- Slowed growth for non-food supermarket sales
- Store choice
- Reasons for buying non-food products at supermarkets
- Reasons for buying non-food grocery from supermarkets
- Reasons for buying non-traditional non-food grocery from supermarkets

Slowed growth for non-food supermarket sales

Following years of rapid growth sales of non-food lines through grocery stores has slowed. In 2008 non-food supermarket sales grew by 7.5%. While this remains ahead of the broader grocery market it is lower than previous years; 9.5% in 2007, 11.8% in 2006 and 18.1% in 2005. This is largely due to the impact of the economic downturn, with shoppers cutting back on certain discretionary spending, which has impacted the wider non-food market.

The UK grocery retailers remain committed to pursuing the opportunities within non-food. Tesco and Asda continue to develop their multi-channel approach with Tesco Direct and Asda Direct and continue to look for opportunities to open further stand alone non-food stores. Sainsbury’s aims to devote half of all new sales space to the sale to non-food.
 

Store choice

Perceptions of the non-food offer are having an impact on shoppers’ choice of supermarket. Around one in eight shoppers (13%) identify the range of non-food as a key driver in choosing where they shop for food. This has slipped slightly over the last three years, from one in five (20%) in 2006, reflecting the growing importance of price during these recessionary times.

Base: All main shoppers, Source: IGD Consumer Unit, 2007

In IGD focus groups shoppers regularly refer to an element of the non-food offer when explaining why they choose to shop at a particular store, particularly mothers and older shoppers. Categories that shoppers typically refer to include:

• Clothing
• Health & beauty and the Pharmacy
• Electrical items
• Cards and gifts
• Petrol
   

Reasons for buying non-food products at supermarkets

IGD’s 'Balancing Food and Non Food In-store' report investigated the reasons why shoppers buy non-food products from supermarkets. The chart below summarises these findings, comparing reasons for buying non-food groceries with the reasons for buying non-traditional non-food categories.
 

* healthcare, toiletries and household (e.g. medicines, shampoo, bleach, toilet roll, washing powder)
** including CDs, DVDs, clothes, stationery, toys and homewares but excluding large ticket items such as electrical equipment and appliances

Base: All main shoppers, Source: IGD Consumer Unit, 2007

Reasons for buying non-food grocery from supermarkets

The reasons for purchasing non-food grocery categories (i.e. healthcare, toiletries and household products) from supermarkets focus around three key themes, each mentioned by around a half of all shoppers, plus a fourth aspect cited by 1 in 4 shoppers:

• Convenience (51%) – particularly among older shoppers, and those with teenage children.
• Price (49%) – particularly among shoppers with younger children.
• Range (49%) – particularly among younger shoppers, driven by their demand for well known brands, and those with children aged between six and nine.
• Availability (25%) – particularly among shoppers from social grades AB, and those under the age of 65.

Healthcare, toiletries and household products are as important to a supermarket’s core offer as food, and therefore, it is important that the range and pricing meet shoppers’ expectations. The way that shoppers purchase these products means that increased sales can be generated by merchandising these products with the food offer rather than in separate sections.
 

Reasons for buying non-traditional non-food grocery from supermarkets

The reasons for buying non-traditional non-food products from supermarkets focus much more heavily on aspects of convenience (mentioned by 69% of shoppers).

• Many shoppers are attracted by the concept of having ‘everything under one roof’, as it makes their lives easier by negating the need for a separate shopping trip.
• In addition, some shoppers perceive parking to be more straightforward, and cheaper, than a trip to the high street.
• Longer opening hours can also make it easier for some to fit shopping around their busy lifestyles.

Low prices are commonly associated with non-traditional non-food items available in supermarkets, and represent a significant attraction. There are some shoppers, however, who question whether or not the production methods associated with such low priced items (e.g. clothing and small electrical items) are ethical.

Range is less likely to be a reason for shopping at a supermarket for non-traditional non-food products, as supermarkets tend to focus stocking core, mainstream items across a broad range of categories. Other, more specialist stores are, therefore, much more likely to be associated with stocking a wide range of products.

The need for help and advice is much greater within many of the non-traditional non-food categories, particularly for electrical products and other high ticket items or those bought less frequently. Overall, customer service is a relative weakness of the supermarket offer compared to other more specialist non-food stores. However, some shoppers like the fact that they can browse the non-food supermarket fixtures without staff interruption.

For some shoppers the ease of navigating the non-food aisles encourages them to browse the supermarkets offer.

	Related Items on IGD.com: Reports: - Balancing Food and Non Food In-store - UK Grocery Retail Outlook