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EXCITEMENT THE KEY TO INFLUENCING DELI SHOPPERS Shopper stats for the deli and smallgoods department point to opportunities being missed in arousing interest. BWy Shopper Intelligence Senior Insight Director David Shukri. hat comes to mind when you think of the in-store deli? Inspiration and newness or indifference and sameness? For some shoppers, the answer will be the latter. While the opportunity to engage them is there, it isn’t always being taken, so what can brands do to get more from this part of the store? The deli department performs relatively well, with shoppers reporting slightly higher overall satisfaction than with total grocery (57 per cent versus 56 per cent). This is an increase of three per cent on the previous year, with the biggest improvements coming from assortment and the choice of Australian products. Within deli, however, there are wide variances in satisfaction and some categories perform better than others. Among those categories that perform below the department average satisfaction score: • Fresh fish/seafood has the lowest satisfaction levels and under-indexes in price, product, assortment and execution measures. Nearly half of shoppers in this category would like to see more innovation. • Barbecue chicken performs slightly better than fish, but shoppers would still like to see improvements in range and packaging. • Continental deli meats fall marginally below the department benchmark. Here the focus areas for improvement are price, innovation and theatre. Clearly there is work to do in some categories, but is there an overall challenge for the deli department in terms of shopper interest and engagement? Eighty-two per cent of deli shoppers interviewed want to make their choices in the department quickly, with half saying they know exactly what they want in advance. Putting this in context, the average grocery category sees 76 per cent of shoppers wanting to “grab and go”, so deli is clearly an area that most will not stop and browse in. However, deli over-indexes significantly with shoppers who say they sometimes buy from the department on impulse because they feel like it at the time. This highlights a need to focus more on in-store visibility and displays that catch attention and encourage shoppers to engage with the department. If keeping shoppers interested presents a challenge, it may well stem from purchase frequency. More than half of surveyed deli shoppers buy from the department more often than once a week, a proportion that’s growing. While this is generally a positive, when people shop something as often as this, it can become repetitive, with the risk of shoppers slipping into autopilot mode. How can you entice and attract the deli shopper? • Lead on innovation. Deli is a ‘hero’ department, meaning that when delivered well, it can help to drive retailer loyalty and do so at higher price points. It also means that new ideas and innovation have a key role to play and must stand out through product, signage and displays. • Simplicity and availability. With many shoppers reluctant to browse, it’s vital to keep things simple in-store. Complex DELI & SMALLGOODS 62% 60% 58% 56% 54% 52% 50% 48% 46% Deli BBQ Chicken Continental Deli Meats Deli Chicken Fresh Fish/Seafood Regular Deli Meats Salads Deli Overall Satisfaction (Coles/WW) 57% Total Deli (Coles/WW) All Categories (Coles/WW) ranges, merchandising and offers are likely to frustrate. Deli performs well on availability. Although it may sound obvious, this is vital to maintain. If a shopper chooses a retailer specifically because of the way they deliver deli, poor availability will be felt beyond the out-of-stock in question. • Highlight premium. Deli shoppers attach more importance to the delivery of premium options than average, and this is another key driver for a hero department. There is less need for deep discounts, but crucially, a high standard of in-store delivery must be blended with strong pre-store messaging and awareness. • Age appeal. Satisfaction with deli is below average among shoppers under the age of 40, who are also more impulsive than those over 40 when shopping this department. Younger shoppers cite location in-store, layout and range as the key areas not currently meeting expectations. Food trends can change quickly, with shoppers today having a wide array of options available to them through foodservice as well as artisan outlets. Incorporating more variety alongside traditional favourites within deli could be the key to engaging more younger shoppers. Deli is a complex department, with a variety of categories performing to quite different levels according to shoppers. Regardless of the category, however, the key to progress is to put those shoppers at the heart of the conversation and to respond to what motivates and drives their deli buying. Achieve this and excitement will be the word on more people’s lips when they shop the department. About Shopper Intelligence Shopper Intelligence is the only partner to unlock how and why shoppers buy, then continuously and objectively benchmark every category and every retailer. With a combination of trusted expertise and pioneering techniques, Shopper Intelligence provides the most simple and actionable shopper insights in the industry. For more information contact info@shopperintelligence.com.au. MAY, 2020 RETAIL WORLD 45