eu food retailer trends

8/2/2019 EU Food Retailer Trends

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Food Retailer Trends

March 2011

Adam GoodmanVertical Insight Manager


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Contents


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Food Retailers Top News

Food

volume fall since records began.

Consumer spending on food, beverages and tobacco picked up in the

second half of 2010, reaching 7.7% year-on-year growth in Q3.

This appears to indicate consumers bought fewer, more expensive foods

and that food retailers lost some share of the market possibly to internetpure players.

Between December 2009 and December 2010 consumer food prices

rose by +5.7%, underpinning the increased spending on food.

J. Sainsbury posted 14-week Christmas like-for-likes excluding petrol up

3.6%, recording a +20% rise in sales of its top-tier Taste the Difference

range in the week before Christmas.

Waitrose saw its best-ever Christmas performance.

UK like-for-likes over a six-week Christmas period were up

+0.6%, lower than Morrisons% gain.

2011 is likely to be characterised by further rises in inflation in food. This

could stifle any further trading up by consumers.

- 3.4%volume

decline(Mintel, Feb 2011)

Source: Mintel, UK Retail Briefing Food Focus, Feb 2011
http://www.mintel.com/http://www.mintel.com/http://www.mintel.com/http://www.mintel.com/


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Mintel

-2010

-retailers,

it is important to note this strong growth is on the back of the lowest-ever annual growthrecorded in January last year when the e-Tina Spooner, Director ofInformation atIMRG

NB: Note truncated scale exaggerates the trendSOURCE: ONS/MINTEL
http://www.mintel.com/http://www.mintel.com/http://www.mintel.com/


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In-store food shopping will be very much focused

on leisure, discovery and fulfilment

Most functional and convenience shopping will be delivered through online shopping by2020. UK is and will be largest player in Europe.

% making purchases on the internet, by country(nVision forecast, 2009-based projection)

Source: Eurostat Survey on ICT Usage/nVision | Base: All individuals aged 16-74
https://www.nvisiononline.co.uk/keytrends/beyond_2020_the_future_of_food.pdfhttps://www.nvisiononline.co.uk/keytrends/beyond_2020_the_future_of_food.pdf


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Groceries & Personal Care a

consumer snapshot

72% have no children in the household

Medium household income

Make quick purchase decisions,

but prepared to shop around for

the best value

65% are the main decision-

maker for the category

They are brand loyal, rather

than early adopters

50% normally buy 2-3 times a week

or more often62% decide & buy on day of purchase

On average they spend

196 per month

Buyer type:

66% Habitual

28% Impulse6% Research

Most recent purchases:

77% Fruit & veg

75% Baked goods

65% Soft drinks, juices, alcohol

58% Chilled or frozen products

Purchase triggers:

41% Ran out of the item

20%A treat for themselves

20% Wanted to try a new brand

Average number of brands

considered: 3

Average number of retailers

considered: 2

43% are aged 35-54

Source: Microsoft & Carat New Shopper Journeys Europe Study 2010 :Groceries & Personal Care n=2622


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of Groceries & Personal Care consumers believe they will

be utilising digital technologies for their future purchases108

Make a

purchase online

Send

pictures/videos

of potential

purchases

Ask opinions

from people

know on forums,

blogs, social

networks

Use mobile to

research whilst

in-store

Make a

purchase

via a mobile

Use mobile to

interact with

billboards/

download

special offers etc

via the phone

16%

75%

12%

8% 7%

13%

Which of the following are you likely to do in the future?



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8

Retail & Online Retailers Spend

For the most part, Retail advertisers tend to spend the most onadvertising in the Press and on TV

On average the industry currently spends around 5% on Internet

advertising (not including search). 2010 expenditure has increased

+1% from that of 2009

Source: NNR adDynanix : Jan Nov 2010


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Display Advertisement Publisher Location:

Reach and Frequency (Retail Food)

Microsoft sites delivered both the highest number of impressions and the highest number

of unique visitors for Food Retailers in Dec.

Source: ComScore adMetrix : December 2010


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Display Advertisement Publisher Location:

Reach and Frequency (Retail Food)

Microsoft sites also have the highest share of Food Retailers ad impressions, however

average frequency is very competitive and far less than eBay, AOL and Glam Media.

Source: ComScore adMetrix : December 2010


11/28Source: ComScore AdMetrix December 2010

Top Advertiser by Impression and UU by ComScoreAdMetrix (Food Retailers)


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Food & Grocery Search Traffic KPIsTraffic Searches for food & grocery generics increased by

+29% between 2009 and 2010

Searches for food & grocery generics increased by

+29% Oct to Dec 2010 v Oct to Dec 2009.

Searches for food and grocery however increased

by 43% in Jan 2011 v Jan 2010

Top Insights: The large grocers were the only channel to gain

sales in 2010 (Mintel)

Mobile applications will be designed to help users

eat and live more healthily. Linked to a country's

national health service, it holds information on all

their medical history and monitors body changes

throughout the day making recommendations on

intake and consumption habits (nVision)

1.Microsoft Advertising Intelligence Tool
http://www.futurefoundation.net/page/view/nVision_UKhttp://www.futurefoundation.net/page/view/nVision_UK


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Food & Grocery Demographics and Daily Trends

16%)

35-4931% . 25-34

27%

59%

1.Microsoft Advertising Intelligence Tool December 2010 to Feb 2011 data


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Groceries & Personal Care shoppers are using online display

media right now

of Groceries & Personal Care consumers are found on

Microsoft Advertising more than any other online property

63%

59%

46%

ALMOST 23

Top performing MicrosoftAdvertising properties:

51%

35%

31%



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Microsoft Advertising products can connect you with your consumers

at each point in the path to purchase:

A number of touch points to consider



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Industry Insights


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Food Retailers Large Grocers benefit

The large grocers were the only channel to gain sales in 2010. The off-licences and

tobacconists performed particularly weakly, but that is probably because of the demise

of Threshers. It may be that the strength of the larger grocers has been because they

picked up most of that business.

-SECTOR, 2006-10

Source: Mintel UK Retail Briefing Food Focus UK. February 2011


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The pie chart below overstates the market sharesof the four leaders because the company sales-which are not included in the total market sizefigure

The pie chart below accounts for the estimate

-retail categoriesare stripped out (such as petrol, restaurants and NHSincome, and business to business sales) Tesco,Sainsbury, Asda and Morrison's share changed


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Scrutiny of the whole journey of food

products

The Digital Revolution is already playing a role in making the fulljourney of food products more transparent, as demonstrated by

to trace the exact origin of the eggs they buy.

By 2020, smartphone apps -like the Breadcrumbs one pictured

here which includes features like a summary of ingredients and

the date of manufacture -will have significantly accelerated and

amplified demand for detailed knowledge of the full journey of ourfood.

Mobile devices will become sensors and RFID readers, allowing

consumers to interact with food in a much more detailed and

informed manner, providing data on exactly where foods originate

(when and how a product was produced, who came in contact

with it, whether it was ethically produced) -and detailing fullingredient lists.

information expectations. They will stimulate new quality demands

within the whole food production process, in particular around

hyper-freshness and hyper-localism.

Source: nVision & Future Foundation, Beyond 2010
http://www.nvisiononline.co.uk/http://www.nvisiononline.co.uk/


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Retail M-Commerceevolution of mobile technology has given rise to the empowered consumer: at the touch of a

button, almost anywhere, consumers can research products, companies, and even make purchases(ForseeResults)

Forsee study of 10,000 UK visitors to the biggest e-retail sites in the UK (according to IMRG) stated:

Key findings:

Shoppers are using mobile phones to access websites and

apps more than ever before 32% of respondents have usedtheir phone to access a retailer website, and an additional 32%indicated they plan to access retailer websites or mobile apps by

purchase behaviour is exploding 8% of UK made purchase via

Shoppers use their phones for a variety of tasks

Good experiences with mobile sites and apps have criticalcross-channel impact - Shoppers who are highly satisfied with amobile experience say they are 32% more likely to buy from that

Source: Foresee Results, Jan 2011.
http://foreseeresults.com/http://foreseeresults.com/http://foreseeresults.com/http://foreseeresults.com/


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Retail M-Commerce

In which of the following ways did you useyour phone while shopping in a store?

Source: Forseestudy of nearly 10,000 visitors to the biggest e-retail websites in the United Kingdom

accessed that

on their phone

accessed a

website on their

phone

-have for retailers. As smartphone use increases, more customers willturn to the mobile channel to find price and product information(ForeseeResults)
http://foreseeresults.com/http://foreseeresults.com/


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Beyond 2020 Eating Habits

Consumers will also eat out of the home in a more spontaneous way as mobile technology

enables them to seamlessly locate food offers wherever they happen to be. They will nolonger need to plan their choices in advance and instead will almost always decide at the last

minute according to their mood, the latest live reviews, the location of their friends and

incentives offered by hospitality players.

% who access the internet via their mobile phone at least once a month in the UK

Eating habits will be much more mobile, flexible and spontaneous

Source: nVision & Future Foundation Research: Beyond 2010 Future of Food Beyond 2010Base: 1,200 respondents aged 16+, GB

Mobile applications will bedesigned to help users eatand live more healthily.Linked to a country'snational health service, itholds information on all theirmedical history and

monitors body changesthroughout the daymaking recommendationson intake and consumptionhabits


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Microsoft Advertising & Carat Study

Retail brand marketing must respond to major shifts in

consumer behaviour as digital media and the

habits.

Microsoft Advertising, shows that shoppers no longer

pass through a standard purchase funnel. Retail brand

marketing must respond to new spheres of influence

and balance the role of bought, owned and earned

Find out more:http://advertising.microsoft.com/uk/retail-brand-

marketing-research

Alternatively speak to your Microsoft Advertising

representative to learn more about this study.
http://advertising.microsoft.com/uk/retail-brand-marketing-researchhttp://advertising.microsoft.com/uk/retail-brand-marketing-researchhttp://advertising.microsoft.com/uk/retail-brand-marketing-researchhttp://advertising.microsoft.com/uk/retail-brand-marketing-researchhttp://advertising.microsoft.com/uk/retail-brand-marketing-researchhttp://advertising.microsoft.com/uk/retail-brand-marketing-researchhttp://advertising.microsoft.com/uk/retail-brand-marketing-researchhttp://advertising.microsoft.com/uk/retail-brand-marketing-researchhttp://advertising.microsoft.com/uk/retail-brand-marketing-research


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Food & Grocery

APPENDIX


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Which?/ nVision: Most popular online

supermarkets

Ranking measured on a scale of 1-5 (1 being poor, 5 being excellent)

Source: Which?/nVision, 2010

Base: 2,661 respondents aged 16+, UK


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interested would you be in any of the following services?

Demonstrations in the supermarket where a chef shows me how to

prepare better meals /

% who would be very or quite interested, by gender, age and social grade

Source: nVision Research, 2010

Base: 1,000 online respondents aged 16+, GB


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Best reputation on environmental issues

supermarket

each of the following product/service categories, please write in the one brand that you feelhas the best reputation on environmental

Source: Readers Digest European Trusted Brands Survey/nVision, 2010Base: 1,276 respondents aged 20+, UK


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Top 10 grocery retail markets in Europe

In billions of euros

IGD forecast

Source: Institute of Grocery Distribution (IGD)/nVision, 2010

eu food retailer trends

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