Musgrave, Co-op and Tesco made their moves on Budgens, Alldays and T&S as a three-year decline in C-Store usage turned around, says Harris International Marketing in the VITAL* and CTP* programmes……….

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There are two important things to realise about convenience shopping, says Jef Harris, Chairman of Harris International Marketing. At least as much convenience shopping takes place at superstores and supermarkets as in smaller convenience stores. And a 3% decline in weekly adult usage of smaller convenience stores has turned around and is now at about 50% using them about 4 times a week. Superstore and supermarket usage frequency has steadily increased to about 2.5 times a week.

The C market is worth about £75 billion, £20 billion of which goes through small or C-Stores. These stores will steal C-Shopping trips from superstores and SNAP (Snacking And Prepared) and fast food outlets. Then they will steal bigger trips from bigger stores.

Why do people use big stores for convenience shopping? Because, they say, it’s just as ‘convenient’………surely meaning car parking, relative confidence about availability, range and freshness. But it isn’t because of shorter queues. That’s for sure. And although C-Stores have been getting better scores for their most important (to shoppers) characteristic, friendly staff, big stores still get higher marks.

But the C-Stores are getting the business back. This is significantly because of their improved performance in bread and milk and generally, in fresh categories. For four years up to 2000, C-Retailers managed to thwart shoppers’ wishes, and milk penetrations steadily declined. Then CTP’s* clear and strident indications of what did not sell (but was wanted) proved how C-retailers had unwittingly presided over the downward spiral. Now, the situation has reversed magnificently. Likewise in bread. And the traffic has returned.

Meanwhile shoppers’ attitudes to C-Stores, across 10 important criteria, are on a generally upward curve to an acceptable level. But prices are still thought to be about 17% higher than superstores (probably approximately correct)………...but 2/3 of people at the moment of truth, buying an item in a C-Store, believe they are paying more for than is actually the case (or simply cannot guess)!

So, what next? Well, for one thing, HIM will be exploring the extension of our CTP* diagnostics into superstore convenience shopping. Then, who knows, perhaps across all superstores and supermarkets shopping, as of old, with the HISPI service. If it is now accepted that, with scanning and even with loyalty card data, we don’t know all that we need to know about shopper, attitudes, influences and motivations – and their effect on purchases, not least in relation to intended and potential purchases.

For further details contact:
JEF HARRIS
Tel. 07860 512 578
Email: jef@him.uk.com

* VITAL is HIM’s trend programme tracking usage of outlet types, retail and service, real and virtual.

* CTP (Convenience Tracking Programme) is HIM’s comprehensive C-Shopper feedback research and advisory service.

Date article published: 04/12/2002

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