1. Savvy shopping – how it’s evolving
July 2014

2. Stocking up vs limited necessities
Contents
Snapshot
Multi-store missions
‘Coupon culture’
Stocking up vs limited necessities
Shameless shopping evolves

3. Savvy shopping – how it’s evolving Key insights from our research conducted during May’14
An increasing number claim to conduct multi-store missions
More shoppers are sticking to the necessities rather than buying in bulk
Some shoppers are taking savvy shopping to a new level
A growing number of shoppers claim to have conducted a multi-store shopping mission in the last month – where they visit two or more stores on a single trip.
Nearly half (47%) of all shoppers say they’ve been to two or more stores on the same shopping trip to buy their food and groceries; this is a rise from 42% last year.
The future of grocery shopping looks increasingly multichannel. It is more important than ever for suppliers to consider its trading relationships and shopper marketing activity across all channels.
Nearly three in ten (27%) shoppers say they’ve purchased products on promotion in the last month in order to stock up and store them at home.
However, many shoppers are still focussed on needs rather than wants when grocery shopping – nearly half (48%) say they are only buying what they need and not just because certain items are on promotion.
The trend to rationalise could restrict growth across certain categories. It’ll be important for companies to analyse ranges to look for solutions to help meet the demands of struggling shoppers.
Last year we introduced the concept of ‘shameless shopping’ – when at times, the established ‘savvy shopping’ trend has evolved to another level
These new traits illustrate the growing resourcefulness and willingness of shoppers to exploit every means possible for saving money. However, in the last year we have seen some an increasing number of shoppers adopting these traits suggesting they could become more established in the future
Source: IGD ShopperVista, main grocery shoppers May’14; claim to have done this in the last month

4. A growing number of shoppers say they’re better off, however most are sticking to savvy tactics
Over the past three years we have seen an increasing number of shoppers adopting a more positive financial outlook – around a fifth (19%) say they’ll be better off in the year ahead compared to just 10% three years ago
Fewer shoppers expect food prices to get more expensive in the year ahead. In fact 12% think prices will be cheaper in the coming year
However, what we haven’t seen in line with this data is a significant change in shopper behaviour. Shoppers are still very much focused on getting the best quality for the best value
This report focuses on the savvy shopping trend we have seen go from strength to strength over the past few years – and in some cases, evolving to a whole new level
Confidence Index - % say they expect to be better off/% expect to worse off in the next 12 months
% of shoppers who say food prices will be much more expensive in the next 12 months
Source: IGD ShopperVista, main grocery shoppers Jun’14

5. Multi-store missions are on the increase
A growing number of shoppers say they’re conducting multi-store shopping trips, as they look to benefit from shopping around at different formats and fascias as efficiently as possible
2013
2014
“I go to three stores in one big round trip, so as not to spend any more on petrol”
42%
47%
visited 2+ grocery stores on the same trip*
visited 2+ grocery stores on the same trip*
“I now shop at [discounter] and then go across the road for the rest at [supermarket]”
Source: IGD ShopperVista, main grocery shoppers May’14; *claim to have done this in the last month

6. Multi-store missions are on the increase
A growing number of shoppers say they’re conducting multi-store shopping trips, as they look to benefit from shopping around at different formats and fascias as efficiently as possible
A growing number of shoppers claim to have conducted a multi-store shopping mission in the last month – where they visit two or more stores on a single trip
Nearly half (47%) of all shoppers say they’ve been to two or more stores on the same shopping trip to buy their food and groceries; this is a rise from 42% last year
Older families (55%) and those based in Scotland (51%) and the north of England (55%) are much more likely to say they do this
This trend is being driven by the desire to get the best overall value for their total grocery shopping, but also as some shoppers tend to prefer buying certain products from each store within their round
Main Aldi and Lidl shoppers are also much more likely to conduct a multi-store mission – 61% say they’ve visited two or more stores on the same trip
Some food discount and high street discount shoppers appear to boost both stores - Poundland chief executive, Jim McCarthy recently said: “We are very good bedfellows with Aldi and Lidl. Wherever they are, we do really well. We are both footfall magnets. Because we do a lot of brands and they don’t, it’s quite complementary”.
Implications
The future of grocery shopping looks increasingly multichannel. It is more important than ever for suppliers to consider your trading relationships and shopper marketing activity across all channels
Store loyalty is increasingly elusive, with retailers needing to work even harder at demonstrating its breadth of credentials across different missions, categories and product tiers
Manufacturers can anticipate more requests from retailers for exclusive activity to help drive store differentiation. Are you flexing your campaigns and in-store activation by account?
The multi-store mission trend provides further impetus for the growth of food discounters

7. ‘Coupon culture’ is the new norm for over half of shoppers
Over half (55%) of all grocery shoppers say they’ve used coupons when food and grocery shopping
This rises to 62% among older families and 64% among those based in the south
The stigma once associated with using coupons and vouchers is eroding as shoppers tell us they are using this type of promotion more as they seek to secure the best value
Retailers such as Morrisons have been actively promoting coupons, which are easy to understand and use and have relatively few restrictions. They are more targeted now and can help shoppers, who have increased their planning before doing their grocery shopping
Shoppers are increasingly turning to technology when trying to save money buying their food and groceries. They are using websites on their home computers and even on their mobile phones. Previous ShopperVista research shows that seven out of ten (72% of) shoppers who own a smartphone or tablet, say they would like tailored promotions sent to their phone
55% of all grocery shoppers say they’ve used COUPONS when food and grocery shopping in the last month*
Implications
Food companies can make the most of the significant interest in coupons. Further promotional innovation, such as proximity marketing, could help improve promotional effectiveness and allow better personalisation and access to offers
Source: IGD ShopperVista, main grocery shoppers May’14; *claim to have done this in the last month

8. 3-in-10 shoppers bulk-buy products on promotion to stock up at home
Nearly three in ten (27%) shoppers say they’ve purchased products on promotion in the last month in order to stock up and store them at home
This rises to over a third (35%) among C2DE families
One shopper recently told us:
“I buy a lot on offer online. I have 300 rolls of toilet roll in my loft. I’ve got loads of washing powder and other things that don’t go off.”
Buying products on offer to store at home
27%*
Sainsbury’s is currently running a summer campaign encouraging families to stock-up on summer essentials before the school holidays begin. It is using the strapline: ‘Easy, fun ways to feed the children this summer without breaking the bank’.
Source: IGD ShopperVista, main grocery shoppers May’14; image source: Sainsburys.co.uk; *claim to have done this in the last month

9. However, half are ignoring offers and sticking to the necessities
Many shoppers are still focussed on needs rather than wants when grocery shopping – nearly half (48%) say they are only buying what they need and not just because certain items are on promotion
This rises to 62% among older families and 64% among those based in the south
The trend to rationalise could restrict growth across certain categories. It’ll be important for companies to analyse ranges to look for solutions to help meet the demands of struggling shoppers. If some of your range is tertiary, think about how you could make it become part of the core purchase
In April this year, The Co-operative Food announced it was investing in an ongoing initiative to lower prices of hundreds of everyday essentials. The new campaign called ‘Fair & Square Prices’ will concentrate on essential items such as bread, milk, eggs, chicken and bacon with other lines to follow
48% say they’re only buying what they NEED and not just because a product is on offer*
Source: IGD ShopperVista, main grocery shoppers May’14; *claim to have done this in the last month

10. 28% say they’re shopping at a particular time of the month
Planning continues to be an important savvy shopping tactic but many still buy on impulse
Since the recession, shoppers tell us they have up-weighted the amount of planning they do in their food and grocery shopping. In the last month:
Nearly half (46%) of shoppers say they’re planning their shopping better so as not to buy on impulse, rising to 56% among young families
Almost three in ten (28%) say they’re shopping at a particular time of the month, for instance after pay day. Shoppers are planning at what point they will do their shopping in order to help them get the best value for the whole month
However, despite increased levels of planning overall, many individual purchase decisions are still influenced in-store, as shoppers hunt for the best value and reassess the options available
In our recent In-store Influence report, 90% of shoppers claimed they still did purchase a product on impulse during their last main supermarket shopping trip
In the last month…
46% say they’re planning their shopping better so as not to buy on impulse
28% say they’re shopping at a particular time of the month
e.g. after
payday
Implications
With shoppers placing such an important emphasis on planning, grocery companies should consider how they can make this process even more efficient for shoppers. For example, helping shoppers with product reminders in adjacent categories or on- pack reminders for complimentary products
Despite the increased tendency among shoppers to plan their grocery shopping trips, there remain significant opportunities for companies to influence the shopper in- store. Investment in quality pack design and effective in-store merchandising is vital in order to maximise these opportunities
Source: IGD ShopperVista, main grocery shoppers May’14

11. Some shoppers are taking savvy shopping to a whole new level, both at home…
Last year we introduced the concept of ‘shameless shopping’ – when at times, the established ‘savvy shopping’ trend has evolved to another level
These new traits illustrate the growing resourcefulness and willingness of shoppers to exploit every means possible for saving money. However, in the last year we have seen some an increasing number of shoppers adopting these traits suggesting they could become more established in the future
In the past year, nearly three in ten (27%) past month online shoppers say they’ve used different addresses with online retailers in order to flush out discount vouchers for new or lapsed shoppers; this is a significant rise from just 19% last year
Nearly a quarter (24%) of all shoppers say they’ve been a shameless coupon shopper in the past year – claiming to have collected other people’s till receipts to help them qualify for a particular loyalty; this is a marginal increase on 2013 (22%)
This rises to 37% among the under 35s and 36% among ABC1 families % %
…have been shameless online shoppers*
Implications
Companies need to be ever more mindful of shoppers’ shrewdness when designing promotional and communication campaigns - ensure they exclude potential loop holes and avoid prompting undesirable behaviours
On the positive side, this trend may provide an opportunity for companies to add excitement to shopping, by laying a treasure hunt of deals to purposefully appeal to these shoppers
...using different addresses with online supermarkets to try to get more vouchers
Source: IGD ShopperVista, main grocery shoppers May’14; Data relates to in the past year; *among past month online shoppers

12. …and in-store – shameless shopping could eventually become mainstream
In the past year...
28% have been checkout split shoppers
24% have been discount requesting shoppers
15% have been set budget shoppers
44% have been reduced-to-clear shoppers
...shopping at a specific time of day in order to get as much as possible from the reduced-to-clear section
...paying for their shopping in two parts to benefit from a loyalty scheme or promotion
...asking staff to reduce the price of a grocery product that’s damaged or near its end of life
...asking the cashier to stop scanning shopping when the bill reaches a specific amount
Source: IGD ShopperVista, main grocery shoppers May’14

13. …and in-store – shameless shopping could eventually become mainstream
Shameless shopping traits are not just limited to the home environment – for many shoppers the stigma once associated with finding a bargain is waning and they’re prepared to seek these savings in-store
In the last year, over four in ten (44%) shoppers say they’ve shopped at a specific time of the day in order to get the best deals from the reduced-to-clear section
This rises to nearly 51% among London shoppers
A similar proportion to last year say they’ve paid for their shopping in two parts to benefit from a promotion or loyalty scheme (28%)
However a growing number say they’re set-budget shoppers – they ask the cashier to stop scanning their shopping once it reaches a certain price point (15% vs 11% last year)
This phenomenon is particularly high among young families (25%)
Nearly a quarter (24%) of shoppers say they’ve asked a member of staff to reduce the price on a product if it was damaged or reaching it’s sell-by-date
Implications
Savvy shopping is now firmly established and for some shoppers, shameless shopping is gaining traction
Shoppers have not exhausted their ability and willingness to inject more time and effort into shopping in order to save money but also maintain quality. Companies can support these aims by helping to reduce the effort required by shoppers
This shift in behaviour maybe require an industry mindset shift where companies take a more holistic view of shoppers’ focus on economising. Securing shopper loyalty may require companies to support shoppers in strategies that result in them spending less on certain items
Discretionary, impulse purchases may become harder to secure as shoppers aim for more disciplined budgeting and careful planning. Demonstrating product versatility across different consumption occasions may help retain these incremental sales

14. Vanessa Henry Shopper Insight Manager
Can we help you further?
Planning for the rest of 2014? – Read our latest Shopper Trends report
>> Shopper Trends - Q in FastTrack 1
Looking for more insight and best practice from your industry peers on category management and shopper marketing?
>> See our latest annual survey results in full 2
Build your customer engagement, shopper activation and Category Management capability with IGD’s Academy
>> See IGD’s Academy 3
Report author:
Vanessa Henry Shopper Insight Manager
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