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TRACKING SHOPPER MINDSETS TO SHAPE RETAIL PLANS The key to predicting what the future holds for grocery retail and brands is understanding the shopper mindset. BNy Shopper Intelligence Senior Insight Director Simon Ford. o doubt it’s been a tough six programs, such as the catalogue, to months for brands, retailers, trigger more purchase decisions. shoppers and consumers alike. As we slowly approach what 2. Reassess value tiers and the we hope will be business as usual, Coles opportunity for premium and Woolworths’ results show impressive like-for-like growth, which has not come without its challenges. The key focus for the grocery industry right now is keeping up with or getting ahead of shopper needs and behavioural change in the months ahead. The experts at Shopper Intelligence have tracked Australian grocery shoppers weekly, to decipher what changes in shopper behaviour were temporary and out of necessity (eg, switching toilet roll brands due to out of stocks), and what changes are here to stay. Here are three major actions brands and retailers need to be taking right now. 1. Invest pre-store Shoppers are making fewer, bigger and more planned shopping trips. The data shows a clear trend up to the final week of August that demonstrates a reversal of the increasingly little-and-often approach to grocery shopping that we’ve seen over the past five years. They are buying ahead and pantry stocking more than they were six months ago. Get on the shopping list and help shoppers plan more effectively by leaning into channels shoppers in your categories use the most. Revisit pre-store investment Shoppers are placing more importance on price than before March. And they’re more willing now than pre-Covid to try private label. In some categories the increase is extreme. An understanding of the private label threat or opportunity in your category is essential, as brands prepare for their next range review. Conversely, shoppers are looking for more premium options in specific categories, for specific occasions. They’re more willing to pay more for better quality and/or something different in these categories compared with before the pandemic. Do you understand the retreat to value or flight to premium in your category? What is your category doing to address this? What does this all mean for your range, your tiering, your brand? If you suspect more space and focus will be given to value (and possibly private label) in your category, is there an opportunity for you to take the conversation away from price? Can you pivot to more important factors or drive a premium message? 3. Reassure and differentiate Health is more important than ever to Aussie grocery shoppers. Our research shows shoppers are increasingly looking for ranges that they feel are healthier and better for their wellbeing. There are two layers to this. First, retailers and brands must reassure on the basics of trust, quality and health credentials. Promoting these factors is table stakes to a category or brand surviving in many categories. Second, over and above this, there is opportunity to invest in specific health and wellbeing attributes that can grow premium tiers or brands and stand out from the rest. What’s the opportunity in your category and for your brand? Grocery shopper trends you need to know On 6 October, the Shopper Intelligence experts shared the biggest shopper trends, what they mean for brands and the future of Watch the free AU grocery webinar here. INDUSTRY INSIGHT About Simon Ford Simon Ford is Managing Director for Shopper Intelligence ANZ. He believes that only by understanding how shoppers think and behave, can we influence what they buy. He has more than 20 years’ experience in retail and shopper insights-based strategic planning. Before starting Shopper Intelligence in 2006, he was head of market research for Tesco UK, where he learnt the importance of putting shoppers at the heart of manufacturer and retail strategy. 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. OCT, 2020 RETAIL WORLD 21