Shopping behaviour in the grocery retail market: The role of shopping trip types
Published on 30 09 2024Blog by Sarah Andrup
Across Europe, there is a noticeable trend towards convenience-focused purchasing habits. In Germany, for example, over a third of the population now foregoes a proper meal at least once or twice a week, opting instead for more on-the-go options (Lamkemeyer, 2023). This shift is mirrored in the United Kingdom, where the food-to-go market was valued at £16.1 billion in 2017 and is projected to grow to £23.4 billion by 2027 (AHDB, 2017; IGD, 2022). In the Netherlands, retailers like Albert Heijn have responded by launching the “Albert Heijn to go” format, aimed at busy consumers seeking convenience (Albert Heijn, 2024). Similarly, Germany’s REWE Group has strategically positioned its REWE To Go stores at railway stations and shopping centres to cater to this growing demand for convenience (REWE GROUP, 2024).
The rise of convenience-focused purchasing habits across Europe highlights the growing importance of unplanned minor shopping trips, which are typically tied to impulsive, on-the-go food consumption. While academic research distinguishes between major, fill-in, and unplanned minor shopping trips, there is still limited understanding of how shopping behaviour varies across these shopping trip types. This blog delves into these differences, focusing on how various drivers of shopping behaviour (e.g., brand line length, prices, and price promotions) impact brand sales across the different types of shopping trips. Understanding these drivers is essential for brands looking to tailor their strategies.
SHOPPING TRIPS
A shopping trip is any journey taken by an individual or a group with the intention of buying products from retailers (MacKay, 1973). It entails going to stores to browse, select, and purchase items such as groceries, clothing, electronics, or other products. In the context of grocery shopping, academia broadly recognises various types of shopping trips: Major trips account for a substantial portion of a household’s grocery budget and typically involve purchasing a large number of items across multiple categories (Kahn & Schmittlein, 1989; Nilsson et al., 2015; Nordfalt, 2009). Such shopping trips occur less frequently, usually once a week or fewer, and are always planned (Jindal et al., 2020). Additionally, the customers devote significant time and effort to them (Kollat & Willett, 1967; Nilsson et al., 2015).
On the contrary, minor trips occur more frequently and involve purchasing fewer items (Kahn & Schmittlein, 1989). Minor trips yet can be either planned or unplanned (Jindal et al., 2020). Planned minor trips are called fill-in trips and support major trips by replenishing perishable necessities like bread or obtaining supplies for a forthcoming meal. On the other hand, unplanned minor trips usually satisfy immediate consumption needs and happen on impulse (Bell et al., 2011; Jindal et al., 2020).
STUDY SET-UP
To explore the influence of various drivers of shopping behaviour on brand sales of the three different types of shopping trips, a quantitative research design was employed. A dataset comprising 28,201,740 observations, each representing a specific product purchased during a particular shopping trip, was analysed. All data was collected via an app that Danish users voluntarily downloaded and registered with.
After categorising shopping trips using the method suggested by Jindal et al. (2020), the influence of various drivers of shopping behaviour on brand sales was examined through three separate regression models – one for each type of shopping trip. By comparing the resulting coefficients across the models, key differences were identified in the factors influencing brand sales based on the type of shopping trip.
FINDINGS AND INSIGHTS
The study reveals several insights into how shopping behaviour drivers influence brand sales across different types of shopping trips:
- Different product categories dominate depending on the type of shopping trip. Customers buy product categories like “soft drinks, juices, etc.” and “sweets, ice cream, and chocolate” more commonly during fill-in and unplanned minor shopping trips. Grocery products intended for meals – like vegetables, fish, and seafood – are purchased more regularly on major shopping trips.
- A larger brand line length (the total number of variants offered within a product category under a specific brand) positively impacts brand sales across all shopping trip types, with the strongest influence observed during major shopping trips and the weakest during unplanned minor trips.
- Higher regular prices negatively affect brand sales across all shopping trip types. This effect is most pronounced during unplanned minor trips and least impactful during fill-in trips.
- Surprisingly, price promotions positively influence brand sales during major and fill-in trips but have a negative impact during unplanned minor trips.
- For major shopping trips, the use of discounters, supermarkets, and hypermarkets positively affects brand sales. However, for fill-in and unplanned minor trips, the utilisation of discounters does not significantly influence brand sales.
MANAGERIAL IMPLICATIONS
The findings of this study offer actionable insights for brand manufacturers:
- Brand manufacturers should prioritise extending their product lines, especially for products targeting customers on major shopping trips.
- Price increases should be approached with care, particularly for products aimed at customers making unplanned minor trips.
- Price promotions should be strategically targeted towards grocery stores and products targeting customers on major and fill-in shopping trips. In contrast, they should be avoided for those aimed at customers on unplanned minor shopping trips, where such promotions can have a less favourable impact on brand sales.
- Brand manufacturers should maintain a strong presence across various distribution channels. However, utilising discounters is not recommended for products targeting customers during fill-in and unplanned minor trips.
REFERENCES
AHDB. (2017). What is Food-to-Go and Why is the UK Market Growing? Agriculture and Horticulture Development Board (AHDB). https://ahdb.org.uk/news/consumer-insight-what-is-food-to-go-and-why-is-the-uk-market-growing
Albert Heijn. (2024). Feiten en cijfers. Albert Heijn. https://nieuws.ah.nl/feiten-en-cijfers/
Bell, D. R., Corsten, D., & Knox, G. (2011). From Point of Purchase to Path to Purchase: How Preshopping Factors Drive Unplanned Buying. Journal of Marketing, 75(1), 31–45.
IGD. (2022). UK Food-to-Go Market Recovers Faster than Anticipated but Challenges Lie Ahea… IGD. https://www.igd.com/Social-Impact/Articles/UK-food-to-go-market-recovers-faster-than-anticipated-but-challenges-lie-ahea/18688
Jindal, P., Zhu, T., Chintagunta, P., & Dhar, S. (2020). Marketing-Mix Response Across Retail Formats: The Role of Shopping Trip Types. Journal of Marketing, 84(2), 114–132. https://doi.org/10.1177/0022242919896337
Kahn, B. E., & Schmittlein, D. C. (1989). Shopping Trip Behavior: An Empirical Investigation. Marketing Letters, 1(1), 55–69. https://doi.org/10.1007/BF00436149
Kollat, D. T., & Willett, R. P. (1967). Customer Impulse Purchasing Behavior. Journal of Marketing Research, 4(1), 21–31. https://doi.org/10.2307/3150160
Lamkemeyer, T. (2023). Ernährung »on-the-go«: Deutsche essen immer häufiger unterwegs. Falstaff. https://www.falstaff.com/de/news/ernaehrung-on-the-go-deutsche-essen-immer-haeufiger-unterwegs
MacKay, D. B. (1973). A Spectral Analysis of the Frequency of Supermarket Visits. Journal of Marketing Research, 10(1), 84–90. https://doi.org/10.1177/002224377301000112
Nilsson, E., Gärling, T., Marell, A., & Nordvall, A.-C. (2015). Who Shops Groceries Where and How? – The Relationship Between Choice of Store Format and Type of Grocery Shopping. The International Review of Retail, 25(1), 1–19. https://doi.org/10.1080/09593969.2014.940996
Nordfalt, J. (2009). Unplanned Grocery Purchases: The Influence of the Shopping-Trip Type Revisited. Journal of Consumer Behaviour, 8(1), 1–13. https://doi.org/10.1002/cb.269
REWE GROUP. (2024). REWE To Go. REWE Group. https://www.rewe-group.com/en/company/structure-and-saleslines/rewe-to-go/