Significant increase in frequent, smaller shopping trips can be seen around the world giving the greatest rewards to retailers with a strong multi-format offer
LONDON – 3 June 2014 – Cost and convenience have driven a marked shift in grocery shopping across the globe, with consumers significantly more likely to make frequent, smaller grocery shopping trips, as opposed to one large weekly shop, according to new research from leading customer science company dunnhumby.
The dunnhumby Global Trends study of shopping behaviours across 18 countries shows the average frequency of shopping trips has increased by some 18% over the last five years, with purchases of no more than three products prevalent across all store formats.
The move towards smaller purchases is in part driven by financial necessity, with price sensitive customers 16% more likely (than which customers) to make small basket purchases, while in some regions, including Asia, this number is as high as 30%.
The desire to quickly grab a few top-up items also suggests a greater emphasis on convenience, which is also reflected in the growth of fresh prepared meals, which are predicted to enjoy a compound annual growth rate (CAGR) of 3.5% through 2017 globally.
“Shoppers are demanding store experiences and products that are simple, efficient and easy. In order to succeed, retailers can consider how to cater for small-basket shopping trips across all store formats,” said Julian Highley, Global Director of Customer Knowledge at dunnhumby.
“Whether this means placing popular convenience products near express checkout lanes or also ensuring that these are sufficient for processing small basket shoppers quickly, it’s clear that retailers and consumer-packaged-goods manufacturers must look to address this growing long-term trend so they can continue to meet customer needs.”
The dunnhumby Global Trends Unit identifies the consumer trends that will shape the future of the retail industry. It uses dunnhumby’s unparalleled data on 400 million consumers worldwide to quantify the effect of these trends and enable decision makers in both FMCG manufacturers and retailers to develop superior, forward-looking strategies. For this study, to better understand the motivations and drivers around convenience, dunnhumby studied consumers and convenience shopping habits across 18 countries, analysing the behaviour of more than 7m shoppers in North America, South America, Europe, and Asia, aggregating insight from dunnhumby’s global partners. The full Convenience Experience report is available for download at: http://www.dunnhumby.com/understanding-convenience-experience
Webinar on the Convenience Experience: Marketers interested in discussing these trends in further detail can sign up for a webinar with Julian Highley, Global Director of Customer Knowledge. Please contact Helen.Morris@dunnhumby.com.
About dunnhumby Ltd.
dunnhumby is the world’s leading customer science company. We analyse data and apply insights from more than 400 million customers across the globe to create better customer experiences and build loyalty. Our insights and strategic process help clients create competitive advantage and enjoy sustained growth. dunnhumby employs nearly 2,500 employees in offices throughout Europe, Asia, Africa and the Americas, and serves a prestigious list of companies including Tesco, Coca-Cola, Macy's, Procter & Gamble and PepsiCo. For more information, please visit us at www.dunnhumby.co.uk.