The Death of the Primary Shopper

Summer 2014 squared

22squared © 2014. All Rights Reserved. When it comes to cracking household shopping behavior, we’ve had our eye on two major shifts that were bound to collide: • Gender no longer dictates household responsibility. Between balancing work, kids, ﬁnances, and cooking—there’s no time for gender stereotypes. It’s all hands on deck. • Household shopping has become an art form. With more tools and shopping options than ever before, we have to be more strategic and savvy in the way we approach shopping. So what happens when couples want to be smart about shopping but just can’t do it all? Our best guess was, they’d work together. And that’s how we became fascinated by the idea of “team shopping.” 3 Saya Heathco Planning Director At 22squared, we believe the strongest ideas live at the intersection of consumer and cultural insights. This research has changed how we approach targeting, messaging and idea generation across our client portfolio. It has made us question marketing assumptions like “female head of household” and consider more collaborative shopping journey models. We hope it will spark similar conversations in your own companies, and maybe even your own households! BACKGROUND

Most brands and retailers are only looking at one piece of the puzzle.

22squared © 2014. All Rights Reserved. 5 A P M sle be go T A C Ac Re wh on NEW DADS TAKE ON DIAPER DUTY With the changing times, fathers take household responsibilities in their stride, making life easier for their working wives. - GulfNews.com ““ MEN ARE MANNING UP AT THE STORE According to a new survey, the days of women doing a majority of the shopping for the family are over, because many men are at home either by choice or because they’ve been laid off. - WTOP News, Washington, D.C. ““

22squared © 2014. All Rights Reserved. FOCUSING ON MOM OR DAD MEANS YOU’RE MISSING HALF THE OPPORTUNITY Recent headlines got us wondering: • Has there truly been a role reversal, or are gender stereotypes over-inﬂating a shift in household responsibility? • Is the “primary shopper” still the symbol of customer value, or is the secondary shopper more valuable than we think? 6

22squared © 2014. All Rights Reserved. team shopping [teem shop-ping] noun 1. The shared and often unspoken process of dividing planning and shopping responsibilities to survive in today’s dual-everything lifestyle. 2. The way couples actually shop. 3. A hugely untapped opportunity for any brand or retailer of household products. 8

22squared © 2014. All Rights Reserved. METHODOLOGY To focus the study, we limited consumer participation to married men and women with children, with an annual household income of $50K+. We’d expect greater variability among the broader demographic set, due to lifestage and economic factors. Secondary Immersion Mintel, Experian Marketing Services, national news sources Real-Time Polling Study Nov-Dec 2013 online study among 298 qualiﬁed adults In-Person + Skype Interviews 20 in-depth interviews with a nationally diverse sample of adults/couples Shopping Expert Interview Ali Lipson, Senior Retail & Apparel Analyst at Mintel Quantitative Studies 500 qualiﬁed adults per survey (Wave 1: Feb 2014, Wave 2: July 2014) 9

Team shopping is a subconscious process.

22squared © 2014. All Rights Reserved. 72% 82% 11 COUPLES DON’T REALIZE THEY’RE SHOPPING AS A TEAM say: “I am the primary shopper for our household” of their spouses have shared responsibility whenreally... Shopping responsibilities include taking shopping trips, purchasing goods online, collecting coupons and/or starting shopping lists.

22squared © 2014. All Rights Reserved. TEAM SHOPPING IS A NATURAL EVOLUTION Unlike other shared duties, like paying bills or picking up the children, household shopping isn’t something couples consciously plan for. 13 “Being a team is part of being married. No one said ‘Here’s how you’re going to divide up the shopping.’ It happened organically, and it works.” - Female, 38

22squared © 2014. All Rights Reserved. COLLABORATION VARIES ACROSS CATEGORIES 14 % saying they work well together by store type 47% 55% 56% 56% 61% 62% 64% 67%Grocery Stores Home Improvement Stores Mass Merchandisers Furniture Stores Club Stores Car Dealerships Electronics Stores Convenience Stores

22squared © 2014. All Rights Reserved. 65% COUPLES PREFER A TEAM APPROACH would shop together more often if they had more time Once they do acknowledge their spouses’ contribution, 79% are satisﬁed with the shared involvement, and even grateful to have a teammate to lean on. 15

The team process requires work. Planning tools aid coordination and decision-making, but are only as strong as the teams using them.

22squared © 2014. All Rights Reserved. 17 REGARDLESS OF PURCHASE, COMMUNICATION IS A TEAM’S MOST USEFUL TOOL 68%73%communicate well for routine purchases for non-routine purchases From the weekly grocery trip to the less frequent car purchase, regular communication is key to staying informed, sharing information and avoiding duplicated efforts.

22squared © 2014. All Rights Reserved. SHARED LISTS CAN STILL CAUSE CONFUSION 57%call or text their spouses for clariﬁcation while shopping 19 “I’m like a computer—I buy what’s on the list, and if something isn’t in the store, I panic. Then I have to read her mind on what to buy.” - Male, 31 From ambiguous entries to forgotten items, lists are never foolproof. Add another person to that process, and the room for error multiplies.

22squared © 2014. All Rights Reserved. 58%66%regularly use circulars, online reviews and/or store websites for non-routine purchases describe some non-routine trips as a “Cruel Punishment” or “Stressful Obligation” NON-ROUTINE PURCHASES HAVE HIGHER STAKES 20 For non-routine shopping, teams do their research to make sure they get it right. Still, they are likely to dread the biggest-ticket purchases like cars and furniture.

Emotions driving the team dynamic. When people work together, emotions inevitably come into play. And team shopping is no exception.

22squared © 2014. All Rights Reserved. TEAMS ARE A LIFE-SAVER FOR PARENTS Young families have the added challenge of managing the needs and wants of their children. Parents depend on their spouses to watch one or all of the children while they take shopping trips. 22 have to shop with children all or most of the time 68%“Having a kid forces you to work together.” -Male, 34

22squared © 2014. All Rights Reserved. 56% of health-focused shoppers have health- focused spouses 59% of impulsive shoppers describe their spouses as habitual shoppers TEAMS ACT AS A BUDDY SYSTEM 23 1. THEY COMPLEMENT EACH OTHER 2. THEY BALANCE EACH OTHER 3. THEY KEEP EACH OTHER ACCOUNTABLE "The idea of not just shopping for ourselves but shopping for someone else motivates us to accomplish a common goal." - Ali Lipson, Mintel

22squared © 2014. All Rights Reserved. CONTRIBUTING TO THE TEAM IS A SOURCE OF PRIDE 24 would feel disappointed or guilty if their spouses did all the household shopping It’s a badge of honor to do what I have to do for my family. -Male, 41 44%

22squared © 2014. All Rights Reserved. RELINQUISHING CONTROL CAN CAUSE ANXIETY (ESPECIALLY FOR WOMEN) 25 Some spouses happily trade the reins for a secondary role, while others feel left out by their lack of involvement. Men are more likely to adapt to their spouses’ shopping style, often expressing: “I want to help more but I can’t. It has to be her way.” of women worry their husbands will get something wrong when shopping 29%

22squared © 2014. All Rights Reserved. WOMEN SEE MEN’S CREATIVE PURCHASES AS IMPULSIVE 0% 30% 60% 90% Creative Impulsive Creative Impulsive 26 “I would like him to pay more attention to the actual brands we use.” “She’s a creature of habit; sticks to the basics. I’m more willing to try new things.” Husbands describe themselves as Wives describe husbands as

22squared © 2014. All Rights Reserved. Both teammates want to meet each other’s shopping needs without sacriﬁcing their own. We have an opportunity to help them balance consistency with discovery to get the best of both worlds. 27 TEAMWORK MEANS FINDING A BALANCE

22squared © 2014. All Rights Reserved. TEAM TYPE 1: SEASONED VETS “We’re pretty formulaic as to how we tackle the shopping. Not a lot of mystery and it works well.” VARSITY TEAMS TEAMS IN TRAINING They see shopping as a focused mission that can be completed on autopilot. Conﬁdent and organized, these shoppers are a dream team. Routine and process can sometimes lead to boredom. Help seasoned team members make room for exploration with fresh ideas. And reward collaboration. They work together effectively to complete all household tasks, and pride themselves on their regular communication. 29 HOW TO HELP:

22squared © 2014. All Rights Reserved. TEAM TYPE 2: LEADERS-FOLLOWERS “I try not to give him too much or ask for things that need explanation—it’s easier to just do it myself.” One teammate takes on most of the shopping responsibility, but both feel it’s important to contribute. The shopping list keeps them both in-the-know. Help ensure that the Follower’s voice is heard by simplifying sharing tools and reminding Leaders to check in. The Leader tends to enjoy shopping more than the Follower, so it’s a win for both partners. 30 HOW TO HELP: VARSITY TEAMS TEAMS IN TRAINING

22squared © 2014. All Rights Reserved. TEAM TYPE 3: DIVIDE & CONQUERORS “We have a great system—she creates the list and I do the shopping. She has a great handle on what we need and when.” They’ve figured out how to make it work, with clear roles for each person. They like how shopping tools fit their efficient style. While comfortable in their defined roles, anxiety sets in when they have to improvise. Personalized tools and detailed product information could help. Most likely to have discussed their current shopping process, so they’re satisfied with each other’s involvement. 31 HOW TO HELP: VARSITY TEAMS TEAMS IN TRAINING

22squared © 2014. All Rights Reserved. TEAM TYPE 4: AD-LIBBERS “Whoever is available to make the shopping run takes responsibility.” Though it may not be precise, Ad-Libbers accept their laid back approach. They like how mobile tools ﬁt their spontaneity. Communicate in ways that speak to their impulsive style. Help them organize chaos wth quick, no-hassle tools. With few rules and both teammates contributing, these teams are less controlling when handing over responsibilities. 32 HOW TO HELP: VARSITY TEAMS TEAMS IN TRAINING

22squared © 2014. All Rights Reserved. TEAM TYPE 5: STRESSED SURVIVORS “Both of us are rushed. I just want to get in and get out. He’s rushed because he hates being there. ” With multiple young children at home, shopping trips feel rushed and inefﬁcient. They just do what they can to get through it. Make the shopping experience more child-friendly, and introduce the team to tools they can use to share the burden. They don’t enjoy shopping, and feel relieved when they can hand it off to their spouses. 33 HOW TO HELP: VARSITY TEAMS TEAMS IN TRAINING

22squared © 2014. All Rights Reserved. TEAM TYPE 6: INDEPENDENTS “He’s bad about telling me when he needs something, so I don’t know to buy it.” They’re making up their shopping “process” as they go, without much organization or communication. Offer advice on how to start combining efforts and/or sharing tools to enable teamwork. Since they aren’t leaning on each other for help, shopping is a stressful obligation and another work/life challenge to balance. 34 HOW TO HELP: VARSITY TEAMS TEAMS IN TRAINING

Which team type are you?

When it comes to household shopping, is your spouse: SEASONED VETS LEADERS- FOLLOWERS DIVIDE & CONQUERORS AD-LIBBERS INDEPENDENTS STRESSED SURVIVORS A helpful contributor? Anything but helpful? Not reading my spouse’s mind. Too many barriers to list. It’s a possibility. We share it. One of us deﬁnitely drives. Is there any other way? Process? What’s that? Who’s ultimately in the shopping driver’s seat? Do you have a clear process for household shopping? What’s your biggest barrier to getting the shopping done? Will the way you tackle household shopping change in the next 5 years? Why change what works perfectly? WHICH TEAM TYPE ARE YOU? . . . . . .

SEASONED VETS LEADERS- FOLLOWERS DIVIDE & CONQUERORS AD-LIBBERS most common teams least common teams confident, organized & less rushed efficient shoppers, rely on lists relaxed & efficient, with defined roles laid back and high-tech; use online tools for assistance contributing to a common mission helping where they best can enjoying their individual contributions indifferent; it’s a necessary task best collaborators & communicators happy with spouse’s level of involvement confident in their designated roles comfortable with their un-process lived with spouse 10+ years both work full time most affluent younger couples SHOPPING STYLE SHOPPING FEELINGS TEAMWORK LIFESTAGE FACTORS TEAM TYPES STRESSED SURVIVORS frugal, inefficient; rush through shopping a painful process looking for ways to hand it off multiple young children INDEPENDENTS disorganized & unstructured a stressful obligation dissatisfied with spouse’s involvement both work full time

Why we care (and you should too).

22squared © 2014. All Rights Reserved. EFFECTIVE TEAMS MAKE MORE VALUABLE SHOPPERS They are more involved in shopping—talking about it and going together whenever they can. And two contributors means twice the opportunity for new products in the house. Those who shop your store as an effective team are 20%+more likely to love shopping there 39

22squared © 2014. All Rights Reserved. THE LIFT CAN BE SEEN IN EVERY CATEGORY 40 Lift for effective teams Mass Electronics Club Home Imprv Grocery Furniture Conv Cars 28% 35% 27% 36% 25% 36% 27% 33% 25% 30% 18% 23% 14% 22% 14% 20% % who love to shop Likelihood of happy shoppers increases among effective teams, regardless of store type.

22squared © 2014. All Rights Reserved. 41 ACCEPT THE TEAM DYNAMIC It’s happening, people just aren’t talking about it. REAP THE REWARDS Helping teams thrive will lead to more happy, proﬁtable shoppers. BEING A TEAM-FRIENDLY BRAND RE-EVALUATE STRATEGY Identify the team process and resulting challenges for your business, and adjust marketing accordingly.

22squared © 2014. All Rights Reserved. 42 THANK YOU! CONTACT US TO VIEW OR DISCUSS THE FULL STUDY AND LEARN HOW YOU CAN BE A TEAM ALLY: Julianna Bowman VP, Director of Corporate Communications julianna.bowman@22squared.com Christy Cross Associate Director, Business Development christy.cross@22squared.com See more at 22squared.com/insights Courtney McCalden, Brand Planner Brandon Murphy, EVP, Chief Strategy Ofﬁcer Jennifer Tuel, Associate Creative Director CONTRIBUTORS: Jen Grant, SVP, Director of Brand Planning Saya Heathco, Planning Director