There is no doubt the UK grocery retail environment has seen great change in 2011, and shoppers are at the heart of this. With the continuing economic downturn, shoppers are sticking to the behaviours they adopted during the credit crunch. Their shopper mindset has well and truly shifted from “I want it all” to “do I really need it?”
As a result they are much smarter shoppers than just two or three years ago. Over the last 12 months, we have seen this smartness focusing on value, with shoppers developing a keen eye for competitive pricing, prepared to change retailer, brand, channel or store format to get the value they are after. Underlying this smarter behaviour, however, is the desire to be more prudent in terms of both purchasing and consumption. This has particular implications for fresh produce, as it means that the wastage we all took for granted in early 2000 is no longer acceptable. Shoppers are increasingly aware that value is not purely about price, it is also about maximising the consumption opportunities. So seeing fresh produce going to waste is something that fewer shoppers are prepared to stomach. For some this has already been manifested by a switch to frozen vegetables and, if the fresh produce industry is to avoid further challenges to frozen, it is important to look at how changes in shopper attitudes could be turned to the benefit of the category.
In 2012, we anticipate the emergence of more thoughtful shoppers who will consider the real cost of buying out-of-season produce, and may well find it is a cost they are no longer prepared to pay. They may also re-evaluate the cost of buying fresh produce as part of a main shop and stocking up in a ‘just in case’ fashion. As more consideration is made beyond price, shifts in behaviour are likely to emerge, including buying seasonal produce and fresh produce closer to the cooking occasion - more of a ‘just in time’ behaviour.
The implications of this more thoughtful shopping attitude is that shopper missions for fresh produce may well change, and there is much the industry can do to facilitate this. First, the industry can work with retailers to re-emphasise the benefits of fresh produce, through strong in-store theatre that tells the category story, clear signage of seasonal goods and consumption ideas. And second, ensuring pack sizes and promotions fit changing usage occasions will make a difference and consider developing a clear convenience store strategy, where loose produce may be the core platform for the category so that shoppers can really top up on the amounts they need, not just on what the industry thinks are appropriate pack sizes.
This year is going to be a challenge for us all, but it is those who see an opportunity within the challenge who will come out stronger by the end of 2012. -
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