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Product Range Rather Than Convenience or Price Drives Consumers In-store

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Product Range Rather Than Convenience or Price Drives Consumers In-store

Product Range Rather Than Convenience or Price Drives Consumers In-store
November 01
09:31 2017

Product range continues to drive shoppers into stores, with the majority of shoppers preferring a ‘wide range of products’ over convenience, quality and store services in many cases. This is according to a new Shopper Insights Report of 2,600 European consumers across seven countries conducted by IRI, the big data and technology expert for consumer industries.

The report indicates that at a time when many retailers are reviewing their ranges, and in some cases rationalizing them to cut costs, ‘range’ – which includes wide assortment, choice of brands, and good selection of healthy products in line with the growing trend for health and wellbeing – is still a key driver for consumers.

Sixty per cent of European shoppers indicate it is a reason for store choice when it comes to supermarkets and hypermarkets. Other reasons for choosing this type of store include products being in one place (40%) and customer loyalty cards (27%).

Across all of the countries surveyed – Italy, Greece, Spain, Germany, France, the UK and the Netherlands – having a wide range of products was least important when selecting discounters and also when shopping online, with shoppers driven primarily by price (68% and 50% respectively).

However, for specialized stores, offering a wide range of products appears to be a main driver for shoppers visiting that shop in the first place. Of those visiting a drug store, 56% chose it because of range and 52% because of convenience, while 55% of shoppers visiting a frozen food store do so because of range, 51% because of convenience and 43% because of price and promotions. When it comes to our pets, 53% of consumers chose a pet store because of the wide range of products on offer, while 44% say convenience is important.

Health and organic shops come out on top for product range, with 68% of shoppers in the IRI report indicating that they chose a store based on this criteria, followed by good quality (47%) and store services (39%). Focusing on range is also critical for beauty stores, with 59% of shoppers selecting a store because it offers a wide range of products, while 49% are attracted by in-store services and 34% by quality.

“Our survey has shown quite clearly that European shoppers increasingly prefer to visit online stores, with a third saying they do so regularly, so bricks and mortar stores are having to work much harder at getting people in-store,” explains Laura Fusi, Shopper Insight Senior Manager, IRI.

“Retailers will have to manage their assortment, in collaboration with manufacturers, by understanding in-depth what each shopper in each store is expecting to find, if possible in a supermarket format, as hypermarkets have become too large. And going further, this personalization approach, thanks to big data technologies like IRI Liquid Dataenables them to reach each shopper with the right message, with promotions for instance, at any moment of his/her shopping trip.”

European Shopper Insights largest countries breakdown – reason for choice of store:

UK

  • 60% of UK shoppers chose a supermarket because of wide range of products, with 64% because of store services and 50% because of price and promotions.
  • 59% of shoppers cite wide range of products for their choice of health & organic stores; 57% for a frozen food store; and 51% for a make-up/cosmetics store
  • Convenience is chosen most commonly in the UK when it comes to reason for store choice, with 70% choosing it for their choice of supermarket and 71% for their choice of convenience store.
  • Range is less important when it comes to choosing greengrocers, butchers, bakers and fish stores, along with pharmacies (43% state as reason for store choice).

Italy

  • 61% of Italians select wide range of products as the reason for choosing a hypermarket, while 58% do the same for supermarkets.
  • When it comes to specialized stores, 67% select range as a reason to shop at a health/organic store, 62% for a perfumery store and 57% for a frozen food store.
  • Range is less important when it comes to shopping at convenience stores, with just 24% of shoppers choosing it as a reason for store choice, while just 32% chose range as a reason for shopping at a discounter (hard and soft).

France

  • 61% of French shoppers select wide range of products as the reason for choosing a hypermarket, while 68% cite convenience and 62% chose store services for their reasons for shopping at this type of store.
  • Just over half (51%) say range is a reason for shopping a supermarket.
  • Over two-thirds (68%) cite it as a reason for store choice when it comes to make-up and cosmetic stores and 64% for drug stores.
  • Just 22% think wide range of products is key to store choice for convenience and 28% for shopping at the discounters.

Spain

  • While 59% of Spanish shoppers cite wide range of products as a reason for store choice when it comes to hypermarkets, 52% say the same for supermarkets
  • Over three-quarters say range is the reason for choosing a health or organic store, nearly two-thirds (64%) for choosing make-up or cosmetics store, and 60% for choosing a department store.
  • Range is less important for store choice when it comes to convenience stores (34%) and discounters (37%)

Germany

  • Germans overwhelmingly vote wide range of products s a reason for shopping at a hypermarket (73%) and supermarket (70%)
  • 66% cite it as a reason for choosing a drug store or a health/organic store.
  • Shoppers in Germany see range as less important for convenience (30%) and pharmacies (44%)

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