Shoppercentric WindowOn 54 - Shopper StockTake 2024

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Because turning shoppers into buyers matters

StockTake 2024

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www.shoppercentric.com

54

TRENDS

ISSUE

This report is based on online interviews amongst a nationally representative sample of UK shoppers aged 18+. Our sample is representative of the UK population on not just gender and age, but on region, ethnicity and sexuality to ensure everyone has a voice.

1,020 respondents were interviewed in November/December 2024. During this period we also conducted short qualitative interviews with Gen-Z shoppers into their emerging habits.

Our quantitative Shoppercentric Stocktake measures in most cases go back to 2016 and allow further interpretation of pre and post COVID-19 trends. Some measures go back to 2009, the heart of the credit-crunch.

TRENDS TRENDS

ISSUE ISSUE No.54 No.54

A big thank you goes out to the teams at Vitreous World for providing the quantitative sample and to Datatree for the survey scripting & data processing.

PUBLISHED BY: Shoppercentric EDITOR: Rob Bates DESIGN: Mike Higgs

e: mikehiggs@mac.com We welcome ideas for future articles and reports. Guidelines on our preferred format and style are available from info@shoppercentric.com

© Shoppercentric 2025

All copyright is vested in Shoppercentric unless expressly stated otherwise. No permission is granted for reproduction, use or adaptation of the material, save as to provide for under Statute, and any such use must be accompanied by the appropriate accreditation.

Because turning shoppers into buyers matters

Welcome...

Trends Research...

Jamie Rayner,

Survival of the Smartest:

Managing Director, Shoppercentric

Welcome to our 54th edition of WindowOn: The Fast, the Frugal and the Future.

Welcome to the evolving world of UK grocery retail, where speed meets savvy, and Gen Z is reshaping the rules. Prices are up, patience is down, and shoppers are getting smarter.

Their discernment in expenditure means they are visiting about two more retailers than they were five years ago to get the best deals.

Tesco still leads the pack, with Clubcard driving recordbreaking loyalty, while Aldi and Asda battle for first-time shoppers amidst other channel shifts. And then we have Gen Z. They are writing their own shopping scripts.

This group are financially cautious, yet convenience obsessed. They hop between more retailers every month than any other group and utilise rapid delivery services despite using loyalty cards less often.

In 1995, a chocolate craving meant a trip to the shop, by 2025, that same snack lands at your door in as little as 20 minutes and the trend is booming. 77 million orders were met in early 2024 alone and 4 in 10 of ‘us’ have used a service like this in the last month. And it’s not just about snacking – it extends to meal solutions, delivered food that is ready to eat or cook yourself. These experiences can drive different shopping and cooking habits.

2

How UK Shoppers and Retailers Navigate an Uncertain 2025

The Untold Pressures of Gen Z

8

Generation Z, aged 16 to 27, has faced an unprecedented start to adulthood

UK Grocery Retail in Flux:

14

Shoppers Demand Value, Variety, and Convenience

18 The Surge of Convenient New Routes to Consumer The way we get what we want has transformed, and speed is now the priority

28 Spotlight: WindowOn Health and Wellness

But let’s not hide away from the reality of challenging times persisting for UK shoppers. Our latest survey reveals a complex picture: while some households are benefitting from rising incomes and lower bills compared to last year, a significant third: ‘Strong Reactors’, continue to face financial hardship. Precautionary cutbacks are also on the rise, reflecting broader economic uncertainty.

When a new year begins, health and wellness are often on the radar

Understanding these habits isn’t just smart, it’s essential.

Exciting times ahead if you can ‘work it out’. We are here to help you achieve exactly that.

Disability Representation:

TRENDS We thank you for reading this far, do continue!

ISSUE

WO54 Thought Piece: 22

Nothing about us without us

WO Regulars Shoppertalk –

13

Words from the hight street

Survival

of the Smartest: How UK Shoppers and Retailers Navigate an Uncertain 2025 Written by Marie Screene marie@shoppercentric.com

Challenging times continue for the UK shopper.

Our nationally representative survey of 1,020 shoppers shows that whilst some households are less financially pressured compared to 2023, with rising incomes and lower bills, a third of shoppers (Strong Reactors) still struggle financially.

More people (the Planners) are cutting back as a precaution, reflecting ongoing uncertainty. Understandable given the British Chamber of Commerce warning (5th Jan 2025) that UK business concern about rising national insurance from April could lead to an increase in consumer prices. Some, like Sainsbury’s, have already said the budget implications, costing £140M from April, will be managed through a range of measures, including the planned loss of 3,000 jobs and closure of cafés and deli counters.

2

Shopper Trends No.54 | StockTake 2024

25%

Figure 1: The proportion of ‘Strong Reactors’ remains high in 2024

49%

33%

16%

18%

11%

19% 18%

34%

31% 25% 16% 10% 2017 Brexit (n=1108)

% Unaffected

19% 14%

% Planners (Cutting

back just in case)

34% % Soft Reactors

26% 24% Wave 3 December 2020 (n=1206)

(Having to make small changes)

39%

32%

33% % Strong Reactors

Wave 4 February 2022 (n=2011)

Wave 5 December 2023 (n=2005)

Our latest survey confirms that ‘Strong Reactors’ continue to be primarily aged 25-34, from C2DE backgrounds, households with children, or those living with a disability or health condition. This demographic breakdown underscores widening societal divides that have only intensified since the COVID-19 pandemic.

Wave 6 December 2024 (n=1020)

(Struggling financially)

Household finances strongly influence attitudes and behaviours, in particular anxiety, which we’ve tracked since 2020. Among Strong Reactors, in 2024, anxiety levels are twice the average. But for everyone, the top concern was the rising cost of living, particularly linked to energy bills and grocery prices.

Figure 2: Drivers of anxiety in December 2024 The cost of rates/bills (e.g. energy bills) The cost of grocery shopping The situation with Ukraine/Russia Immigration The political situation here The environment (Global warming/extreme weather events) Provision of physical & mental healthcare services The situation in the Middle East My personal and family’s health and wellbeing Local/ national crime and violence The political situation in other countries Losing my job/ income Provision of education and children’s services Loneliness / isolation The impact of technological advances on society

Shopper Trends No.54 | StockTake 2024

43% 37% 35% 30% 29% 28% 27% 26% 26% 26% 25% 21% 20% 20% 19%

3

How are shoppers adapting?

Shoppers remain highly price-conscious. Over three-quarters say they are more aware of prices than before, a consistent theme since February 2022. Budgeting remains a priority, with more shoppers opting for smaller packs to save money but slightly less focus on promotions that just save money, rather than offer ‘more’.

Loyalty cards and special buys sections have become more important in deciding where to shop, influencing in-store choices more than before. With ASDA’s recent announcement about their biggest Rollback price cuts for years, will this disrupt or accelerate the loyalty card momentum?

Will there be a knock-on effect on other retailers’ EDLP, own label and pricing strategies as retailers, for sure, will fight to keep their hard-earned shopper penetrations.

Figure 3: Levels of agreement with Pricing and Promotion statements Wave 3 December 2020 (n=1206)

76%

79%

Wave 4 February 2022 (n=2011)

76% 78%

76% 70%

Wave 5 December 2023 (n=2005)

Wave 6 December 2024 (n=1020)

73%

59%

24%

I’m more aware of pricing than I used to be

4

I prefer promotions that save me money rather than giving me more of the same thing

Shopper Trends No.54 | StockTake 2024

27%

32%

37%

I buy smaller packs to save money

Figure 4: The increasing importance of loyalty cards and ‘special buys’ areas Wave 4 February 2022 (n=1006)

Wave 5 December 2023 (n=1001)

I have their loyalty cards 67%

72%

58%

Wave 6 December 2024 (n=1004)

There is a ‘special buys’ area I can browse (e.g. a promotions area/zone) 60% 55% 49%

Sustainability in Action: Shoppers Are Willing, But Will They Pay? 93% of our shoppers report making some sustainable choices in their daily lives, a trend that has remained stable since 2022. However, action level varies by age, household type, and social class, with those aged 25-44, households with children, and ABC1s more likely to act sustainably.

Sainsbury’s shoppers are notably more active in sustainability efforts.

Figure 5: Shoppers are once again willing to pay more for eco-friendly/ sustainable products

42% 33%

37%

43%

On a positive note, willingness to pay more for eco-friendly products has rebounded to December 2020 levels, suggesting those who want to are now more able to spend a little extra on sustainability.

Wave 3 December 2020 (n=1206)

Wave 4 February 2022 (n=2011)

Wave 5 December 2023 (n=2005)

Shopper Trends No.54 | StockTake 2024

Wave 6 December 2024 (n=1020)

5

What people do to be sustainable is changing.

Since 2023 our research shows fewer people buying products with less packaging, purchasing wonky fruit and veg, or actively supporting local products. This does vary by retailer: wonky fruit and veg purchases are lower among online shoppers, but higher among Aldi and Lidl customers – visibility and price playing a key role here. Buying products with less packaging is more common among Sainsbury’s and Tesco shoppers, while Asda customers engage less. This may of course reflect, a louder retailer ‘voice’ in-store for example, Tesco’s 4 Rs Strategy (Remove, Reduce,

Reuse and Recycle) – shoppers know they are benefitting from retailer changes, rather than having to ‘think’ about this at the point of purchase.

Supporting local products is less common among Morrisons and Lidl shoppers. Morrisons is an interesting juxtaposition given their long-term commitment to support local, British produce.

Clearly, Morrisons shoppers are not driven to shop there by the desire to support local products. It would be encouraging to see more shoppers choose to shop ‘somewhere’ that tallies with the raison d’étre for that retailer. That would be tangible differentiation.

Figure 6: The declines in certain sustainable shopping behaviours June 2019 (n=1018)

Jan 2020 (n=1024)

Buy wonky (imperfect) fruit and veg

Dec 2020 (n=1206)

Buy products with less packaging

48%

45% 43%

Feb 2022 (n=2011)

47% 40%

33%

36%

33%

41%

Dec 2023 (n=2005)

Dec 2024 (n=1020)

Buy local products 43% 36% 29%

34% 35%

N/A N/A Strong amongst most often shoppers of Lidl (48%) and Aldi (43%) Only 27% amongst those shopping online most often.

6

Strong amongst most often shoppers of Sainsbury’s (44%) and Tesco (43%), weak amongst Asda (24%).

Shopper Trends No.54 | StockTake 2024

Strong amongst most often shoppers of Tesco (30%), weak amongst Morrisons (14%) and Lidl (16%)

31% 24%

Whatever the sustainability strategy, whether this is offering wonky fruit and veg, partnering with food banks or improving cosmetic standards, shoppers need regular reminders through in-store signage and marketing campaigns if this is to continue to be part of the story.

Do check our previous WindowOn issues 33 or 53 for more in-depth sustainability articles.

Building Connections: How Can Brands Fight Loneliness and Strengthen Customer Loyalty?

Loneliness is a widely discussed topic in the media, social platforms, and government reports and 1 in 5 of our shoppers said this was an issue for them. Research touches on themes like social stigma, workplace culture, and mental health as drivers of loneliness.

Among UK shoppers, 18-24s and those with a disability or health condition are most likely to be anxious about loneliness. This concern reduces

considerably amongst shoppers over 55yrs.

Retailers like Asda have launched initiatives for older adults, like the “Winter Warmer” Chatty Café campaign, but, there are fewer programs to support young adults, who have been hit hard by COVID-19, tech changes, and global uncertainty.

Young men without children are the most likely to feel lonely. Brands like Smirnoff, Stonegate Group, and Heineken have taken steps to address this, but there’s a big opportunity for retail spaces and brands to foster connections. Strengthening customer relationships while promoting social responsibility and tackling loneliness sounds like a valuable goal to pursue.

Stonegate Group and HEINEKEN UK’s ‘Pub Alone’ campaign, designed to create conversations on loneliness and encourage connections

Moving into 2025 April’s National Insurance hike threatens to push consumer prices even higher as businesses scramble to offset rising costs. Meanwhile, Asda’s aggressive price-cutting strategy to gain market share could ignite a fierce pricing war, forcing rival retailers to react and reshuffle their plans. This volatile landscape demands constant vigilance: shoppers will vote with their wallets, and only the most agile retailers will emerge stronger from this prolonged economic squeeze.

With relentless pressure on household budgets, consumers still crave satisfaction and reward.

Brands that forge a strong emotional connection will thrive, those that don’t will struggle to stay relevant. In this high-stakes environment, complacency is not an option. If shoppers aren’t choosing you, they’re choosing someone else.

Now is the time to fight for visibility, loyalty, and relevance. If your category is the challenge, swift and strategic collaboration with retailers is critical, prove you understand their shoppers, or risk being left behind.

References https://biotech4.co.uk/wonky-veg-benefits

Shopper Trends No.54 | StockTake 2024

7

The Untold Pressures

of Gen Z Written by Jamie Rayner jamie@shoppercentric.com

Generation Z, aged 16 to 27, has faced an unprecedented start to adulthood. As the first generation to grow up fully immersed in an internet-connected world, they’ve navigated life with social media as a constant presence from a young age. Their transition into adulthood has been shaped by the turmoil of the COVID-19 pandemic, ongoing global conflicts, a mental health crisis, soaring living costs and instability in every corner of society.

These challenges have created a resilient but cautious generation, grappling with a world that feels unpredictable and uncertain.

8

Shopper Trends No.54 | StockTake 2024

%

Figure 1: What is concerning our Gen Z shoppers?

43

% Total (n=1020)

Gen Z 16-27 (n=154)

s Indicates the anxieties that are significantly higher for our Gen Z shoppers

46 37 33

35

38 33

s

34 30

29 29 28 24

31 27

35

34

s

s

26

28

26

26

34

32

s

s

33 s

27

25

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20

20

19

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21

It is of no surprise, Gen Z respondents in our data are the most likely of any generation to be feeling anxious/distressed about life with over 1/3 (36%) reporting feeling extremely/very anxious/ distressed. Research from Mental Health UK showed that 1 in 3 18–24-year-olds had time off work in 2024 for stress and mental health reasons.1 The reasoning behind the startling number, which was up from 2023, was put down to job security fears, the chance of redundancy and working overtime/ taking extra hours to try to alleviate the cost of living impact.

Within our data, it is the older Gen Z (those aged 23-27) feeling the pinch the most with 55% stating they are extremely/very anxious/distressed about the cost of rates and bills, likely as they are in the early stages of ‘full’ independence, standing on their own two feet for the first time and feeling the

economic hit personally, while the younger group (18-22) are potentially supported through family and educational grants. Gen Z are more likely to be affected than the general population by the economic changes and are making changes to their household shopping. 42% of the older Gen Z group are having to make major changes/ struggling financially. The younger Gen Z group are more likely to be making minor changes to their spending.

Across all worries, Gen Z are the least concerned about immigration, but are significantly more concerned on most measures, including technological advances, loneliness/isolation, education/children’s services, local/national crime, losing job/income, political situations in other countries and personal/family wellbeing.

Shopper Trends No.54 | StockTake 2024

9

Considered & Calculated: How Gen Z is Redefining Shopping Habits Our latest data suggests that Gen Z are more likely than other generations to shop at ASDA most often and in the last month with 18% of those sampled saying ASDA for their main shopping retailer, while 51% claim to have used an ASDA in the last month. While it is hard to distinguish what is causing this shift to ASDA, it can be seen that ASDA performs strongly on social media 2, despite a smaller following. There has also been the addition of ASDA on the Move sites increasing availability, it could also be a proximity bias with ASDA Superstores found in student areas. ASDA’s clothing retailer George could also be playing a part, with almost 1/4 of our Gen Z shoppers having a child aged 0-5 in the household.

retailers per month. Tamara Charm, a partner at McKinsey & Company, explains that Gen Z “are really savvy at going between their phone, their apps, the website, the store and back, again and again to figure out, ‘What do I want? What do I need? When am I going to get it?’ and being really intentional about that shopping”.3 Therefore, a combination of being the first true generation to be digital natives, combined with a desire to make ends meet, means our Gen Z appear to be shrewd with their shopping looking for the best deals and quality. Given that Gen Z are so tech savvy, they are more likely to open their phone in-store and see if they can get a better offer elsewhere.

In the last month...

8 in 10 ordered a takeaway for delivery or collection 8 in 10 ordered a groceries/household items for delivery or collection

Figure 2: Retailers’ TikTok Impact Followers (Thousands)

Likes (Millions)

518.3

7.2

394.3

3.5

277.9

1.6

277.9

2.0

216.1

4.0

Surprisingly, Tesco supermarkets appear to be less likely to be used as the most often shop amongst our Gen Z shoppers, driven by low levels of usage amongst the youngest Gen Z shoppers. Although Gen Z are the second most likely generation to be using Tesco.com. Of the other retailers, B&M stands out as performing well amongst Gen Z. With the exception of the millennial generation, Gen Z are using significantly more retailers than other generations, using an average of 7.25

Are Gen Z shopping differently in any other areas?

Well, Gen Z are significantly more likely than the general population to order takeaways, shop for groceries online for delivery or collection, subscribe to delivery services, direct from brand deliveries and rapid grocery deliveries. Our data suggest Gen Z are more price conscious and shop with prices in mind, shaping their shopping habits and mirroring the struggles and anxieties they are facing which we discussed earlier. They see more importance in ‘Special buy’ areas as well as good customer support. Rather counterintuitively, Gen Z are using loyalty cards less, therefore missing out on the best prices.

Figure 3: What is important to Gen Z shoppers?

Total (n=1020)

% Gen Z (n=154)

73 s 82 72 s 81

Have the cheapest prices The customer support is good There is a ‘special buys’ area I can browse There are unique items that I can’t find elsewhere

60

s 72

60

s 77

s Indicates the anxieties that are significantly

higher for our Gen Z shoppers

10

%

Shopper Trends No.54 | StockTake 2024

Intentional & Spontaneous Purchases: What are our Gen Z buying?

Gen Z shoppers in our data are buying fewer categories than any other generation, shopping an average of 7.6 (11.4 total) categories online and 7.0 in physical stores (9.4 total). While categories such as soft drinks, ice creams and plant-based products are largely aligned with the total sample, many categories under-index, particularly fresh fruit and veg, meat or fish, sweets & biscuits and alcohol. The younger generations consuming less alcohol is something that is being seen up and down the country, earning them the nickname ‘the sober curious generation’. With mental health a priority, a focus on their physical health, tight budgets and a realisation that alcohol is not always needed to have a good time, Gen Z are rejecting alcohol in droves. Roughly 21% do not drink at all according to Drinkaware data from 2023 (the highest of any group) 4, they are also the lowest group for drinking weekly. One such example of this difference is at the University of Bradford, the university has replaced one of its student union bars with an alcohol-free space offering bubble tea, smoothies and coffees, alongside traditional bar offerings such as a dance floor, pool tables and live TVs to cater to changing student demands.5 There are some categories where Gen Z are more likely to be purchasing however, sexual wellbeing products, health and nutritional supplements, sports supplements and prepackaged sandwiches/ meal deals are all more prevalent among our 18–27-year-olds. It appears the younger generation may be turning to supplements rather than fresh fruit and vegetables to look after their health.

Interestingly, Gen Z also sees more importance in being able to find unique items that they can’t find elsewhere, this could be due to a lack of choice in where they usually shop. In a recent The Grocer article, an Oxford University student pointed to the issue of format failure for Gen Z 6.

Often with no car and based in city centres, Gen Z are restricted to convenience formats rather than large supermarkets and discounters where ranges

are wider and offers more abundant. Our latest WindowOn data certainly points to this with Gen Z being the top user of convenience formats in the last month for grocery and household shopping, 58% doing so. Tesco Express, Costcutter and Londis are all significantly more likely to have been used by Gen Z in the last month, with Spar, Budgens, Co-op and Sainsbury’s Local also directionally higher. Shopping in these formats often means that Gen Z are paying more (we know these are also those with the tightest budgets) and that they don’t get access to the products they want, Freddie Finlay states “Unique pack formats with striking designs, such as kimchi noodles or tikka masala in a can, are a ‘go to’, but I struggle to find them where I normally shop. The paradox?

Gen Z do not shop in larger store formats where products they want are stocked, but shop in convenience formats where they are not.” 6 We mentioned earlier that Gen Z over-index on meal deals, exploring the food and drink to go market, Gen Z are significantly more likely to be buying food and drink at their place of work (e.g. a canteen) and significantly more likely to be going out to buy food and drink during a break/ lunch break, while also directionally being more likely to buy food or drink whilst out and about (e.g. a meal deal, snacks on the go, picking up a coffee, buying from a fast food restaurant). It is of little surprise then that in a typical week our Gen Z shoppers have the highest average spend with roughly £45 spent on food/drink to go a week (Total £38.60).

While meal deals offer a relatively cheap lunch, options are often limited, as Freddie Finlay states “Why not use some of the meal deal space to trial innovations or flavours that appeal to a more experimental audience?” 6

So why are Gen Z important to brands?

Although many Gen Z are still in education or early in their careers, their spending power is yet to reach its full potential. Clearpay predicts they will account for 39% of UK retail spending by 2030 7.

Their influence goes beyond their purchases, as they also impact the spending habits of their Gen X parents (1965 – 1980).

Shopper Trends No.54 | StockTake 2024

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SHOCKS

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SHOCKS

STYLES

SCRIPTS

SWITCH

STICKINESS

NO

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YES

NO CHANGE

%

YES

SIDESTEP

%

NO

READJUST

YES

PIVOT

%

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FULL RESET

%

SWITCH

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Figure 4: Our Shocks & Switches Model

G

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For brands and retailers, the key is understanding how to win over Gen Z as early as possible. This starts with examining how Gen Z form shopping habits. In our 2021 StockTake Report, we explored our Shocks & Switches model to assess how the disruptions caused by the COVID-19 pandemic and lockdowns might shape long-term shopping behaviour - whether trends like home baking would become permanent or fade back to prepandemic levels. With Gen Z, however, we’re seeing a generation entering the shopping world for the first time, developing their own styles, habits, and decision-making patterns. We must watch closely how this generation develop their shopper blueprint.

For many Gen Z stepping into independence for the first time, their go-to retailers are often those that are nearby and convenient. Some may gravitate toward familiar brands they grew up with

References 1 www.thetimes.com/article/a73e7d32-7fb9-4738-b1121130c7d3dd1f?shareToken=bd4217a41ed6d28e0777e6 50ee7006ab 2 www.grocerygazette.co.uk/2024/10/08/supermarketstiktok-gen-z/#:~:text=In%20the%20UK%2C%20 Morrisons%20and,resonates%20with%20these%20 social%20communities.%E2%80%9D 3 www.bbc.com/worklife/article/20231218-the-pickybuying-habits-of-gen-z-consumers

12

%

YES

CORE SHOPPER BLUEPRINT

A

YES

EFFORT

SCREEN (FRAME)

SATISFACTION

or those their parents frequented. While Gen Z is known for their love of online shopping, they’re also attracted to in-store experiences, where they can personally evaluate deals and engage with products firsthand.

Gen Z are cautious and sceptical, often prioritising health, wellness, and social consciousness over excess. They avoid long-term commitments, including brand loyalty, due to a lack of trust in traditional institutions shaped by economic and political instability. To connect with Gen Z, brands and retailers should focus on authenticity, transparency, and ethical practices. Listening to their values now is key and understanding how that translates into their observed shopping practices. Their spending power will grow as they begin to support households and they will navigate this era of rapid change and uncertainty with a different shopper blueprint.

4 https://media.drinkaware.co.uk/media/aeihijza/thesober-myth-are-young-adults-really-a-generation-ofnon-drinkers.pdf 5 www.bbc.co.uk/news/articles/ ckg92vpep28o#:~:text=A%20university%20has%20 transformed%20one,cafe%2C%20Brew%20and%20 Co%20Kitchen 6 www.thegrocer.co.uk/comment-and-opinion/what-genz-students-really-want-from-grocery/695545.article 7 www.clearpay.co.uk/en-GB/for-retailers/access/meetgen-z---millennials/next-gen-index-september-2021-uk

Shopper Trends No.54 | StockTake 2024

Real words from the high street. Brought to you by the keen ears of the Shoppercentric team...

It just sounds like every other advert to be honest.

I used to buy chilled meat, but everything’s got so expensive, it’s all frozen now.

If you don’t know what you’re eating or what it’s made of, how can you ‘bring’ the taste home? That’s crazy isn’t it.

I don’t have any health issues, but my friends have and they’re the same age as me. So, I’ve been thinking I probably need to start looking after myself more.

I’ve been looking everywhere for these.

I don’t expect it to be on the end of the aisle. That was annoying.

Online stuff is just easy – you can literally do it whilst you’re chilling at home.

Really fresh products don’t actually have a brand, they just come from the farmer.​ Eco is just not my thing.

There should be a way of calling for assistance when products are not on the shelves.

I like the big vegetarian section, but it needs to go further, I still have to go to ready meals and pizza section to look at veggie options.

Our friends like weird and wonderful flavours so we were looking for anything weird that they’d like, especially strong flavours.

I like that these products are individually wrapped it stops you from eating the whole packet, like I would with biscuits.

It’s like Breaking Bad in our house in the morning, we take so many supplements.

I was clicking around and then I ended up on Instagram photos and they annoy me because they’re not real life. You get yourself into a worm hole.

I’m trying to get more sleep and take multivitamins.

I try and write my list thinking about the shop layout, start with fruit and veg, finish with freezers.

If I see more people do it, I’ll do it. I’ll feel less self-conscious basically.

I’ve never done this before. I know what I don’t want, but I don’t know what I do want.

Because I find online harder, I just want to go and have a look instore.

These signs would be great… if they were right!

My partner and I have made an agreement not to eat meat or fish at least twice a week. So, we have to come up with something else for those days.

I like to cook from scratch but not with a million ingredients. It still needs to be easy but healthy.

Shopper Trends No.54 | StockTake 2024

13

UK Grocery Retail in Flux: Shoppers Demand Value, Variety, and Convenience

Written by Jon Darby jon@shoppercentric.com

With grocery prices still a top concern, shoppers are more willing than ever to switch stores in search of deals. The number of retailers used per shopper has jumped from 4.8 in 2020 to 6.3 in late 2024, and this trend is set to continue. Nearly two-thirds of shoppers are willing to go out of their way for savings, and over half split their shopping across multiple stores and websites to get the best prices.

Let’s take a deeper dive into some of the behavioural shifts and reasons for the key retailers.

14

Shopper Trends No.54 | StockTake 2024

Tesco remains the dominant force in UK grocery retail, with half of all shoppers visiting its stores monthly and leading online sales. This has been consistent over the last 3 years. Tesco also holds the top slot for online grocers with 1 in 5 claiming to have bought from tesco.com in the last month, double that of Sainsbury’s. There is overlap of course, but 60% of grocery shoppers have bought from Tesco across both channels in the last month, with Clubcard membership continuing to play an important role. Tesco Chief Executive Ken Murphy shared in January 2025 that the supermarket had “made switching gains from virtually every part of the industry” in the run up to Christmas 2024, achieving its biggest-ever Christmas and highest market share since 2016 1. From our data, the biggest performance/perception gap between Tesco non-shoppers and Tesco shoppers is that ‘products are organised in a simple, clear way’ along with familiarity with the store layout.

Shifting Tides: Aldi and Asda Lead the Pack in First-Time Shoppers, but Growth Slows and Loyalty Challenges Persist Last year, we predicted Aldi and Asda would see more shoppers in the future. This year, our data confirms they top the list of stores tried for the first time, with 49% of shoppers testing a new grocery retailer in 2024. While both have attracted new customers, Aldi’s growth is slowing, and Asda is losing more shoppers than it gains.

Unsurprisingly, shoppers choose Aldi and Lidl mainly for their low prices. However, non-shoppers perceive their own-label product quality as lower than regular customers do. For most retailers (aside from knowing the layout) loyalty cards play a key role in store choice. Since Aldi non-shoppers value loyalty programs more than current customers, introducing one could attract even more shoppers.

Asda continues to pique shoppers’ interest as they roll-out store refresh programmes across its estate and invest heavily in things like its ‘back to school’ campaigns. ‘Always having the brands I want’ is the top performance metric for using Asda most often, however, their share of trade is reducing dramatically year on year, so they are losing more customers than they are gaining. 2 One to watch though is Morrisons; we are seeing early signs that shoppers are likely to use Morrisons more in the future, it’s possible this is the impact of the introduction (and expansion) of Morrisons More driving more traffic. This is not going to change how the landscape looks significantly, but, if they can overcome the loyalty card tech glitches in the build up to Christmas, there may be some further growth here.

Waitrose maintains a small yet loyal customer base, but there is a significant disparity between how its current shoppers rate its performance and how non-customers perceive the brand. This perception gap is the widest among all grocery retailers. However, the retailer’s plan to expand its footprint with 100 new convenience stores could help bridge this divide. By increasing accessibility for a wider range of shopping missions, Waitrose has the opportunity to attract new customers, allowing them to form opinions based on direct experience rather than perception.

Overall, amongst current shoppers in all stores, ‘always having the products I need in stock’ is more important than ‘having the cheapest prices’; this is where Sainsbury’s wins, closely followed by Tesco and then Morrisons (which has the highest importance of all amongst its shoppers).

UK Grocery Retail in Flux continues overleaf...

Shopper Trends No.54 | StockTake 2024

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Figure 1: Importance vs Performance for ‘Having the cheapest prices’ and ‘Always have the products I need in stock’ Have the cheapest prices

Always have the products I need in stock

90 80

Performance

70 60 50 40 30 20 % 65

70

75

80 Importance

85

90

95

Figure 2: Loyalty is waning, UK shoppers are trying more retailers in a bid to make ends meet # Average Retailers used in past month

# Average ‘New’ Retailers used in past month

# Average Retailers planning to try in future

Wave 6 - December 2024

6.31

2.40

3.41

Wave 5 - December 2023

6.43

1.90

3.21

Wave 4 - February 2022

6.29

1.31

2.86 2.93

Wave 3 - December 2020

5.46

0.90

Wave 2 - June 2020

5.07

0.96

1.35

Wave 1 - May 2020

4.80

0.83

1.20

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Shopper Trends No.54 | StockTake 2024

New Shoppers, Fast Delivery, and a Shift Toward Sustainability: How Younger Consumers Are Shaping the Future of Retail It is of no surprise that younger shoppers (18-44) are more likely to try new stores, while older shoppers tend to stick to their regular habits. By December 2024, only 5% of shoppers hadn’t visited a physical store in the past month, and 62% had ordered groceries online for delivery or collection. Click and collect has grown steadily, but fast grocery delivery services like Deliveroo, Uber Eats, and supermarket offerings are growing much faster. These, along with subscription services like HelloFresh and Gousto, are particularly popular among younger shoppers.

Whilst habit, and inertia, dominate store choice, how retailers respond to changing shopper attitudes and behaviours is just as important. It reassures people that they are spending their money wisely. Over the past year, there’s been a rise in demand for sustainably sourced products and eco-friendly packaging. Many shoppers also support British and local businesses, with nearly half willing to pay more for such products. Will this increase further as concern of external geopolitical unrest continues to drive a shift towards nationalism and protectionism? We did see a drive of more shoppers thinking, buying and supporting local in the Credit Crunch of 2008/9 with lower levels of conflict seen.

Shoppers visited more stores last month and tried more new retailers over the past year. Looking ahead, they plan to try even more, with an average of 3.4 new stores expected in the future. Tesco’s CEO, Ken Murphy, noted in their Christmas 2024 report that customers are spreading their spending more than in previous years. Last year, we discussed how UK shoppers are moving away from loyalty in favour of finding lower prices, and the trend is expected to continue into 2025.

Nearly two-thirds of our sample plan to shop around, even if it means extra effort, with 56% saying they’ll split their shopping across different stores and websites for the best deals and for some, the best product match.

To thrive in the UK’s fiercely competitive retail landscape, brands and retailers must rethink their approach. With shopper loyalty eroding and expectations constantly shifting, survival hinges on more than just great products, it requires a relentless focus on competitive pricing (on products that really matter), frictionless convenience, and compelling experiences that keep customers engaged. The winners will be those who don’t just react to change but anticipate it, creating deeper connections and stronger incentives for shoppers to return, time and time again.

References 1. https://www.retailgazette.co.uk/blog/2025/01/tesco-switching-gains/ 2. https://www.kantarworldpanel.com/grocery-market-share/great-britain/snapshot/29.12.24/31.12.23

Shopper Trends No.54 | StockTake 2024

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The Surge of Convenient New Routes to Consumer

Written by Rob Bates rob@shoppercentric.com

In 1995, unmet snack cravings meant going without or making the effort to visit a store. Fast-forward to 2025, and with a few taps on your phone, services like Tesco Whoosh, mean you can order in seconds, pay seamlessly (Apple Pay) and have your snacks delivered in as little as 20 minutes. The way we get what we want has transformed, and speed is now the priority.

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Shopper Trends No.54 | StockTake 2024

Rapid grocery deliveries direct from retailers such as Tesco Whoosh, Sainsury’s Chop Chop or more often through the likes of Deliveroo, Uber Eats and Just Eat are soaring. This channel grew to approximately 77 million orders in the first half of 2024, worth more than £2 billion of sales in the UK according to research from Rodeo1. Of these 77 million orders, Deliveroo and Uber Eats account for roughly 24 million each, with Just Eat a further 15 million orders. Looking at the breakdown of the orders, Co-op is benefiting the most from this shift in shopping behaviour, claiming, just over a third of all Uber orders. The Co-op, and others, have clearly opened doors for these services and are benefiting from these additional revenue streams.

Figure 1. The breakdown of the 77 million orders in the UK on-demand grocery market during the first half of 2024 1

8m

6m

Deliveroo Uber Eats

15m

24m

Just Eat Other

Order Breakdown1

I have received a delivery direct from a brand or manufacturer for a specific product/set of products e.g. Heinz to Home. etc

34%

Co-op

Sainsbury’s One Stop Local

Figure 2. Convenience is key, Quick Commerce, Subscription Services and Direct from Brand Deliveries are all significantly rising.

19% 25% 38% 16% 21% 29%

I have had food delivered to me by a meal solution subscription service e.g.

Hello Fresh, etc

24m

17%

It’s not just rapid grocery delivery services on the rise. Meal subscription services such as Hello Fresh and direct deliveries from manufacturers continue to grow. 29% have received food via a meal solution subscription and 28% have received a food, drink or household item delivery direct from a brand such as Harry’s or Heinz to Home. Use of all three methods have increased significantly since 2023.

I have had my shopping delivered to me by a Fast Grocery Delivery e.g.

Deliveroo, etc

Tesco Whoosh

23%

The convenience and speed offered by these solutions is key. Looking at our latest numbers, 38% of our WindowOn sample claim to have used a fast grocery delivery service in the last month.

Even though the surcharge is low, people are clearly prepared to pay for speed of delivery. This desire for instant gratification is unlikely to diminish and will impact future retail landscapes, one way or another. Media is now consumed largely though smartphones and in short form such as YouTube and Instagram, platforms like Netflix offer short snappy episodes of your favourite show, so it was always the case that groceries and retail would follow suit.

14%

12%

Asda

Waitrose

Wave 4 February 2022 (n=2011)

Shopper Trends No.54 | StockTake 2024

13%

Wave 5 December 2023 (n=2005)

21% 28% Wave 6 December 2024 (n=1020)

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But who is using these and for what purposes?

Well, there is significant user overlap amongst all 3, with a similar profile to those who shop online.

Amongst our representative sample of UK shoppers, those aged 18-44 are significantly more likely to be shopping this way. 25–34-year-olds lead the way for rapid grocery deliveries and subscription services, they’re tech savvy and, importantly, starting to come into a bit more money to do so, unlike 18-24 year olds. Male shoppers are significantly more likely to be using subscription services and direct from brand deliveries. Male cosmetics/ health and beauty brands such as Harry’s, Dollar Shave Club and Hims could be driving behaviour change that now extends into meal subscription services that deliver inspiring meals with limited thought or shopping effort.

Our users are significantly more likely to be affluent (in the A social economic grade and the highest income bracket), time-pressured (working full time) and at home (more hybrid workers.)

These platforms are a great solution. Users are also significantly more likely to be in the south of the UK (likely a result of the more affluent skew) and to be feeling more anxious about life currently, matching the general feeling of the younger age groups in our research. A heady customer mix!

But it’s not just instant gratification that might be driving growth. They can provide an easier way to meet more nuanced consumer desires. Users of all three options, are significantly more likely to be following vegetarian diets. This will reflect the younger age profiles and shows the importance of it providing flexible offerings that cater to different diets. Subscription boxes are an easy route to inspiring vegetarian and vegan alternatives to traditional meals. It’s also a great opportunity for companies to differentiate and talk directly about their positioning with the end consumer. Some ethically based companies seem to be thriving.

‘Who gives a Crap’ offers sustainably sourced toilet roll delivered to your door, donates 50% of profits to charities that help those in need access clean water and toilets.

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Rapid and Direct Deliveries Empower Disabled Shoppers Over the years, you will have become aware of our focus on understanding more about UK disabled shoppers. We have committed to giving everyone a voice in our research through Voices4All, including those with a long-term disability, that amounts to 32% of UK shoppers in our latest data.

What has become apparent is the importance of direct from brand deliveries and rapid grocery delivery platforms to those with a disability. 44% of disabled shoppers have used a rapid grocery delivery platform in the last month (35% for those without a disability), while 36% have used a direct delivery from a brand (24% for those without a disability). These services improve accessibility to products, removing the need to go in-store when unable to do so due to physical disabilities or mental health issues, or both. We also know, from previous research, that many disabled shoppers are early adopters of new shopping methods, searching for solutions that better fit their needs and helped by ‘Big Tech’ focus on accessibility for everyone, (do look at the accessibility options on your phone).

The Future of Fast Delivery: Boom, Bust, or Just Beginning?

Is this growth sustainable? It would seem so. 12% of our sample stated they would be likely to use subscription/ delivery services more in the future, significantly higher than 2023. However, while fast grocery deliveries boomed during/following COVID-19 lockdowns, we have seen players such as Getir exit the UK market. During lockdown some people had money to spend as they weren’t going out. But a few years on, finances have tightened, and some are re-evaluating their desire for instant gratification. Uber Eats, Deliveroo and Just Eat have benefitted from being well established and continuing to build strong relationships with retailers and more able to withstand competition from supermarkets own rapid delivery offers. Add to this a lingering issue of the treatment of workers and we can be reasonably sure of more change of providers.

Shopper Trends No.54 | StockTake 2024

Figure 3. Initial data suggest Subscription/Delivery Services are likely to continue to grow.

8% 9% 12% Likely to use Subscription/Delivery Services MORE in the FUTURE Wave 4 - February 2022 (n=2011)

Wave 5 - December 2023 (n=2005)

Looking specifically at meal kits/subscriptions, the overall behaviour shift between the younger and older generation cancels each other out. The expected demand growth amongst 18–35-yearolds is counteracted by a decline amongst older shoppers. 32% of those aged 45-54 say they will use these less. Subscription churn continues to be an issue. Research in 2021 found that almost half of users cancelled a subscription-based service within the first two months of membership 2.

Despite this, data from Statista estimates there will be 2.3 million users of meal subscription kits in the UK by 2029 3. There is still a lot to play for. A strong ‘offer’ will be key. Companies such as Simmer Eats provide ready-made meals to your door on a subscription model. Simmer offers convenience, with a promise of healthy meals, high in ‘everything you need’, designed by dieticians with science-backed nutritional quality, arguably, for some providing a simple route to better diets.

Where next? Lifestyles are only getting busier and demand for convenient solutions is unlikely to diminish. Back in 1995, we probably could not have pictured receiving your shopping from your local supermarket delivered to your door within 15 minutes but look where we are now. Data from Tesco shows that 1.2 million orders were made through Whoosh in the build-up to Christmas 2024 4 helping to drive an 11% surge in online sales in the final quarter of the year. Tesco CEO Ken Murphy summed up the successful period for Whoosh describing the platform as crucial in “helping them (customers) shop whenever and however they wanted as they got ready for those important festive celebrations”. With the news that

Wave 6 - December 2024 (n=1020)

Tesco have poached Deliveroo’s Global Strategy Chief to head up Whoosh, the future looks sunny for the rapid delivery service.5 Could drone or robotic deliveries be the next big leap? Trials continue and time will tell (As of print, Amazon have just announced plans to trail drone deliveries in Darlington). For now, rapid delivery services are reshaping how consumers approach ‘food/drink for now’ purchases, challenging traditional habits. Brands, retailers and marketeers that adapt can benefit from tailoring to these core customer groups. Subscription services are redefining meal planning, offering inspiration and innovation that we’ve already seen some translate into in-store solutions via meal kit boxes and new lines. There’s plenty of opportunity, and these emerging channels are clearly resonating with shoppers.

For now, why not try out a rapid delivery yourself and let us know what you think, we’d be interested to hear your thoughts. Share your thoughts via hello@shoppercentric.com or look out for us on LinkedIn. References 1. www.gorodeo.app/blog/on-demand-grocery-passes2bn 2. www.thegrocer.co.uk/news/uk-subscription-servicesnearing-saturation-point-research-shows/685122.article 3. https://www.statista.com/outlook/emo/online-fooddelivery/grocery-delivery/meal-kit-delivery/unitedkingdom#revenue.

4. www.retailgazette.co.uk/blog/2025/01/tescosainsburys-christmas/ 5. www.retailgazette.co.uk/blog/2025/01/tesco-deliveroowhoosh/

Shopper Trends No.54 | StockTake 2024

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Thought Piece:

Disability Representation: Nothing about us without us

Written by Anna Dawson anna@shoppercentric.com

Improving disability inclusivity starts by opening-up conversations with disabled shoppers. Over the last few years, Shoppercentric have been privileged to partner with global companies and listen to the views of disabled shoppers, exploring their challenges in-store and online. Each project brings unique demands, but without fail delivers insight that embeds new ways of thinking, initiates new procedures and broadens product and service developments.

Building Disability Confidence

Hidden Disabilities www.hdsunflower.com

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Purple Tuesday www.purpletuesday.co

Scope: www.scope.org.uk

Shopper Trends No.54 | StockTake 2024

MyPlus: myplusconsulting.com

In 2024, we partnered with The LEGO Group to explore what toy shopping looks like for adults and children with disabilities.

This feeds into The LEGO Group global disability inclusion programme which aims to build disability visibility within LEGO sets. In 2011, a LEGO DUPLO character in a wheelchair was introduced. Since then, disability representation has expanded to include a diverse line-up of LEGO characters representing various disabilities and conditions. This includes characters with limb differences, prosthetics, cochlear implants, visual impairments, guide dogs, stoma bags, diabetes and most recently the addition of the world’s first official Hidden Disability Sunflower lanyard to be included in any toy.

Figure 1; The LEGO logo, Hidden Disability Logo and the LEGO characters with their Hidden Disability Sunflower Lanyards.

Lauren von Stackelberg, Chief Diversity & Inclusion Officer at The LEGO Group explained more about the importance of disability inclusivity to the LEGO brand during a Sunflower Conversation podcast run by the Hidden Disabilities Sunflower organisation.

The LEGO brand is a purposeful brand which aims to be a global force for learning through play. Our intention is to understand the world that children are looking to inherit, and the role the LEGO brand can play to help this. We need to represent the diverse world we live in. Our minifigure ranges help people feel seen and accepted, and improved awareness can start discussions about the unique individualities that exist. But we don’t limit representation to the characters, we have thought through the entire universe. It’s not just a character in a wheelchair, we design buildings around that character that are accessible, with ramps and signage to show how different people navigate the world. It’s the context that’s accessible, not just the representation of the character.

That’s how our intention evolves.

If we can design this thinking into our LEGO sets, then we recognise we need to do the same in our store design and customer service. This is a continual process. Our recent partnership with the Hidden Disabilities Sunflower scheme, in UK and Danish stores, means we can help individuals who want to discreetly indicate they may need extra support. And, through training, we support our staff to ensure they are knowledgeable enough to be able to respond. In 2024, all our US and Canadian stores, as well as LEGO House in Denmark, became Sensory Inclusive Certified by KultureCity. We’re expanding this to include our Western Europe stores in early 2025.

Shopper Trends No.54 | StockTake 2024

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Thought Piece: Build a world that is ready

Ivan Browne Senior Manager within Global Insight

Royce Yahya Senior Manager within Global Insight

Disability can affect anyone, at any time. Whether through illness, injury, or aging, the chances of experiencing some form of disability increase as we get older. From our latest WindowOn StockTake we know that currently 1 in 3 shoppers are living with a disability (constant since 2022).

Many have more than one type of disability, this increases the number of potential social barriers to be broken down.

Figure 2; Of our group of shoppers with a disability:

In line with this thinking, Royce Yahya and Ivan Browne from the Global Insight team worked with Shoppercentric to explore the current in-store experience through the eyes of the disabled shopper.

Our partnership with Shoppercentric in 2024 helped bring alive some of the challenges that shoppers with different disabilities (adults or children) may experience when visiting our stores.

Hearing directly from our customers makes a huge difference, says Royce Yahya, Global Insights. “The challenge is so much more than ‘just’ getting around a store in a wheelchair. For some, the biggest barrier might be getting to the store, others can struggle to find their way around or communicate their needs and some struggle to access all the products.”

Ivan Browne, Global Insights, builds on this highlighting that “A level of accessibility is inbuilt to our store design because of our desire to encourage children to interact with the product, yet we still heard many ways in which we can improve the experience. The LEGO in-store experience should be available to all. There is no shortcut to improving accessibility, this is much more than a few people flying the flag for disability inclusion – this is about real change. By listening and responding we aim to deliver a universal design that benefits and welcomes everyone.”

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51%

22%

27%

had 1 disability

had 2 disabilities

had 3 or more disabilities

This is not a group to be ignored socially, morally or economically. Well-designed spaces attract not just the disabled shopper, but their family and friends. By considering the needs of disabled shoppers now, businesses are preparing for a broader audience in the future.

Accounting for the needs of disabled people means extraordinary things can happen. As Claire Baldwin, Disability Advocate says “Chris McCausland’s win on Strictly is testament to what happens when we shift our focus from limitations to potential. The more we can celebrate, amplify and normalise disabled voices in all areas of life, the better. Disability is not a roadblock it is a perceptive shift. We need to build environments where everyone shines.”

Shopper Trends No.54 | StockTake 2024

Claire Baldwin, Disability Advocate

We saw this same message powerfully illustrated in the “Assume that I Can” 2024 campaign by CoorDown in partnership with the National Down Syndrome Society. This focuses on creating a positive self-fulfilling prophecy. It’s an attitude that applies to all disabilities and needs supporting through physical and mental shifts in society.

Figure 3; The “Assume that I Can” 2024 campaign by CoorDown

The Reality: Life is harder with a disability Despite an increasing number of conversations about disability, this has yet to translate into a significantly enhanced perception of inclusion.

Disabled shoppers are still more financially constrained, more anxious and less well served than shoppers with no disabilities. l Disabled shoppers are almost twice as likely

(45%) to say they are struggling financially and having to make major changes to their household spend than those without disabilities (26%). Scope reports that the average extra spend is now up to £1,010 a month for a disabled person, up from the £975 we reported in our 2023 StockTake edition. 1

l All households have felt the pinch in the last

few years, but those with disabilities have not experienced the ‘bounce back’ others felt in the last year. Currently, just 1 in 8 disabled shoppers say they are financially unaffected, compared to 1 in 4 shoppers without disabilities.

l 1 in 5 disabled shoppers reported a reduction

in income in 2024 vs 1 in 10 of those without disabilities. The only other group similarly impacted was the younger demographic (under 25 years).

l Almost 1 in 2 disabled shoppers are ‘very’

or ‘extremely anxious or distressed’ about their current life vs 1 in 5 shoppers without disabilities. This extends across a range of factors, but loneliness is one of the biggest points of differentiation. We know from other studies that social isolation and stigma are significant predictors of anxiety and depression among disabled people. 2 The shopping environment can exacerbate these feelings if it is not inclusive and accessible. Conversely, an inclusive shopping environment can make a real difference.

Shopper Trends No.54 | StockTake 2024

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Thought Piece: Figure 4; Financial pressures remain high for those with disabilities

10% 15%

14%

21%

17%

8%

20%

12%

31%

29%

36%

% Unaffected

12%

23%

12%

15% 31% 36%

32%

Planners (Cutting % % back just in case)

Soft Reactors % % (Having to make small changes)

48%

45%

35%

27% Feb 22 - Any Disability/ Health Condition (n=1107)

Feb 22 - No Disability/ Long Term Health Condition (n=1436)

Dec 23 - Any Disability/ Health Condition (n=527)

Dec 23 - No Disability/ Long Term Health Condition (n=1414)

45% 26% Dec 24 - Any Disability/ Health Condition (n=362)

Strong Reactors % % (Struggling financially)

Dec 24 - No Disability/ Long Term Health Condition (n=634)

Figure 5; Anxiety levels for disabled shoppers are higher across many areas of life Any Disability/ Health Condition (n=362)

No Disability/ Long Term Health Condition (n=634)

The cost of rates/bills (e.g. energy bills)

49%

s

39%

The cost of grocery shopping

45%

s

32%

The situation with Ukraine/Russia

40%

32%

Immigration

37%

s

26%

Provision of physical & mental healthcare services

37%

s

21%

The political situation here

35%

s

27%

The environment (Global warming/extreme events)

35%

s

23%

Local/ national crime and violence

35%

s

21%

My personal and family’s health and wellbeing

34%

s

22%

The political situation in other countries

34%

s

21%

The situation in the Middle East

32%

s

23%

Loneliness / isolation

31%

s

Losing my job/ income

25%

Provision of education and children’s services

25%

17%

The impact of technological advances on society

24%

16%

ANXIETY LEVELS – Extremely/very anxious

13% 18%

s Indicates the anxieties that are significantly higher for our disabled shoppers

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Shopper Trends No.54 | StockTake 2024

Tell people what you’ve done.

Shopping experiences vary considerably between those with and without disabilities. Everyone has specific needs and will interact with stores (online or real) in different ways. Better accessibility, better customer relations, better awareness and a ‘kinder’ approach will unlock improvements.

But how can we practically find out who is doing this well? This is where the organisation Sociability comes into play with a digital platform that provides detailed information about the accessibility of various venues, such as door widths, the number of stairs or table heights, all reported from the perspective of disabled customers. These specific details help individuals with disabilities far more than vague labels like “accessible” or “inaccessible”.

Matt Pierri, founder of Sociability emphasises that “access to detailed information about accessible places provides real empowerment. When disabled individuals know where they can go and what facilities are available, it builds confidence to explore their surroundings and participate more fully in society. This empowerment is not just about physical access, it fosters a sense of independence, belonging and inclusion.”

The Sociability App

Matt Pierri, Founder and CEO of Sociability

The Liverpool ONE shopping centre adopted Sociability in August 2024. Stores, restaurants, and entertainment venues were assessed for their accessibility features, creating an online directory for visitors to plan their visits and enhance accessibility.

Cultural shifts start with small changes Businesses that prioritise accessibility and inclusivity and integrate accessible ‘thinking’ into the fabric of their product and services stand to gain significantly. By understanding challenges and working with disabled shoppers to find solutions, shopping can be more accessible, inclusive and enjoyable for everyone. Delivering better human-centred store layouts, having more helpful staff, or using innovative technology, can improve the disabled shopping experience and deliver benefits for everyone. Small changes can have a significant impact.

Change starts with one conversation, and then one more conversation. We shouldn’t let the fear of saying or asking the wrong thing stop such dialogues from happening. With one in three of us having a disability of some sort we should be able to talk about this together. There are many organisations that train staff to be ‘disability confident’; helping people in-store (and the workplace) not to shy away from talking to any customer. It’s only by offering that first ‘hello’ that we will ever know who might, or might not, need assistance.

Importantly, don’t forget to include disabled respondents in insight programmes, keep to the mantra ‘nothing about us without us’. We have first-hand experience that it makes a difference.

References 1 https://www.scope.org.uk/ 2 (1) Oregan State University: Katie Wang, Robert B. Manning, Kathleen R. Bogart, Jonathan M. Adler, Michelle R. Nario-Redmond, Joan M. Ostrove, Sarah R. Lowe. Predicting depression and anxiety among adults with disabilities during the COVID-19 pandemic. Rehabilitation Psychology, 2022; DOI: 10.1037/rep0000434

Shopper Trends No.54 | StockTake 2024

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Spotlight:

WindowOn Health and Wellness Written by Marie Screene marie@shoppercentric.com Co-Authored by Rachel Stern,

James Nelson & Julie Krysik from

When a new year begins, health and wellness are often on the radar.

The term ‘health and wellness’ evokes a range of connotations. It may prompt some of us to join a gym, take out a subscription, start a brand-new activity, or even begin cold-water therapy. Others might put mindfulness into practice, commit to a dry January, go on a diet, or trial the latest food trend or supplement.

We asked our panel of grocery shoppers what products they buy, where from, and how they behave in relation to several health and wellness topics.

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Shopper Trends No.54 | StockTake 2024

Channel choice for health and wellness products

Figure 2; Examples of The What Supp Co. range

When it comes to purchasing health and wellness products, consumers have a wide range of options.

3 in 4 typically consider buying from physical stores, while 1 in 2 consider online retailers. Additionally, 2 in 5 purchase from pharmacies, and 1 in 10 shop directly from a brand’s website through direct-toconsumer (DTC) channels.

Channel choice does differ by age and household composition: younger shoppers and parents are more inclined to consider shopping online for medications without a prescription and/or health, wellness and hygiene products compared with older shoppers. Those buying direct from a brand website are more likely to be 25-34, working fulltime, and more affluent than other demographics.

The What Supp Co.2 is another great example of the DTC model: this is a new supplement patch product very much targeted at younger consumers who shop mostly online. The company are mainly building the brand on social media with some PR supporting alongside.

Figure 1; Examples of the Hims and Hers ranges.

Another example of health and wellness products looking for innovative channels is Vital Proteins, a vitamins, minerals and supplement brand that has partnered with Nespresso to create a new lifestyle routine by proposing adding supplements to your coffee.3 The partnership leverages an existing subscription offering in terms of customer database (providing Vital Proteins with a huge potential reach) and the associated benefits in fulfilment and logistics.

Examples of the DTC 1 model operating in the supplements and wellness categories include Hims & Hers, an American telehealth company that provides prescription medications, over the counter (OTC) medications, and personal care products. Hims started in 2017 as a men’s wellness brand specialising in pharmaceuticals targeting hair loss and erectile dysfunction; the womenfocused part of the brand, Hers, launched in 2018.

Hims & Hers let shoppers access a telehealth appointment with a doctor and buy prescription medication, shipped directly - and discreetly - to their homes.

Figure 3; The Nespresso and Vital Proteins Daily Wellness Pack. ‘Get more out of your daily coffee’.

Shopper Trends No.54 | StockTake 2024

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Spotlight WindowOn Health and Wellness

21% From Amazon 17% From a physical health and beauty retailer 17% Health food stores 15% From an online grocery store 13% From a pharmacy online 12% From an online health and beauty retailer 11% Direct from a brand website 8% Social media / e-commerce Health, Wellness, Hygiene, and NonPrescription Medication Purchasing Patterns in the Last Month 4 Shoppers purchase ‘toiletries’ more frequently as part of their physical or online grocery shopping compared to other health and wellness categories, with ‘sports supplements’ showing the lowest incidence in our survey. Toiletries have a higher purchase frequency cycle compared to sports supplements, which are more niché in appeal.

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Understanding where, when and with what other products the health and wellness categories are purchased will provide clues and opportunities for execution, either online or in-store.

Figure 5; Category purchasing bought as part of physical/online shop, in the last month (selected categories shown only).

62% 42% 48% 36% 25% 16% 20% 19% 13% 15% 12% 10% 5% 10% 5% 8%

Bread and rolls - Top ranked benchmark Toiletries s

36% From a pharmacy in person

Off the shelf medication Health & Beauty

s

40% From a physical grocery store

Amongst in-store shoppers, women are more likely to purchase health and beauty products, while individuals aged 18-34 are more likely to buy nutritional supplements, sports supplements, and sexual wellness products, along with parents. The 55+ age group tends to over-index on toiletries and OTC medication purchases. For online shoppers, parents and individuals aged 25-34 are the most likely to purchase health and beauty, sexual wellness products, and sports supplements.

s

Figure 4; Channel choices for health & wellness products.

Purchasing habits vary based on whether items are bought in-store or online. In-store, shoppers are more likely to purchase ‘toiletries’ and ‘overthe-counter (OTC) medications,’ likely due to the broader selection available in supermarkets and the immediate nature of OTC medication purchases. Consumers may also seek advice from in-store staff for these products. On the other hand, online shoppers are more inclined to buy sports supplements and sexual wellness products, likely due to limited choice in-store and the discreet nature of online shopping for these items.

s

Manufacturers of health and wellness products require an approach that balances strong physical distribution with effective mental availability tactics.

Brick-and-mortar stores remain the dominant channel, with top-of-mind awareness important for online search visibility and of course, strong relationships with healthcare professionals (HCPs, such as pharmacists) are vital for brand advocacy and recommendations. Direct-to-consumer (DTC) growth marketing leverages social media campaigns, personalised marketing, podcasts, and data-driven advertising to engage consumers and expand the base. The execution and emphasis for each category needs the right balance through a deeper understanding of the purchase journey.

s

Indicates the products that are significantly higher/lower than in-store

Health/ Nutritional supplements Over the counter medications s

Sexual wellbeing products s

Sports supplements

Shopper Trends No.54 | StockTake 2024

Bought In-Store (n=1004) Bought Online (n=584)

Social media is a key touchpoint for health and wellness products, and brands.

Social media and messaging platforms are used by 92% of shoppers, serving a variety of purposes.

Approximately 1 in 4 users turn to these platforms for health and wellness ideas and research, while 1 in 7 use them to shop the category (for purchase or inspiration seeking). These figures are significantly higher among 25–34-year-olds and households with children, who consistently overindex across all related activities.

Figure 6; Reasons for Social Media Usage.

Base: Total (n=1020) 25-34 (n=179) Households with children (n=351)

For health and wellbeing ideas and research

23%

38%

34%

Total

Age 25-34’s

Households with children

In our 2023 survey, 13% overall claimed to use social media for shopping (purchasing or for inspiration) so seeing a higher figure for health and wellness in 2024 is not surprising. Shopping functionality directly within social media is now making it easier than ever before for shoppers to convert from influencer recommendations, as is the case especially on TikTok/Instagram.

Tiktok Shop UK in February 2023 launched a new wellness product category, teaming up with major brands like Holland & Barrett, Nutravita and MyProtein to sell directly to the platform’s community.

Many health and wellness products are advertised on social media and podcasts are often sponsored by health and wellness brands such as Numan, PerfectTed Matcha, and Huel Daily Greens.

Figure 8; Health and Wellness brands finding traction sponsoring podcasts

To shop for health & wellness products (purchasing or for inspiration)

15%

31%

26%

Total

Age 25-34’s

Households with children

Those using SM to shop or purchase are buying from across the health and wellness portfolio, over-indexing particularly in sports supplements and sexual wellbeing products.

Figure 7; Categories Bought Online in Last Month.

Base: Online Shoppers (n=584); Using SM for health & wellness products (purchasing or for inspiration) (n=120)

Sexual wellbeing products (e.g. Condoms, Lubricant)

Sports supplements (E.G. Pre-Workout, Whey Protein, etc)

s

s

10%

21%

8%

18%

Online Shoppers

Using Social Media for Health & Wellness products (purchasing of for inspiration)

Online Shoppers

Using Social Media for Health & Wellness products (purchasing of for inspiration)

s Significantly up versus online shoppers

Shopper Trends No.54 | StockTake 2024

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Spotlight WindowOn Health and Wellness Why is this? Invariably, the messaging is more complex, and consumers need time to ‘consider’ the product/ service, so the channel is better suited to hear more intricate messages through video, imagery and audio overlays. While podcasts feature traditional (pre-recorded) adverts, they are reinforced by host read outs/ ambassadors (e.g. Stephen Bartlett on PerfectTed shares how he is using the products), making the advertising feel less overt. Podcasts also offer opportunity to leverage HCP advocacy and boost awareness and credibility as is the case for the AG1 drink who are one of the lead sponsors on Dr Chatterjee’s podcast.6 There is also personalisation; as is the case for Numan 7, a knowledge hub for living happier, healthier and longer, where members have access to clinical expertise from medical professionals and can obtain personalised health insights and exclusive monthly offers. In addition, there is the factor of personal endorsement through influencer strategies. Another successful example of personalisation is Skin+Me 8 which designs a treatment plan specifically to match skin type and where formulations adjust each month, chosen to give the best positive personal progress. If anything changes, they offer to reformulate for free.

But what does this mean about control of the sector? There is a risk that consumers buy the wrong products for their specific needs. This is certainly a risk for the brand if it doesn’t deliver the expected results or even, depending on the nature of the product / potential health considerations there is potential mismatch for the user. Shoppers face challenges navigating some of these more complex decisions in physical stores, which is why they often turn to other channels. However, these channels might well lack the ability to consistently provide the right recommendations for the consumer.

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NHS Pharmacy First NHS Pharmacy First launched in the UK in January 2024.

This service enables community pharmacists to complete episodes of care for patients without the need for a patient to visit their GP. It’s intended to help patients access quicker and more convenient care, including the supply of prescription medicines, where appropriate, for seven common conditions.9 So how aware are shoppers of this service? Did they correctly identify the conditions Pharmacy First can help with?

1 in 3 are aware of the NHS ‘Pharmacy First’ service, higher among 18-44s, household with children, those with a disability/ health condition, and those helping others do their household grocery shop.

6 in 10 correctly identified at least one of the ‘Pharmacy First’ eligible conditions. Amongst those aware of the service, this increases to 8 in 10. 25-34-year-olds, parents with young children, and those helping others shop, correctly identify ‘Pharmacy First’ conditions more than other subgroups.

‘Sore throats’, followed by ‘earache’ are the top eligible conditions shoppers were most aware of and correctly identified in ‘Pharmacy First’.

This offers OTC brands in these categories wider opportunity for HCP engagement, using Pharmacy First as a platform to build further brand awareness, as well on shelf positioning, online and instore point of sale considerations.

Shopper Trends No.54 | StockTake 2024

However, other brands who are not on the Pharmacy First initiative are struggling to battle against the evolving market conditions where some players have been given a massive opportunity over the competition (relatively out of the blue) and it’s undermining their viability, especially in in-person Boots/Superdrug. So, what does this mean? Brands need to work harder to create a compelling sense of differentiation and cut through in the retail consumer healthcare (CHC) space – but how do they get to that?

Evidence based consumer insight and a strong selling story to retailers becomes really important – and in a continually evolving consumer healthcare landscape, the risk of not acting is great.

The Evolving Pharmacy Landscape: Bridging Retail, Digital Health and Consumer Empowerment Alongside the evolving role of the pharmacist, there are other notable changes in the ‘physical’ and ‘online’ pharmacy retail space. Taking Boots, Cornmarket Street, Oxford, for example, there is a large, open plan, designated ‘Health Desk’ for customers to seek help and advice. With brightly lit back-of-wall displays and signage, OTC products are more visible to customers than ever before.

Elsewhere, products that have been ‘prescription only’ are now positioned on shop floor fixtures for shoppers to effortlessly browse. Boots, have an online ‘Health Hub’ and access to an online doctor (as do other pharmacy chains), from whom you can obtain online prescriptions for a range of products more speedily than from the GP. Pharmaceutical companies are transitioning former prescription-only products to OTC sales, driving global brand development. Their marketing teams are collaborating with brand agencies to assess market opportunities, define brand positioning, and support execution and evaluation. Principles around pack design, pack claims, shopper marketing, segmentation, etc, are all at play and research is required: brand tracking, competitor understanding, segmentation, pricing, category

strategy (D2C or B2C) concept testing and retail execution, for end-to-end understanding.

Consumer healthcare is complex, rooted in empowering individuals to self-manage their health. Traditionally driven by over-the-counter medications, the movement is largely led by pharmaceutical companies with brands at various stages of growth. As the focus on selfmanagement persists, brands and companies that adapt by truly understanding these evolving needs will be best positioned for sustained growth and consumer loyalty.

Here at Touchstone Shoppercentric, we collaborate with 1HQ and Bridgethorne (part of the Ceuta and IQVIA Group), brand strategists and category management specialists, to support consumer healthcare companies make their products more relevant to consumers and accessible to shoppers.

References 1 https://builtin.com/articles/direct-to-consumer-brands 2 https://thewhatsupp.com 3 https://www.nespresso.com/us/en/order/capsules/ vertuo/nespresso-vital-proteins-wellness-pack 4 Health, wellness, hygiene, and non-prescription medication products include toiletries (e.g. deodorants, soaps, shampoo, body wash), off the shelf medication (e.g. Pain relief, indigestion, cold & flu), health and beauty (e.g. skincare, makeup etc), health/ nutritional supplements (e.g. Vitamins), over the counter medications (e.g. Products you need to ask a pharmacist for), sexual wellbeing products (e.g.

Condoms, Lubricant) and sports supplements (e.g. PreWorkout, Whey Protein, etc) 5 https://drinkag1.com/en-uk 6 https://drchatterjee.com/podcast-episodes/ 7 https://www.numan.com/ 8 https://www.skinandme.com/ 9 Sinusitis (12 years and over); sore throat (5 years and over); earache (1–17 years); infected insect bites and stings (1 year and older); impetigo (1 year and older); shingles (18 years and over); and uncomplicated urinary tract infections (UTI) in women (16-64 years) https://www.england.nhs.uk/primary-care/pharmacy/ pharmacy-services/pharmacy-first/ https://www.boots.com/healthhub/a-z-services/ pharmacy-first

Shopper Trends No.54 | StockTake 2024

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