CCentral-Main-logo-EN-trans

Convenience Central
Join our community
extra content
Screen Shot 2020-05-11 at 3.47.43 PM

COVID-19 will have lasting effects on consumer behaviour: Accenture

Several underlying consumer trends have risen to prominence during the COVID-19 crisis, leading to a wave of new behaviours—from online shopping to buying local—that are likely to persist long after the pandemic is over, according to a new study from Accenture.

The survey of more than 3,000 consumers in 15 countries (including Canada) found that people are purchasing more personal hygiene and cleaning products, plus canned and fresh foods. But it’s not just what consumers are purchasing that has changed, but how they’re purchasing.

According to Accenture, the crisis has led to a significant increase in e-commerce (particularly in North America) as well as interest in purchasing local. The study also reports an expected rise in so-called “conscious consumption,” characterized by an emphasis on limiting food waste, shopping more consciously and seeking out more sustainable options.

Perhaps the most visible manifestation of the impact of the COVID-19 crisis is in e-commerce—which has risen exponentially as consumers around the world have retreated to the safety of their home. Online grocery has become highly sought-after, though its sudden rise in popularity has exposed infrastructure flaws that retailers will need to address.

Most notably, says Accenture, the lack of system capacity left many consumers struggling to find a timely delivery slot. That led to many high-frequency users looking elsewhere (most notably to local brands) to fulfill their orders.

In the U.S., food delivery service Instacart saw its subscription grow 10 to 12 times in states with the most reported COVID-19 cases. Accenture found that one in five consumers who ordered groceries online during the crisis did so for the first time, a number that rose to one in three among consumers 56 and over.

According to the U.K. online supermarket chain Ocado, nearly every one of the close to 800,000 active customers it had at the end of 2019 wanted to place an order once a week during March. Basket size also rose in tandem with demand, growing by more than 50%.

Accenture says demand for e-commerce capabilities (both grocery and otherwise) will persist beyond the pandemic, with online expected to account for 37% of all consumer purchases of goods and services, up from 32% currently. The data suggests a “clear need for a substantial increased investment in this channel,” says Accenture.

As the crisis continued, survey respondents also indicated they planned to do fewer and larger grocer shops, as well as shop in closer neighbourhood stores and shop more cost consciously.

Originally published at Canadian Grocer.


Shutterstock

Exclusive research shows COVID-19 is driving shoppers into c-stores

Shutterstock

Shutterstock

Among the many change-of-life impacts of the COVID-19 coronavirus pandemic, convenience stores are seeing an increase in shoppers who typically would go to supermarkets for their grocery needs.

According to a new study conducted by Convenience Store News Canada’s parent company, EnsembleIQ, 15% of shoppers said they are more likely to shop at convenience stores for groceries due to the pandemic. Fielded March 13-15, the survey was conducted among 1,001 primary household grocery shoppers in the United States.

Almost half of the respondents (44%) say they are stocking up on cleaning supplies, medications, personal care items and food to keep themselves healthy and prepared for whatever may come next.

Regardless of where shoppers typically shop for groceries, they are now turning to online shopping more often as a result of the pandemic, according to the findings.

Convenience stores also are capturing more shoppers, as are drug and dollar stores. Interestingly, many shoppers are going to specialty/natural stores more often, too.

Besides an increase in grocery shopping at c-stores and other non-supermarket outlets, the research revealed other behavioral changes, including a significant increase in online ordering and use of out-of-store pickup options.

Among shoppers who are visiting other stores aside from their preferred stores, 58% say it is due to product availability, while 34% say the substitute location is more convenient at a time when they do not want to travel further than they have to.

Other highlights from the findings include:

  • 23% of shoppers are making a fill-in shopping trip more often due to the pandemic, especially millennials.
  • 22% of shoppers are making a quick shopping trip for one to five items more often due to the pandemic, especially urban consumers.
  • 19% of shoppers are shopping more often for immediate consumption than they did before the pandemic, especially urban consumers and millennials.
  • 27% of shoppers who typically shop at convenience stores for groceries have a high level of trust that retailers are ensuring safe handling when preparing and delivering orders. In comparison, only 16% to 17% of shoppers who typically shop at grocery stores or supercenters for groceries have a high level of trust.

In addition, 24% say their typical shopping time of day has changed due to the pandemic: 61% of these shoppers are shopping at different times to avoid crowds, while 34% are shopping at different times when they think the store is cleaner and 41% are going when they think more products will be available. In addition, 20% are shopping around modified school schedules, and 11% around modified work schedules.

When it comes to purchasing food, 19% are more likely to buy food online for in-store pickup due to the pandemic. This is especially true among men, urban consumers, and younger consumers.

Research shows 18% are more likely to buy food online for delivery due to the pandemic, and 18% are more likely to buy food online for curbside pickup.

In addition to food, 83% of shoppers feel household supplies and paper goods are important to have on hand right now. This is especially true among women, Gen Xers and urban consumers.

Also, 75% feel OTC (over-the-counter) medication is important to have on hand right now, with the highest percentages coming from women, Gen Xers and rural consumers.

And 82% feel personal care items are important to have on hand right now, especially among Gen Xers, urban and rural consumers.

The study urges retailers and brands to think twice before abandoning all promotional activity in the midst of the COVID-19 pandemic because many shoppers are still looking for deals as they stock up for an uncertain future.

Three key takeaways about the state of shopping behavior at this point in time are:

  1. Shoppers are still shopping;
  2. Online shopping is growing; and
  3. Shoppers are ready to stay loyal.

For more on the study’s findings, click here.

Originally published at Convenience Store News. 


Screen Shot 2020-02-11 at 12.54.16 PM

5 topline insights from C-store IQ: National Shopper Study

Defining convenience: New data delves into the minds and habits of Canadian c-store shoppers

Convenience means different things to different people, but for most c-store shoppers it’s about saving time and effort.

As expected, the definition of convenience includes location, hours and product selection, however, for a growing number of Canadian consumers it also comes down to overall ease of experience. 

Convenience stores that prioritize simplifying the shopping and purchase steps are more likely to see rewards with increased traffic and basket size, according to insights from the new C-store IQ: National Shopper Study from Convenience Store News Canada.

C-Store IQ is the first convenience and gas specific study that delves into the wants, needs, perspectives and habits of Canadian consumers. We worked with the research team at EnsembleIQ and Canadian Viewpoint Inc. to survey more than 1,000 convenience shoppers across the country to bring our readers and our partners the insights and data necessary to better understand customers and achieve business success. 

Survey participants shared their definitions of convenience and so much more in this comprehensive study: This is a topline report and we will be digging into the data throughout 2020, both in the magazine and online. 

For starters, Canadian convenience store shoppers associate the word ‘convenience’ with overall speed—41% of those surveyed said it purely comes down to having a “convenient” experience and 34% define this as a “quick stop/in and out.”

Proximity—to home and work—is important, with 25% of shoppers saying convenience is “close to me,” while 16% said longer hours and being open when larger stores are closed is important. 

Screen Shot 2020-02-11 at 12.57.14 PM

WHO’S SHOPPING?

A quick stop at a convenience store is part of the fabric of daily life for most Canadians: 43% shop chain convenience stores and 38% visit independently-owned convenience stores at least once a week.

Millennials lead the charge when it comes to convenience shopping: 50% said they shop a chain c-store at least once a week, compared to 45% of generation X and 36% of baby boomers. For independently owned c-stores, 42% of millennials are more likely to shop at least weekly, compared to 34% of generation X.

WHAT’S DRIVING CUSTOMERS IN-STORE?

Location, location, location: For more than half—54%—the key element that prompts them to visit a particular c-store is proximity, followed by the need to purchase gas (46%) and loyalty programs (28%). 

More than half of c-store customers shop at a convenience store that has a loyalty program and 42% are enrolled in and actively use their store’s loyalty program. 

Screen Shot 2020-02-11 at 12.55.47 PM

Technology and related apps aren’t huge overall drivers for Canadian c-store shoppers, however when analyzing data by generation, new patterns emerge. Younger shoppers prefer less bulk in their wallets, opting instead for mobile apps.

Millennials respond more readily to digital promotional tactics (mobile app, social media promotions, mobile ordering and email) and younger shoppers in general are influenced by promotional signage or car wash promotions during their shopping trip. 

Here’s how digital efforts measure up:

  •     Mobile app: Millennials (14%) are more likely to be influenced than generation X (8%) and boomers (3%).
  •     Social media promotion/offer: Millennials (10%) are more likely to be influenced than generation X (8%) and boomers (4%).
  •     Text message: Millennials (5%) are more likely to be influenced than boomers (0.2%).
  •     Mobile ordering: Millennials (4%) are more likely to be influenced than generation X (3%) and boomers (1%).
  •     Email: Millennials (8%) and generation X (9%) are more likely to be influenced than boomers (4%).

All indicators are that the future is digital, which calls for better optimization and integration of stores’ digital infrastructures.  

WHERE AND WHEN DO CANADIANS SHOP?

Screen Shot 2020-02-11 at 12.56.41 PMCanadians are a loyal bunch, with 70% of shoppers saying they typically visit the same store each time. When considering the convenience store they shop most often, foundational attributes, including the price of products (40%), fun to shop (18%), quality of prepared foods (20%), loyalty programs (19%) and variety of products offered (16%) are the top five reasons why they favour a particular store. 

Screen Shot 2020-02-11 at 12.57.57 PMThe breakfast hours are ripe for shopper conversion, with only 17% of shoppers starting their day with a trip to the convenience store. Visits gradually increase throughout the day and peak during the rush hour/early dinner daypart, with visits from 39% of shoppers.  

 

In an ideal world, shoppers who purchase gas would also pop into the c-store to spend more money, however only 3% say they purchase merchandise and/or foodservice “every time,” while 17% purchase these items “almost every time.” In turn, 19% of shoppers say they “rarely” purchase merchandise or foodservice.

Screen Shot 2020-02-11 at 12.58.10 PM

Of the more than one-in-four people who shop for both gasoline and in-store merchandise at least once a month, 28% say they were recently influenced by frequent buyer/loyalty programs to make the trip inside and spend. About one-in-five were influenced by promotional signage and one in 10 were influenced by mobile app promotions/deals.

Screen Shot 2020-02-11 at 12.57.41 PM

WHAT ARE CONSUMERS BUYING?

Shoppers typically visit a variety of stores to satisfy their needs, however convenience stores are the channel choice of choice for a number of categories. 

Lottery tickets are a key driver, with 53% of shoppers purchasing lottery tickets in the past month, while 46% purchased gasoline. Traditional convenience products are among the most frequent purchases, with 36% of shoppers buying salty snacks, followed by candy or gum (33%), canned/bottled soda (30%), bottled water (26%) and hot dispensed beverages (25%). 

Screen Shot 2020-02-11 at 12.58.43 PMNot surprisingly, among those who purchase cigarettes and other tobacco products, c-stores are the destination of choice: 22% of consumers visit a c-store to buy cigarettes. 

Frozen drinks, almost exclusively the domain of chain c-stores, are a big pull, with 19% of shopping buying these within the last month. 

And, yes, the milk run is still a huge part of the c-store experience, with 30% of shoppers buying milk in the last month. 

There’s still plenty of room for growth in foodservice, with 16% of shoppers stopping for grab-and-go prepared foods (hot dogs, packaged sandwiches, salads etc.) and only 10% buying made-to-order food.

It’s worth noting that those who define themselves as “health-conscious shoppers” are likely to spend more than non-health-conscious shoppers, mostly owing to the higher priced better-for-you products. 

HOW MUCH ARE SHOPPERS SPENDING?

On average, shoppers spent $13.56 during their most recent convenience store trip, not including the price of gasoline. Cards are king, with more than one-third of shoppers (35%) using a debit card, while 31% opted for a credit card. Cash is still a major mode of payment for 30% of shoppers, while mobile payment accounts for only 1% of purchases. It’s worth noting, however, the generational divide when it comes to payment preferences: 38% of boomers and 29% of generation X are more likely to have paid with cash, compared to 22% of millennials. Instead, 41% of millennials said they paid via credit card, compared to 27% of generation X and 25% of boomers.

Younger shoppers already demonstrate higher usage of debit and mobile payment compared to older generations and, as a result, convenience stores will continue to benefit from opportunities to offer more digital or frictionless shopping, payment, and promotional solutions. 

Screen Shot 2020-02-11 at 12.58.23 PM

According to spending patterns, younger shoppers are the c-store shopper of the future: A large percentage of boomers spend less than the younger generations, perhaps indicating they depend less on quick c-store visits to buy essentials. 

Overall, however, as Canadian consumers feel increasingly time-pressed and, in turn, seek solutions to make life easier and more streamlined, c-stores have an important role to play in meeting these needs by delivering the right products, at the right time, right away:  It’s all about convenience. 

Screen Shot 2020-02-11 at 12.58.57 PM


OnCall_CCentral

How do you find the right answers?

Find out where 82% of retailers turn for advice. Read more