New shopper loyalties are emerging as food retailers and manufacturers engage in an intense ‘contest for value’, according to grocery analyst IGD.
IGD surveyed 120 food and drink manufacturers and found that they are responding decisively to changing shopper trends.
They believe that the discounters will continue to strengthen from a small base, currently representing around six per cent of the grocery market in the UK. They have an opportunity to grow rapidly, with 23 per cent of shoppers saying that they would start shopping, or shop more, at a discount supermarket if there was one convenient to where they live or work.
Brands with a strong heritage have continued to do well, with 44 per cent of shoppers saying that a major strength of brands is their reliable “taste and quality” and 27 per cent particularly favour brands because they have “grown up” with them.
However, investment in the quality and variety of supermarket own-label is paying off. Some 66 per cent of shoppers say that they have seen an improvement in the quality of own-label over the past two years.
Joanne Denney-Finch, chief executive of the IGD, said: “As shoppers increasingly scrutinise every penny they spend they are shopping around more, wasting less, seeking out promotions, planning meals better and taking their time to find the best deals.
“In such a vibrant marketplace, in which new shopper loyalties are emerging, UK retailers and food manufacturers are responding very rapidly to the challenges presented by the recession. They are each vying to excel at delivering value - and the most effective are reaping the rewards.
“Almost a third of people have yet to make major changes to their grocery shopping during the recession but expect to if conditions worsen. So there could be further transformation ahead with a great deal still to play for.”
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