The annual Grocery Retail Structure (GRS), compiled by William Reed Business Media and IGD is always a source of interesting insights, though we can’t be certain if it reflects consumer trends or anticipates them.
This year’s report reveals three key areas that should be of interest to brand marketers.
First, the seemingly unstoppable rise of convenience shopping. Our current fast paced lifestyle suggests that many of us are putting together our weekday meal options on the go, as we leave work, as we get out of the station and rush for those last minute pieces to our Tesco Express or Sainsbury’s Local. Although the GRS reports that the sector grew only slightly, much of this growth is accounted for by the multiples with the number of independent stores falling by 260 in the year. This reinforces the growing hold that the multiples have over our shopping destinations and why brands need to factor this in to their market planning.
Second, as many of the multiples continue to bring previously independent high street “staples” in-house, the number of independent off-licences, butchers, greengrocers and are all down. But, there are some anomalies. The report suggests that the success of the BBC's The Great British Bake Off could be behind a 4.4% increase in the number of bakers, whilst with provenance increasingly important, the number of farm shops has also increased. It should come as no surprise therefore that so many of the multiples are working overtime to promote the provenance of their fresh produce.
Third, many of the discounters have grown by double-digit percentages in the past year. The report cites B&M Bargains, Heron Foods, Aldi and Frozen Value as the biggest movers.
It may not be scientific, but what we get is a picture of a time-poor consumer, keen to keep costs down and shop for a bargain, but frequently without the time to do it. It certainly sounds as if it was written with me in mind. There is a dichotomy, of course, between the way we are embracing convenience, which carries an inevitable premium, and our drive towards discounters. Perhaps we are looking towards the latter for our bigger shops and convenience for the everyday essentials.
However, the same consumer wants to know the provenance of the fresh produce they are buying and, given the right vehicle, would be interested in supporting some independent retailers.
Given this steer, brands would be well advised to get closer to and better understand the behaviour of their customers because understanding customer behaviour is the greatest currency available to brands today. This means there is real potential for brands to benefit from an ethnographic approach to their research. Observing and discussing the ordinary activities of people in their naturally occurring settings can uncover more insightful information about what people do, rather than what they say they actually do; this might not sound much but the impact can be significant. It allows for a more personal and in-depth view of the participants, their behaviour and choices in order to provide valuable insights about how, why and when customers might choose brands or new products and the role that these will play within the consumer’s life.
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