Shopper promiscuity is on the rise as
shoppers spent an average of £19 per visit at the UK’s leading supermarkets in
February, according to the latest data from Nielsen. .
During the four weeks ending 1 March 2014, consumers spent -0.1% less money (value) at the UK’s leading supermarkets than the same period a year ago, buying -2.5% fewer units (volume). “The wet weather, historically low price inflation and squeezed household budgets meant the amount of money going through supermarket tills was marginally less than last year,” said Nielsen’s UK head of retailer and business insight Mike Watkins. “However, what’s most important is the way people are shopping.”
In February, 96% of UK households visited one of the top four supermarkets – Tesco, Sainsbury’s, Asda or Morrisons – while over 40% of households visited Aldi or Lidl.
Aldi and Lidl now account for 8.8% of all sales – up from 6.6% a year ago. This compares to 72% of sales held by the top four, down from 74%.
Watkins explained: “The range of supermarkets that shoppers now visit is the big change. Although the amount spent is falling, seven of the top 10 supermarkets managed to entice new customers over the last three months. Shopper promiscuity is the new reality.
“Of course, the discounters are increasingly popular – one in five Aldi visitors last month shopped there for the first time – yet they account for less than 9p in every £1 spent. People are still visiting the large supermarkets for the bulk of their shopping, ‘cherry-picking’ promotional items – spending £25 a visit – but buying more of their grocery staples in Aldi and Lidl, spending £17 per visit.”
Meanwhile, Nielsen highlighted that the UK’s 10 leading supermarkets spent 12.4% less on TV and press advertising in the four weeks ending 1 March (£21.4m in total) than in the same period a year ago. Asda spent the most on TV and press advertising in this period (£4.4m). This was also the biggest year-on-year increase (71%) in spend among the top 10 supermarkets. Waitrose (+29%) and Lidl (+22%) were the only other two to increase spend year-on-year.
Watkins concluded: “Many shoppers are buying items on promotion and then going elsewhere to finish filling their basket. So, the increasing challenge for supermarkets is not only driving footfall but also getting shoppers to buy more per visit. That means there’s a need to differentiate their offering but this has to be more than just through promotions or lowest price. It involves engaging shoppers with the overall shopping experience and providing value for money – as well as allowing them to save money”.
During the four weeks ending 1 March 2014, consumers spent -0.1% less money (value) at the UK’s leading supermarkets than the same period a year ago, buying -2.5% fewer units (volume). “The wet weather, historically low price inflation and squeezed household budgets meant the amount of money going through supermarket tills was marginally less than last year,” said Nielsen’s UK head of retailer and business insight Mike Watkins. “However, what’s most important is the way people are shopping.”
In February, 96% of UK households visited one of the top four supermarkets – Tesco, Sainsbury’s, Asda or Morrisons – while over 40% of households visited Aldi or Lidl.
Aldi and Lidl now account for 8.8% of all sales – up from 6.6% a year ago. This compares to 72% of sales held by the top four, down from 74%.
Watkins explained: “The range of supermarkets that shoppers now visit is the big change. Although the amount spent is falling, seven of the top 10 supermarkets managed to entice new customers over the last three months. Shopper promiscuity is the new reality.
“Of course, the discounters are increasingly popular – one in five Aldi visitors last month shopped there for the first time – yet they account for less than 9p in every £1 spent. People are still visiting the large supermarkets for the bulk of their shopping, ‘cherry-picking’ promotional items – spending £25 a visit – but buying more of their grocery staples in Aldi and Lidl, spending £17 per visit.”
Meanwhile, Nielsen highlighted that the UK’s 10 leading supermarkets spent 12.4% less on TV and press advertising in the four weeks ending 1 March (£21.4m in total) than in the same period a year ago. Asda spent the most on TV and press advertising in this period (£4.4m). This was also the biggest year-on-year increase (71%) in spend among the top 10 supermarkets. Waitrose (+29%) and Lidl (+22%) were the only other two to increase spend year-on-year.
Watkins concluded: “Many shoppers are buying items on promotion and then going elsewhere to finish filling their basket. So, the increasing challenge for supermarkets is not only driving footfall but also getting shoppers to buy more per visit. That means there’s a need to differentiate their offering but this has to be more than just through promotions or lowest price. It involves engaging shoppers with the overall shopping experience and providing value for money – as well as allowing them to save money”.
NamNews - Monday 17th March 2014
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