Exploring the Western and Midwest Grocery Shopper
Diana Sheehan, Director
October 2016
Regional Grocery Forum – West
© Kantar Retail 2016
Today’s Agenda
3
The Shopper State of Mind
The Western and Midwest Grocery Shopper:
Who, What, and Where
The Western and Midwest Grocery Shopper:
Digging Deeper
© Kantar Retail 2016
Data Source: About the ShopperScape® Survey
Who?
How and When?
‒ 4,000 primary household shoppers per month
‒ Representative sample of ~50,000 unique
primary household U.S. shoppers annually;
80:20 female:male ratio
What?
‒ Fielded online the third week of every month
‒ Survey fielded through LSR access panel
Coverage
‒ Monthly and quarterly tracking questions on
retailers and venues shopped, products
purchased, where spend the most, near-term
spending outlook, and household financial
health
‒ New questions each month on timely, topical,
and seasonal issues (including key holiday
periods) affecting shopping behavior
‒ 200+ retailers across all sectors of retail
‒ 81+ category groups (e.g., candy/gum, noncarbonated beverages; women’s casual
clothing)
‒ 7 major departments (e.g., food/groceries)
Note about Hispanic Shoppers: Hispanic shoppers are the survey respondents who self-identify as being of
Spanish origin; because the ShopperScape® survey is administered only in English, the ShopperScape® sample
of Hispanic shoppers should be considered as representative of only acculturated Hispanics.
© Kantar Retail 2016
4
Data Definitions
Income Segments, Generational Cohorts, Geographic Regions, Shoppers
‒ Haves/Have Nots: Segmentation based on the point at which 60% of U.S. households fall into the
“Have Not” category (and represent 25% of all income earned in the United States) and 40% of U.S.
households fall into the “Have” category (and account for 75% of all income earned in the United
States). When applied to ShopperScape® data, that dividing line falls at an annual household income of
$60k
‒ Generations
 Gen Y: Born 1982 to 2002 (note: ShopperScape® surveys heads of household 18+, so Gen Y respondents in
ShopperScape® are 19 to 33 years old in 2015)
 Gen X: Born 1965 to 1981 (34 to 50 years old in 2015)
 Boomers: Born 1946 to 1964 (51 to 69 years old in 2015)
 Seniors: Born in 1945 or earlier (70 or older in 2015)
‒ West and Midwest Geographic Regions, Based on U.S. Census Region Definitions
 Midwest: North Dakota, South Dakota, Nebraska, Kansas, Missouri, Iowa, Minnesota, Wisconsin, Illinois, Michigan,
Ohio
 West South Central: Texas, Oklahoma, Arkansas, Louisiana
 West: Washington, Oregon, California, Nevada, Arizona, New Mexico, Utah, Colorado, Wyoming, Idaho, Montana
‒ Shoppers: Shoppers of specific retailers are defined as those who shopped the retailer, in stores or
online, in any past four-week period, unless otherwise indicated
© Kantar Retail 2016
5
6
The Shopper State of Mind
© Kantar Retail 2016
7
Uncertainty and the Unexpected Are Top Concerns
For Have-Not households, concerns are very tangible
Economic Concerns
(share of all shoppers “extremely worried” about factor affecting them in the next year or so)
All Shoppers
Haves
Have Nots
27%
24%
30%
23%
29%
November elections resulting in changes to
government programs that will negatively affect me
Paying higher health insurance costs
26%
Unexpected expense
26%
18%
31%
Income not keeping up w/higher food/HH prices
25%
18%
31%
13%
30%
Not having enough money to pay my bills
23%
Not having enough money to treat myself/my family
20%
12%
24%
Not being able to pay down debt
19%
14%
23%
Getting sick and cannot afford medical bills
19%
13%
24%
Decreased value of investments/savings
14%
14%
15%
Getting sick and having to miss work
14%
11%
16%
Losing my job
10%
8%
11%
Not enough time with my family due to work
10%
8%
11%
Getting enough hours at work
9%
6%
12%
Arrows indicate significant difference vs. all shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, February/April/May/June 2016
© Kantar Retail 2016
8
Prism of Income and Generation Remains Critical
The fractured landscape
$
= 21%
Younger
= 28%
= 14%
$
Have
Have Not
= 20%
Older
= 31%
$
= 37%
= 15%
Note: Older households 50 years old or older, Younger households 49 years old or younger; Have Nots: <$60K, Haves $60K+
Source: Kantar Retail analysis
© Kantar Retail 2016
$
= 34%
Younger Households More Focused on Immediate
Older Have households most focused on investments
Top 3 Macro Environment Concerns, by Shopper Segment
Younger
Unexpected expense
Paying bills
Price increases
35%
34%
33%
November elections
22%
Health insurance costs 21%
Unexpected expense 20%
Haves
Have Nots
November elections
26%
Health insurance costs 25%
Value of investments
17%
Health insurance costs 33%
31%
November elections
Price increases
30%
Older
Note: Older households 50 years old or older, Younger households 49 years old or younger; Have Nots: <$60K, Haves $60K+
Source: Kantar Retail ShopperScape®, February/April/May/June 2016
© Kantar Retail 2016
9
10
Positive Retail Spending Plans Persist
Retail Spending Intentions in Coming Month, Compared with Same Period Last Year
(three-month moving average)
Spend about
the Same
70%
2016
63%
60%
50%
40%
Spend Much/
Somewhat Less
30%
24%
Spend Much/
Somewhat More
20%
13%
10%
Dec-08
Feb-09
Apr-09
Jun-09
Aug-09
Oct-09
Dec-09
Feb-10
Apr-10
Jun-10
Aug-10
Oct-10
Dec-10
Feb-11
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
Aug-12
Oct-12
Dec-12
Feb-13
Apr-13
Jun-13
Aug-13
Oct-13
Dec-13
Feb-14
Apr-14
Jun-14
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Jun-15
Aug-15
Oct-15
Dec-15
Feb-16
Apr-16
Jun-16
0%
Source: Kantar Retail ShopperScape®, December 2008–June 2016
© Kantar Retail 2016
11
Food Most Likely to Draw More Spending
Fresh food, basic groceries, and eating out are top three things where shoppers
spending more
Where Shoppers Are Spending More
(share of shoppers reporting spending more on category vs. the same time last year)
NEEDS:
Non-Discretionary
Goods and Services
Fresh foods
Basic groceries/HH essentials
Personal care products
28%
27%
12%
Health care services
WANTS:
Discretionary Goods
and Services
Making home improvements
Apparel
Consumer electronics
Specialty/gourmet foods
Going out/restaurants
Media plans/services
Going out/entertainment
Personal services
Household services
Source: Kantar Retail ShopperScape®, May 2016
© Kantar Retail 2016
13%
12%
11%
3%
3%
17%
10%
6%
5%
5%
12
Top Categories for Splurging: Going Out, Specialty Food
Why Shoppers Are Spending More: By Choice or By Necessity
(among all shoppers indicating spending more on category vs. the same time last year)
Spending More Because Treating/Splurging/Able to Do So
Spending More Because Prices Higher/HH Needs Changed
— Share of shoppers spending more
100%
90%
24%
27%
29%
75%
73%
36%
38%
68%
66%
47%
50%
55%
54%
52%
59%
70%
77%
77%
26%
26%
87%
80%
70%
77%
60%
50%
40%
50%
45%
30%
33%
20%
10%
15%
Source: Kantar Retail ShopperScape®, May 2016
© Kantar Retail 2016
Health care
services
Media plans/
services
Basic groceries/
HH essentials
Fresh foods
Household
services
Personal care
products
CE
Home
improvements
Personal
services
Apparel
Going out:
restaurants
Specialty/
gourmet foods
Going out:
entertainment
0%
Going Out: Entertainment … More CPG Brands Joining
Fashion, Tech, and Media Brands at Music Festivals
Brands at 2016
SXSW
• American Greetings
goes analog with
coloring wall
• Gatorade
“personalized” drink
pods
• Bud Light music
showcase venue
with interactive swag
wall/photobooth
• Scott’s lawn party
Source: Kantar Retail analysis, bizbash.com
© Kantar Retail 2016
13
Going Out: Restaurants … More Dining Options Debuting in
Retailers; Brands Debuting Dining Options
Friends of 365 within 365
By Whole Foods stores
Newly Renovated Macy’s
Features Smoothie Bar
Source: Kantar Retail analysis and store visits; company websites
© Kantar Retail 2016
Kellogg’s and Chobani
Cafes
14
15
The Western and Midwest Grocery Shopper:
Who, What, and Where
© Kantar Retail 2016
16
Race/Ethnicity Differences Strong in These Regions
Understanding the nuances of metropolitan area will make a difference
Demographic Profile of Shoppers
Annual HH
Income
Race/
Ethnicity
Children in
Home
All Shoppers
Midwest
Shoppers
West South
Central Shoppers
West
Shoppers
<$25K
25%
25%
27%
26%
$25K–$49.9K
25%
26%
27%
24%
$50K–$74.9K
18%
18%
18%
17%
$75K–$99.9K
12%
12%
10%
12%
$100+
21%
19%
17%
22%
White Non-Hispanic
71%
82%
60%
65%
Black Non-Hispanic
12%
9%
14%
6%
Hispanic
13%
6%
22%
20%
Asian
3%
2%
3%
6%
HH with Kids
25%
26%
25%
24%
No Children
75%
74%
75%
76%
Note: Arrows indicate significant difference between column percentages (95% confidence level)
Source: Kantar Retail ShopperScape®, January 2016–September 2016
© Kantar Retail 2016
17
Where Are People Shopping?
More likely to shop at select FMCG retailers, supermarkets highly regional
Top Five Mass/Club/Discount/Drug
Retailers Shopped by Region
Midwest
West South
Central
Top Five Supermarket Retailers Shopped
by Region
West
Midwest
West South
Central
West
Other
Regional*
Other
Regional*
Target
Other
Regional*
Dollar Tree
Dollar General
*Denotes stub “Other traditional supermarket/grocery store retailer not listed here (e.g., Basha’s, Top’s)“
Source: Kantar Retail ShopperScape®, January 2016–September 2016
© Kantar Retail 2016
Among Midwest Supermarket Retailers, the “Big” Trip Illusive
Primary Reason for Last Grocery Trip, by Retailer Shopped on Trip
All Store
Types
(All banners)
Stock-up trip
33%
39%
39%
35%
37%
21%
Fill-in trip
27%
31%
30%
26%
18%
26%
Immediate use
14%
12%
10%
13%
9%
16%
Specific sale
items
11%
4%
14%
13%
21%
20%
Specific coupons
7%
5%
2%
8%
8%
7%
Special occasion
4%
4%
3%
3%
3%
8%
Browsing/new
items
4%
4%
3%
2%
3%
3%
All retailers reported at national level
Source: Kantar Retail ShopperScape®, November 2015, February/May/August 2016
© Kantar Retail 2016
18
Among Midwest Retailers, Kroger Banners and Meijer Best
at Capturing Shoppers’ Grocery Basket
19
Past 4-Week Retailer Shoppers that Report Spending the Most on Food/Groceries at That Retailer
46%
41%
34%
33%
19%
Walmart
Next most
Kroger
frequently cited (All banners):
store of preference
11%
Aldi
WMSC:
24%
All retailers reported at national level
Source: Kantar Retail ShopperScape®, November 2015, February/May/August 2016
© Kantar Retail 2016
Kroger
WMSC:
19%
Meijer
Kroger
(All banners):
19%
Hy-Vee
WMSC:
28%
20
Shoppers Have Different Store-Choice Priorities
Winning for the right reasons true differentiation
Top 3 Reasons for Choosing Retailer as Preferred Grocery Store
Aldi
Kroger (All banners)
Meijer
Hy-Vee
1)
Convenient
location (63%)
1) Convenient
location (55%)
1) Convenient
location (57%)
2) Convenient
location (42%)
2)
Better sales/
promotions (35%)
2) Lower everyday
prices (43%)
2) Better sales/
promotions (36%)
3) Faster checkout
(20%)
3)
Lower everyday
prices (35%)
3) Better sales/
promotions (36%)
3) Higher quality
fresh foods (30%)
1)
Lower everyday
prices (94%)
All retailers reported at national level.
Source: Kantar Retail ShopperScape®, November 2015, February/May/August 2016
© Kantar Retail 2016
HEB Owns the “Big Trip” in the South Central Region
21
Primary Reason for Last Grocery Trip, by Retailer Shopped on Trip
All Store
Types
Stock-up trip
33%
39%
44%
35%
22%
Fill-in trip
27%
31%
28%
26%
27%
Immediate use
14%
12%
13%
13%
17%
Specific sale items
11%
4%
3%
13%
22%
Specific coupons
7%
5%
5%
8%
5%
Special occasion
4%
4%
4%
3%
7%
Browsing/new items
4%
4%
3%
2%
1%
All retailers reported at national level
Source: Kantar Retail ShopperScape®, November 2015, February/May/August 2016
© Kantar Retail 2016
21
HEB Maintains Unprecedented Loyalty in Grocery Basket
Spending
Past 4-Week Retailer Shoppers that Report Spending the Most on Food/Groceries at That Retailer
59%
46%
34%
16%
Next most
frequently cited
retailer
Walmart
HEB
Kroger
(All banners):
11%
WMSC:
18%
All retailers reported at national level
Source: Kantar Retail ShopperScape®, November 2015, February/May/August 2016
© Kantar Retail 2016
Kroger
WMSC:
19%
Albertsons
WMSC:
26%
22
H-E-B Stands Apart Due to Perceived Perishable Product
Quality
23
Top 3 Reasons for Choosing Retailer as Preferred Grocery Store
Walmart
H-E-B
Kroger (all)
Albertsons
1) Lower everyday
price (68%)
1)
Convenient
location (66%)
1)
Convenient
location (63%)
1) Convenient
location (78%)
2) Convenient
location (55%)
2)
Lower everyday
prices (49%)
2)
Better sales/
promotions (35%)
2) In-stock on items I
want (28%)
3) One-stop shop
(33%)
3)
Higher quality
fresh foods (34%)
3)
Lower everyday
prices (35%)
3) Better sales/
promotions (25%)
All retailers reported at national level.
Source: Kantar Retail ShopperScape®, November 2015, February/May/August 2016
© Kantar Retail 2016
24
Top Western Retailers Rely on the Sale/Fill-in Trip
Primary Reason for Last Grocery Trip, by Retailer Shopped on Trip
All Store
Types
Stock-up trip
33%
22%
23%
35%
23%
Fill-in trip
27%
27%
27%
26%
31%
Immediate use
14%
17%
22%
13%
21%
Specific sale items
11%
22%
17%
13%
5%
Specific coupons
7%
5%
5%
8%
2%
Special occasion
4%
7%
4%
3%
8%
Browsing/new items
4%
1%
2%
2%
10%
All retailers reported at national level
Source: Kantar Retail ShopperScape®, November 2015, February/May/August 2016
© Kantar Retail 2016
24
25
Kroger Banners Win Big in the Western Region
Past 4-Week Retailer Shoppers that Report Spending the Most on Food/Groceries at That Retailer
46%
30%
16%
10%
Albertsons
Next most
Kroger
frequently cited (All Banners):
retailer
11%
Safeway
WMSC:
13%
All retailers reported at national level
Source: Kantar Retail ShopperScape®, November 2015, February/May/August 2016
© Kantar Retail 2016
Kroger
Trader Joes
WMSC:
19%
Kroger
(All banners):
11%
In the Western Region, Trader Joe’s Differentiates Itself on
Fresh
26
Top 3 Reasons for Choosing Retailer as Preferred Grocery Store
Albertsons
Safeway
Kroger (All Banners)
Trader Joe’s
1) Convenient
location (78%)
1)
Convenient
location (73%)
1)
Convenient
location (63%)
1) Higher quality
fresh foods (49%)
2) In-stock on items I
want (28%)
2)
Better sales/
promotions (32%)
2)
Better sales/
promotions (35%)
2) Lower everyday
prices (39%)
3) Better sales/
promotions (25%)
3)
Frequent shopper
program (26%)
3)
Lower everyday
prices (35%)
3) Convenient
location (37%)
All retailers reported at national level
Source: Kantar Retail ShopperScape®, November 2015, February/May/August 2016
© Kantar Retail 2016
27
The Western and Midwest Grocery Shopper:
Digging Deeper
© Kantar Retail 2016
28
Minimizing Spending, Deals Most Important to Shoppers
But are becoming less of a focus, while desire for stress-free shopping increases
What’s Important When Shopping
(share of shoppers who rank factor among four most important when shopping)
67%
Spending as little money as possible
64%
Feeling like I got a "good deal"
56%
Having a stress-free shopping experience
49%
Doing most of my shopping in one place
45%
Completing my shopping quickly
38%
Purchasing high-quality products
27%
Having fun/enjoying myself
18%
Interacting with helpful, friendly employees
15%
Discovering new products or brands
Having access to information about products/brands
Supporting retailers/brands that reflect my values
Arrows indicate significant difference vs. 2014 (95% confidence level)
Source: Kantar Retail ShopperScape®, January–December 2014 & 2015
© Kantar Retail 2016
11%
10%
64%
58%
48%
44%
2014
2015
27%
18%
16%
11%
10%
37%
65%
Stress-free shopping
has grown in
importance more so
than any other factor.
29
Western Shoppers Less Concerned with Stress-Free…
Although a national trend, stress-free shopping not as much of a priority in the West
Shoppers Who Rank “Stress-Free Shopping” Among Their Top Four Most Important Factors
When Shopping
60% 59%
58%
58% 58% 58% 58%
57% 57% 57%
57% 57% 57% 57% 57% 57% 57% 56%
55% 54%
53%
52%
50%
All Shoppers
Western Regionals
Arrow indicates significant difference vs. all shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, January–December 2015
© Kantar Retail 2016
West
West South Central
Midwest
Midwest Regionals
Kroger refers to shoppers of Kroger’s regional locations
…But More Likely to Back Brands that Align with Values
30
WFM shoppers across regions place greatest importance on supporting values
Shoppers Who Rank “Supporting Retailers/Brands That Reflect My Values” Among Their Top
Four Most Important Factors When Shopping
21%
19% 19%
15%
10%
13% 13%
13% 13% 12% 12% 12%
12% 11% 11% 11%
11% 11% 10% 10% 10%
10%
8%
All Shoppers
Western Regionals
Arrow indicates significant difference vs. all shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, January–December 2015
© Kantar Retail 2016
West
West South Central
Midwest
Midwest Regionals
Kroger refers to shoppers of Kroger’s regional locations
31
Value Not Entirely Derived by What a Shopper Spends
Most regional grocery shoppers value getting a deal over spending less
Shoppers Who Rank Factor Among Top Four Most Important When Shopping
Spending as little money as possible
64%
65%
All Shoppers
64%
62%
H-E-B
65%
65%
Hy-Vee
Feeling like I got a "good deal"
66%
61%
Albertsons/
Safeway
Deal focused
Arrow indicates significant difference vs. all shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, January–December 2015
© Kantar Retail 2016
66%
62%
Meijer
67%
61%
Roundy's
68%
57%
Ralphs
Kroger banners - Roundy’s and
Ralphs shoppers show greatest
preference for getting a deal
over spending less
Regional Grocery Shoppers More Likely Than Average to
Value Experiential Factors
Shoppers Who Rank Factor Among Top Four Most Important When Shopping
All
shoppers
Spending as little as possible
65%
Feeling like I got a "good deal"
64%
Having a stress-free a shopping
experience
58%
One-stop shopping
48%
Completing shopping as quickly
as possible
44%
Purchasing high-quality products
37%
Having fun/enjoying myself
27%
Interacting with helpful, friendly
employees
18%
Discovering new products /brands
16%
Access to info about
products/brands
11%
Retailers/brands reflect my values
10%
Retailer logos indicate shoppers are significantly more likely to value factor (95% confidence level)
Source: Kantar Retail ShopperScape®, January–December 2015
© Kantar Retail 2016
Significantly more likely to value
32
33
Shoppers Look to Streamline Shopping
But a deal orientation remains top priority among shopping approaches for 2016
Top 5 Planned Shopping Approaches for 2016
“Streamlining” or limiting behaviors make up three
of top five shopping approaches
46%
Taking advantage of
good sales/deals
41%
Buying only things I
truly need
Source: Kantar Retail ShopperScape®, October 2015
© Kantar Retail 2016
35%
34%
Buying fewer things
Using more coupons
30%
Shopping less often
34
Simplification Skews Strongest Across Midwest Regions
Sticking to essentials particularly popular among shoppers of WSC retailers
Shoppers Planning to Buy Fewer Things in 2016
52%
47%
42% 42%
35%
39% 38%
38% 37% 36%
34% 33%
33% 33%
32% 31%
29%
24%
All Shoppers
Western Regionals
Arrow indicates significant difference vs. all shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, October 2015
© Kantar Retail 2016
West
West South Central
Midwest
Midwest Regionals
35
Digital Pre-Trip Planning Continues to Rise Popularity
Shoppers are significantly more likely to look at online circulars, search for coupons
online, and/or load electronic coupons onto a frequent shopper card vs. 2014
Pre-Trip Planning Activities
67%
68%
Make a handwritten shopping list
46%
48%
Look at printed store circular/ad for specific retailer(s)
46%
44%
Select paper/printed coupons to take with me on shopping trip
39%
41%
Look at printed store circulars/ad to decide where to shop
30%
35%
Look at online circular/weekly ad for specific retailer(s)
Look at online circulars/weekly to decide where to shop
Search for coupons online
Load electronic coupons onto a frequent shopper card
Arrow indicates significantly greater percentage vs. all shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, February 2014 and 2016
© Kantar Retail 2016
25%
30%
24%
26%
20%
26%
2014
2016
Meijer Shoppers More Likely to Engage in Pre-Trip
Planning Activities
All
shoppers
Make a handwritten shopping list
68%
Look at printed store circular/ad
for specific retailer(s)
48%
Select paper/printed coupons to
take with me on shopping trip
44%
Look at printed store circulars/ad
to decide where to shop
41%
Look at online circular/weekly ad
for specific retailer(s)
35%
Look at online circulars/weekly to
decide where to shop
30%
Search for coupons online
26%
Load electronic coupons onto a
frequent shopper card
26%
Significantly more likely to engage in activity
Retailer logos indicate shoppers are significantly more likely to value factor (95% confidence level); low sample size Giant Eagle (90)
Source: Kantar Retail ShopperScape®, February 2016
© Kantar Retail 2016
36
37
Electronic Coupons Popular in the West
Kroger shoppers, both in Midwest and West, especially likely to use electronic
coupons
Shoppers that Load Electronic Coupons Onto a Frequent Shopper Card
52%
46%
42% 41%
36% 35%
32% 32%
26%
29%
28% 27% 26%
26% 25% 25%
21% 20%
15%
All Shoppers
Western Regionals
Arrow indicates significant difference vs. all shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, February 2016
© Kantar Retail 2016
West
West South Central
Midwest
Midwest Regionals
Simple Personalization Can Make Big Differences
The right message in a shopper’s inbox can drive traffic and conversion
Source: Kantar Retail analysis, retailer websites
© Kantar Retail 2016
38
One-Third of All Shoppers Primarily Shop Perimeter
However, more shoppers favor perimeter than center store
How Shoppers Typically Shop a Supermarket
35%
43%
16%
Source: Kantar Retail ShopperScape®, February 2016
© Kantar Retail 2016
Primarily/exclusively shop
perimeter departments
Primarily/exclusively shop center
store aisles
Shop perimeter departments
and center store aisles equally
39
40
Online Grocery Still in Early Adoption Stage
Over three quarters of shoppers with access to online grocery do not use it; a
large number of Meijer shoppers, however, use it extensively
Access to Online Grocery
Portion of Grocery Shopping Done Online
(% of shoppers claim access in their state)
(among shoppers with access to online grocery services)
34% have access
29% don’t have access
37% unsure
13%
11%
77%
A little
Source: Kantar Retail ShopperScape®, July 2015
© Kantar Retail 2016
A significant portion
None
of Meijer shoppers who
have access to online
grocery services report
online constitutes a
significant portion of their
total grocery shopping
41
Although Current Usage Is Low, Interest Is Fairly High
Especially high interest in the West South Central, less in West
Usage vs. Interest in Online Grocery
(usage among all primary household shoppers; interest among primary household shoppers who do not use online grocery)
Have used online grocery
30%
Very interested in online grocery
26%
23%
22%
22%
20%
9%
All shoppers
gap: +14 ppt
9%
9%
11%
9%
West
Midwest
Northeast
Southeast
+11 ppt
+13 ppt
+11 ppt
+17 ppt
Arrow indicates significant difference vs. all shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, August 2016
© Kantar Retail 2016
7%
West South
Central
+23 ppt
Online grocery refers to any of the following methods: home delivery, click-and-collect
curbside pickup, click-and-collect in-store pickup, click-and-collect designated point pickup,
and personal shopper delivery
42
High Interest in Online Grocery Among Dollar Shoppers
The convenience online grocery offers may appeal to these shoppers seeking
value in terms of both money and time
Shoppers With High Interest in Online Grocery
(% of shoppers who claim to be very interested in any online grocery method)
35%
33%
30%
30%
29%
29%
27% 27%
26%
26%
23%
25% 24%
22%
All Shoppers
Western Regionals
Arrow indicates significant difference vs. all shoppers (95% confidence level)
Source: Kantar Retail ShopperScape®, August 2016
© Kantar Retail 2016
West
West South Central
Midwest
22% 21%
19%
19%
Midwest Regionals
Online grocery refers to any of the following methods: home
delivery, click-and-collect curbside pickup, click-and-collect
in-store pickup, click-and-collect designated point pickup,
and personal shopper delivery
Exploring the Eastern Grocery Shopper: Key Takeaways
‒
1
‒
‒
2
‒
‒
‒
3
‒
‒
43
Spending intentions remain high, which signals continued opportunity
… but it’s clear the opportunity is not distributed equally.
Gen Y (a.k.a. Millennials) are key source of growth for many goods and
services categories, but don’t forget that Gen X and Boomers combine
for scale.
In mass and drug channels, national players prevail, but strong regional
retailers and corporate banners capture fair share of grocery spending
dollars.
Imperative to understand national retailers’ strategies for regional
banners.
Differentiating beyond price and location is critical to optimizing the
capture rate of shoppers’ grocery spend.
Recognize how your retailers’ shoppers define value. There are
different needs and motivations for different value definitions.
Explore how your brands and categories can support a stress-free
shopping experience.
Define your role and commitment to your retailer’s digital efforts.
Source: Kantar Retail analysis
© Kantar Retail 2016
44
For further information please refer to
www.kantarretailiq.com
Contact:
Diana Sheehan, Director
T:
708.250.3693
[email protected]
@KR_DianaS
@kantarretail
www.kantarretail.com
© Kantar Retail 2016