Grocery Cross-Shopper Behavior - Drake International Grocery... · KROGER • Kroger leads in grocery spend compared to other grocery retailers, but even Kroger only captures just
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Importance of Availability of Alcoholic Beverages to Cross-Shoppers 71
Contact Us 72
Executive Summary
6
On average, cross-shoppers shop for groceries 5.8 times per month, spending an average of $377 per month
• Among cross-shoppers, grocery shopping accounts for 71% of total monthly food spend
More than half of cross-shoppers shop for groceries on a weekly basis, but not necessarily on the same day of the week
• Those who do shop on the same day each week do so out of convenience or routine, and are not necessarily driven by store deals or coupons
The majority of cross-shoppers shop for groceries at multiple stores on the same day
• A good portion of cross-shoppers exhibiting this behavior are out to get the lowest price
• Others consciously purchase different items in different stores, fully taking advantage of retailer differentiation
Walmart leads over other grocery retailers with 60% of cross-shoppers shopping for groceries at the retailer in the past month
• Walmart consistently leads in every region, ranging from 47% shopping the retailer for groceries in the East, to 74% in the South
• Kroger and Target follow with 27% & 24% grocery trips, respectively
Executive Summary
7
Cross-shoppers spend less than 40% of their grocery dollars at any one store
Kroger (west region) & Publix (south region) retain a larger percentage of grocery shoppers, followed more distantly by Walmart
Most cross-shoppers prepare a written list prior to grocery shopping
• Nearly a quarter prepare different lists for different stores
• Only a few cross-shoppers use online & mobile app resources for their grocery list preparation
Low prices / promotions will always matter to cross-shoppers
• When forced to choose what is MOST important when selecting a retailer, everyday low pricing and sales/promotions combined account for more than half of responses
• Many cross-shoppers go to more than one store to get the best price, while one quarter of cross-shoppers shop specifically at a particular store regardless of price
• Store cleanliness, convenience, and friendliness are also important when it comes to attracting and retaining shoppers
Executive Summary
8
Shopper needs also drive retailer selection:
• Number of items needed (large vs. small trip) factors into the decision on where to shop for most grocery cross-shoppers
• Type of items needed (fresh produce vs. dry goods) matters a majority of the time as well
• Low prices drive the stock-up trip, while convenient store location trumps pricing on the fill-in trip
Cross-shopping occurs for a variety of reasons, including better pricing, promotions and lack of product availability at a preferred retailer
• Cross-shoppers tend to pick up ‘a few more items’ when shopping outside of their primary grocery store
Executive Summary – Key Retailers
9
WALMART • Walmart drives significant grocery shopping traffic, but is chosen as the store shopped
most often by less than half of their overall shoppers • Cross-shoppers who shop Walmart love the low prices, but seek higher quality/freshness
(especially on fresh produce and meat), as well as better selection and convenience, at other grocery retailers
KROGER • Kroger leads in grocery spend compared to other grocery retailers, but even Kroger only
captures just half of its shoppers’ grocery trips • Cross-shoppers that shop Kroger are satisfied with product availability, selection and
quality/freshness, but look for lower prices and better sales elsewhere, particularly on dry goods and beverages
PUBLIX • Publix ranks very high among grocery retailers shopped and percentage of grocery dollars
spent • Cross-shoppers that shop Publix are highly satisfied with selection and convenience, but
look elsewhere for lower-priced packaged goods, mainly to Walmart
LOCAL GROCERS • Local Grocers continue to survive against the bigger chains • Cross-shoppers who shop these local grocers compete mainly with Walmart for packaged
goods, but their key competitor for fresh produce is the local farmer’s market
Why Grocery Cross-Shoppers Shop Multiple Stores, Same Day
20
Yes, 65%
No, 33%
Don't Know,
2%
In the last month, have you shopped for groceries at more than one store on the same day? Answers based on ‘yes’ (n=788)
Past month cross-channel shopping for groceries is prevalent among nearly 2/3 of consumers - Most of these consumers are looking to get the best prices, while others shop for different items at different
stores - A smaller portion indicate they are unable to find what they are looking for, a possible indication of stock
issues, or grocer product exclusivity
43%
34%
15%
6%
2%
I typically buy different items onsale to get the best prices at
different stores
I typically purchase different typesof items at different stores
I could not find something Ineeded at one store and had to go
to another
I simply forgot something and itwas more convenient to shop at a
different store
Other
What was the main reason why you shopped for groceries at more than one store on the same day?
Cross-Shopper Grocery Basket
45
64%
24%
12%
I sometimes pick up a few more items I only pick up the item(s) I need I almost always pick up a few more items
When you go to another store besides [Preferred Retailer], which of the following best describes your purchasing habits? (n=1209)
Over three-fourths of cross-shoppers pick up ‘a few more items’ at least some of the time when shopping outside of their primary grocery store
Retailers need to understand what’s in the basket in order
to take advantage of this cross-shopping behavior
*
Answers specific to primary grocery store selected.
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About ClickIQ ClickIQ is a full service market research firm specializing in custom marketing research, which means the vast majority of the studies we conduct are developed specifically to meet the needs and requirements of our clients. At ClickIQ, our researchers work closely with our clients to insure we deliver actionable insights they can trust at the greatest value possible. Based in Minneapolis, Minnesota, ClickIQ delivers its marketing research solutions to some of the best known and most respected companies across the U.S.
About this Study ClickIQ offers a free monthly newsletter, IQ Insights, for sharing relevant and current shopper insights to its readers. Each edition is based on actual research ClickIQ conducts over the previous days/weeks. In the summer of 2012, one of the studies it conducted was on how grocery shoppers shopped for groceries in the southeast, primarily between Walmart and Publix. The information was so insightful and the interest so overwhelming, it was decided then ClickIQ would conduct a more comprehensive national study and the insights offered to the public. We have attempted to share as much detail as possible in this report. If you have any questions regarding this study or if you are interested in learning how a custom project with ClickIQ can benefit your company, please contact us using the information below: