New data reveals changing shopper behaviour
New data has shown that shoppers are increasingly visiting a wider range of stores when doing their supermarket shopping.
According to the latest data from global information and insights company Nielsen, shoppers spent an average of £19 per visit at the UK’s leading supermarkets in February. During the four weeks ending 1 March 2014, consumers spent 0.1% less money at the leading supermarkets than in the same period a year ago and bought 2.5% fewer units..
Nielsen’s UK head of retailer and business insight Mike Watkins said: “The wet weather, historically low price inflation and squeezed household budgets meant the amount of money going through supermarket tills was marginally less than last year. However, what’s most important is the way people are shopping.”
In February, 96% of UK households visited one of the top four supermarkets – Tesco, Sainsbury, Asda or Morrisons – while over 40% of households visited Aldi or Lidl.
Aldi and Lidl now account for 8.8% of all sales – up from 6.6% a year ago. This compares to 72% of sales held by the top four supermarkets, which represents a drop of 2% on the same period last year.
Watkins continued: “The range of supermarkets that shoppers now visit is the big change. Although the amount spent is falling, seven of the top ten supermarkets managed to entice new customers over the last three months. Shopper promiscuity is the new reality.
“Of course, the discounters are increasingly popular – one in five Aldi visitors last month shopped there for the first time – yet they account for less than 9p in every £1 spent. People are still visiting the large supermarkets for the bulk of their shopping, ‘cherry-picking’ promotional items – spending £25 a visit – but buying more of their grocery staples in Aldi and Lidl, spending £17 per visit.”
The figures also show that the UK’s ten leading supermarkets spent 12.4% less on TV and press advertising in the four weeks ending 1 March than in the same period a year ago.
Of the top ten, Asda spent the most on TV and press advertising in the period at £4.4 million, which was a 71% increase on the same period last year. Meanwhile, Waitrose and Lidl were the only other leading supermarkets to raise their spending on advertising in the period with increases of 29% and 22% respectively.
Watkins concluded: “Many shoppers are buying items on promotion and then going elsewhere to finish filling their basket. So, the increasing challenge for supermarkets is not only driving footfall but also getting shoppers to buy more per visit. That means there’s a need to differentiate their offering but this has to be more than just through promotions or lowest price. It involves engaging shoppers with the overall shopping experience and providing value for money – as well as allowing them to save money.”
