Discount grocery stores, led by Aldi, have largest gain in share of trips, while traditional grocers, Target and CVS lose share in food and beverage categories
Shelton, CT – September 25, 2017 – Online grocery shopping’s share of trips in the U.S. has grown 13 percent over 2016, according to TABS Analytics’ Fifth Annual Food and Beverage Consumables Study. Although regular online shopping has increased, it is still eclipsed by the 98 percent of consumers who reported shopping in brick and mortar grocery outlets for foods and beverages (also known as consumables). For the first time, the annual TABS study analyzed the U.K. food and beverage market and found that online grocery shopping accounts for 8 percent of all shopping trips, which is more than double the U.S. number of 3.6 percent.
“U.S. online grocery shopping continued its second year of gains for regular purchasing and it is being driven largely by growth in click-and-collect pickup,” said Dr. Kurt Jetta, CEO and founder of TABS Analytics. “However, with such a small portion of consumers reporting they are regular online shoppers, brick-and-mortar stores are not going away any time soon. Perhaps most telling, online shoppers only have a 38 percent stated loyalty, compared to the more than 70 percent loyalty for consumers shopping at brick-and-mortar stores. Loyalty to online needs to double before it becomes a formidable competitor and reach levels comparable to the U.K., which is currently at 61 percent.”
In the 2017 Food and Beverage Consumables Study, TABS made a technical adjustment in the calculation for “all outlet share,” which resulted in a restatement of market penetration and share for each of the U.S. outlets compared to last year. It is important to note, however, that the year-over-year percentage changes remained consistent with this restatement.
Discount grocery stores, led by Aldi, had the largest gain in share of all outlets and now commands 5.5 percent share of all U.S. food and beverage grocery trips. In comparison, the TABS study found that discount grocery stores Aldi and Lidl account for 17 percent of all U.K. grocery trips, almost triple the size of the U.S. The study also found that Walmart remains firmly in first place among all U.S. food retail banners and increased its share from 15.2 to 16 percent in 2017. Dollar stores also realized an increase in share, jumping from 7.4 to 7.9 percent. Costco increased from 5.9 to 6.5 percent, a full point higher than discount stores combined. Although grocery outlets continue to have the highest share of trips at 20.9 percent, they lost 1.7 percentage points compared to 2016. Target declined in share from 9.4 to 8.4 percent and CVS also declined from 7.3 to 6.2 percent.
TABS’ Fifth Annual Food and Beverage Study was conducted in August 2017 by TNS and was designed to uncover how consumer buying patterns within these categories are shaped by the promotions offered. The 2017 study also surveyed the same categories in the U.K. to provide comparative points between the countries, particularly for online grocery. In the U.S., 1,000 consumers 18 years and older were surveyed and 1,268 consumers 18 years and older were surveyed in the U.K. There were 15 consumables categories analyzed: carbonated beverages, salty snacks, cereal, yogurt, water, ice cream, cookies, fruit juice, refrigerated juices, crackers, frozen pizza, frozen novelties, candy, popcorn and sports drinks.
Key findings from the study:
TABS Analytics Fifth Annual Consumer Value Study is available here. Throughout 2017, TABS Analytics is conducting six studies across the consumer-packaged goods industry, including personal care, baby, vitamin, food and beverage, household care products, and beauty and cosmetics. More information about TABS studies is available at www.tabsanalytics.com/resources.
About TABS Analytics
Operating since 1998, TABS Analytics, based in Shelton, Conn., is a technology-enabled analytics firm. Its mission is to simplify and improve the way analytics are conducted in the consumer products industry. TABS offers cloud-based software analytics and applications solutions, including TABS Insight® and TABS Total Insights™, for CPG manufacturers that integrate, harmonize, and analyze sales and marketing data. Additional services include TABS CatMan Advantage™, an outsourced category management solution, TABS WorldView™, a global business intelligence tool, and TABS Promo Insight™, a cloud-based software and consulting service that helps companies measure, plan and optimize trade spending. For more information, please call 203-446-8837, email firstname.lastname@example.org or visit www.tabsanalytics.com