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Erving the E Tinrveg the E I T ƟĞƟ ƉĞƟ ƉƉĞƟ EĞǁ Ŵğƌŝđăŷ Ɖ Ğ Ğ Đ Ŝ Ŵ

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Erving the E Tinrveg the E I T ƟĞƟ ƉĞƟ ƉƉĞƟ EĞǁ Ŵğƌŝđăŷ Ɖ Ğ Ğ Đ Ŝ Ŵ ENGAGING THE EVOLVING SHOPPER: Servingervingerviniitn the t e EĞǁŵĞƌŝĐĂŶEEĞǁŵĞƌŝĐĂŶƉƉĞƟƚĞĞ ŵĞ ŝĐ Ŷ ƉƉĞƟƉƉĞƟĞƟĞƟƟƚ INTERNATIONAL DAIRY-DELI-BAKERY ASSOCIATION IDDBA Engaging the Evolving Shopper: Serving the New American Appetite a ENGAGING THE EVOLVING SHOPPER: Serving the EĞǁŵĞƌŝĐĂŶƉƉĞƟƚĞ THE INTERNATIONAL DAIRY•DELI•BAKERY ASSOCIATION™ 636 Science Drive, Madison, WI 53711-1073 P.O. Box 5528, Madison, WI 53705-0528 Phone: 608-310-5000; Fax: 608-238-6330 Email: [email protected]; Web: www.iddba.org IDDBA Engaging the Evolving Shopper: Serving the New American Appetite c © October 2014 International Dairy•Deli•Bakery Association™ 636 Science Drive, Madison, WI 53711-1073 Phone: 608-310-5000; Fax: 608-238-6330 Email: [email protected]; Web: www.iddba.org Engaging the Evolving Shopper: Serving the New American Appetite A special report prepared for IDDBA by The Hartman Group The in formation presented in this report has been compiled from sources and documents believed to be reliable. However, the accuracy of the information is not guaranteed, nor is any responsibility assumed or implied by the International Dairy•Deli•Bakery Association™. ISBN 978-0-9882033-3-4 ENGAGING THE EVOLVING SHOPPER: SERVING THE NEW AMERICAN APPETITE Table of Contents EXECUTIVE SUMMARY ................................................................................................................................... 1 RESEARCH METHODS ....................................................................................................................................7 KEY RESEARCH TERMS DEFINED ..............................................................................................................8 CHAPTER 1: THE SHOPPER ......................................................................................................................... 10 1.1 Demographic Trends ...............................................................................................................................11 1.1.1 Shopper Profi les in Fresh Perimeter .............................................................................................................12 1.1.2 Deep Dive into Millennials .............................................................................................................................15 1.2 Modern Eating Trends ........................................................................................................................... 18 1.2.1 Snacking ..............................................................................................................................................................18 1.2.2 Immediate Consumption.................................................................................................................................19 1.3 Health + Wellness Trends ...................................................................................................................... 21 1.3.1 Healthy Eating ...................................................................................................................................................23 1.3.2 Health + Wellness in Fresh Perimeter ..........................................................................................................24 1.3.3 Intentional Health and Implicit Wellness in Fresh Perimeter...................................................................26 1.4 Digital Engagement’s Impact on Food Culture ....................................................................................30 1.4.1 Spotlight on Social Media ................................................................................................................................31 1.4.2 Spotlight on Smart phone ..............................................................................................................................33 1.5 Key Recommendations ...........................................................................................................................36 CHAPTER 2: THE STORE ..............................................................................................................................37 2.1 The Retail Landscape .............................................................................................................................38 2.1.1 Preferred Stores .................................................................................................................................................39 2.1.2 What Makes a Store a Destination? ...............................................................................................................41 2.2 The Retail Experience ............................................................................................................................42 2.2.1 Department Wellness Features Help to Make a Store a Destination ......................................................42 2.2.2 Categories Align with Wellness Priorities Throughout the Day ..............................................................46 IDDBA Engaging the Evolving Shopper: Serving the New American Appetite i 2.3 Retail Communications ..........................................................................................................................49 2.3.1 To Curate or to Inform? ..................................................................................................................................49 2.3.2 The Voice of the Store ....................................................................................................................................52 2.33 Deals Are Expected From Store Management and Staff Detached From the Perimeter ...................54 2.4 Key Recommendations ..........................................................................................................................56 CHAPTER 3: Bakery Department Deep Dive ..................................................................................................57 3.1 Bakery Department Shopper Profi le ......................................................................................................58 3.2 Bakery Department Sourcing.................................................................................................................60 3.2.1 Where do Bakery Shoppers Go and Why? ..................................................................................................60 3.2.2 Sources used for Food by Bakery Shoppers ................................................................................................61 3.2.3 Primary Store Sourcing ....................................................................................................................................61 3.2.4 Where Do Bakery Shoppers Go When They Do Not Purchase at Their Primary Store? .................62 3.3 Important Bakery Department Attributes .............................................................................................63 3.3.1 Bakery Attributes Sought When Shopping at Primary Store ...................................................................63 3.3.2 Performance of the Bakery Department .....................................................................................................64 3.3.3 What Primary Store Could Do to Improve the Bakery Department .....................................................65 3.4 Bakery Occasions and Health + Wellness Considerations ...................................................................66 3.5 Information Source Preferences for Bakery Department .....................................................................67 3.6 Key Take Aways for Bakery Department ...............................................................................................68 CHAPTER 4: Dairy Department Deep Dive ....................................................................................................70 4.1 Dairy Department Shopper Profi le ........................................................................................................ 71 4.2 Dairy Department Sourcing ...................................................................................................................73 4.2.1 Where do Dairy Shoppers Go and Why? ....................................................................................................73 4.2.2 Sources used for Food by Dairy Shoppers ..................................................................................................74 4.2.3 Primary Store Sourcing ....................................................................................................................................74 4.2.4 Where Dairy Shoppers Go When They Do Not Purchase at Their Primary Store ............................75 4.3 Important Dairy Department Attributes ...............................................................................................75 4.3.1 Dairy Attributes Sought When Shopping at Primary Store .....................................................................75 ii IDDBA Engaging the Evolving Shopper: Serving the New American Appetite 4.3.2 Performance of the Dairy Department .......................................................................................................77 4.3.3 What Primary Stores Could Do to Improve the Dairy Department ......................................................78 4.4 Dairy Occasions and Health + Wellness Considerations .....................................................................79 4.5 Information Source Preferences for Dairy Department .......................................................................80
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