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 The credit crunch and food and fuel inflation are impacting on shopper behaviour – but not always in the way that many might expect.
Over the last year we have seen change on a scale that none of us is used to. But while the majority of UK food shoppers are economising on their food shop and spending more time bargain hunting, our research tells us that this is not the same as down-trading.
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| IGD research has identified a trend towards smarter shopping | |
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Since the last major downturn, we have seen a surge in interest in the provenance and ethics of food. Shoppers have developed new sets of values in ethical shopping. And in response to these turbulent times, it seems that shoppers are scrutinising value, but they are not compromising their values.
Shoppers economising but not compromising
Overall, more than half of shoppers say they have been economising over the past six months and yet only one in ten feels they have compromised on quality. By comparison, one in five feels they have improved their food experience – smart shoppers are putting in more effort to maintain the quality of what they eat.
Our research also reveals that the turbulent economy is altering the contents of the shopping basket. One in five shoppers say they are buying more low-priced own-label products. The last six months have seen over one fifth of shoppers buying more foods for health, while the same number have cut back on treats. This might only be temporary though, because when times get tough, people often revert to comfort food.
Despite the credit crunch, shoppers’ interest in ethical products has gone up, with 17% of shoppers saying they bought more Fairtrade products over the last six months, 22% bought more products promising high animal welfare standards and 17% bought more local food.
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- One in five (21%) shoppers say they are walking to the shops more often
- One in four (25%) is spending more time over their shopping trips
- More than one in four (27%) also say they are shopping around more
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Economising is not the same as down-trading. In recent years shoppers’ engagement with food has been transformed and they are still investing in brands or ranges which reinforce their values at the right price and finding a way to get what they want without compromising standards.
What does all this mean for the food and grocery industry?
There are several big traps that companies could fall into in response to these changes in behaviour. One is over-simplifying in a dash for value. Some fear we’re heading for a market where only price matters. But shoppers are sharper than ever – they are not compromising, so I don’t think companies should either.
Another trap is to cut the wrong budgets, like marketing. Shoppers have been jolted out of their habits and are becoming more promiscuous, so companies would do well to invest in grabbing their attention, reinforcing brand values and making it clear what they stand for.
But the biggest trap of all is to imagine we're just seeing a blip. The world is changing and will never be the same. Like shoppers, companies need to keep getting smarter too.
More information:
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Adapting to Change
The environment in which the food and grocery industry is operating has changed radically in recent times, with food security, health, the economy and the environment making the headlines on a daily basis. Drawing from the findings of a nationally representative shopper survey, this report reveals not only what and where shoppers are purchasing, but also other shifts in behaviour that impact upon buying patterns. |
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