FMI Study: Shopping strategy
We are funny creatures, we consumers. The FMI released its U.S. Grocery Shopper Trends 2007 survey, and it shows we indeed are moving targets.
It is interesting to see how FMI evaluates and describes the behavior of shoppers, and I think they probably give us too much credit. For example, consider the wording of this research highlight.
From the news release:
Some shoppers appear to be adopting a dual primary store strategy, playing to the strengths of different formats. They are stocking up on most dry groceries and nonfood items at price discount stores, while buying meat, produce and frozen, natural and organic foods at conventional supermarkets.
TK: A "dual primary store strategy" has never crossed my mind. We like to shop at Hy-Vee and will occasionally hit a Wal-Mart or Aldi. Typically, not much premeditation is involved.
This new shopping pattern, combined with cost concerns, may benefit supercenters, which continue to gain ground as shoppers’ primary store, growing to 24 percent, up from 2006. Conventional stores are the primary outlet for 61 percent, down from 64 percent. Store performance ratings, however, raise questions about whether this trend will continue.
TK: A twist in the plot?
Overall shopper satisfaction with store performance declined slightly to an average of 7.9 percent, from 8.0 percent in 2006. Ratings of supercenter performance declined most significantly to 7.5 percent, from 7.8 percent in 2006 and 8.0 percent in 2005. Consumers gave conventional stores an 8.0 performance rating. The Trends report detected some erosion in the performance ratings for store features most important to shoppers. Forty percent of consumers rate their primary store "excellent" in being clean and neat — down from 42 percent in 2006 and 46 percent in 2005. High-quality produce is rated "excellent" by 34 percent — down from 37 percent and 38 percent in the previous two years.
TK: Here is the one stat that always seems to stay the same. The number one feature when consumers select a primary store is high quality fruits and vegetables. The FMI survey said that 77% of all shoppers rated "high quality produce" as very important when choosing a primary store, compared with 75% that said a "clean, neat" store and 73% who said "high quality meat."
Remember what I said about consumers being a puzzle? The following illustrates the point. When asked which is the most important factor in selecting your primary grocery store, here are the responses.
For all shoppers:
Low prices: 31%
Convenient location: 13%
Clean, neat store: 10%
Items on sales or money saving specials: 9%
High quality fruits and vegetables: 7%
High quality meats: 6%
1 Comments:
I am surprised that customer service didn't play into the survey. I know we'll avoid a location where the customer service is not up to par. We will even pay a little more for better and more friendly service. I've found that fresh produce, nice meat selctions, usually go hand in hand with a clean and friendly store. It's just management to me. An as the industry becomes more and more unappealing to younger workforce candidates, this may become an issue for retailers. I believe that it already is. Today's workers would like limited hours, weekends off, no holidays, etc. Not really possible in the retail arena. Might be a good blog topic as I'm sure all of our leading retailers are aware of the issue.
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