17 Feb Insider View: January 2016
Where does it leave the bricks and mortar supermarket?
37% of those who took part in Shoppercentric’s ‘WindowsOn…Connected Shoppers’ report last summer, expected to do more shopping on-line in the future. The Centre for Retail Research claims that online shopping is on course to beat high street spending by 2022, while John Lewis predicts online sales will overtake store spending as early as 2019. When buying items such as electricals and clothing customers often research on-line, but visit a store for a more customised experience before the final point-of-purchase. Grocery shopping on-line is mainly about convenience. A key barrier for potential users is the worry over delivery delays or delivery costs, but in reality it is precisely the convenience of choosing a delivery slot and minimising spend, by not getting distracted by other items in-store, that attracts many on-line food shoppers. The announcement that Sainsbury’s is set to take control of Argos will give them more than 700 locations for picking up on-line orders plus the news that Amazon Fresh are about to launch a delivery service in the UK (following the launch of Amazon Pantry) will be keenly watched by the major multiples and the other ‘only-online’ retailer Ocado, (who are rumoured to be ‘in talks’ with Amazon over a possible take-over). It is claimed that Amazon Fresh have their eye on 2% of the Grocery market and that they aim to link up with regional businesses such as bakers and delis in order to supply customers with local produce. So where does this leave the bricks and mortar supermarket? The challenge for grocery retailers is to provide as convenient a format as possible to allow for an easier, faster shopping experience and an engaging experience that is tailored to customer needs. Our Shopper Survey showed there are more ways of guaranteeing customer loyalty than just offering the cheapest prices. 3 out of 4 shoppers would stick with a supermarket that continued to stock everything they needed, and 58% visited the store closest to where they lived. Adding values in other ways can help convince shoppers that they are getting the best Quality for their money. The Discounters have been particularly good at connecting with shoppers by showcasing award winning products and highlighting key offers in store, so that shoppers feel like they are getting a great deal even before they step inside the store. The Big 4 can do more to shout about their achievements and must continue to make it easy to compare prices and check product availability on-line, while in-store they must offer a range and service level that shoppers feel is tailored to their needs and delivers consistent quality right across the store.
Contact Ann Moore on 01223 492069 for details about Fast Foodfax Product Showcase
This month we saw strong scores for some long standing brands with Aunt Bessie’s, McCain, Fox’s and Butterkist all achieving scores of 45+ out of 50.
- Walkers hit the top spot with its new Melty Crackers Sweet Chilli- a simple but versatile snack prompting regular buyers. (Showcase Product of the month Review 160108)
- Calbee (UK) Ltd also enjoyed success with its Japanese inspired savoury baked snacks. The innovative Yushoi Snapea Rice Stick: healthy, but seen as more of an occasional treat (Review 160116)
- But not everyone understood or appreciated the creaminess of Baxter’s can of Jerusalem Artichoke Veloute a soup made to a traditional French recipe and thickened with egg yolks, butter and cream. (Review 160102)
- And the 1 billion cultures in Stir Daily Cultures Green Tea was not the most appetising selling point (Review 160136)
Meanwhile Waitrose continues to reinforce its Quality message through product descriptions and named ingredients. Their Granola was ‘Seriously Fruity’ (Review 160101) and they used Sicilian Lemons in their Semifreddo (Review 160133) and Normandy Apples in their Apple
 Shoppercentric’s ‘WindowsOn…Connected Shoppers’, July 2015
 CMR Shopper Survey 2015 Sample size: 296