LONDON -- Consumers are increasingly purchasing a small number of items—six or fewer—from large-format grocery stores shows a new report from U.K.-based Dunnhumby, pointing to mounting convenience-store competition coming from grocers.
The report measures “small basket,” “medium basket” and “large basket” grocer visits, which are essentially shopping carts that contain three items or fewer, six items or fewer, or seven items or more, respectively. Since last year, Dunnhumby reports a 2.5% increase in the number of small basket visits at large grocers around the world. Consumers now use small or medium baskets for 60% of their grocery occasions.
Here are four ways grocers are capturing c-store visits, according to the report …
1. Big grocery shops decline
Dunnhumby reports a 2% year-over-year decrease in the number of large basket occasions at grocers around the world. The firm attributes the shift from large baskets to medium and small baskets to growing urbanization, smaller households and time constraints.
2. Store within a store
The report says that supermarkets may be able to steal more sales from c-stores by offering a “store within a store.” Select grocers have had success when they position the most popular products and grab-and-go food items in a dedicated, easily accessible location. The report also lists fast check-out lanes as a necessity to drive small-basket shoppers.
3. Ranging and assortment
Grocers can also steal more share of convenience purchases by studying their shoppers’ habits and needs, such as what type of products consumers are buying at different times of the day, according to the report. Grocers must shelve the most popular products in sufficient quantities and at an easily accessible location to appeal to quick and convenient shopping occasions, the report concluded.
Price-sensitive customers expect everyday low prices on their regularly purchased products, according to Dunnhumby. These customers will return to grocers for convenient purchases if they perceive a superior value to smaller format stores.