Irish Convenience Shopper Trends

Going for Growth in Convenience

19th September 2018

1 PRESENTATION FLOW

General Shopper Trends

Survey Introduction – What we did and how we did it

Frequency and Value of Spend

Purpose and Type of Shopping Trip

Convenience Channel Product Needs

Convenience Store Service Needs

Preferred In-Store Promotion Mechanics

Preferred Food and Drink Concession Outlets

Key Convenience Shopper Segments

Unlocking the Segments to Maximise Growth

2 Confidential2 The Irish Shopper – Some General Trends 3 Consumer confidence in the economy for the year ahead has cooled but 2018 levels remain relatively consistent overall Base: All Adults 16+

July ’18 %

Better off 41 Dubliners continue to Dublin: be most confident +31% about the country’s economic future – but the gap is closing. The same 46 Outside Dublin: +26%

Worse off 13

*Net Diff (GAP) +27%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Feb 18 May 18 July 18

Gap = -15% -59% -68% -49% -58% -52% -32% +3% +15% +18% +26% +28% +30% +27%

Q.2 And what about the coming year, do you think that the country will be better off, worse off or about the same as this year? 4 Annual employment and live register levels are positive

The Live Register Unemployment in Ireland

Rate of unemployment -15.1% % 20 -1.5% 14.6 14.7 Overall Change 15 12.0 13.6 11.5 9.6 vs. June 2017 10 7.3 6.5 Vs June 5 2017 0 10 11 12 13 14 15 16 17 101,084 126,981 5.1% Current Rate of unemployment -12.9% -16.8% (vs. 6.6% in June 2017) vs. June 2017 vs. June 2017

Source: www.CSO.ie/Persons on live register Source: www.CSO.ie/Quarterly National Household survey * Live Register Total data 5 YOY trends positive across the board

Clothing, Non-specialised Books, Department Pharma & footwear & stores (super- Household newspapers, cosmetics textiles Stores markets) Food sales Bar equipment stationary Fuel

Up 7.6% Up 5.7% Up 8.2% Up 5.7% Up 2.1% Up 2.2% Up 13.7% Up 2.5% Up 0.4%

Up 6.0% Up 1.8% Up 4.0% Up 4.7% Up 5.5% Up 4.9% Up 8.2% Up 3.4% Up 3.7%

Source: CSO, Central Bank, European Commission

volume value

6 Purchasing Goods and Services – Consumer attitudes towards perceived spending continues to be cautious however Base: All Adults 16+

July ’18 %

More 16

Attitudes towards Dublin: future spending The same +4% 72 are consistent both in and Outside outside Dublin: Dublin. +3% Less 13

*Net Diff (GAP) +3%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Feb 18 May 18 July 18 Gap +7% +5% -29% -63% -47% -52% -45% -37% -19% -13% -4% = +1% +3% +3%

Q.7 In the year ahead, do you expect to purchase more, less or the same amount of goods and services as in the past year? 7 Consumer Confidence Key Take-Outs

• Irish economic activity is currently strong – and consumers remain reasonably confident that this will be the case over the coming year, even when Brexit, Trump Trade wars, etc. are taken into account.

• Employment levels have almost reached ‘full employment’ status, and the fact is that consumer spending has been increasing year-on-year across all types of goods – including food and grocery.

• Notwithstanding all of this positivity, the consumers view of their own personal financial well being remains shakey. Many people complain that they have yet to see the benefits of this economic recovery, with almost as many consumers (13%) indicating that they are likely to spend less next year as are likely to spend more (16%).

• As a result, many consumers are still very much watching the pennies and will need to continue to derive value for money offers from their local convenience stores.

8 The vast majority of us now have a smart phone

% 100

90 86 Equates to 79 80 2,815,000 70 70 64 users 60 53 Claimed 50 smartphone 39 ownership 40 continues to grow 30

Smartphone Ownership Smartphone 20

10

0 Jul-12 Aug-13 Aug-14 Aug-15 Jan-17 Feb-18

Pre-January 2017 comparable data from eir Connected Living Survey 2015

Base: All with mobile - 881

Q. Which of the following devices do you currently use? Source: B&A TechScape, 2017 9 80% of the population now access the internet once a day or more often (almost all under 35s are now online at least once a day)

Source: B&A TechScape, 2017

10 What we are doing online Purchase goods or services online Turned on heating or other 57% household devices remotely via Share posts, videos, photos etc. an app 14% 47% online

Check work emails when Search for free Wi-Fi when in on holidays 24% 42% cafés, bars, or other outlets/places

Check in your location 26% when on social media 40% Post content online

Check social media or emails when having difficulty 30% 38% Research products on your sleeping mobile phone when in a store 33% 33% Follow brands on social media Connect your tablet, laptop or mobile phone to your TV to play programmes, Base: all Adults 16+ - 1,000 videos or music.

The under 50s, ABC1s and Dubliners are the most active online.

Q. Which, if any of the following do you do nowadays? Source: B&A TechScape, 2017 11 A dysfunctional relationship

LOVE HATE

▪ Personalised and ▪ Urgent and immediate intimate. ▪ Need to keep in ▪ My moments, my touch. memories, my ▪ Dependency friends. ▪ Separation anxiety? ▪ Augments and guides every moment ▪ Administers, stimulates…determines?

Deeper relationship Clear sign of growing than any other concern and antipathy technology especially amongst under 30s 12

“ It’s an addiction, I fully despise the thing. If I could just put it in the bin, but it’s so bad that when you put it “ away, you turn it off then you have to take it out again.

13 Online fatigue emerging? Yes %

The last thing I do at night is 54 check emails, text messages or 42 social media sites

The first thing I do in the morning 51 is check emails, text messages, or social media sites 37

38 I can’t imagine my life without social media 33 Jan-17 Feb-18

Base: All use social media sites - 734

Decline in those checking social media last thing at night and first thing in the morning.

Q. Here are some other things people have said about social media. Do you agree with these statements? Source: B&A TechScape, 2017 14 Consumer Technology – Key Take Outs

• As we know, the vast majority of Irish Consumers are now enabled with a smart phone, a device which in and of itself has driven daily + internet usage to more than 80% of the population.

• With the smart phone in particular now an extension of our limbs, we need to provide consumers with an increasingly digitised array of in-store features, from digital payment methods to free wifi and even perhaps digitally interactive in-store promotions and merchandising.

• Note, however, that something of a Love-Hate relationship with our smartphone is growing, particularly so amongst the under 30s.

15 Consumer Technology – Key Take Outs

• The extent to which the consumer being ‘always switched on’ can generate a sense of anxiety and antipathy for some consumers, with some evidence that this generation’s use of digital channels beginning to dip in its intensity.

• As such, any new digital convenience channel initiatives need to meet clear and real consumer needs, and avoid the risk of alienating the consumer by way of constant digital bombardment.

16 Established consumer food tribes

Foodies Ingredient checkers Balancers Within this context, the type of food we ● Wish to signal ● Seek out latest thinking ● Pragmatic food decisions eat, and indeed sophistication and alertness on food. about what works and is to cultural capital of food. generally healthy. how we source ● Suspicious of commercial and even ● ● Quick to point to need for Seek authenticity, and drivers in food industry. prepare it, has exotic novelty. ‘cheat days’. ● Health food store key. become for ● Seek out new information. ● Often express exasperation at volume of many people a ● Embrace sensory overload ● Clean diet/Paleo. contradictory information reflection of the and indulgence. ● Online/Netflix exposé on on nutrition. type of person food industry. ● Upmarket reality TV (Bake ● Recall of food pyramid we are – from Off et al). ● Mainstream media. those who strive consistent health and nutrition benefits, to those seeking a sense of authenticity and sophistication, to everything in between. 17 Emerging consumer food tribes

Protein boys Good sweat

● Pride in body ● Less trust in any beautiful. processing (yoghurt, pasta sauce). ● Whey protein, etc. ● Everything from ● Monitor diet closely. scratch must be better!

New vegans Sensitive souls

● Reject modern ● Food intolerance has consumerism. become a default suspect when bloated. ● Suspect big brands. ● Resulting in ● Lifestyle and experimenting with environment not just no exclusions (gluten, meat. dairy, meat).

We also see new consumer food tribes emerging. For example, our young, male body beautiful advocates, through to sensitive souls experimenting more and more with free-from options. 18 Consumer Health and Food - Key Take-Outs

• We are clearly in the midst of something of a consumer revolution in relation to health and lifestyle trends.

• B&A’s annual Sign of the Times study has identified a number of existing, and emerging consumer food tribes, whose needs and requirements are quite different to each other.

• With so many of these consumers regularly shopping at their local , it makes sense that as many of these food-related needs are met by the channel as possible, whether that be clear labelling on food provenance, a range of craft products, through to the availability of ‘free-from’ options.

19 Introduction to the research

1. A national survey of Irish adults aged 16 years+ was conducted by Behaviour & Attitudes. 2. A total sample of 1,012 respondents was achieved. 3. With a sample representivity ensured by way of quota controls by region, gender, agenda socio-economic status. 4. Fieldwork conducted between 9th-21st July 2018. 5. The findings can be deemed to be accurate within plus or minus 3.1 percentage points.

20 J.8978 | 13.06.18 | BGT | Consumer Sentiment Tracker 20 Local Neighbourhood or Convenience Store Definition

By local neighbourhood or convenience store we are referring to branded convenience stores such as , Centra, , , , XL, Daybreak, , etc., as well as garage forecourt convenience stores such as /Topaz, Maxol, Texaco, Applegreen, Esso, etc., or indeed any independent small grocery store that you may use.

21 First Some Interesting Survey Take Outs

22 Confidential22 Convenience Channel – A Massive National Footprint

More than the There are 3.4 3.26 million million adult who shop at large convenience and shoppers in multiples. Ireland.

From a total base of 3.7m Irish adults 16 years+ 23 Convenience Channel – Part of the fabric of Irish Life

Of the 3.4 million This compares to convenience shoppers 555,000 3+ times 1.5m shop there 3+ weekly times a week shoppers and 2.3m 1- 2 time weekly 1.6m do so once or supermarket shoppers twice a week

Equating to 6.9m convenience store trips per week, plus 5.1m supermarket trips per week 24 Convenience Channel – A Vital Component of GDP

€23Young Families €8.6bn 28%

The average Yielding a total Two-thirds of convenience annual which is shopper convenience generated by spends €23 market spend of less than 30% per trip just under €9bn of shoppers euro

25 Frequency and

Value of Spend 26 Frequency of Grocery Shopping Base: All participants - 1012

Supermarkets/Multiples Local/Convenience Store

% % 5 times plus per week 5 15 3-4 times a week 10 15% (HEAVY)

40% (HEAVY) Once or twice a week 26 25

62% (MEDIUM)

Once a week 30 36 44% (MEDIUM)

Every two to three weeks 14 Every month 4 12 Every 2-3 months 4 3 23% (LIGHT) 1 Less often than every 2-3 months 21 (LIGHT) Never 12 16% 8

Heaviest supermarket shoppers more likely female (17%); 25-49 years (18%); urban (17%). Heaviest convenience shoppers more likely 16-34 years (47%); kids in home (43%); rural (49%).

Q.1 How regularly do you shop at large supermarkets or multiple stores? Q.2 How regularly do you shop at any type of local neighbourhood or convenience store? 27 Convenience Market Spend

With the average Irish adult spending €23 each time they visit a convenience store

The Irish convenience market is worth an estimated €8.6 bn per annum

Based on the 2017 estimate of €250bn for Irish GDP, the convenience channel accounts for 3.5% of the economy.

28 Convenience Channel Size and Scale- Key Take-Outs

• From a PR Perspective, the Irish convenience channel can only be described as a good news story!

• Over 90% of all Irish adults use their local neighbourhood store – positioning the channel at a the very heart of the local community.

• With regard to the commercial opportunities available through these outlets, the average convenience shopper is making two trips per week, stacking up to a colossal 7m convenience store trips being generated every week around the country.

29 Convenience Channel Size and Scale- Key Take-Outs

• With the average convenience shopper spending €23 per trip, we have estimated from the survey data that the convenience market is worth a staggering €9bn to the Irish economy each year.

• Given its broad and deep footprint across Irish society, it is clear that Ireland’s convenience network is relied upon by people from all walks of life, at all times of the day, week and year.

30 Purpose and Type of

Shopping Trip 31 Purpose of Typical Convenience Store Trip

Main weekly household shopping trip Top up shopping trip, in addition to main weekly trip One of a number of equal shopping trips made throughout the week A rare visit to that type of store for minor/top-up purchases

A less frequent ‘bulk buying’ trip

Other

1.8m adults describe their typical convenience trip as a top-up shop to supplement their main supermarket trips. Almost a million of them have kids at home.

Q.3 Which of the options on this card best describes a typical trip to the type of local neighbourhood or convenience store we have just discussed? 32 Local/convenience store visits Base: All participants - 1012

A less frequent ‘bulk Main weekly Other buying’ trip household shopping trip A rare visit to that type of 1 4 store for minor/top-up 13 purchases 16

One of a number of % equal shopping trips made throughout the 17 week 49

Top up shopping trip, in addition to main weekly trip

Note there are almost half a million people conducting their main weekly household shopping in local convenience stores – across both urban and rural areas.

Q.3 Which of the options on this card best describes a typical trip to the type of local neighbourhood or convenience store we have just discussed? Q.4 And about how much do you tend to spend each time you visit this type of neighbourhood or convenience store? 33 Most Frequent Convenience Store Purchases Ice Cream Milk Cigarettes Wines, beers and spirits Snacks Bread Biscuits Newspapers and magazines Soft drinks Food to go/(Deli) Other Tea/coffee Non Food Items Confectionery Fresh food Chilled cabinet products

Not surprisingly, shoppers automatically identify “the staples” – milk and bread, etc. as some of their most regular purchase types.

Q.5 Which of these types of products do you purchase most regularly when you visit these types of local neighbourhood or convenience stores? 34 Most frequent purchase at local/convenience store Base: All participants - 1012 % Milk 76 Bread 74 Newspapers and magazines 33 Snacks 25 76% Soft drinks 24 Tea/coffee 24 Biscuits 23 Fresh food 23 Ice Cream 22 Food to go/(Deli) 21 Confectionery 21 Chilled cabinet products 17 Cigarettes 15 Non-food items 15 74% Wines, beers and spirits 10 Other 8

A broad range of products are however regularly purchased through the channel, catering for all ages, budgets and household types.

Q.5 Which of these types of products do you purchase most regularly when you visit these types of local neighbourhood or convenience stores? 35 Most frequent purchase at local/convenience store Base: All participants - 1012

33% 25% 24% Newspapers and Snacks (Crisps, Soft Drinks magazines Nuts, etc.)

For example, half of all those aged 50 years+ regularly purchase newspapers and magazines at their local stores, with a similar proportion of 16-24 year olds purchasing snacks and drinks there.

Q.5 Which of these types of products do you purchase most regularly when you visit these types of local neighbourhood or convenience stores? 36 Convenience Channel

Product Needs 37 Importance of convenience store stocking certain items Base: All participants - 1012 Range of local/ Irish products Fresh food Healthy food options Artisan/craft food & drink products Option to make forecourt/fuel purchases Hot Food to go Range of own label products Readymade convenience meals

Looking towards the future, the top 3 items desired in their local stores (from a list of 8) are fresh food, healthy food and local/Irish products.

Q.6 I am now going to read out a list of items which may or may not be important to you for local neighbourhood or convenience stores to have. For each option, please tell me how important it is to you for local convenience stores to have on a scale from 0 to 10, where 10 is extremely important, and 0 is not important at all. 38 Importance of convenience store stocking certain items Base: All participants - 1012 Option to make forecourt/fuel Artisan/craft Readymade Healthy food Range of local/ purchases in addition Hot food Range of own food & drink convenience Fresh food options Irish products to grocery purchases to go label products products meals % % % % % % % %

11 10 15 12 EXTREMELY 22 19 9-10 26 23 IMPORTANT 14 17 23 25 22 26 30 7-8 31

74 73 65 59 60 NOT IMPORTANT 52 46 AT ALL 0-6 42

Average: 6.37 6.14 5.99 4.99 4.87 4.90 4.29 3.96

Product needs vary considerably by shopper type, however, with, for example, young males identifying readymade convenience meals as a key need.

Q.6 I am now going to read out a list of items which may or may not be important to you for local neighbourhood or convenience stores to have. For each option, please tell 39 me how important it is to you for local convenience stores to have on a scale from 0 to 10, where 10 is extremely important, and 0 is not important at all. Convenience Product Needs Key Take-Outs

• While most convenience shoppers describe their typical trip as some form of top-up purchase, it is a fact that quite a few are actually relying on their local stores for their main weekly shopping.

• It is for this reason that, in addition to the old reliables such as milk, bread, etc. the average consumer sees his/her local shop as a potential source for quite a broad basket of goods as the need arises.

• The data also reveals that all types of consumers are being catered for through the mix of products provided through convenience stores, from snacks and soft drinks for younger consumers through to staple food products for the housekeeper.

40 Convenience Product Needs Key Take-Outs

• Nor can we assume that convenience shopping automatically equates to the need for readymade convenience food products.

• In keeping with broader consumer trends, there is clearly a need for a range of fresh and healthy food options in the local convenience channel – and what better an advocate for healthy, local produce than the local neighbourhood store?

41 Convenience Store Service

Needs 42 Convenience Store Service Features Most Desired Base: All participants - 1012

The facility to pre-order products for collection later In-store toilet/washroom facility The ability to make contactless payments Self service checkouts Free in-store wifi The ability to pre order products via an app In-store café/restaurant Electric car charger facility

Of the 8 service features presented, in-store washroom and contactless payments researched the best.

Q.7 Next I will read out a list of potential convenience store service features, which may or may not be available in the stores you currently use. For each feature, please indicate the extent to which you are, or would be, interested in using it in local convenience stores on a scale from 0 to 10 where 10 is extremely interested, and 0 is not interested at all? 43 Interest in convenience store features Base: All participants - 1012

Facility to Ability to In-store toilet/ Ability to Free pre-order pre-order Electric washroom make contactless Self service In-store café/ in-store products for products car charger facility payments checkouts restaurant wifi collection later via an app facility % % % % % % % % 8 8 7 13 12 12 EXTREMELY 19 8 25 11 10 INTERESTED 9-10 14 20 20

25 7-8 21

86 80 82 74 67 68 NOT AT ALL 0-6 54 55 INTERESTED

Average: 5.53 5.08 4.17 4.45 3.68 3.16 2.81 2.51 Note the relatively strong levels of interest in a range of automated payment options, with over a third of adults very interested in in-store cafes/restaurants.

Q.7 Next I will read out a list of potential convenience store service features, which may or may not be available in the stores you currently use. For each feature, please indicate the extent to which you are, or would be, interested in using it in local convenience stores on a scale from 0 to 10 where 10 is extremely interested, and 0 is not interested at all? 44 Most Important Customer Service Factors

Knowledgeable staff In-store Friendly staff Engaging staff cleanliness/hygiene Informative staff Smart staff uniforms

In-store hygiene is a generic, albeit crucial requirement for the neighbourhood convenience store.

Q.8 On this card is a list of customer service factors. Please indicate which one of these factors is most important to you in the type of service provided in local convenience stores? And which is the next most important aspect of local convenience store service to you? And the next? 45 Most Important Customer Service Factors Base: All participants - 1012

Engaging Smart staff staff uniforms Informative staff

5 1 Knowledgeable staff 6 8

%

Friendly staff 20 60 In-store cleanliness/ hygiene

Although friendly, knowledgeable, informative and engaging staff are clearly a vital element of the shopper experience.

Q.8 On this card is a list of customer service factors. Please indicate which one of these factors is most important to you in the type of service provided in local convenience stores? And which is the next most important aspect of local convenience store service to you? And the next? 46 Convenience Service Needs - Key Take-Outs

• While the right mix of product categories is clearly crucial to the convenience channel shopper, the in-store service experience is also a critical element of the equation.

• With over three-quarters of all consumers regularly using their smartphone across a range of applications, it is probably no surprise that shoppers respond well to the inclusion of such convenience store features as contactless payments, pre-ordering products, and free in-store wifi.

• Note, however, how important the personal touch is for the local neighbourhood shopping experience, particularly the opportunity to engage with friendly and knowledgeable staff, and staff willing to engage with the shopper to ensure that his/her shopper needs are met.

47 Preferred Promotion Mechanics and Concession Outlets 48 Most Preferred In-store Promotion Mechanics

Buy one/get one free New product launches Straight price reduction Coupons/vouchers Buy two of the same item at a reduced price

For the consumer, the most effective in-store promotion mechanics are either a straight price reduction (especially for older, rural shoppers), and BOGOFs (especially those with pre-teen and teen kids).

Q.9 On this card is a list of different types of in-store promotions. Please indicate which one of these types of promotions would you most prefer in your local convenience store? And which one would be your second preference? And your third? 49 Most preferred in-store promotion - first preference Base: All participants - 1012

Buy two of the same item at a reduced price New product launches 5 9 Coupons/ vouchers 10 43 Straight price % reduction

Buy one/get 32 one free

Regardless of specific choice, all appreciate at least some degree of promotional activity.

Q.9 On this card is a list of different types of in-store promotions. Please indicate which one of these types of promotions would you most prefer in your local convenience store? And which one would be your second preference? And your third? 50 Most Preferred Food/Drink Concession Base: All participants - 1012

Any Food Costa None of these/DK McDonalds Smooch Freshii Pappa Johns Any coffee Chopstix Insomnia Supermacs Freshly Chopped

A small majority (54%) have a clear view as to which food or drink concession outlets they would like to see in their local convenience store – with a third opting for a food concession and a fifth a coffee one.

Q.10 And finally, which of these food or drink concession outlets would you most prefer to see in the local neighbourhood or convenience stores you use most often? And which would be your second preference? And your third? 51 Most Preferred Food/Drink Concession - First Preference Base: All participants - 1012 % Starbucks 11 Costa 7 Subway 7 Mc Donalds 6 Supermacs 5 Freshly Chopped 5 Burger King 4 Insomnia 3 Pappa Johns 2 Abrakebabra 2 Freshii 1 Smooch 1 Chopstix 1 None of these / DK 46 ANY COFFEE 21 ANY FOOD 33 Starbucks and Costa are the most popular coffee outlet brands, with a mix of burger and healthier options sought for food.

Q.10 And finally, which of these food or drink concession outlets would you most prefer to see in the local neighbourhood or convenience stores you use most often? And which would be your second preference? And your third? 52 Convenience Promotion and Concession Needs - Key Take-Outs

• In keeping with broad market trends, there is no doubt that the average shopper appreciates, and often seeks out compelling in-store promotions.

• In this instance, we see a dichotomy between older, rural convenience shoppers who tend to respond best to straight price reductions and shoppers with larger families, who gravitate towards BOGOFs.

• When probed, a majority of Irish adults indicate they would like to see a food or drink concession outlet in their local neighbourhood or convenience store, with the balance of shoppers in favour of food outlets over coffee shops.

53 Introducing the Consumer Segments 54 Convenience Store Spend Base: All participants - 1012 Heavy Medium Light 28% of Shoppers 35% of Shoppers 37% of Shoppers

€5,739,881,000 €2,397,547,000 €437,985,000 67% of Value 28% of Value 5% of Value

Less than 30% of shoppers account for two-thirds of convenience market value. So who are these different shopper types, and how do we optimise their growth? Q.2 How regularly do you shop at any type of local neighbourhood or convenience store? 55 Q.4 And about how much do you tend to spend each time you visit this type of neighbourhood or convenience store Consumer Segment Pen Portraits 56 Heavy Spend Segment – Who are they?

AGE GENDER 28% of all adults. Total Heavy Segment Total Heavy Segment % % % % 1,295,000 16-24 14 10 Male 49 48

individuals. 25-34 18 24 Female 51 52 67% of value spend. 35-49 30 37 €5.7bn PA. 50-64 21 18 65+ 17 11

SOCIAL CLASS REGION LIFESTAGE

Total Heavy Segment Total Heavy Segment Total Heavy Segment % % % % % % ABC1 42 45 Dublin 29 17 Single 33 32 Pre-Family 5 4 C2DE 52 51 Leinster 26 34 Family Pre-School 16 19 F 64 Munster 27 34 Family Pre-Teen 17 22 Connaught/Ulster 18 16 Family Teen 7 5 Empty Nester 22 17

Our biggest value segment is skewed towards 25-49 year old shoppers with small kids, ABC1s, and those living outside Dublin. 57 Heavy Spend Segment – Shopping Behaviour

SUPERMARKET FREQUENCY CONVENIENCE STORE FREQUENCY

28% of all adults. Total Heavy Segment Total Heavy Segment % % % % 1,295,000 3+ weekly 15 13 3+ weekly 40 73 individuals. 1-2 weekly 62 69 1-2 weekly 44 25 67% of value spend. Fortnightly or less 23 18 Fortnightly or less 16 1 €5.7bn PA.

TYPICAL CONVENIENCE TRIP AVERAGE TRIP SPEND MOST FREQUENT PRODUCTS PURCHASED

Total Heavy Segment Total Heavy Segment Total Heavy Segment % % € € % % Top up, in addition to Milk main shopping 49 50 23.33 45.74 76 91 Bread 74 91 One of a number of Newspapers/magazines shopping trips made 17 27 24 43 Snacks 23 40 Rare visit for minor top-up 162 Soft drinks 33 37 Confectionery 23 36 Main household shop 13 20 Ice Cream 25 33 Biscuits 24 33 Less frequent ‘bulk buying’ 10 Food to go/(Deli) 22 32 Tea/coffee 21 31 Fresh food Other 41 21 29 Chilled cabinet products 17 29

Visiting their local neighbourhood outlets 3+ times a week, this segment spends twice as much per trip as the average shopper, across a broad basket of products. 58 Heavy Spend Segment – Needs & Motivations

PRODUCT NEEDS (9-10 IMPORTANCE) SERVICE FEATURE NEEDS (9-10 INTEREST)

28% of all adults. Total Heavy Segment Total Heavy Segment % % % % 1,295,000 Fresh food 26 31 In-store toilet/washroom 25 23 Healthy food 23 25 Ability to make contactless payments 19 22 individuals. Local/Irish products 22 26 Self service checkouts 13 17 Forecourt/fuel & groceries 19 26 In-store café/restaurant 12 16 67% of value spend. Hot food to go 15 22 Free in-store wifi 12 15 Facility to pre-order products for 12 20 €5.7bn PA. Own label range collection later 8 14 Artisan/craft products 11 16 Ability to pre order products via an app 8 10 Readymade meals 10 18 Electric car charger facility 7 10

SERVICE FACTOR NEEDS IN-STORE PROMOTION NEEDS CONCESSION OUTLET NEEDS (mean ranking) (mean ranking) (mean ranking)

Total Heavy Segment Total Heavy Segment Total Heavy Segment

In-store cleanliness/hygiene 5.15 4.88 Straight price reduction 3.88 3.90 Starbucks 3.32 3.53 Subway 2.90 2.81 Friendly staff 4.23 4.27 Mc Donalds 2.74 2.83 Buy one/get one free 3.78 3.74 Costa 2.59 2.81 Supermacs 2.49 2.34 Knowledgeable staff 3.58 3.78 Burger King 2.16 1.81 Coupons/vouchers 2.70 2.76 Insomnia 2.12 1.97 Informative staff 3.22 3.16 Freshly Chopped 2.00 2.04 Buy two of the same item 2.49 2.43 Abrakebabra 1.36 1.45 Engaging staff (make eye contact…) 2.69 2.79 at a reduced price Pappa Johns 1.30 1.28 Smooch 0.99 1.32 Smart staff uniforms 2.13 2.12 New product launches 2.16 2.18 Freshii 0.880.83 Chopstix 0.870.86 In terms of consumer needs, these shoppers over-index versus the average on the need for a positive staff experience, price reductions and coupons, efficient payment systems, and a decent coffee concession. 59 Light Spend Segment – Who are they?

AGE GENDER 37% of all adults. Total Light Segment Total Light Segment % % % % 1,359,000 16-24 14 19 Male 49 48

individuals. 25-34 18 13 Female 51 52 5% of value spend. 35-49 30 24 €438m PA. 50-64 21 20 65+ 17 24

SOCIAL CLASS REGION LIFESTAGE

Total Light Segment Total Light Segment Total Light Segment % % % % % % ABC1 42 43 Dublin 29 40 Single 33 36 Pre-Family 55 C2DE 52 49 Leinster 26 15 Family Pre-School 16 11 F 67 Munster 27 23 Family Pre-Teen 17 13 Connaught/Ulster 18 21 Family Teen 7 7 Empty Nester 22 27

Our smallest value segment is more likely than average to live in a single person household in the city, and over-indexes at the extremes age-wise. 60 Light Spend Segment – Shopping Behaviour

SUPERMARKET FREQUENCY CONVENIENCE STORE FREQUENCY 37% of all adults. Total Light Segment Total Light Segment % % % % 1,359,000 3+ weekly 15 19 3+ weekly 40 8

individuals. 1-2 weekly 62 55 1-2 weekly 44 52 5% of value spend. Fortnightly or less 23 25 Fortnightly or less 16 40 €438m PA.

TYPICAL CONVENIENCE TRIP AVERAGE TRIP SPEND MOST FREQUENT PRODUCTS PURCHASED

Total Light Segment Total Light Segment Total Light Segment % % € € % % Top up, in addition to Milk 76 60 main shopping 49 39 23.33 8.33 Bread 74 55 One of a number of Newspapers/magazines 33 26 shopping trips made 17 9 Snacks 25 20 Rare visit for minor top-up 16 33 Soft drinks 24 17 Confectionery 21 15 Main household shop 13 9 Ice Cream 22 15 Biscuits 23 13 21 13 Less frequent ‘bulk buying’ 12 Food to go/(Deli) Tea/coffee 24 12 Fresh food 23 9 Other 4 7 Chilled cabinet products 17 8 Visiting convenience outlets less frequently than the average shopper, this segment spends roughly a third of the average shopper, per trip. 61 Light Spend Segment – Needs & Motivations

PRODUCT NEEDS (9-10 IMPORTANCE) SERVICE FEATURE NEEDS (9-10 INTEREST) 37% of all adults. Total Light Segment Total Light Segment % % % % Fresh food 1,359,000 26 20 In-store toilet/washroom 25 24 individuals. Healthy food 23 23 Ability to make contactless payments 19 18 Local/Irish products 22 18 Self service checkouts 13 12 Forecourt/fuel & groceries 19 11 In-store café/restaurant 12 7 5% of value spend. Hot food to go 15 10 Free in-store wifi 12 10 Facility to pre-order products for Own label range 12 6 collection later 8 6 €438m PA. Artisan/craft products 11 10 Ability to pre order products via an app 8 5 Readymade meals 10 6 Electric car charger facility 7 5

SERVICE FACTOR NEEDS IN-STORE PROMOTION NEEDS CONCESSION OUTLET NEEDS (mean ranking) (mean ranking) (mean ranking)

Total Light Segment Total Light Segment Total Light Segment

In-store cleanliness/hygiene 5.15 5.36 Straight price reduction 3.88 3.88 Starbucks 3.32 3.27 Subway 2.90 3.25 Friendly staff 4.23 4.11 Mc Donalds 2.74 2.68 Buy one/get one free 3.78 3.81 Costa 2.59 2.35 Supermacs 2.49 2.12 Knowledgeable staff 3.58 3.59 Burger King 2.16 1.86 Coupons/vouchers 2.70 2.61 Insomnia 2.12 2.25 Informative staff 3.22 3.27 Freshly Chopped 2.00 2.14 Buy two of the same item 2.49 2.58 Abrakebabra 1.36 1.16 Engaging staff (make eye contact…) 2.69 2.63 at a reduced price Pappa Johns 1.30 1.00 Smooch 0.990.87 Smart staff uniforms 2.13 2.05 New product launches 2.16 2.11 Freshii 0.880.90 Chopstix 0.870.86

These individuals may be convinced to visit more frequently if healthy/artisan food and/or food concessions were available, and need reassurance around in-store cleanliness and staff knowledge. 62 Medium Spend Segment – Who are they?

AGE GENDER 35% of all adults. Total Medium Segment Total Medium Segment % % % % 1,295,000 16-24 14 12 Male 49 50

individuals. 25-34 18 18 Female 51 50 28% of value spend. 35-49 30 30 €2.4bn PA. 50-64 21 25 65+ 17 16

SOCIAL CLASS REGION LIFESTAGE

Total Medium Segment Total Medium Segment Total Medium Segment % % % % % % ABC1 42 38 Dublin 29 27 Single 33 32 Pre-Family 5 6 C2DE 52 56 Leinster 26 32 Family Pre-School 16 18 F 67 Munster 27 25 Family Pre-Teen 17 16 Connaught/Ulster 18 16 Family Teen 7 7 Empty Nester 22 21

Our medium spend segment is average in all respects – essentially a demographic mirror-image of the general population. 63 Medium Spend Segment – Shopping Behaviour

SUPERMARKET FREQUENCY CONVENIENCE STORE FREQUENCY

35% of all adults. Total Medium Segment Total Medium Segment % % % % 1,295,000 individuals. 3+ weekly 15 12 3+ weekly 40 48 1-2 weekly 62 63 1-2 weekly 44 51

28% of value spend. Fortnightly or less 23 24 Fortnightly or less 16 1 €2.4bn PA.

TYPICAL CONVENIENCE TRIP AVERAGE TRIP SPEND MOST FREQUENT PRODUCTS PURCHASED

Total Medium Segment Total Medium Segment Total Medium Segment % % € € % % Top up, in addition to Milk main shopping 49 58 23.33 18.49 76 82 Bread 74 79 One of a number of Newspapers and magazines shopping trips made 17 18 33 38 Snacks 25 25 Rare visit for minor top-up 16 9 Soft drinks 24 24 Fresh food 23 24 Main household shop 1311 Biscuits 23 22 Food to go/(Deli) 21 22 Less frequent ‘bulk buying’ 12 Tea/coffee 24 21 Confectionery 21 20 Ice Cream Other 42 22 20 Cigarettes 15 18 Quite frequent convenience store visitors, but spending slightly less than average per trip. Purchasing classic top-up items such as bread, milk, newspapers, etc. 64 Medium Spend Segment – Needs & Motivations

PRODUCT NEEDS (9-10 IMPORTANCE) SERVICE FEATURE NEEDS (9-10 INTEREST) 35% of all adults. Total Medium Segment Total Medium Segment % % % % Fresh food 26 29 1,295,000 In-store toilet/washroom 25 27 Healthy food 23 22 individuals. Ability to make contactless payments 19 18 Local/Irish products 22 22 Self service checkouts 13 12 Forecourt/fuel & groceries 19 21 In-store café/restaurant 12 13 28% of value spend. Hot food to go 15 15 Free in-store wifi 12 11 Facility to pre-order products for Own label range 12 12 collection later 8 7 11 9 €2.4bn PA. Artisan/craft products Ability to pre order products via an app 8 8 10 8 Readymade meals Electric car charger facility 7 6

SERVICE FACTOR NEEDS IN-STORE PROMOTION NEEDS CONCESSION OUTLET NEEDS (mean ranking) (mean ranking) (mean ranking)

Total Medium Segment Total Medium Segment Total Medium Segment

In-store cleanliness/hygiene 5.15 5.15 Straight price reduction 3.88 3.85 Starbucks 3.32 3.20 Subway 2.90 2.61 Friendly staff 4.23 4.33 Mc Donalds 2.74 2.71 Buy one/get one free 3.78 3.77 Costa 2.59 2.66 Supermacs 2.49 3.00 Knowledgeable staff 3.58 3.40 Burger King 2.16 2.76 Coupons/vouchers 2.70 2.76 Insomnia 2.12 2.10 Informative staff 3.22 3.22 Freshly Chopped 2.00 1.81 Buy two of the same item 2.49 2.43 Abrakebabra 1.36 1.51 Engaging staff (make eye contact…) 2.69 2.67 at a reduced price Pappa Johns 1.30 1.62 Smooch 0.990.86 Smart staff uniforms 2.13 2.23 New product launches 2.16 2.19 Freshii 0.880.91 Chopstix 0.870.88

Over-index of preference for food outlets such as Supermacs and BurgerKing. 65 Unlocking the consumer segments: Targeting strategy

Convenience Store Spend

Heavy Medium Light 28% of Shoppers 35% of Shoppers 37% of Shoppers

An occasional top up shopper, Classic top up items A broad basket of products and specific product needs are low • Bread Product Needs goods required to meet the needs across the board. Healthy food/food • Milk of the whole family. concessions likely to strike a chord • Paper however.

Given the amount of time and Slightly over-index on access to In-store cleanliness. Service Needs money spent there, a first class both grocery and forecourt Informative staff. staff experience is expected. products/services.

Price reductions. Promotion & Over-index on fast food outlets e.g. Coupons. Concession Supermacs, BurgerKing, Pappa No specific skews. Automated payment. Johns. Needs Quality coffee concession.

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