Coffee pods were one of the notable recent additions to the "inflation shopping basket".
BY JOHN NEVENS
JOINT MANAGING DIRECTOR, BRIDGETHORNE
The announcement that coffee pods and microwave rice pouches have been added to the basket of goods used to measure inflation shows the importance of FMCG suppliers understanding the motivation of time-poor, convenience-driven shoppers.
The Office for National Statistics recently declared coffee pods to be a “distinct and growing product”, whilst microwave rice, in both pouch and tray formats, has also been newly added to the basket as a reflection of the long-term trend towards prepared foods. Supermarket sales of coffee pods exceeded £100 million in 2014 as shoppers embraced the opportunity to make their own cappuccinos and lattes at home. Sales revenues from these products rose by 52% and volumes by 54% to the equivalent of 310 million cups.
In recent years, the convenience sector, together with an increase in the number of those undertaking regular, smaller and weekly top-up grocery trips, has been the sector’s main growth area. In the last Bridgethorne Shopper Index, an ongoing survey that tracks shopper opinions, when asked about their likely future shopping behaviour shoppers said they would be more likely to be using convenience stores than larger, out-of-town supermarkets by a margin of +6.1 compared to -5.5 respectively.
Today’s shoppers are more time-poor than ever and are becoming increasingly open to buying products that will help them make the most of their time and from channels that meet their shopping needs better, such as convenience and on-line.
As suppliers and retailers grapple for shopper loyalty in a climate of rapidly changing and diverging lifestyles, getting to grips with what a time-poor shopper really wants is essential. Offering products that meet the need for quick and easy solutions, available where the shopper wants to see them, delivers repeat purchase week on week, which in turn can foster better supplier-retailer relationships as both parties enjoy increased sales.
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