EDITOR’S Note METHODOLOGY
The food retail market has seen a host of significant shifts in consumer behaviour, with different drivers having an influence.
Urban Bites aims to unpick the market forces driving the food category, in an attempt to identify the most effective touch points when trying to reach the urban audience. Using our award-winning 11,000-strong work.shop.play. community This report aims to inform advertisers about the behaviour, panel, we were able to delve deep into the urban audience’s motivations lifestyle, attitudes and motivations of urbanites, while providing and behaviours, bringing together a total of 15 surveys and 9 ad ideas and inspiration of how to reach and engage with the effectiveness research projects. Additional data has been sourced from modern grocery shopper. TGI, Touchpoints, Kantar Worldpanel & Mintel.
The Team
1 2 CONTENT Key Audiences Key Audiences Market Forces Key audiences likely to be driving the market At a glance The weekly shopping routine Shopping for convenience Strategic spenders The ease of online shopping Young urbanites tend to be quite disciplined when it comes to food shopping. 2 in 5 go out to the shops with a list and stick to it, while 1 in 4 do one main weekly shop. 3 in Tactical about targeting: in-store vs. online 5 buy most of their groceries in convenience stores throughout the week, suggesting Key targeting opportunities these shoppers are still inclined to impulse purchase. Their food choices tend be healthy, Retailer perceptions: the shopping experience with 1 in 3 buying more healthy food this year compared to last and almost 2 in 5 Retailer perceptions: product range constantly checking food labels before purchase. 47% of London Commuters who are Supporting the community ADULTS 16-34 16-34, find themselves commuting between 5pm-8pm midweek – which is also when they regularly shop in convenience stores. The Commuting Shopper At a glance Trying to find the balance Quality & provenance Pivotal moments This group of shoppers is less driven by price - 1 in 2 seek quality when shopping for • Breakfast groceries, with 3 in 4 of those aged 35-44, in particular, prepared to pay extra for • Lunch premium products. What’s more, 1 in 2 regularly shop on their local high street in order • Dinner to support businesses in their areas and boost the local economy. 51% of London Takeaway dinners ABC1 35+ Commuters fall into the ABC1 35+ audience group. Urban snacking Summary On a budget Additional sources 1 in 4 people with children in their household have a monthly budget, that they try and Using data for targeting stick to. However, 1 in 5 often find themselves spending more. 1 in 3 will plan a big weekly shop in- store, but then often top-up with essentials – 2 in 5 buy food mainly in Case studies and creative gallery convenience stores midweek. These shoppers seem to be partly driving the online sector as well. Nearly 1 in 5 are shopping for groceries online more than a year ago and 1 in 4 London Underground: driving response amongst commuters have completed an order on their mobile or tablet. 34% of London Commuters who do Bus: driving action on the high street KIDS IN HH regular top-up shops have children in their household. Creative gallery
List of surveys Sources: work.shop.play. survey 1, work.shop.play. survey 2, work.shop.play. survey 10, work.shop.play. survey 12, work.shop.play. survey 15, TGI
3 4 market Forces AT A GLANCE THE WEEKLYShopping Routine
Food is a key priority for the urban audience. Despite concerns around the UK economy following the Brexit vote, work.shop.play. data reveals that 1 in 5 urbanites still like to stick to the main weekly shop. However, as life often gets 78% of our urban consumers still intend to spend the same or perhaps even more on groceries in the coming in the way of careful planning, 1 in 3 urbanites often find themselves topping up their big weekly shop throughout the months. week. A further 1 in 5 are actively seeking inspiration for their meals, suggesting there’s an opportunity for advertisers to aid people’s decisions. The explosion of food-centric media and a desire for a healthy lifestyle stand out as some of the key factors inspiring people to cook more, with 68% saying they now try and cook all of their meals from scratch. GROCERY SHOPPING ON THE HIGH STREET GROCERY SHOPPING ONLINE However, 1 in 5 urbanites find they have the same meals all the time and are actively seeking inspiration. The fact that 54% think about the groceries they need whilst out and about shows that there’s an opportunity for brands to engage with the urban audience on the move and help guide people’s decisions.
With the supermarket wars still in full swing, retailers are seeking new points of differentiation. In this quest, we’re seeing that the high street is an ever more important battleground, as the extensive growth of the convenience grocery sector is further affecting shopping behaviours. As a result, 2 in 5 urbanites now do most of their food shopping in convenience stores throughout an average week.
At the same time, retailers are increasingly facing competition from the more local, specialist stores. Over 1 in 3 high 4 1 4 3 34 35 3 15 1 11 1 6 1 street shoppers say they regularly go shopping on their local high street to help boost the local economy. One main sho One ig eekl ho on n mero s One ig eekl One main sho Online grocery shopping has seen slow growth in comparison to other online retail sectors. Nonetheless, technology in store that sho in store and o asions in store sho online and online that lasts lasts the eek to hen thro gho t the to in store the eek is having a tremendous impact on the food sector, whether it’s the in-store experience or the flexibility of online needed eek hen needed orders. Consequently, 1 in 5 Londoners have already ordered at least one food shop on their mobile or tablet, and as players such as Amazon enter the online grocery market, we’re likely to see this segment of the market evolve in s C ids in r an a dien e coming years. Sources: work.shop.play. survey 1, work.shop.play. survey 3, work.shop.play. survey 6, work.shop.play. survey 9, work.shop.play. survey 10, work.shop.play. survey 12 Sources: work.shop.play. survey 6, work.shop.play. survey 10, Mintel, Online Grocery Retailing Mar 2015
7 8 Shopping FOR Convenience THE Ease of Online Shopping
Although it hasn’t been growing as quickly as retailers would hope, the online grocery sector is seeing a steady uplift. By 2019, online grocery shopping is predicted to account for 8% of total sales through grocery retailers, up from 4% in 2014, to an estimated £12.6 billion (Mintel).
say that over the past 12 months they have increased This increases amongst 16-34s (19%), as well as The convenience sector is now valued at 15% the number of grocery shops they do online those with children in their household (18%). an estimated £38.7 billion Key reasons for shopping online work.shop.play. data shows that convenience shopping is driven particularly by the younger 16-34 audience, with 56% shopping for food mostly in these types of stores midweek. Nonetheless, an average of 40% of those aged 35+ and also families with children equally shop in convenience stores throughout the week. 67% 42% 41% Convenience Delivery availability Ability to order bigger, Sainsbury’s claims its convenience business is growing at a rate of 18% a year, while Co-op now has one food store in bulkier items online every UK postal area. 68% of urbanites choose the stores closest to work. In turn, 20% say they only shop in convenience stores because 33% 26% there are no larger supermarkets near where they live. A user-friendly website Ease of finding special offers
With this in mind, food on the go holds a significant opportunity for convenience stores, as 1 in 2 have been to a supermarket for just a sandwich or salad, giving advertisers an opportunity to target the lunchtime trade. Online shopping offers a convenient alternative for time-poor urbanites. With 29% often reviewing or adding to their grocery lists whilst out and about, brands can work to inspire people when it comes to Sources: work.shop.play. survey 9, work.shop.play. survey 13, Sainsbury’s website, Mintel, Convenience stores Apr 2016 their meals and help guide their choices. Mobile is growing as a platform, which points to even more opportunities to trigger direct response – 1 in 4 people with children in their household and 1 in 5 16-34s have already placed an online grocery order using their mobile phone or tablet.
Sources: work.shop.play. survey 6, work.shop.play. survey 11, Mintel, Online Grocery Retailing Mar 2015
9 10 TACTICAL ABOUT TARGETING in-store vs. online Our data reveals that shoppers are constantly thinking about groceries. However, patterns vary for different audiences, showing that advertisers may need to adapt brand messaging for their communications to effectively influence particular target groups.
GROCERY SHOPPING IN-STORE 2 in 3 urbanites indicate their main weekly shop is done sometime between Friday - Saturday. However, the main n store sho ing shop is not just a weekend job, as 1 in 2 have also done their big shop on at least one other day of the week. r an s C ids in eaks on at rda s
Success story – LU campaign drives commuters in-store s most likel to e C more likel to sho ing on a onda e sho ing in the eek In November 2014, a large supermarket ran a successful digital campaign on London Underground, promoting their premium range and engaging commuters. 75% 69% of people who saw the digital London of these did not usually shop MON TUE WED THU FRI SAT SUN Underground ads shopped in-store in the at this supermarket last two weeks ase res ondents ermarket ee l 2
Online grocery shopping is spread fairly evenly throughout the week. Families seem to be driving online shopping GROCERY SHOPPING ONLINE with 2 in 5 in this group saying that online shopping helps them reclaim their weekends and evenings. Online sho ing Families dri ing also eaks Success story – LU campaign drives online grocery shopping s and families dri ing online sho ing at the eekend online sho ing on onda s on Frida s
In June 2015, an online supermarket ran a brand awareness campaign on London Underground escalator panels, prompting online grocery shopping. 1 in 3 who recalled London Underground ads for the online supermarket shopped with the MON TUE WED THU FRI SAT SUN retailer in the last few weeks (vs. 1 in 10 who did not recall) ase res ondents ork sho la s r e g 2
11 Sources: work.shop.play. survey 6, work.shop.play. survey 11, Dipsticks survey 5, Dipsticks survey 7 12 Key Targeting Opportunities
With shoppers active throughout the week, we identified opportune moments for advertisers to prompt particular target audiences with relevant brand messaging whilst on the move.
Monday - Friday Saturday - Sunday r an r an C ids in C ids in Shopping in Convenience Stores Shopping in Convenience Stores Convenience shopping peaks Our data shows two peaks at between 5pm-8pm midweek. This is the weekend - 1 in 5 people with driven by 16-34s, with 3 in 5 likely to children will shop between 9am be shopping within this time period – noon, while over 1 in 5 16- am am 2noon 2 m m m m on a regular basis. am am 2noon 2 m m m m 34s will shop in a convenience am am m m 7 m am am m m 7 m store between 2pm – 5pm at the weekend. ase res ondents ermarket ee l 2 ase res ondents ermarket ee l 2
Shopping for Groceries Online Shopping for Groceries Online Close to half of all online grocery 1 in 5 online grocery shoppers order shopping is done midweek. 55% at the weekend. Timing is more ad- of urbanites who shop online for hoc, but activity still tends to peak groceries do so between 5pm-11pm. in the evenings, outside of regular store opening hours. am am 2noon 2 m m m m am am 2noon 2 m m m m am am m m 7 m am am m m 7 m ase res ondents ermarket ee l 2