Exclusive new research for The Grocer flags up the potential to convert non-food browsing into buying. Liz Hamson reports
Should supermarkets stick to selling groceries and not worry about non-food?
Do supermarket non-food ranges make the shopping experience more enjoyable?
Do you spend more money in your main supermarket shop because of the non-food ranges on offer?
Do you spend more time in the supermarket as a result of its non-food range?
Should supermarkets give over more space in store to non-food?
No-one has ever questioned the wisdom of the multiples bundling into non-food as if it were the last bus to school. But are they really maximising the opportunity that non-food presents? Well, an omnibus survey of consumer attitudes carried out exclusively for The Grocer reveals that while many consumers are buying into non-food, there are still plenty of window shoppers out there that need to be turned into buyers.
First the good news. Almost one in two consumers who took part in the survey, carried out in December by market researchers HI Europe, say they like non-food ranges in supermarkets and that non-food makes them spend more.
HI Europe business development director Tracy Thorne says: “There is high awareness of the breadth of non-food ranges sold by supermarkets.”
She adds: “By selling non-food products, supermarkets appear to offer what consumers want; only 16% believe they should stick to selling groceries while almost half agree that non-food ranges makes the supermarket shop more enjoyable.”
However, the survey suggests that while they are prepared to whip out their wallets, as often as not on impulse, for goods as diverse as cards and wrapping paper, and music and entertainment products, they are not as keen to part with their cash for large electrical goods and clothing - some of the categories the retailers are pushing hard.
In particular, the survey identifies the opportunity that exists for retailers if they can convert high levels of awareness of the range of non-food now available into an equally high level of actual purchases.
Take electrical items. The findings suggest that shoppers are still heading to the high street or specialists for the latest gadgets and big ticket items like large electrical goods,
which in both cases tend to be planned rather than impulse buys. A quarter say they would not buy gadgets from a supermarket, for instance, and only 7% have made such a purchase in the last year. Similarly, while three-quarters say they are aware their main supermarket sells large electrical goods, only 18% admit to buying them. Moreover, 22% claim they would never buy them from a supermarket.
In clothing, there are again very high levels of awareness of what’s now on offer. But actual purchases are relatively low and a surprising 41% of consumers said they would not buy clothing from a supermarket. Dig beneath that headline figure and you find that baby clothing tops the list of items shoppers will avoid with 25% saying they would definitely not buy this from a supermarket.
By way of contrast, when it comes to homeware, small electrical items and other impulse buys such as CDs and DVDs, consumers are more than prepared to spend a bit more on their shopping. As a result, purchase levels in such categories are relatively high but they still lag behind awareness levels.
HI’s Thorne argues that it will take time for items like large electrical goods to “cross the radar” of consumers more accustomed to shopping elsewhere. Thorne also points to the popularity of the Asda non-food formula with its core shoppers.
She says: “Not only are Asda shoppers more aware of the breadth of non-food ranges available in their Asda store than any other supermarket shoppers, but they are also significantly more likely to have bought from these ranges.”
Thorne adds: “Taking clothing as a top example, three in four Asda shoppers claimed to have bought clothing from Asda in the past year compared to only one in two Tesco shoppers, and significantly more Asda shoppers claim to spend more in Asda as a result of having these non-food ranges.”
But it seems there are limits as to what shoppers are prepared to buy when it comes to non-food, with two-thirds of those quizzed claiming there are some items they would never buy in a supermarket.
And when it comes to the supermarkets stretching their brands into new areas, more than two-thirds of consumers claim they would never consider buying a car or financial, personal or legal services from a supermarket. Despite this, financial add-ons are clearly making their mark,with Tesco scoring particularly well here. The survey shows that although only one in five consumers would consider taking out a credit card, and one in 10 a personal loan with a supermarket, Tesco customers are significantly more likely to consider these than any other supermarket shoppers.
Overall, consumers clearly think that the arrival of non-food in supermarkets is a good thing. HI’s research confirms that shoppers believe the supermarkets offer a good range of price points in non-food as well as value for money.
“The supermarkets have brought welcome competition with the major high street retailers, especially in CDs and electrical goods and DVDs,” agrees Diane Gaston, of the National Consumer Council.
In those areas where the opportunity has yet to be maximised, the challenge for the supermarkets is whether they can offer a better range and similar service levels to their high street rivals. Until then, the window shopping will continue.
Yes16%
Not bothered25%
No59%
Yes45%
Not particularly38%
No - less17%
Yes46%
Don’t know30%
No24%
Yes37%
Don’t know31%
No32%
Yes6%
Not bothered27%
No67%NOTE: HI Europe surveyed 3,697 Britons aged 16 and above. Figures for age, sex, education, income and region were weighted where necessary to bring them into line with their actual proportions in the population. "Propensity score" weighting was also used to adjust for respondents’ propensity to be online. In theory, with probability samples of this size, one could say with 95% certainty that the results have a statistical precision of plus or minus 1.5 percentage points of what they would be if the entire adult population had been polled with complete accuracy. Unfortunately, there are several other possible sources of error in all polls or surveys. They include refusals to be interviewed (non-response), question wording and question order, and weighting. It is impossible to quantify the errors that may result from these factors. This online sample is not a probability sample.
Should supermarkets stick to selling groceries and not worry about non-food?
Do supermarket non-food ranges make the shopping experience more enjoyable?
Do you spend more money in your main supermarket shop because of the non-food ranges on offer?
Do you spend more time in the supermarket as a result of its non-food range?
Should supermarkets give over more space in store to non-food?
No-one has ever questioned the wisdom of the multiples bundling into non-food as if it were the last bus to school. But are they really maximising the opportunity that non-food presents? Well, an omnibus survey of consumer attitudes carried out exclusively for The Grocer reveals that while many consumers are buying into non-food, there are still plenty of window shoppers out there that need to be turned into buyers.
First the good news. Almost one in two consumers who took part in the survey, carried out in December by market researchers HI Europe, say they like non-food ranges in supermarkets and that non-food makes them spend more.
HI Europe business development director Tracy Thorne says: “There is high awareness of the breadth of non-food ranges sold by supermarkets.”
She adds: “By selling non-food products, supermarkets appear to offer what consumers want; only 16% believe they should stick to selling groceries while almost half agree that non-food ranges makes the supermarket shop more enjoyable.”
However, the survey suggests that while they are prepared to whip out their wallets, as often as not on impulse, for goods as diverse as cards and wrapping paper, and music and entertainment products, they are not as keen to part with their cash for large electrical goods and clothing - some of the categories the retailers are pushing hard.
In particular, the survey identifies the opportunity that exists for retailers if they can convert high levels of awareness of the range of non-food now available into an equally high level of actual purchases.
Take electrical items. The findings suggest that shoppers are still heading to the high street or specialists for the latest gadgets and big ticket items like large electrical goods,
which in both cases tend to be planned rather than impulse buys. A quarter say they would not buy gadgets from a supermarket, for instance, and only 7% have made such a purchase in the last year. Similarly, while three-quarters say they are aware their main supermarket sells large electrical goods, only 18% admit to buying them. Moreover, 22% claim they would never buy them from a supermarket.
In clothing, there are again very high levels of awareness of what’s now on offer. But actual purchases are relatively low and a surprising 41% of consumers said they would not buy clothing from a supermarket. Dig beneath that headline figure and you find that baby clothing tops the list of items shoppers will avoid with 25% saying they would definitely not buy this from a supermarket.
By way of contrast, when it comes to homeware, small electrical items and other impulse buys such as CDs and DVDs, consumers are more than prepared to spend a bit more on their shopping. As a result, purchase levels in such categories are relatively high but they still lag behind awareness levels.
HI’s Thorne argues that it will take time for items like large electrical goods to “cross the radar” of consumers more accustomed to shopping elsewhere. Thorne also points to the popularity of the Asda non-food formula with its core shoppers.
She says: “Not only are Asda shoppers more aware of the breadth of non-food ranges available in their Asda store than any other supermarket shoppers, but they are also significantly more likely to have bought from these ranges.”
Thorne adds: “Taking clothing as a top example, three in four Asda shoppers claimed to have bought clothing from Asda in the past year compared to only one in two Tesco shoppers, and significantly more Asda shoppers claim to spend more in Asda as a result of having these non-food ranges.”
But it seems there are limits as to what shoppers are prepared to buy when it comes to non-food, with two-thirds of those quizzed claiming there are some items they would never buy in a supermarket.
And when it comes to the supermarkets stretching their brands into new areas, more than two-thirds of consumers claim they would never consider buying a car or financial, personal or legal services from a supermarket. Despite this, financial add-ons are clearly making their mark,with Tesco scoring particularly well here. The survey shows that although only one in five consumers would consider taking out a credit card, and one in 10 a personal loan with a supermarket, Tesco customers are significantly more likely to consider these than any other supermarket shoppers.
Overall, consumers clearly think that the arrival of non-food in supermarkets is a good thing. HI’s research confirms that shoppers believe the supermarkets offer a good range of price points in non-food as well as value for money.
“The supermarkets have brought welcome competition with the major high street retailers, especially in CDs and electrical goods and DVDs,” agrees Diane Gaston, of the National Consumer Council.
In those areas where the opportunity has yet to be maximised, the challenge for the supermarkets is whether they can offer a better range and similar service levels to their high street rivals. Until then, the window shopping will continue.
Yes16%
Not bothered25%
No59%
Yes45%
Not particularly38%
No - less17%
Yes46%
Don’t know30%
No24%
Yes37%
Don’t know31%
No32%
Yes6%
Not bothered27%
No67%NOTE: HI Europe surveyed 3,697 Britons aged 16 and above. Figures for age, sex, education, income and region were weighted where necessary to bring them into line with their actual proportions in the population. "Propensity score" weighting was also used to adjust for respondents’ propensity to be online. In theory, with probability samples of this size, one could say with 95% certainty that the results have a statistical precision of plus or minus 1.5 percentage points of what they would be if the entire adult population had been polled with complete accuracy. Unfortunately, there are several other possible sources of error in all polls or surveys. They include refusals to be interviewed (non-response), question wording and question order, and weighting. It is impossible to quantify the errors that may result from these factors. This online sample is not a probability sample.
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