The UK grocery market is set to be worth £203bn by 2019, increasing by 16% from its current value of £175bn, according to the latest forecasts by IGD.
Discounters, online and convenience will account for over 40% of the market in five years. Discounters are set to double in value over the same period, accounting for one pound in every nine (11%) spent on UK groceries by 2019, up from 6% currently. The convenience sector, already the second largest grocery channel, continues to grow and will account for nearly a quarter (24%) of food and grocery sales by 2019
Of course, this is all looks very promising, but what does it mean for the consumer? It means that customers now have a lot of choice. Shopping in various formats has become natural, from convenience stores to supermarkets, discounters and online. There’s more options available than ever before. Research by ShopperVista shows that on average shoppers are using four retail formats a month to buy their food and groceries.
And this means that people can buy what they want, when they want, no longer having to structure their routine around shopping, now shopping can work around them.
This type of savvy shopping is the aftermath of a time when people had no choice but to budget. Now, those techniques picked up during the recession are here to stay. But things have changed, now price, value, quality and experience all matter.
With so much competition and noise, how do you make sure that your brand stands out from the crowd? How do you make sure that your product gets in to the customer’s basket?
The Experience- build the in-store experience. Take a more imaginative approach to layout, styling and positioning, improving the experience also improves efficiency for the shopper. Provide experiential demonstrations or sampling. Whether it’s a launch, re-entry into the market or you feel it is time to reinvigorate product sales in a unique way, nothing creates more of a buzz than interacting face to face with customers and store personnel.
Understanding your customer more, their needs, likes, and challenges will enable you to provide a product and experience that your customer wants. Mystery shopping will achieve this goal. With the understanding that comes from live customer insights, your business gets access to the information that helps you achieve your objectives.
Experience, it’s a worthwhile investment.