online 2014 sample extract
DESCRIPTION
This report will: • Look at the current penetration of the UK online grocery market • See the demographic of current online shoppers • See how loyal multi-channel shoppers are to retailers • Look at both the drivers and dislikes of online shopping for current online shoppers. Specifically looking at: delivery, cost, retailer websites and personal situations • Find out the barriers to online shopping for non-online shoppers • Touch on the shoppers’ journey around a retailer website and see how shopping trips are started and which features are used (favourites, categories etc.) • Take a look in delivery method e.g. click & collect vs delivery • Missions and spend will also be covered and compared to shopping in-storeTRANSCRIPT
Online Food &
Grocery:
The Shopper
Perspective 2014
SAMPLE EXTRACT
Evolution Insights Ltd
Foundry St
Leeds
West Yorkshire
LS11 5QP
www.evolution-insights.com
Evolution Insights: Shopper Insight
Series
Disclaimer
Please note
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Evolution Insights Ltd.
The content of this report is based on information gathered in good faith from both primary and secondary sources and is believed to be correct at the time of publication. Evolution Insights can however provide no guarantee regarding the accuracy of this content and therefore accepts no liability whatsoever for any actions taken that subsequently prove incorrect.
© Evolution Insights Ltd 2014
About Evolution Insights
Evolution offer a range of products &
services for clients in the field of shopper
research:
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Evolution’s off the shelf research
publications deliver affordable insight
into shopper motivation and behaviours
in UK food, drink and grocery
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As publishers of research, we are able to
draw upon a wealth of existing
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helping to better inform and shape any
further research requirements
Our research and analysis helps clients develop
targeted shopper marketing initiatives designed to
influence shoppers at the point of purchase.
We use a range of research methodologies to discover
genuine insights. Our research incorporates a broad
spectrum of robust qualitative and quantitative research
techniques.
As a leading publisher of shopper research, we are
ideally placed to offer your business actionable
shopper insight.
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specialising in shopper motivation and
behaviour. We deliver off-the-shelf, tailored
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Contents
Key Findings and Summary 5 Online grocery shopping journey – All Touch Points 33
Online shoppers preferred filtering methods: 34
Online Grocery Shopping: At a Glance 8
The UK Food & Grocery Market 9 Shoppers that would prefer to sort by lowest price
first:
37
UK Channel Forecast Changes 10 Average spend 38
Tesco 11 Most important factor when choosing the delivery slot 39
Asda 12 Shoppers changing habits 40
Sainsbury’s 13
Morrisons 14 Online Drivers & Trends 41
Ocado 15 Opinions on Delivery & Substitutions 42
Dark Stores 16 Abandoned a shopping cart 44
Technology for Grocery Search 17 Customer reviews online 47
New food product release 48
The Online Grocery Shopper 19 Drivers to online shopping 49
Frequency of Grocery shopping Online 20 Shoppers’ Positives of Online Shopping 50
Demographic profile of online food & grocery
shoppers
21 Barriers/Dislikes of Online Grocery Shopping 51
Non-online shoppers 52
Online Retailer Choice 22 Barriers to Online Grocery Shopping 53
Online Primary Shopper Share, 2014 23 Dislikes of online shopping 54
Primary Online Shopper Share 24 Shoppers’ Negatives of Online Shopping 55
Retailer Choice: Shopper Profile, by Retailer 25
Shopper loyalty 26 Online Categories 57
Retailer choice 27 Categories shoppers would avoid buying online 58
Online Shopping Habits 28 Shopper Typologies 61
Location and time 29 Shoppers Segmentations 63
Online grocery shopping modalities 30
Online grocery shopper journey – starting point 32 Methodology 66
The Online Food & Grocery market in the UK only makes up around 6% of the
whole grocery market. However, it is the fastest growing channel, and one of the
most sophisticated grocery channels in the world - It is currently worth around
£5.6 billion, and growing.
Supermarkets
60%
Convenience Stores
22%
Discounters 8%
Online 6%
Other 4%
The UK Food & Grocery Market 2014
Online Grocery Shopping: At a Glance
Tesco are continuing to dominate not only the UK food & grocery market in general, but
the constituent channels within that, including the online channel. The online arm of the
group brought in £127 million last year, and reported results of +11% growth in the year
2013/14. Tesco are making efforts to improve their Click & Collect offering by adding
more collection locations, including a plan to launch 50+ non-store collection points in
2014/15, such as schools, libraries and sports centres, to add to their impressive
collection of over 1750 locations.
Boundaries between the online and offline world are becoming
blurred. The challenge, and opportunity, for retailers is not just to
have (and be able to operate across) multiple channels. It is to
meet the rapid changes in consumer behaviour that we are seeing
as technology opens up new horizons for them.
of UK customers use a
mobile phone to
compare prices or look
up reviews in store 59.7% of Tesco UK customers shop across 2 or more channels,
including stores and online
Tesco in the UK Online Food & Grocery Market
43%
Source: Tesco.com
Online Grocery Shopping: At a Glance
The Online Grocery Shopper
Demographic profile of online food & grocery shoppers5
6% 60
%
53%
62
%
78
%
62
%
51
%
39
%
27
%
67
%
50
% 55
%
46
%55%
50%
60%
51%
50%
49%
58%
51%
69%
Increase of 11%
penetration of online
shoppers from 2013
56%
57%
Online Shopping Habits
Location and time where shoppers
order their online grocery shopping
3% 6%3%1%
5%
28%41%
13%
Location and time where shoppers
have their online grocery shopping
delivered
2%5%4%
1%2%
39%31%
16%
At work –
13% (down
2% from 2013
At work –
12% (down
2% from 2013
Online Shopping Habits
Most important factor when choosing the delivery slot:
Time of day Cost of delivery Day of week
44%
42%
43%
43%
13%
16%
2014
2013
Shoppers place little importance
on the day of the delivery,
compared to the time and the
cost – and even less than last
year.
Online Drivers & Trends
8%
9%
16%
17%
26%
27%
57%
I never intended to check out
I didn’t like the layout of the website/couldn’t find what I was looking for
I didn’t qualify for free delivery
The shopping cart was more expensive thanexpected
I just wanted an idea of costs so I could compareto another retailer
The website/app was running too slow
I ran out of time/had to do something else
The reasons that shoppers abandoned their shopping cart:
Online Drivers & Trends
Shoppers’ Positives of Online Shopping - uninitiated responses
Note: Size of text does not reflect the number of times the response was mentioned
Shopper Typologies
Evolution’s extensive research into online shopping behaviour has allowed us
to segment shoppers into varying shopping styles. It is of course possible for
individual shoppers to change as their circumstances change, but we believe it
is useful to understand different modalities based on differing circumstances.
Special Offer Junkie – Shoppers whose first thought is to look at the special offers
section, and to seek out special offers within other sections.
Speed Freak – Pre-plans the majority of items and goes straight to them with little
browsing.
Relaxed Browser – Generally enjoy online shopping and take their time to browse all
sections and results.
Frustrated Technophobe – Not the best at using technology and often struggle to
find the items they want. Find it a frustrating experience.
Creature of Habit – The main items bought tend not to differ between shops. Most
items are bought from the favourites section.
Methodology
Secondary and desk research
Preliminary qualitative and quantitative research
Main quantitative surveys
Detailed accompanied shops, including pre- and
post-shop in-depth interviews & Remote
Moderated Usability Test
Insights
Evolution carried out a preliminary survey of
100 shoppers, to test questions for the main
survey and establish an initial view of market
penetration. Detailed online store audits were
also completed, to facilitate awareness and
commentary of online grocery retailer features,
functionality and initiatives. Initial insights
gained were used to help further design the
main survey.
Two quantitative surveys were utilised in this
report. The first was part of a wider research
programme and had a sample of UK adults
who said they regularly shop for food & grocery.
This survey was used to determine overall
penetration rates, barriers to online food and
grocery retailing and offline retailers used. The
second survey included only shoppers who
shop for food and grocery online at lease
occasionally. This sample of 1000 completed
all questions relating to their online shopping
behaviour.
Comprehensive and detailed assessment of all
the data received was then used to discover
insights. Throughout this process, primary
research was supported by secondary research
drawing on Evolution’s proprietary databases,
national statistics, news and industry
resources. Evolution’s consultants also
maintained close relationships with industry
figures across retailers and manufacturers.
Evolution’s methodology
Methodology
Detailed shopper insights were gained
from 1,000 UK adults said they shopped
online at least occasionally. The
questionnaire was fully representative of
the online grocery shopper population in
the UK.
The survey contained 27 questions
relating to topics outlined to the left – in
addition to standard demographic
profiling questions.
The questions were designed to give
maximum insight into shopper’s
motivation and behaviour before, during
and after online grocery shopping.
Categories NOT shopped online
Delivery, substitutes and spend
Circumstances, approach and modality while shopping online
Missions in terms of frequency and most regular
Context of online shop
Drivers of store choice
Online retailer usage in terms of frequency and most regular
Barriers for non- online grocery shoppers
Frequency of online grocery shopping
Demographic profiling
Topics of questions in quantitative survey
Our reports are available through our subscription service, or on a one off basis, for
more details please contact me directly.
Craig Bradley
Managing Director
0113 394 4670
Reports form only a small part of our Shopper research, please contact us if
you have any bespoke requirements.
evolution insights ltd
Round Foundry Media Centre
Foundry Street
Leeds
LS11 5QP
Contact Us
2015 Report List
Channels
These reports will give a holistic view on where shoppers go, how frequently and most importantly why they
choose the different channels to fulfil their shopping needs. This collection will be comprised of the seven
following reports:
Online
Click & Collect
Supermarket
Convenience
Discounter
High Street
Non-standard
Missions
These reports takes an in-depth look at Shopper Missions and examines shoppers’ behaviour across all
missions in relation to frequency, patterns, channel, planning, spend and more. The Mission reports are
made up of four separate reports, of which one will be split into three occasions:
Main shop
Top-up
Meal for Tonight
On the go Breakfast – Lunch - Snacking
2015 Report List
The use of Digital Devices for Food & Grocery Shopping
The Digital Shopping report looks at how these technologies are being adopted by shoppers. Specifically, we
will look at technology penetration and usage, apps, contactless payment and social media – all in relation to
the Food & Grocery sector.
Health & Product Information
Explores shoppers’ attitudes to health and healthy eating, nutrition labels and how healthy shoppers are in
their own opinion. We will also provide an overview of the drivers associated with buying healthy products
Planning & Store Influence
In this report we look at shoppers’ behaviour both before and after the shop but not at their behaviour whilst
in-store. We will see how shoppers plan their grocery shop (if at all) and how much food they have in their
homes in stock. Then we take a look at when individual meals are planned. We will also look at decision
making in-store - when a shopper is confronted by a number of products they have to make a decision based
on a number of different criteria which they will choose on that particular occasion. In the main (and in the
interests of simplicity) we categorise these as Price Vs Taste/Quality Vs Health Vs Brand.
Loyalty Cards, Brand Match & Voucher Redemption
This is a new report that will look into the main retailers offering of loyalty cards in terms of what they offer
and how they work, who used them and if they are redeemed. Brand match is a concept that has been taken
up by most of the large retailers, so we will look at how individual retailers define their brand match, what
they offer in return, and what shoppers think of it. We will also see how many people are using vouchers in
Food & Grocery.