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Wednesday, 15 May 2013

Supermarkets' pricing sting at small branches where customers charged up to 40% more for shopping

 

  • An orange at Tesco Express shop cost 40 per cent more than at superstore
  • Difference of 11.2 per cent in pricing between Express and superstores
  • Sample basket at Sainsbury's Local costs 10.2 per cent at larger store
  • Waitrose 7.8 per cent more expensive at one of their downsized branches
  • Only 3 per cent customers feel loyal to particular convenience chain, according to new research
The UK’s largest supermarkets are charging customers up to 40 per cent more to purchase shopping in their convenience stores.

An analysis of prices revealed that Sainsbury’s, Waitrose and Tesco are putting significant premiums on the products sold in their smaller outlets.

A sample basket at a Sainsbury’s Local cost 10.2 per cent more than at a larger store several hundred yards away.


Shoppers said they were reluctant to buy lunch on-the-go or ingredients for dinner that day because at convenience stores because of their prices
 
Shoppers said they were reluctant to buy lunch on-the-go or ingredients for dinner that day because at convenience stores because of their prices

A survey of 20,000 UK shoppers showed that although people buy from convenience stores and like that they are handy, they don't think their prices are fair
And the same goods at Waitrose were 7.8 per cent more expensive at one of their downsized branches.

However Tesco had the biggest differences in pricing between its ‘Express’ convenience stores and larger supermarkets – with a difference of 11.2 per cent.

A single orange at a Tesco Express shop cost 40 per cent more than at a superstore.
A British Retail Consortium spokesman said: ‘Where prices vary, it is due to the different overheads involved in running different types of store.’

Retail consultancy Him! surveyed consumers about their grocery shops and convenience culture.
Results revealed that UK shoppers are increasingly doing 'top up' shops in supermarkets rather than convenience shops, so that they can buy cheaper products.

Of the 20,000 shoppers surveyed, 40 per cent said they don't think that the prices in convenience stores are fair.
Katie Littler, insights director of Him! told trade magazine The Grocer that the industry has to address how shoppers feel about the disparity in prices between their branches.
'There are no excuses because shoppers don’t care about a store owner’s increased costs,' she said.
'Shoppers are increasingly expecting prices in convenience to match supermarkets, meaning they will be tougher judges of convenience stores.

'A poor price perception continues to be the main barrier to UK adults using convenience stores -limiting footfall, visit frequency and spend.'

Shoppers said the price disparity was the main reason they are put-off buying lunch on-the-go or getting ingredients for meals-for-tonight.
Him!’s Convenience Tracking Programme 2013 shows that although the amount spent per trip increased from £5.63 in 2012 to £6.04 in 2013, basket size remained at 2.8 items and visit frequency fell from 3.7 to 3.6 times a week.
Special offers and bulk reductions that are available in large stores, are not always offered in the chain's smaller shope

Supermarket owners argue that the increased cost of rent and overheads in high street convenience stores is behind some of their price differences
Supermarket owners argue that the increased cost of rent and overheads in high street convenience stores is behind some of their price differences
 
An increase in top-up shopping fuelled a surge of almost ten per cent in the number of convenience stores owned by supermarkets last year.
According to the survey, shoppers who use convenience stores know they charge more but do not think it is fair.

Although 71 per cent of those surveyed said they were happy to pay a little bit more for convenience, 40 per cent said they did not think convenience stores charged fair and reasonable prices.

Trade magazine The Grocer said that supermarkets make no secret of the fact that they charge more for products in their convenience stores.

The Grocer said Tesco and Sainsbury’s typically charge a few pence more but claim it is difficult to give a like-for-like percentage comparison because product sizes and promotions are different.
Morrisons ‘M’ local also charges more but claims it is less than rivals because of its unique supply chain.

The premium at Waitrose is around 2.5 per cent to 3 per cent.

In addition the percentage of people who expected a £1 product in a convenience store to also cost £1 in a supermarket rose from 21 per cent in 2012 to 30 per cent in 2013.

Research showed that shoppers find the most ‘over-priced’ categories were household, fresh meat and fish, health and beauty, fruit and veg, and tinned and packet grocery


Read more: http://www.dailymail.co.uk/news/article-2323663/Supermarkets-pricing-sting-small-branches-customers-charged-40-shopping.html#ixzz2TLebRO99

Horse Meat Scandal Changing Consumers Food Buying Habits


 
New research shows that the recent horse meat scandal is having a positive effect on the nation’s eating habits, and Britons have become more aware of the health risks of processed ready meals. .

Nearly 18 million packets of processed food were thrown away by British families in the wake of the scandal, according to a survey carried out on behalf of kitchenware manufacturer Tefal. It found more than 13,500 tonnes of items like sausages, burgers and meat pies were ditched.

Almost a quarter (24%) of the 2007 UK adults questioned by ICM said that they had cut down on the amount of processed food they eat, and the typical family is set to spend £1,762 on fresh food in the coming year. Researchers found 30% of respondents said they were put off processed meals after the horse meat scandal, and 2.8 million people said that they have thrown out ready-meals as a result. People are also eating around 20% more British apples, garden peas, cauliflowers and cabbages.

Meanwhile, separate research has found shoppers are turning to organic produce in light of the scandal. The figures from Kantar Worldpanel revealed organic sales through supermarkets increased 1.6% over the past three months, the first time the sector has seen year on year growth since 2009.

Jim Twine, Kantar business development director, credited the horsemeat scandal as the turning point for many consumers. He believes the finding of horsemeat in beef and other products has knocked consumer’s confidence, so they are looking for food that "has a positive story to tell and is fully tracable."

He said: "Recent moves from supermarkets, with the exception of Waitrose, to allow GM animal feed into the supply chain are also likely to impact on sales because the only way to avoid eating chicken or eggs from animals on a GM diet is to buy organic.

While organic bodies see this as good news, there is some concern there could be an increasing danger of supply chain shortages of key organic products. Twine explained: "To prevent a shortfall, the Soil Association is urging all retailers to work more closely than ever with their organic suppliers to ensure higher farm gate prices, better planning and decent forward contracts. This in turn will help to restore producer confidence and safeguard future supply."

Friday, 3 May 2013

Convenience fats: How to communicate with independant retailers?

Trade press is still a great way to communicate with retailers:

50% of them read magazines such as The Grocer, Convenience Store etc.

And what sections do they read? 47% read the NPD section, whilst 38% read the general articles

And what do retailers say will incentivise them?

1.Reward schemes

2.Using the appropriate language

3.Case studies demonstrating how it will help grow sales


Source: Him! 03.05.2013



Supermarket facts: how far in advance do shoppers plan their trip?

56% of shoppers planned to come to the store that they were in when we spoke to them earlier on that day
 
25% said they were just passing (perhaps this is even MORE relevant to shoppers on a Food To Go mission)
 
10% planned their shop the day before.
 
Just 2% decided earlier on in the week and
 
5% are creatures of habit- they ALWAYS visit on the same day.


Source: Him! 03.05.2013

Thursday, 2 May 2013

Snapshot of daily life in average British kitchen

 
Sainsbury’s, in partnership with research agency Mintel Consulting, has launched new research that it says acts as a modern day census of our nation’s kitchen habits, covering everything from the weekly family grocery shop to how people behave in the kitchen on a daily basis.

The “Kitchen Dynamics” study was carried out amongst 2,500 families and a further 25 families mapped their kitchen behaviour every day for a week via real time, online diaries.

Key findings, commissioned as part of Sainsbury’s promise to help families Live Well for Less, included:

Sunday lunch now Sunday evening feast: 84% of us still choose to cook a roast on a Sunday but for half of the families across Britain the time we choose to dish it up has been pushed back from the traditional lunchtime slot to the more amenable timeframe of between 4.30pm and 7.30pm, with one in five families eating their roast between 6 and 7pm. Families who were interviewed as part of the research suggested that the main reason for this was to enable them to fit more into their already busy weekends.

Dinner before six: The average family eats at 5.54pm during the week. Those in London eat as late as 6.46pm, a whole hour later than those in the West Midlands who eat, on average, at 5.47pm during the week.

Families dine together in dining rooms: Despite juggling conflicting diary commitments and hectic lifestyles, 84% of families find time to sit down together at least twice a week with over half of family households saying that they always eat together during the week. Nearly half (46%) are also choosing to serve dinner in a dining room, separate from the kitchen.

Dinner diversity: Although we all sit down together as much as we can, it turns out we don’t all have the same food in front of us. Two thirds of households now consider themselves to have special dietary requirements – including an intolerance, low calorie regime or food group avoidance – meaning Mums across the country are cooking an average of 2.25 evening meals for each sitting.

Food allergies and intolerances have also impacted the kind of foods we’re picking off the shelf, as recent Sainsbury’s data shows sales of their own-brand range of Freefrom have increased by 26% year on year.

Meal Planners are order of the day for one in two households: When it comes to our stomachs, we are creatures of habit, with nearly half of British families (48%) eating the same meal on a particular night each week. Interestingly, women tend to stick to the same repertoire of meals week in, week out (59%) but say their partners are far less likely to stick to the same menu (15%).

Women are still kitchen chiefs: Despite the perception of modern men increasingly sharing the domestic duties, the report shows that women still have overall responsibility for all things kitchen related with 86% of women saying that the majority of the time, they do the cooking and eight out of 10 times they are responsible for all things grocery related including shopping lists, all shopping trips, checking the fridge and cupboards, planning meals and even popping out for last minute necessities.

The family kitchen budget is also controlled by women, with 74% saying they are the most economical with the grocery finances. When handed the shopping bags, men spend an extra £235 on groceries each year, which could be attributed to the fact that just 31% of men plan the meals they cook in advance, compared to 66% of women. Reconfirmed by the fact that 66% of women say they are more likely to use leftovers than their partners (14%).

Susi Richards, Head of Food at Sainsbury’s, said: “Kitchen Dynamics offers a “fly on the wall” snapshot of how the average British family behaves in the comfort of their own kitchen.

“Despite the downturn, reassuringly we are still seeing a real emphasis on the importance of eating together and the presence of routine as a way of coping with the pressures of the busy family week. The shifting backwards of the Sunday Lunch to early evening is a clear example of families ring-fencing meal time but adapting tradition to suit the modern day demands of a hectic family schedule.

“83% of families in our study changed their grocery shopping habits. We are committed to catering for this change and helping families enjoy great quality food at affordable price. Research like this allows us to align our offer accordingly; ultimately helping our customers live well for less.”
NamNews - Thursday 2nd May 2013

Shoppers' decisions are made well before arring in store: what are the marketing implications?

 
New research shows that nearly nine in ten consumers (88%) typically now plan their shop prior to physically visiting a supermarket - underpinning the need for FMCG manufacturers to devote more resource to understanding more accurately what motivates shopper decisions. .

The research, commissioned by Coupons.com UK & Europe, illustrates how important it is for FMCG manufacturers to plan their marketing in a way that better influences shoppers’ purchasing decisions before they arrive in-store or click to shop online, as well as understanding what motivates them after purchase.

This, says Bridgethorne, a category management and shopper marketing specialist, may require a mind-shift for some manufacturers towards understanding and influencing how shoppers behave at each point of their purchase journey and how this fits in with promotional activity in-store. In this age of the digital shopper and ever changing shopper behaviour, FMCG suppliers need to be concerned about the entire path to purchase (pre, during and post), in-store and outside if they are to remain competitive, relevant to shoppers and to deliver the best possible return on hard fought budgets

“This research confirms a trend that manufacturers simply must factor into their planning,” explained Bridgethorne director, John Nevens. “Although many buying decisions are made at shelf, more and more are being made before the shopper even leaves home. With conventional forms of marketing becoming fragmented, manufacturers must work harder to get their products onto shoppers’ lists before they arrive in store or go online.”

“This,” said Nevens, “means understanding the shopper better and drilling down into insights to gain a detailed understanding of the shopper and their journey so that you can directly influence them at the point of transaction, wherever that may be.”

Shopper behaviour may have moved decidedly towards price comparisons and promotions in response to the economic environment but, Bridgethorne said, this research also shows that focusing purely on cut-price promotions in-store is not enough. Manufacturers also need to understand shoppers’ emotional attachments to brands and products.
 
NamNews - Thursday 2nd May 2013

Meal deal opportunity?

61% of UK adults buy
lunch to go
at least once per week



Source: Him! 02.05.2013

Wednesday, 1 May 2013

"Al desko" breakfast trend: consumers want packaging innovations

Breakfast on the go has become the norm
 
The ‘al-desko’ breakfast trend has hit Britain and prompted consumer demands for re-sealable, easy to open cereal packs, says a Mintel analyst.
Mintel’s British Lifestyles 2013 report found that the economic climate has prompted more in-home eating in the UK. But Alex Beckett, food analyst at Mintel, said the complete opposite can be seen for breakfast, where consumers are eating their morning meal on the go or at work.
 
"Manufacturers have been forced to recognize the importance and opportunities of the ‘al-desko’ trend,"Beckett told BakeryandSnacks.com. "We’ve seen some really interesting developments where new product development (NPD) has come forward in terms of packaging and portability". "Breakfast cereal pots, for example, tap directly into these needs and have done well in the market, he added".
 
 
Consumers demanding pack changes
 
"There is great consumer demand for changes to breakfast cereal packaging," Beckett said.
 
More than three-quarters (78%) of cereal users would buy a product with re-sealable packaging and 64% would like to see packaging that keeps cereal fresher for longer.
 
"These packaging demands could be linked with the value-for-money trend – with consumers being more concerned about wastage. But it could also suggest that consumers have wider repertoires of cereal, therefore it takes them longer to eat, the analyst said.
 
There is also a demand for easier to open packs from 57% of consumers.
Cereal pots v. bars
 
The UK has seen a flurry of new product launches in pot forms from big brands including Quaker. However, Beckett said the pot category,"hasn’t got that instant, impulse appeal"that cereal bars have.
 
Cereal bars, while more developed, continue to soar because they combine health and convenience well, he said.
 
 
‘Try me’ options could surge
 
Beckett said the recent shift towards trial packs containing smaller, test-size portions is interesting and something likely to continue.
 
Kellogg recently launched a trial pack for its Coco Pops, retailed at £1.38 ($2.14) with three mini servings and a ‘try me’ sticker on pack.
 
These trial packs are to encourage new usage occasions rather than attract new customers, the analyst said, as firms try to spur growth.
 
"Manufacturers really struggle to drive volume growth because household penetration of breakfast cereals is already extremely high," he said.
 
Mintel data shows that 9 in 10 Brits eat breakfast cereals and 6 in 10 do this on a daily basis.
 
 
Source: Bakeryandsnacks.com, by Kacey Culliney, 30th April 2013

Taking the fear factor out of French patisserie and viennoiserie

 

 
Will Torrent is a rising star in the pastry world and in his first book, he aims to take the fear factor out of French patisserie. There are chapters on basic techniques, patisserie, tarts, petits fours, gateaux & desserts, and viennoiserie, and you'll find recipes for mocha eclairs, lemon tart, honey madeleines, brioche and macarons.
 
He is an award winning Patissier and Chocolatier and a rising star in the food world, with a grandfather who was a chef and a family who owned a patisserie in Paris, cooking has always been in Will's blood. His first foray into the world of high-class cuisine came at Heston Blumenthal's world-renowned Fat Duck at the tender age of 16.
 
In just a few short years the talented pastry chef has picked up an array of awards, including Craft Guild of Chefs Young Chef of the Year 2009, the 2010 Acorn Scholar and the first Medallion of Excellence when he represented the UK at WorldSkills Japan 2007
 
 
Certainly someone to watch!
 
Source: The Food People, 30th April 2013

Pizza Express Gluten Free

As of Tuesday 30th April Pizza Express are joining the numerous other Italian chain restaurants in serving gluten free options. Most of their pizza's on the classic menu can now be made using their gluten free classic pizza bases which has been certified by Ceoliac UK as 'No Gluten Containing Ingredients' (NGCI). You will even be able to finish off your meal with a gluten free brownie and wash the whole lot down with gluten free Pilsner beer!
 
Pizza Express have assured the Ceoliac community that they are going to every length to avoid cross contamination; replacing all flour used to toss and stretch the dough in the kitchens with gluten free blends, separate equipment and storage as well as training their staff on the new gluten-free protocol.
 
Gluten free tweeters have already urged the restaurant to create gluten free dough balls so watch this space...
 
Source: The Food People, 30th April 2013