Multichannel shoppers Part 2 – Detailed channel and category analysis ShopperVista Report, May 2014 Multichannel shoppers Part 2 – Detailed channel and category analysis

Missions and frequency Contents Channel profiles Category analysis Channel usage Missions and frequency

Channel profiles

Channel profiles explained The following charts provide a profile of past month shoppers of each channel. Comparisons are made compared to the average shopper Further analysis can be found in the first part of this report: Multichannel Shoppers – Part 1 – Key findings Return to Contents Base: All main grocery shoppers, Mar’14

How past month shoppers of each channel differ to all main shoppers Channel profiles How past month shoppers of each channel differ to all main shoppers Areas that over index Supermarkets Similar profile to all 7.8 supermarket trips per month Visit 2.1 different supermarkets per month Hypermarkets Have children 4.5 hypermarket trips per month Visit 1.4 different hypermarkets per month Online Female, 18-54 year olds Have children, work full-time 2.2 online trips per month Visit 1.9 different online stores per month High street discounters Similar profile to all 3.4 h/s discount trips per month Visit 1.9 different h/s discounters per month Food discounters Similar profile to all 4.1 food discount trips per month Visit 1.1 different food discounters per month Specialist stores 55+ year olds No children North England 4.7 specialist store trips per month Frozen food specialists C2DE 35-54 year olds North England 4.3 frozen food specialist trips per month Convenience 18-34 year olds London 11.1 c-store trips per month Use 3 different c-stores per month Farmers’ markets ABC1, 55+ year olds No children South & North England 3.8 farmers’ market trips per month

Number of supermarkets used per month Supermarket shopping frequency Channel profiles Supermarket shoppers With 90% of shoppers using a supermarket in the last month, the profile of past month supermarket shoppers is very similar to the overall shopper profile. They shop there 7.8 times per month, visiting two supermarkets per month and mainly go there for normal main or big shops Shopper profile 56% Female Number of supermarkets used per month Top missions Supermarket shopping frequency Normal main shop Big main shop Top-up staples Top-up fresh Main shop – fewer fresh Evening meal Food discounters appeal to a wide shopper base – male and female From across the age spectrum Higher proportion of ABC1s than C2DEs CLICK With up to half food discount shoppers spending half or more of their grocery budget there More than half shopping at least once per week More than a third started shopping there in the last year Many shopping at other stores on same trip 7.8 2.1 1.8 Average trip frequency per week Average trip frequency per month Base: All past month supermarket shoppers, Mar’14

Number of hypermarkets used per month Hypermarket shopping frequency Channel profiles Hypermarket shoppers The profile of past month hypermarket shoppers is very similar to the overall shopper profile. They are slightly more likely to have children. They shop there 4.5 times per month, visiting 1.4 hypermarkets per month and mainly go there for normal main or big shops Shopper profile 55% Female Number of hypermarkets used per month Top missions Hypermarket shopping frequency Normal main shop Big main shop Top-up fresh Top-up staples Evening meal Main shop – fewer fresh Food discounters appeal to a wide shopper base – male and female From across the age spectrum Higher proportion of ABC1s than C2DEs CLICK With up to half food discount shoppers spending half or more of their grocery budget there More than half shopping at least once per week More than a third started shopping there in the last year Many shopping at other stores on same trip 1.4 4.5 1.0 Average trip frequency per week Average trip frequency per month Base: All past month hypermarket shoppers, Mar’14; arrows show significant difference to all main grocery shoppers

Convenience store shoppers Channel profiles Convenience store shoppers C-store shoppers are more likely to be aged 18-34, have children and live in London vs all shoppers. They shop at c-stores most frequently 11.1 times per month, visiting 3 c-stores per month. They over index for staple top- up and food-to-go missions Shopper profile 53% Female Number of c-stores used per month Top missions C-store shopping frequency Top-up staples Other (newspaper, lottery) Top-up fresh Food-to-go lunch Evening meal Breakfast Food discounters appeal to a wide shopper base – male and female From across the age spectrum Higher proportion of ABC1s than C2DEs CLICK With up to half food discount shoppers spending half or more of their grocery budget there More than half shopping at least once per week More than a third started shopping there in the last year Many shopping at other stores on same trip 11.1 3.0 2.6 Average trip frequency per week Average trip frequency per month Base: All past month convenience store shoppers, Mar’14 arrows show significant difference to all main grocery shoppers

Number of online stores used per month Online shopping frequency Channel profiles Online shoppers Past month online grocery shoppers are more likely to be female, aged 18-54, with children and working full- time vs all shoppers. They shop online infrequently 2.2 times per month, visiting 1.9 online stores per month. They over index for normal and big main shops Shopper profile 61% Female Number of online stores used per month Top missions Online shopping frequency Normal main shop Big main shop Main shop – fewer fresh Other Special occasion Food discounters appeal to a wide shopper base – male and female From across the age spectrum Higher proportion of ABC1s than C2DEs CLICK With up to half food discount shoppers spending half or more of their grocery budget there More than half shopping at least once per week More than a third started shopping there in the last year Many shopping at other stores on same trip 1.9 2.2 0.5 Average trip frequency per week Average trip frequency per month Base: All past month online shoppers, Mar’14, arrows show significant difference to all main grocery shoppers

Food discount shoppers Channel profiles Food discount shoppers Past month food discount shoppers are similar in profile to all shoppers. They shop at food discount stores 4.1 times per month, visiting 1.1 food discount stores per month. They over index for top-up staple missions Shopper profile 54% Female Number of discount stores used per month Top missions Food discount shopping frequency Top-up staples Top-up fresh Other Normal main shop Big main shop Evening meal Food discounters appeal to a wide shopper base – male and female From across the age spectrum Higher proportion of ABC1s than C2DEs CLICK With up to half food discount shoppers spending half or more of their grocery budget there More than half shopping at least once per week More than a third started shopping there in the last year Many shopping at other stores on same trip 1.1 4.1 0.9 Average trip frequency per week Average trip frequency per month Base: All past month food discount shoppers, Mar’14, arrows show significant difference to all main grocery shoppers

High street discount shoppers Channel profiles High street discount shoppers Past month high street discount shoppers are similar in profile to all shoppers. They shop at high street discount stores 3.4 times per month, visiting 1.9 high street discount stores per month. They over index for other missions Shopper profile 54% Female Number of high street discount stores used per month Top missions High street discount shopping frequency Other Top-up staples Top-up fresh Big main shop Normal main shop Food discounters appeal to a wide shopper base – male and female From across the age spectrum Higher proportion of ABC1s than C2DEs CLICK With up to half food discount shoppers spending half or more of their grocery budget there More than half shopping at least once per week More than a third started shopping there in the last year Many shopping at other stores on same trip 1.9 3.4 0.8 Average trip frequency per week Average trip frequency per month Base: All past month high street discount shoppers, Mar’14, arrows show significant difference to all main grocery shoppers

Specialist store shoppers Channel profiles Specialist store shoppers Specialist store shoppers are more likely to be aged 55+, have no children and live in North England vs all shoppers. They shop at specialist stores 4.7 times per month, visiting 1 store per month. They over index for the top-up on fresh products and other missions Shopper profile 57% Female Number of specialist stores used per month Top missions Specialist store shopping frequency Top-up fresh Other Evening meal Special occasion Top-up staples Food discounters appeal to a wide shopper base – male and female From across the age spectrum Higher proportion of ABC1s than C2DEs CLICK With up to half food discount shoppers spending half or more of their grocery budget there More than half shopping at least once per week More than a third started shopping there in the last year Many shopping at other stores on same trip 1.0 4.7 1.1 Average trip frequency per week Average trip frequency per month Base: All past month specialist store shoppers, Mar’14, arrows show significant difference to all main grocery shoppers

Farmer’s market shoppers Channel profiles Farmer’s market shoppers Farmers’ market shoppers are more likely to be ABC1, female, aged 55+, have no children, work part-time and live in North and South England vs all shoppers. They shop at farmers’ markets 3.8 times per month, visiting 1 store per month. They over index for the top-up on fresh products, evening meal and special occasion missions Shopper profile 61% Female Number of farmers’ markets used per month Top missions Farmers’ market shopping frequency Top-up fresh Evening meal Special occasion Top-up staples Other Food discounters appeal to a wide shopper base – male and female From across the age spectrum Higher proportion of ABC1s than C2DEs CLICK With up to half food discount shoppers spending half or more of their grocery budget there More than half shopping at least once per week More than a third started shopping there in the last year Many shopping at other stores on same trip 1.0 3.8 0.9 Average trip frequency per week Average trip frequency per month Base: All past month farmers’ market shoppers, Mar’14, arrows show significant difference to all main grocery shoppers

Category analysis

Category analysis explained Respondents were asked which type of store they prefer to buy different products. The data presented refers to shoppers preferences and will not necessarily reflect actual sales data. In some cases some respondents may prefer to buy a category in a specific channel even though it is not currently sold there The following charts filters results on past month shoppers of each channel. Supermarkets are mostly rated ahead of other channels for the following reasons: A higher proportion of shoppers claim to shop at a supermarkets each month Supermarket shoppers are more likely to conduct main shopping missions there Shoppers have preferences when choosing the channel(s) they like to use for particular categories Fresh juices, chilled desserts, deli items and cereals at supermarkets and hypermarkets Fresh fruit and vegetables is one of the categories that food discount shoppers prefer to buy there rather than at other channels High street discount shoppers most prefer to buy health and beauty products there Online shoppers most prefer to buy ambient products there C-store shoppers most prefer to buy newspapers and lottery, food-to-go and confectionery there Further analysis can be found in the first part of this report: Multichannel Shoppers – Part 1 – Key findings Return to Contents Base: All main grocery shoppers, Mar’14

Which channels are preferred among supermarket shoppers? Category analysis Which channels are preferred among supermarket shoppers? Supermarkets Other 6% 51% 21% 34% 23% 28% 25% 24% Base: All past month supermarket shoppers, Mar’14

Which channels are preferred among hypermarket shoppers? Category analysis Which channels are preferred among hypermarket shoppers? Hypermarkets Supermarkets Other 6% 51% 21% 34% 23% 28% 25% 24% Base: All past month food discount shoppers, Mar’14

Which channels are preferred among food discount shoppers? Category analysis Which channels are preferred among food discount shoppers? Food discounters Supermarkets Other 6% 51% 21% 34% 23% 28% 25% 24% Base: All past month food discount shoppers, Mar’14

Which channels are preferred among high street discount shoppers? Category analysis Which channels are preferred among high street discount shoppers? High street discounters Supermarkets Other 6% 51% 21% 34% 23% 28% 25% 24% Base: All past month high street discount shoppers, Mar’14

Which channels are preferred among online shoppers? Category analysis Which channels are preferred among online shoppers? Online Supermarkets Other 6% 51% 21% 34% 23% 28% 25% 24% Base: All past month online shoppers, Mar’14

Which channels are preferred among convenience store shoppers? Category analysis Which channels are preferred among convenience store shoppers? Convenience Supermarkets Other 6% 51% 21% 34% 23% 28% 25% 24% Base: All past month convenience store shoppers, Mar’14

Category analysis Frozen foods dominate the categories preferred among frozen food specialist shoppers Frozen food specialists Supermarkets Other 6% 51% 21% 34% 23% 28% 25% 24% Base: All past month frozen food specialists shoppers, Mar’14

Channel usage

Channel usage explained The following charts show the proportion of shoppers using combination of channels each month e.g. Using supermarket, convenience and high street discounter The charts also show how the profile of these shoppers compares to the average shopper i.e .where they over index Shoppers claim to shop at supermarkets and convenience stores each month, and then add one or more other channels to the mix Around a third of shoppers report to also using high street discounters (35%) or food discounters (32%). A quarter choose to also use hypermarkets (24%) and a similar number prefer to also use frozen food specialists (22%) or specialist stores (21%) or online (19%) Claimed channel combinations differ by shopper type: Younger shoppers are more likely to use supermarkets, convenience stores and either high street discounters, frozen food specialists or online in combination Older shoppers are more likely to prefer using high street and food discounters in combination with either supermarkets or convenience stores Further analysis can be found in the first part of this report: Multichannel Shoppers – Part 1 – Key findings Return to Contents Base: All main grocery shoppers, Mar’14

Supermarket and convenience are top combinations Channel usage Supermarket and convenience are top combinations % of shoppers using channel combinations Supermarket High street discount Convenience Supermarket Food discount Convenience 1 2 Total: 35% 18-24 year olds: 49% C2DE with kids: 45% North England: 48% Total: 32% 55+ year olds: 39% Retired: 41% Scotland: 44% North England: 39% Supermarket Hypermarkets Convenience 3 Supermarket Frozen food specialists Convenience 4 Total: 24% C2DE with kids: 31% Scotland: 31% Total: 22% Kids aged 11-18: 30% C2DE: 27% Scotland: 29% North England: 30% Base: All main grocery shoppers, Mar’14

Combining high street and food discounters is popular Channel usage Combining high street and food discounters is popular % of shoppers using channel combinations Supermarket Food discount High street discount Convenience Food discount High street discount 5 6 Total: 22% 55-64 year olds: 31% DE : 34% North England: 35% Scotland: 28% Total: 21% 55-64 year olds: 27% DE: 33% Scotland: 26% North England: 33% Supermarket Specialist stores Convenience 7 Supermarket Online Convenience 8 Total: 21% 65+ year olds: 28% No kids: 23% North England: 29% Total: 19% Under 35s: 28% With kids: 26% London: 26% Base: All main grocery shoppers, Mar’14

Missions and frequency

Missions and frequency explained The following charts provide an analysis of shopper missions among past month shoppers of different channels The results compare those shopping in the past month and those shopping 2+ times per month in each channel Further analysis can be found in the first part of this report: Multichannel Shoppers – Part 1 – Key findings Return to Contents Base: All main grocery shoppers, Mar’14

Missions and frequency Increased shopper missions more evident among frequent food discount and hypermarket shoppers All past month shoppers of that channel Shopping 2+ times per week in each channel Supermarkets Food discounters Hypermarkets A normal main shop A big main shop Top-up on staple shop Top-up on fresh products A main shop e.g. fewer fresh items Evening meal Buy lunch – cold food-to-go Special occasion Buy breakfast Buy lunch – hot food-to-go Base: All past month shoppers of each channel, all using channel 2+ times per week, Mar’14

High street discounters Missions and frequency Increased shopper missions more evident among frequent c-store shoppers All past month shoppers of that channel Shopping 2+ times per week in each channel (1+ per week for online) Convenience High street discounters Online A normal main shop A big main shop Top-up on staple shop Top-up on fresh products A main shop e.g. fewer fresh items Evening meal Buy lunch – cold food-to-go Special occasion Buy breakfast Buy lunch – hot food-to-go Base: All past month shoppers of each channel, all using channel 2+ times per week, Mar’14

Michael Freedman Shopper Insight Manager Can we help you further? Planning for 2014? – Read our latest Shopper Trends report >> Shopper Trends - Q2 2014 in FastTrack 1 Looking for more insight and best practice case studies from your industry peers on category management and shopper marketing? >> Book your place at our annual event 2 Build your customer engagement, shopper activation and Category Management capability with IGD’s Academy >> See IGD’s Academy 3 Report author: Michael Freedman Shopper Insight Manager michael.freedman@igd.com IGD is a research and training charity that helps the food and consumer goods industry deliver the needs of the public >> See IGD’s website for more on our initiatives 4