UK: Location key to shoppers' loyalty - research
When it comes to grocery shopping, location is key for UK shoppers, according to the latest research from Mintel.
Today, shoppers are twice as likely (at 50%) to opt for a store which is "the easiest to get to" than be swayed by the prices. Just over a quarter (26%) of British look to purchase their groceries from a store which is cheapest to shop at, while only just over one in five (22%) opt for a store which offers the best range of produce.
"Although price is of some importance - location is crucial in the battle to win shoppers' trade. The high emphasis placed on the store being close to home shows that it is actually quite hard for grocers to break established shopping patterns," said Neil Mason, senior retailer analyst at Mintel.
"There is so much that can be done with the price, products and overall shopping experience, but it is significantly harder to change the location of a shop. Retailers need to be aware of the importance of accessibility, by considering a variety of store formats, such as local convenience stores, high street shops or out of town supermarkets, to make shopping increasingly convenient for consumers," he added.
Why discount discounters?
Today some 53% of adults shop at discounters, but just 2% use discounter grocery stores for their main shop, again showing that price alone is not the driving force behind choosing a grocery store.
"Although our research shows that discounters are becoming less popular for regular shopping trips, they are clearly becoming increasingly popular for the occasional purchase. There has been a move towards cherry picking, as the canny shopper simply heads to the discounter for a few selected good value favourites. Ironically it is the more affluent consumers who are most likely to opt for this way of shopping," said Mason.
Nonetheless, as shopping habits of UK consumers are heavily convenience-oriented, many simply cannot be bothered to make a separate trip to a discounter to get part of their weekly food shop. The temptation of exceptional offers on non-foods as well as very low prices on basic foodstuffs has not radically altered the purchasing patterns of the majority of UK consumers.
Do points really make prizes?
Once shoppers have located their most convenient store, Mintel's research shows that 65% of consumers claim to regularly use at least one loyalty card operated by a retailer. Back in 2002 it looked as if loyalty card schemes were about to fall out of fashion, but two years on in 2004 the three biggest schemes (Tesco Clubcard, Nectar and Boots Advantage card) alone had amassed some 11 million regular users.
Almost half (49%) of adults would prefer to "have lower prices than points or incentives" - this is up from just 34% in 1999. Not surprisingly, 40% of those participating in loyalty schemes take the rewards as a cash discount each time they shop. Around one in three (29%) only bother with loyalty cards for stores where they shop frequently and a mere 4% claim to have chosen their grocery store based on the loyalty scheme on offer.
As the popularity of strict low-carbohydrate diets appears to be in decline, a more moderate alternative has been building in the consumer consciousness. Already popular in Australia, the Glycemic Ind...
Tesco has increased its lead in the UK grocery market, while Sainsbry has also managed to improve its market share, according to the latest figures from market researchers TNS....
Supermarket company Tesco is giving its staff a £220m (US$405m) bonus, thought to be the biggest ever reward handout from a British company, according to the London Evening Standard newspaper....
Supermarket Tesco further increased its lead in the UK grocery market in the twelve weeks to 24 April 2005, according to market analysts TNS. Sainsbury managed a small rise, while Wal-Mart's Asda and ...
Any move from Asda will be an important catalyst in the race to land Somerfield. The Wal-Mart owned group could well see its acquisition target as an important route into the ever-expanding convenienc...
Supermarket chain Tesco has announced a new food labelling system, with 'nutritional signposts,' which it says will make it easier for shoppers to make healthier choices....
Locally owned food retailer CBA is Hungary's biggest supermarket, according to the Budapest Business Journal, which cited statistics compiled by AC Nielsen for trade journal Mai Piac....
Not content with pocketing one in every three pounds spent on groceries in the UK, the supermarket giant Tesco has now become the first British retailer to smash the £2 bn ($3.78bn) profit barrier. Ho...
- Unilever 2016 investor day - the top takeaways
- Have food promotions reached tipping point?
- Mondelez goes beyond certified cocoa - analysis
- What Premier CEO Gavin Darby thinks about Brexit
- How Tyson's new CEO plans to grow the meat group
- Nestle unveils process to cut sugar by 40%
- Putin 'wants embargo to run as long as possible'
- Unilever sets new margin target with help from ZBB
- Unilever focuses on "value" of spreads arm
- McCormick to buy flavours business Enrico Giotti