Online F&G Shopping Report 2013 sample extract

Evolution Insights: Shopper Insight Series

Online Food & Grocery:
The Shopper Perspective 2013

Sample Extract
Essential insight into shopper motivation and behaviour in UK food and
grocery online

Evolution Insights Ltd
Prospect House
32 Sovereign Street
Leeds
LS1 4BJ
Tel: 0113 389 1038
http://www.evolution-insights.com
www.evolution-insights.com

1

Disclaimer

Please note
No part of this publication may be reproduced, stored in a
retrieval system or transmitted in any form by any means,
electronic, mechanical, photocopying, recording or otherwise,
without the prior written consent of Evolution Insights Ltd.
The content of this report is based on information gathered in
good faith from both primary and secondary sources and is
believed to be correct at the time of publication. Evolution
Insights can however provide no guarantee regarding the
accuracy of this content and therefore accepts no liability
whatsoever for any actions taken that subsequently prove
incorrect.
© Evolution Insights Ltd 2013


2

About Evolution Insights
Evolution is a leading research consultancy
specialising in shopper motivation and
behaviour. We deliver off-the-shelf, tailored
and bespoke research for manufacturers,
retailers and agencies.

Our research and analysis helps clients develop targeted
shopper marketing initiatives designed to influence
shoppers at the point of purchase.
We use a range of research methodologies to discover
genuine insights. Our research incorporates a broad
spectrum of robust qualitative and quantitative research
techniques.

As a leading publisher of shopper research, we are ideally
placed to offer your business actionable shopper insight.

Sign up for Shopper Trend Report, our free monthly newsletter
offering analysis and commentary on topical shopper issues.

Evolution offer a range of products &
services for clients in the field of shopper
research:
Off-the-shelf research
Evolution’s off the shelf research
publications deliver affordable insight into
shopper motivation and behaviours in UK
food, drink and grocery
Insight Plus
Insight Plus offers your business the
opportunity to engage in any of our regular
shopper research projects in advance of
publication, tailoring the scope to suit your
needs
Bespoke Consulting
As publishers of research, we are able to
draw upon a wealth of existing proprietary
data for consulting projects – helping to
better inform and shape any further
research requirements
3

Contents
Key Findings & Summary

6

The Online Grocery Shopper: At a Glance
Introduction
UK Grocery Market
Predictions
Timeline 2012-2013
Key Drivers & Trends
Penetration and Frequency
Demographics
The Off-line Shopper
Summary

9
10
11
13
14
15
16
17
18
19

The Online Grocery Shopper: Retailer Choice
Introduction
Tesco
Asda
Sainsbury’s
Morrisons
Waitrose
Ocado
Amazon
Online
Shopper Profile, by Retailer
Drivers of Store Choice, by Retailer
Online Retailer Penetration, by Offline Retailer
Drivers
Summary

20
21
23
24
25
26
27
28
29
30
31
32
33
34
35

The Online Grocery Shopper: Shopping Habits
Introduction
Circumstances
Planning
Starting Point
Planning & Starting Points, Demographics
Ordering Results
Touch Points
Shopper Missions
Spend
Delivery
Changing Habits
Summary

36
37
38
39
41
42
43
44
45
47
48
49
50
52

The Online Grocery Shopper: Drivers & Trends
Introduction
Delivery Charges
Click & Collect
Recipe Boxes
Opinions on Delivery & Substitutions
Opinions on Delivery & Substitutions, by Retailer
Abandoning Online Shopping Carts
Customer Reviews
New Products
Drivers to Online Shopping
Barriers to Online Shopping

53
54
55
59
60
61
62
63
65
66
67
68
69


4

Contents

Shoppers’ Positives of Online Shopping
Shoppers’ Negatives of Online Shopping
Summary

70
71
72

The Online Grocery Shopper: Online Categories
Introduction
Categories Shoppers Don’t Like to Buy Online
Fruit & Veg
Meat
Dairy
Summary

73
74
75
76
77
78
79

The Online Grocery Shopper: Typologies
Shopper Segmentations
Demographics
Retailer

80
82
83
84

Methodology

85


5

The Online Grocery Shopper: UK Grocery Market
The UK food & grocery market is continuing to rise year-on-year, but at a slower rate as the market becomes increasingly
saturated. There is great potential to increase the frequency of online shops within those who already shop online in order to
increase sales.

UK online food, drink and grocery market expenditure estimates (2006-2013f):

7.0

40
37

6.0

6.7
35

5.6
30

5.0

4.0
3.0

3.0
2.0

30

4.9
20
3.6

25

4.2

20
20

2.3

35

17

17

1.7

14

15
10

1.0

5

0.0

Year-on-year growth (%)

Expenditure estimates (£billion)

8.0

0
2006

2007

2008

2009

2010


2011

2012

2013F
6

The Online Grocery Shopper: Predictions
The food and grocery market in the UK is arguably one of the most sophisticated online grocery markets in the world.
Sales are up each year with double digit year-on-year growth

Reports predict that
online retail is set to
grow by almost 50%
over the next five years
to be worth over £50bn

It is expected that in 2018, one
pound in every seven spent on
retail will be made online
A key driver in the
growth of online
shopping is it’s
enjoyableness.
Shoppers are largely
rating online shopping as
more enjoyable than
traditional in-store
shopping

It is likely that online F&G sales will
grow quicker than the overall F&G
market in the next few years

The growth in penetration of
smartphones and tablets has
allowed for the evolution of
‘second screening’. Shoppers
no longer have to be tucked
away in a separate room with a
PC to shop in their homes –
they can shop whilst watching
TV with the rest of the family
7

The Online Grocery Shopper: Timeline 2012-2013
As the online grocery market is estimated to dramatically increase in value to £11bn by 2018, supermarket giants battle
to take market share and remain at the forefront of shopper’s minds. The timeline pictured below highlights the key
online food and grocery developments of 2013.
Aldi reveals plans to launch an online
liquor store in Australia, in an
attempt to take market share from
Tesco, Sainsbury's and Waitrose benefitted
Woolworth’s.
greatly from the festive period, as Tesco
Morrison’s and Ocado do a trial run of the
announces a 1.8% increase in sales.
Morrison’s and
supermarkets new online store which launches in
Waitrose thanks the popularity of tablets Ocado enter a 25
2014.
for its success as 22.8% of festive orders year (£200m)
Iceland considers trading
were made via the platform.
partnership.
online in order to rival
Morrison’s.

Dec

Jan

Feb

Tesco makes online
delivery more efficient
by installing automated
picking machines , in
selected dark stores.

March

April

Tesco Lotus
commences its
online delivery
service in
Shanghai and
Bangkok.

May

June

Brewer AB inbev
aim to improve
their ecommerce
strategy using
social media. By
clicking on
Facebook/
Pinterest ads beer
can be added to
online shopping
baskets.

July

August September October

Forecasters predict that
online sales will double
in the next five years.

Asda expands click and collect to
better suit the needs of
commuters. Lockers are now
available in strategic locations
Sainsbury’s online saw
such as Universities .
sales of £1bn for the
first time.
Amazon Fresh trials its delivery
service in California, LA. Depending
on the success of the trial; the
company is expected to enter the
UK grocery market.

Retailer Choice
Over the next few pages we take a look at the market share by individual retailers. The pages
will look a little something like this…
Overall and Online Market Share

30.2%

Overall

37.1%

Online


Please note that the online
market share stated on
these pages is not the same
as the shopper share that
we look at on P30.
Shopper share takes into
account the proportion of
shoppers that use that store
as their main online retailer
and not the market share of
that retailer.

9

Retailer Choice: Drivers of Store Choice, by Retailer
Tesco.com
They offer the best value
for me/are the cheapest
They have the best
promotions
They have the most
suitable delivery times
for me
They have the cheapest
delivery
Their produce tends to
be the freshest/best
quality
Their website is the
easiest to use and
understand
Their range is better
than the rest
They don't send product
substitutes as much as
their competitors
Because they are the
same company as the
supermarket I usually
use
They have my favourites
list
It's the only one I've
ever considered

Asda.com

Sainsburys.co.uk

Ocado.com

Average

44

72

25

16

49

34

42

28

20

37

26

30

30

36

30

21

29

15

18

24

14

14

38

47

24

30

26

22

22

29

20

13

32

33

24

8

9

13

33

12

24

19

23

9

23

19

10

13

7

16

8

5

8

2

8

Highlighted numbers indicate a large deviation from the average

10

Shopping Habits: Circumstances (2)
14% of shoppers have their order delivered to their place of work. Here we an see the majority have delivery between
5pm-midnight on a weekday.

Location and time where shoppers have their online
grocery shopping delivered

At work –
14%
15

35

3 5

5

Understanding when
shoppers choose to have
their items delivered is
important for retailers who
can distribute their
resources appropriately.

1
4

32

Weekday – midnight9am
Weekdays – 9am-5pm
Weekdays – 5pmmidnight
Weekends


11

Shopping Habits: Changing Habits
We look here at perceived changing habits of online shoppers. If shoppers predictions are right, online shopping will
continue to grow into 2014, with 1/3 thinking they will shop online more next year than they currently do.

Now, compared to last year

Next year, compared to now
61

51
43

33

6

6

Shop online Shop online the Shop online
more
same
less

Shop online Shop online the Shop online
more
same
less


12

Drivers & Trends: Opinions on Delivery & Substitutions
With many online retailers offering services such as delivery tracking/alerts, it is not surprising to see a large proportion
saying that they would like to have this option for their grocery delivery.

79%
Would like to
receive an alert
to say that their
delivery is on
its way (e.g.
text)

72%
Know the
returns policy
prior to making
an order

56%
Have
returned
grocery items
in the past

67%
Would like
tracking
information on
their delivery

53%
have had a
delivery in
the past that
has been late


60%
Are often sent
substitute
products

32%
Would pay
more to get a
faster
delivery

13

Online Categories: Fruit & Veg

Fruit & Veg
56

I like to choose my own

21

I don’t think it’ll arrive fresh
Worried about them being
damaged during delivery

6

Other

6

Bad past experience
Have local shop that is cheaper

5

I don’t buy this category

I like to feel the quality in my hand
It is too difficult to choose
between them online

3

It’s hard to tell the size
online/understand the…

On several occasions I have received poor
quality fruit and vegetables

2

I like to read the
label/packaging

1

I worry it won’t stay at the
right temperature

0
0

I shop locally for it fresh

10

20

30

40

50

60
14

Typologies: Shopper Segmentations

Evolution’s extensive research into online shopping behaviour has allowed us to segment
shoppers into varying shopping styles. It is of course possible for individual shoppers to change
as their circumstances change, but we believe it is useful to understand different modalities
based on differing circumstances.
Special Offer Junkie – Shoppers whose first thought is to look at the special offers section, and to
seek out special offers within other sections.
Speed Freak – Pre-plans the majority of items and goes straight to them with little browsing.
Relaxed Browser – Generally enjoy online shopping and take their time to browse all sections and
results.
Frustrated Technophobe – Not the best at using technology and often struggle to find the items
they want. Find it a frustrating experience.
Creature of Habit – The main items bought tend not to differ between shops. Most items are
bought from the favourites section.


15

Evolution Insights: Shopper Insight Series

This presentation is a Sample
Extract. Full Report 87pages.
For Details on the full report please
contact dale.henry@evolutioninsights.com
Evolution Insights Ltd
Prospect House
32 Sovereign Street
Leeds
LS1 4BJ
Tel: 0113 389 1038
http://www.evolution-insights.com
SAMPLE EXTRACT

Methodology


17

Methodology
Evolution’s methodology

Secondary and desk
research

Detailed accompanied
shops, including pre- and
post-shop in-depth
interviews & Remote
Moderated Usability Test

Preliminary qualitative and
quantitative research

Main quantitative surveys

• Evolution carried out a preliminary survey of
100 shoppers, to test questions for the main
survey and establish an initial view of market
penetration. Detailed online store audits
were also completed, to facilitate awareness
and commentary of online grocery retailer
features, functionality and initiatives. Initial
insights gained were used to help further
design the main survey.
• Two quantitative surveys were utilised in this
report. The first was part of a wider research
programme and had a sample of UK adults
who said they regularly shop for food &
grocery. This survey was used to determine
overall penetration rates, barriers to online
food and grocery retailing and offline
retailers used. The second survey included
only shoppers who shop for food and grocery
online at lease occasionally. This sample of
1000 completed all questions relating to their
online shopping behaviour.
• Comprehensive and detailed assessment of
all the data received was then used to
discover insights. Throughout this process,
primary research was supported by
secondary research drawing on Evolution’s
proprietary databases, national statistics,
news and industry resources. Evolution’s
consultants
also
maintained
close
relationships with industry figures across
retailers and manufacturers.

Insights


18

Methodology: Quantitative Research – Survey

Topics of questions in quantitative survey
• Detailed shopper insights were gained
from 1,000 UK adults said they shopped
online at least occasionally. The
questionnaire was fully representative of
the online grocery shopper population in
the UK.

Demographic profiling
Frequency of online grocery shopping
Barriers for non- online grocery shoppers
Online retailer usage in terms of frequency and most regular

• The survey contained 27 questions
relating to topics outlined to the left – in
addition to standard demographic
profiling questions.

Drivers of store choice
• The questions were designed to give
maximum
insight
into
shopper’s
motivation and behaviour before, during
and after online grocery shopping.

Context of online shop
Missions in terms of frequency and most regular

Circumstances, approach and modality while shopping online
Delivery, substitutes and spend
Categories NOT shopped online
Source: Evolution Insights


19

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Online F&G Shopping Report 2013 sample extract