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BizReport : Trends & Ideas archives : January 23, 2017


UK shoppers choose supermarkets primarily on location, not price

While supermarkets continue to compete based on price, a new study in the UK by retail marketing firm TCC Global suggests that for consumers, location trumps cost when it comes to choosing which to visit.

by Helen Leggatt

TCC Global's 'UK Shopper Loyalty Study', involving 1,530 shoppers in the UK, found that low prices rank fourth in the list of reasons behind their choice of supermarket.

While 34% of UK shoppers were driven by low prices, the consideration came behind location (48%), range of products (40%) and familiarity/habit (39%).

According to Bryan Roberts, global insight director at TCC Global, the results of their survey suggest that, while supermarkets have focused on pricing strategies to compete with "hard discounters", "there could be a reason to rethink this strategy, with price relatively low on shoppers' priorities".

That almost half of UK shoppers place priority on a store's location is in line with global trends, with more than half (51%) of global consumers deciding on a store due to its proximity. Just 3% of shoppers said they would invest extra time to reach a preferred store.

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"We are already seeing a change in tack from some corners of the market," said Roberts. "Aldi and Lidl have recognized how high demand for their services isn't necessarily being reflected in their sales due to location issues, and as such are in the midst of an aggressive period of expansion. Aldi alone are on course to reach their target of 1,000 store openings by 2022 to win consumers who would like to use their stores but currently can't physically reach them."






Tags: consumer study, retail, shopping survey, supermarket, trends








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