheme appeal can help to retain customers
- Loyalty schemes are changing shopper behaviour during cost of living crisis
- Loyalty schemes are acting as catalysts to change retailers during the cost of living crisis
- Retailers need to be more proactive with helping customers save money
- Almost a quarter of Italians would consider taking out a short-term loan to pay for groceries
- Figure 90: Italy: agreement with statements about grocery shopping, 2022
- Lidl and Eurospin customers most likely to be changing behaviour due to cost of living crisis
- Carrefour customers keenest on short-term loans
- Figure 91: Italy: agreement with statements about grocery shopping, by grocery retailers shopped at (net), 2022
- Lidl and Conad loyalty scheme members most interested in rewards for recycling
- Lidl customers most likely to say loyalty deals have become more important to them
- Figure 92: Italy: agreement with statements about grocery shopping and loyalty/membership schemes, by usage of grocery retailer loyalty/membership schemes by retailer, 2022
- The retailers
- Selex challenges Conad for market leadership…
- Figure 93: Italy: Conad grocery brands profile, 2021
- …as Coop loses ground
- Esselunga continues to gain share but loses ground on market leaders
- Discounters: Lidl closes the gap but Eurospin still leads, Aldi far behind
- Own label becomes a more important battleground as cost of living crisis bites
- Convenience stores carve out a niche
- Other grocery retailers
- Figure 94: Italy: lEADING GROCERS, SALES (EXCL VAT), 2017-21
- Figure 95: Italy: lEADING GROCERS, OUTLETS, 2017-21
- Market shares
- Figure 96: Italy: leading grocers’ shares of all food retailers’ sales, 2017-21
- Online
- Online grocery retailing in Italy
- Leading online players
- The leading grocers
- Specialist online grocery players
- Rapid grocery delivery
- Appendix – Research methodology, data sources and abbreviations
- Abbreviations
- Consumer research methodology
- Data sources
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Spain
- Overview
- Key issues covered in this Report
- Market context
- Areas covered in this Report
- Executive summary
- The five-year outlook for grocery retailing
- Figure 97: Spain: outlook for grocery retailing, 2022-27
- The market
- Market size and forecast
- Figure 98: Spain: consumer spending on core in-home food and drink categories (incl VAT), 2017-22
- Retail sector size and forecast
- Figure 99: Spain: food retailers sales (excluding VAT), 2017-23
- The consumer
- Who shops for groceries
- Figure 100: Spain: who shops for groceries in the household, gender, 2022
- Where they shop
- Figure 101: Spain: grocery retailers used by those who are responsible/jointly responsible for grocery shopping in their household, 2022
- Attitudes towards grocery shopping
- Figure 102: Spain: attitudes towards grocery shopping, 2022
- The retailers
- Leading players
- Market shares
- Figure 103: Spain: leading grocers’ shares of all food retailers’ sales (excl VAT), 2021
- Online
- Issues and insights
- Cushioning the impact of rising food and energy prices
- Supermarkets that are saving shoppers money on branded products
- Market size and performance
- Figure 104: Consumer spending on core in-home food and drink categories (incl VAT), 2017-22
- Retail sector size and forecast
- Figure 105: Spain: food retailers sales (excluding VAT, 2017-23
- Channels to market
- Figure 106: Spain: estimated distribution of spending on food and drink products by channel, 2021
- Market drivers
- Economic growth expected to slow down
- Figure 107: Spain: key economic projections, % annual change, 2019-23
- Energy and transport costs drive up inflation
- Figure 108: Spain: consumer prices * of food and drink, annual % change, 2016-21
- Food and drink prices soar
- Figure 109: Spain: consumer prices * of food and drink, annual % change, 2021-22
- Cost-of-living crisis and the conflict in Ukraine knocks consumer confidence
- Figure 110: Spain: trends in levels of consumer confidence, 2020-22
- Six in 10 are better off or the same financially as they were last year
- Figure 111: Spain: change in financial situation over the past year, 2022
- Four in 10 expect their financial situation to worsen, peaking among low-income earners
- Figure 112: Spain: financial confidence over the coming year, 2022
- Conflict in Ukraine exacerbating already rapidly rising inflation
- Figure 113: Spain: expected impact of the conflict in Ukraine on household finances, 2022
- Groceries taking a bigger bite out of low- and mid-income budgets
- Figure 114: Spain: spending habits, past 12 months, 2022
- Spending more but buying less as grocery prices escalate
- Figure 115: Spain: year-on-year food retail sales value and volume growth, 2020-22
- Who shops for groceries
- Responsibility for household grocery shopping largely in the hands of a sole shopper
- Figure 116: Spain: who shops for groceries in the household, 2019-22
- Women still responsible for most of the grocery shopping in their household
- Figure 117: Spain: who shops for groceries in the household, by age and gender, 2022
- Where they shop
- Over a third of shoppers do their main grocery shop at Mercadona
- Figure 118: Spain: grocery retailers used for primary shop, 2019-22
- Customer profiles of grocery retailers used for primary shop
- Figure 119: Spain: grocery retailers used for primary shop, by net monthly household income, 2022
- Mercadona strengthens its position as leading top-up destination
- Figure 120: Spain: grocery retailers used for top-up shops, 2019-22
- Customer profiles of grocery retailers used for top-up shops
- Figure 121: Spain: grocery retailers used for top-up shops, by net monthly household income, 2022
- Usage of grocery loyalty/membership schemes
- Figure 122: Spain: grocery shoppers’ membership of grocery loyalty/membership schemes, by net monthly household income, 2022
- Attitudes towards grocery shopping
- Figure 123: Spain: attitudes towards grocery shopping, 2022
- Make recycling packaging easier and more rewarding
- Figure 124: Spain: attitudes towards grocery shopping, by age, 2022
- Spiking inflation makes retailers’ own brands more compelling
- Figure 125: Spain: attitudes towards grocery shopping, by net monthly household income, 2022
- Rising food prices motivating grocery shoppers to reduce food and drink waste
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- Figure 126: Spain: attitudes towards grocery shopping, by net monthly household income, 2022
- Budget-conscious shopping more at discounters than they used to
- Figure 127: Spain: attitudes towards grocery shopping, by net monthly household income, 2022
- Food loans to help cash-strapped shoppers during the cost-of-living crisis
- Figure 128: Spain: attitudes towards grocery shopping, by net monthly household income, 2022
- The retailers
- Slower sales growth reflective of the highly elevated comparatives from 2020
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- Figure 129: Spain: leading grocers, sales (excl VAT), 2017-21
- Total number of stores at its highest level for five years
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- Figure 130: Spain: leading grocers, outlets, 2017-21
- Market shares
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- Figure 131: Spain: leading grocers’ shares of all food retailers’ sales (excl VAT), 2017-21
- Online
- Online retailing in Spain
- Online grocery retailing in Spain
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- Figure 132: Spain: leading online grocery retailers, 2021
- Appendix – Research methodology, data sources and abbreviations
- Abbreviations
- Consumer research methodology
- Data sources
-
UK
- Overview
- Key issues covered in this Report
- Products covered in this Report
- Executive summary
- The five-year outlook for grocery retail
- Figure 133: Category outlook, 2022-27
- The market
- Market size and forecast
- Figure 134: Market forecast for all grocery retail sales (including VAT), 2017-27
- Supermarket demand to grow by 4.4% between 2022 and 2027
- Figure 135: Market forecast for supermarket retail sales (including VAT), 2017-27
- Supermarkets remain the dominant channel…
- Figure 136: Estimated share of total grocery retail sales, by format/channel, 2012-22
- Consumers’ financial wellbeing has fallen from the highs of 2021…
- Figure 137: Household financial wellbeing index, 2016-22
- Leading retailers
- Morrisons holds on to fourth spot in 2021, but Aldi to draw level in 2022
- Figure 138: Leading grocery retailers: share of all grocery retail sales, 2021
- More to discounters than simply low prices
- Figure 139: Key metrics for selected brands, 2022
- The consumer
- Smaller basket and top-up demand comes back more strongly…
- Figure 140: How grocery shoppers typically shop, 2015-22
- …as frequency of shop grows
- Figure 141: Frequency of grocery shopping, 2018-22
- Online usage dips while discounters get a cost-of-living boost
- Figure 142: Store format where the most is spent in a typical month, 2016-22
- Aldi becomes the third most popular grocer
- Figure 143: Grocery retailers used, 2019-22
- Price moves up the agenda…
- Figure 144: Shift in priority toward key grocery factors, 2022
- Stocking up and tier shifting are most common reactions
- Figure 145: Shifts in behaviour in response to the cost-of-living crisis, 2022
- Almost three quarters of grocer shoppers are a member of Clubcard
- Figure 146: Loyalty/reward membership held, 2022
- Loyalty promotions have created switching behaviours
- Figure 147: Attitudes towards loyalty schemes, 2022
- Food waste moves up the agenda
- Figure 148: Attitudes to shopping for groceries, 2022
- Issues and insights
- Cost-of-living crisis: open goal for discounters or will it be different this recession?
- Discounters gain as customers look to cut back…
- …however the leading multiples are now in a better place to defend and fight back
- Managed decline or sleeping giant: can large-format stores address the decline?
- Focus on what makes these stores unique
- Shifts in shopping behaviour should favour larger stores
- Market drivers
- Inflation is the key concern for consumers and brands…
- Figure 149: Inflation, overall index (CPI) and core categories, 2022
- …and despite government support, energy prices are still a major concern
- Rising interest rates mean that the pressure will move up to middle- and higher-income households
- High inflation and rising interest rates will compound the impact of the slowing recovery
- Consumer spending power will be curbed
- Unemployment is at a near 50-year low
- Consumers’ financial wellbeing has fallen from the highs of 2021…
- Figure 150: Household financial wellbeing index, 2016-22
- …and most people are feeling the effects of price rises
- Consumer spending on food and drink
- Value growth accelerates, driven by inflation
- Figure 151: Consumer spending (value, non-seasonally adjusted), total and year-on-year growth in core in-home and drink categories, 2021-22
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- Figure 152: Consumer spending (value, non-seasonally adjusted) on core in-home food and drink categories, 2017-22
- Building inflation driving customers to cut back
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- Figure 153: Inflation: core in-home and out-of-home food and drink categories, 2021-22
- Food: critical categories seeing record inflation
- Figure 154: Annual % change in consumer spending, value and volume and inflation in food, 2017-22
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- Figure 155: Breakdown of consumer spending on food, 2021
- Non-alcoholic drink market rebalancing but opportunities continue to exist
- Figure 156: Annual % change in consumer spending, value and volume, and inflation in non-alcoholic drinks, 2017-22
- Cuts in discretionary spend threaten alcohol sales
- Figure 157: Annual % change in consumer spending, value and volume, and inflation in alcoholic drinks, 2017-22
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- Figure 158: Breakdown of value spending in the alcoholic drinks category, 2021
- Market size and performance
- Market rebalancing: in-home decline accelerated by the cost-of-living crisis
- Figure 159: All grocery retail sales, non-seasonally adjusted value and volume growth, 2021-22
- Grocery sector returns to stronger growth, but inflation masking volume decline
- Figure 160: All grocery retail sales (incl VAT) market size, 2017-22
- Supermarket growth tempered by inflation and format shift
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- Figure 161: All supermarket size retail (incl VAT), market size, 2017-22
- Market forecast
- The five year outlook for grocery retail
- Figure 162: Category outlook, 2022-27
- Grocery sector to grow by 13.7% between 2022 and 2027
- Figure 163: Market forecast for all grocery retail sales (including VAT), 2017-27
- Supermarket demand to grow by 4.4% between 2022 and 2027
- Figure 164: Market forecast for supermarket retail sales (including VAT), 2017-27
- Learnings from the last income squeeze
- Figure 165: All grocery retail sales, non-seasonally adjusted value and volume growth, 2011-14
- Forecast methodology
- Channels of distribution
- Supermarkets remain the dominant channel…
-
- Figure 166: Estimated channels of distribution for grocery retail sales, 2022
- …but share continues to move away as discounters gain
-
- Figure 167: Estimated share of total grocery retail sales, by format/channel, 2012-22
- How consumers shop for groceries
- Nine in ten consumers have some responsibility for grocery shopping
- Figure 168: Responsibility for grocery shopper, by age and gender, 2022
- Smaller basket and top-up demand comes back more strongly…
- Figure 169: How grocery shoppers typically shop, 2015-22
-
- Figure 170: Grocery tracker: how grocery shoppers typically shop, 2017-22
- …as frequency of shop grows
- Figure 171: Frequency of grocery shopping, 2018-22
- Types of stores used
- Online use dips while discounters get a cost-of-living boost
- Figure 172: Store format where the most is spent in a typical month, 2016-22
- Discounters hit highest ever share of spending in 2022
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- Figure 173: Grocery tracker: format/channel where the most is spent in a typical month, 2019-21
- Danger of discount switching as more see finances pressurised
- Figure 174: Store format where the most is spent in a typical month by current financial situation, 2022
- Retailers shopped with
- Aldi becomes the third most popular grocer
- Figure 175: Grocery retailers used, 2019-22
- Lidl now claims more primary shops than Morrisons
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- Figure 176: Primary and secondary grocery retailers used, 2022
- Just 6% of grocery shoppers using a single brand in a typical month
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- Figure 177: Where leading retailers’ primary shoppers also shop, 2022
- Retailer demographic comparison
- Tesco and Aldi gain among under 44s…
- Figure 178: Leading grocery retailers used for primary and secondary shops, by age, 2022
- …helped by capturing more family shops
-
- Figure 179: Leading grocery retailers used for primary and secondary shops, by parental status, 2022
- Tesco gains across the UK, while Aldi’s push into the south brings more shoppers
- Figure 180: Leading grocery retailers used for primary and secondary shops, by type of area lived in, 2022
- Discounter shopping still skews towards lower income households
- Figure 181: Leading grocery retailers used for primary and secondary shops, by household income, 2022
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- Figure 182: Leading grocery retailers used for primary and secondary shops, by current financial situation, 2022
- Priority shifts in the past year
- Price moves up the agenda…
- Figure 183: Shift in priority toward key grocery factors, 2022
- …but underlying trends remain important
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- Figure 184: Factors selected as ‘more important’, by current financial situation, 2022
- Behaviour shifts due to the cost of living crisis
- Stocking up and tier shifting are most common reactions
- Figure 185: Shifts in behaviour in response to the cost-of-living crisis, 2022
- Bigger packs a way to tap into more ‘preparedness’ among shoppers
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- Figure 186: Sainsbury’s ‘big pack’ area, 2022
- The cost-of-living crisis presents a significant opportunity for own-label
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- Figure 187: Key private label launches by leading players, 2022
- Loyalty schemes
- Almost three quarters of grocer shoppers are a member of Clubcard
- Figure 188: Loyalty/reward membership held, 2022
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- Figure 189: Loyalty/reward membership held, by retailer shopped with, 2022
- Loyalty promotions have created switching behaviours
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- Figure 190: Attitudes towards loyalty schemes, 2022
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- Figure 191: Attitudes towards loyalty schemes, by retailer primary shopper and loyalty/reward card customer base, 2022
- Attitudes towards food waste, promotions and fuel
- Discount price-matching is having significant impact
-
- Figure 192: Attitudes towards discounter price-matching schemes, 2022
- Pressure on fuel costs is also driving switching behaviour
- Figure 193: Attitudes towards fuel promotions, 2022
- Food waste rises significantly on the agenda
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- Figure 194: Attitudes towards grocery shopping, by age, 2022
- HFSS legislation comes into play, causing a navigation headache
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- Figure 195: Booths household and Sainsbury’s discover end of aisles, 2022
- Leading retailers – Key metrics
- Slowdown in sales growth reflects difficult comparatives
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- Figure 196: Leading grocery retailers’ sales, 2017/18-2021/22
- Supermarket giants strengthen their convenience store estates
- Tesco, Morrisons and Aldi pilot grab-and-go, checkout-free stores
- Iceland and Waitrose building a presence in locations where grocery shopping may not be conveniently accessible
- Morrisons and discounters roll-out eco concept store formats
- Co-op’s store rebranding and robot home deliveries
- New Spar food-to-go concept and Morrisons’ Market Kitchen store expansion
- Figure 197: Leading grocery retailers, store numbers, 2017/18-2021/22
- Shoppers returning to stores, but footfall still below pre-pandemic level
- Figure 198: Leading grocery retailers, sales per outlet, 2017/18-2021/22
- Sales areas and densities
- Figure 199: Leading grocer retailers: total sales area, 2017/18-2021/22
- Figure 200: Leading grocery retailers: annual sales per sq m, 2017/18-2021/22
- Operating profits and margins
- Figure 201: Leading grocery retailers: operating profits, 2017/18-2021/22
- Figure 202: Leading grocery retailers: operating margins, 2017/18-2021/22
- Market share
- Morrisons holds on to fourth spot in 2021, but Aldi to draw level in 2022
- Figure 203: Leading grocery retailers: share of all grocery retail sales, 2021
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- Figure 204: Leading grocery retailers estimated market shares, 2017-22
- A note on our market share
- Launch activity and innovation
- Technology in supermarket aisles
- Figure 205: Lidl’s refill station, kingswinford, 2022
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- Figure 206: Amazon One, US, 2022
- Figure 207: Veeve smart shopping cart, US, 2022
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- Figure 208: TX SCARA stacking bottles, Japan, 2022
- Supermarkets campaign to save the planet
- Fighting food waste
- Figure 209: Sainsfreeze, a walk-in freezer concept store, Shoreditch, 2022
- Supermarket schemes to help cash-strapped customers
- Figure 210: Asda’s ‘Winter Warmer’ scheme, 2022
- New partnerships and launches
- Figure 211: Deliveroo Hop store, Oxford Street, London, 2022
- Supporting a cause by shopping
- Advertising and marketing activity
- Advertising expenditure reached its highest since 2018
- Figure 212: recorded above-the-line, online display and direct mail total advertising expenditure by UK supermarkets and online supermarkets and grocers, 2018-22
- Some big spenders cut their budgets
- Figure 213: Recorded above-the-line, online display and direct mail total advertising expenditure, by leading UK supermarkets and online supermarkets and grocers, 2018-2021
- TV advertising accounted for the biggest share
- Figure 214: Recorded above-the-line, online display and direct mail total advertising expenditure, by UK supermarkets and online supermarkets and grocers, by media, 2021
- What we’ve seen so far in 2022
- Campaigns to fight the cost-of-living crisis
- Promoting quality food, healthier choice and supporting farmers
- Tesco’s first Ramadan campaign
- New launches: Morrisons Media Group and Sainsbury’s self-service advertising platform
- Christmas 2022 ads: Tesco’s nod to the cost-of-living crisis and Aldi’s homage to Home Alone and more
- Nielsen Ad Intel coverage
- Brand research
- Brand map
- Figure 215: Attitudes towards and usage of selected brands, 2022
- Key brand metrics
- Figure 216: Key metrics for selected brands, 2022
- Brand attitudes: Tesco is as strong as ever and its online service is seen as excellent
- Figure 217: Attitudes, by brand, 2022
- Brand personality: Aldi and Lidl are considered fun owing to their social media presence
- Figure 218: Brand personality – Macro image, 2022
- Retailers seen as basic gain advantage during the financial crisis
- Figure 219: Brand personality – Micro image, 2022
- Brand analysis
- Fun supermarkets are seen as different from the rest, gaining trust and users
- Going basic is seen as a safer option
- Most supermarkets are seen as ethical
- Tesco performs as strongly as ever, and even stronger in its online service
- Appendix – Data sources, abbreviations and supporting information
- Data sources
- Financial definitions
- Abbreviations
- Consumer research methodology
- Appendix – Forecast methodology
- Market forecast and prediction intervals
- Figure 220: All grocery retail sales forecast (including VAT), current price prediction intervals, 2022-27
- Figure 221: Supermarket retail sales forecast (including VAT), current price prediction intervals, 2022-27
- Market drivers and assumptions
About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Market
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Consumer
Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Brand/Company
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Data
Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
*databooks not available with UK B2B Industry reports.
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