Quality vs saving money over the next 12 months IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month 10

Current focus of grocery shopping % most important Source: IGD ShopperVista, base: all main shoppers, Apr'12 11

Focus of grocery shopping over next six months % most important Source: IGD ShopperVista, base: all main shoppers, Apr'12, arrows denote significant differences over time 12

How shoppers intend to adapt their shopping behaviour % intending to change in next six months Source: IGD ShopperVista, base: all main shoppers, Apr'12, arrows denote significant differences over time 13

Food price expectations for next 12 months - More expensive A bit more expensive Much more expensive Much cheaper A bit cheaper 7% 10% 9% 8% 11% 15% 16% - Stay about the same IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month 14

Personal economic circumstance expectations Personal financial expectations for the next 12 months Source: ShopperVista, Base: all main shoppers, Apr’12 15

Channel claim to use most for groceries in last month IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month 16

Expected net change to channel use (1 of 3) net % = expect to use more in next 12 months - expect to use less among past month users Supermarkets Online Hypermarkets IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

Expected net change to channel use (2 of 3) net % = expect to use more in next 12 months - expect to use less among past month users Discount stores Frozen food specialists IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

Expected net change to channel use (3 of 3) net % = expect to use more in next 12 months - expect to use less among past month users Specialist stores Farmers’ markets and farm shops IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

Drivers of main store choice – top factors Extremely important Extremely or very important 1 Price 2 Convenient location 3 Store hygiene 4 Product Quality 5 Promotions 6 Range of fresh products 7 Product availability 8 Speed and ease at checkout 9 Ease of finding products 10 Ease of parking 11 Opening/delivery hours IGD ShopperVista, base: all main shoppers, fieldwork Apr'12

Drivers of main store choice – other factors Extremely important Extremely or very important 12 Range of well known brands 13 Customer service 14 Look and feel of store 15 Layout 16 Range of ambient grocery products 17 Range of own label products 18 Ability to use loyalty card 19 Retailer’s corporate responsibility 20 Range of ethical products 21 Use of in-store technology 22 Range of non-food IGD ShopperVista, base: all main shoppers, fieldwork Apr'12

Tracking value as a driver of store choice % Extremely or very important IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

Drivers of product choice Most important Top 2 Top 5 1 Price 2 Promotions 3 Quality or performance 4 Familiarity 5 Taste or smell 6 Healthy option 7 Use by or sell by date 8 Brand 9 Ease of use 10 Ethical or eco-friendly IGD ShopperVista, base: all main shoppers, fieldwork Apr'12

Top factors driving product choice % Top 5 mentions IGD ShopperVista, base: all main shoppers, fieldwork Apr’12, arrows denote significant changes in last month

Other factors driving product choice % Top 5 mentions IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

Level of satisfaction with promotions Types of promotions available Ease of finding promotions Level of savings provided by promotions Having promotions in stock Types of products on promotion IGD ShopperVista, base: all main shoppers, fieldwork Apr'12

Satisfaction with promotions % Extremely or very satisfied IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

Aspects worth paying a bit extra for 1 High quality ingredients 2 Free range/higher animal welfare 3 Locally produced 4 Added health benefit 5 Well known brand 6 Fairtrade 7 Retailer’s best private label 8 Environmentally friendly 9 Quality assurance standards 10 Country of origin 11 Organic 12 Innovative packaging 13 Exclusive 14 Packaging appearance IGD ShopperVista, base: all main shoppers, fieldwork Apr’12

What are shoppers prepared to pay a bit extra for? IGD ShopperVista, base: all main shoppers, fieldwork Apr’12, arrows denote significant changes in last month

What are shoppers prepared to pay a bit extra for? IGD ShopperVista, base: all main shoppers, fieldwork Apr’12, arrows denote significant changes in last month

Ethical products – claimed purchasing behaviour % who claim to have specifically bought in the last month IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

Eco-friendly products – claimed purchasing behaviour % who claim to have specifically bought in the last month IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

Importance of ethical attributes on product choice The welfare of animals involved Supports local/British producers How it has been produced The amount of packaging Where it has been produced The impact on the environment The distance it has travelled Supports workers in developing nations IGD ShopperVista, base: all main shoppers, fieldwork Apr'12

Importance of ethical attributes on product choice % Extremely or very important IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

Expected change to ethical purchasing In the next 12 months Locally produced Free range and high animal welfare Fairtrade Organic Rainforest Alliance IGD ShopperVista, base: all main shoppers, fieldwork Apr'12

Expected change to ethical purchasing In the next 12 months Locally produced Free range and high animal welfare Fairtrade Organic Rainforest Alliance IGD ShopperVista, base: all main shoppers, fieldwork Apr'12

Expected change to eco-friendly purchasing In the next 12 months Recycled or bio-degradable packaging Companies focused on protecting wildlife and nature Sustainably managed sources Indicating their carbon footprint Indicating sustainable water use IGD ShopperVista, base: all main shoppers, fieldwork Apr'12

Expected change to eco-friendly purchasing In the next 12 months Recycled or bio-degradable packaging Companies focused on protecting wildlife and nature Sustainably managed sources Indicating their carbon footprint Indicating sustainable water use IGD ShopperVista, base: all main shoppers, fieldwork Apr'12

Expected net change to ethical purchasing net % = expected to buy more in next 12 months – expect to buy less among past month users IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

Expected net change to eco-friendly purchasing net % = expected to buy more in next 12 months – expect to buy less among past month users IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

‘Reduced/low’ healthy products – purchasing % who claim to have specifically bought in the last month IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

‘Added’ healthy products – claimed purchasing % who claim to have specifically bought in the last month IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

‘Natural’ healthy products – claimed purchasing % who claim to have specifically bought in the last month IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

Importance of health attributes on product choice Clarity of nutritional information on pack How natural you believe it is Recognising all the ingredients Removed ingredients Added ingredients IGD ShopperVista, base: all main shoppers, fieldwork Apr'12

Tracking importance of health on product choice % Extremely or very important IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

Expected change to purchasing healthy products In the next 12 months (1 of 2) 5 A DAY contributors Lower in saturated fats Whole grain Lower in sugar Low fat variant A source of/high in fibre Low in salt IGD ShopperVista, base: all main shoppers, fieldwork Apr'12 46

Shoppers’ price and promotion priorities Shoppers who say promotions are an extremely or very important driver of store choice Shoppers who say price is the most important factor in product choice Key implications Shoppers are shopping around more across a broad range of channels, some to cherry-pick the best offers and prices – do your seasonal and longer-term business plans reflect these changes in shopper behaviour? Does your promotional effectiveness strategy really help you to understand the performance of promotions, to help you deliver promotions with the best shopper impact and return on investment? Promoting value for money credentials beyond price such as exclusivity, heritage and quality can help maintain loyalty Price and promotions are becoming more important in shoppers’ value equation, playing a key role in store and product choice decisions As many shoppers are now feeling worse off than they did a year ago, finding the best value by searching out the best prices and promotions across stores and product ranges is a key lever in shoppers’ armoury Source: IGD ShopperVista, base: main shoppers, Apr’12

Expected change to purchasing healthy products In the next 12 months (2 of 2) Functional foods Free from preservatives Free from artificial colours and flavours Calorie controlled Added vitamins and minerals Added omega 3 Non-allergenic IGD ShopperVista, base: all main shoppers, fieldwork Apr'12

Expected net change to purchasing healthy products net % = expect to buy more in next 12 months - expect to buy less among past month users (1 of 3) Functional foods Lower in saturated fats Low in sugar Low fat variant salt IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

Expected net change to purchasing healthy products net % = expect to buy more in next 12 months - expect to buy less among past month users (2 of 3) Added vitamins and minerals Added Omega 3 A source of / high in fibre IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

Expected net change to purchasing healthy products net % = expect to buy more in next 12 months - expect to buy less among past month users (3 of 3) 5 A Day contributors No artificial colours and flavours Free from preservatives Calorie controlled Wholegrain Non- allergenic IGD ShopperVista, base: all main shoppers, fieldwork Apr'12, arrows denote significant changes in last month

Drought raises interest in sustainable water usage Shoppers who say they will buy more products indicating sustainable water use in the next 12 months Key implications The industry should monitor short-term environmental issues which can drive relatively rapid changes in shopper behaviour. Monitor if these changes are ‘blips’ or represent longer-term trends Grocery companies could consider if they can communicate to shoppers any sustainable water credentials their brand has, to enhance their brand values. Do you already have a story to tell in this area? For more free information about water issues in the food and grocery industry, please visit IGD’s Sustainability page We have seen an increase in shoppers interest in products indicating their sustainable water usage as drought concerns have featured heavily in the British media recently Source: IGD ShopperVista, base: main shoppers, Apr’12