Trends 2004 also found that consumer confidence in food safety remains high despite the intense focus on beef safety and security concerns. And overall concern about nutrition declined, seeming to defy obesity warnings, while low-carb diets are steering some shoppers away from the store bakery to the deli department.
When choosing where to shop, most important to consumers are a clean, neat store (88 percent), high-quality fruits and vegetables (85 percent), high-quality meats (80 percent), low prices (79 percent) and courteous, friendly employees (74 percent), the report found.
“The underlying trend is that fierce competition is driving the industry to meet virtually every consumer demand — safety, quality, value, variety and convenience.” said FMI Senior Vice President Michael Sansolo. “Companies may emphasize different features, but shoppers overall appear to be satisfied. The proof lies in the performance.”
On a scale of 1-10 where 10 is excellent, consumers rate their primary supermarket an average of 8.3 — the highest mark since FMI began asking this question in 1987. In addition, 42 percent rated their supermarket a 9 or 10, up from 36 percent in 2003. And 73 percent would definitely recommend their primary store to a newcomer, up from 66 percent.
Economizing Remains Strong
While low prices dipped this year as “very important” in store selection (from 83 percent to 79 percent), shoppers continue to economize using about every means available. The top five measures that consumers take on every trip to the store:
- Make a shopping list (56 percent)
- Check newspaper specials (39 percent)
- Use frequent-shopper programs (34 percent)
- Stock up on bargains (32 percent)
- Buy store or lower-priced brands (28 percent)
Nearly all these figures are higher than those in 2003. Economizing may account for the decline in consumer spending on groceries to $90 per week, from $93 (adjusted for inflation).
Trends 2004 found that 21 percent of shoppers now use a supercenter or discount outlet as their primary store — up from 18 percent in 2003. This trend is likely to grow with 29 percent of people aged 15-24 using such formats as their primary store.
“These findings reflect that consumers can find low food prices virtually anywhere,” Sansolo said. “The industry has provided value across the aisles for years, evident in annual food inflation averaging just 2.5 percent annually over the past decade alone. Yet economic uncertainty persists, driving shoppers to stretch their food dollars as much as ever.
“At the same time, consumers want a multidimensional shopping experience. High-quality produce and meat have always been among their top demands. And convenience is driving change throughout the store.”
Food Retailers Deliver Convenience in Takeout, One-Stop Shopping, Self-Scanning, Online
"This year, supermarkets made major gains as a source of takeout food, closing the competitive gap with fast-food restaurants,” he said. Today, 27 percent of shoppers now buy takeout food for home most often in supermarkets — a sharp increase from the 17-20 percent range over the previous five years. This finding puts supermarkets well ahead of restaurants (18 percent) and nearer to fast-food outlets (35 percent).
In the West, supermarkets have equaled the fast-food figure. They have also done so among people aged 15-24, which bodes well for the future.
Supermarkets are selling one-stop convenience through in-store pharmacies and floral departments, now available in 63 percent and 77 percent of stores, respectively. In fact, drive-up pharmacies are starting to grow popular: 10 percent of shoppers now find them in their stores and, of those consumers, 20 percent use them at least once a month.
Food retailers are selling convenience at the checkout through self-scanning — a service that 31 percent of shoppers say is available in their stores, up from only 8 percent as recently as 1999. Where the service is available, well over half of shoppers self-scan today and 22 percent do so weekly.
Gasoline service continues to spread. Shoppers say it’s now featured in 19 percent of supermarkets — more than three times the figure in 2000. Where available, the service is used by 45 percent of consumers, including 19 percent on a weekly basis.
More food retailers are delivering convenience over the Internet: 16 percent of consumers say their store offers shopping online — up from 9 percent in 2000. This figure may be higher since over half of the consumers surveyed were not sure if their primary store offered this service.
More People Coming Home to Dine
“Part of the takeout story,” said Sansolo, “is the return to home as the place where people want to eat their meals. When they’re not eating takeout food there, more families are cooking meals themselves.” Now, well over eight in 10 consumers (84 percent) eat home-cooked meals at least three times a week, according to Trends — a 10-point gain since 2001.
Decline in Nutrition Concern May Signal Increased Awareness
Among the more surprising results in Trends 2004 is the decline in consumers who are “very concerned” over the nutritional content of food to 45 percent, an eight-point drop.
“Before we grow too alarmed,” said Sansolo, “other results paint a more complex and hopeful picture. Part of this trend may be that fewer consumers believe their diets could be healthier (62 percent, down from 68 percent). We also see high reported awareness of the dietary factors that most affect health, notably fat and trans-fats.”
“Half of consumers (48 percent) continue to regard fats as their number one nutritional concern. Although trans-fats are relatively new to our nutrition vernacular, well over half (57 percent) have already heard of the term. For this, we can credit the medical community for citing the potential link between trans fatty acids and bad cholesterol levels and diseases such as diabetes. The Food and Drug Administration contributed by requiring that trans-fats be labeled by 2006. And manufacturers are already eliminating or reducing these ingredients from their products.”
Low-carb diets are changing consumer nutrition views and shopping patterns. Carbohydrates in food are now the second highest nutrition concern, cited by 20 percent of consumers, up from only 2 percent in 2000. Shoppers are buying fewer carbohydrate-rich foods: 60 percent now buy bakery items at least once a month, down from 69 percent in 1999. The diets appear to be boosting purchases of deli items: 79 percent do so at least monthly or more, compared with 72 percent five years ago.
Comfort in Food Safety Unshaken by Events
Consumer comfort in food safety remains unshaken by events over the past three years. Today, 82 percent are completely or mostly confident that the food in their supermarket is safe. “This finding is significant,” said Sansolo, “given our nation’s ongoing security concerns and the fact the Trends survey was conducted this January during the peak of the media focus on the second mad cow case in North America.”
Consumers are growing more aware that improper handling and cooking at home can cause foodborne illnesses. Today, 42 percent believe this is very or fairly common — up 10 points from 2000.
Half remain likely to buy foods irradiated to kill bacteria. The results indicate that a market may be emerging for irradiated beef. Over half of shoppers (52 percent) say they have heard of irradiated beef, and 12 percent of them say their primary store sells it. Where the product is offered, one-quarter of consumers say they have purchased it.
Nearly all shoppers (95 percent) check sell-by or use-by dates on food, and over 80 percent say they always practice the following food safety measures: wash hands and surfaces, wash vegetables, keep areas pest-free, clean food thoroughly and refrigerate food promptly.
Data Tabulation
These Trends results are based on two January 2004 telephone surveys, each with approximately 500 shoppers. The households contacted were selected by a procedure known as random digit dialing (RDD). Each respondent was required to have been a head of household with the primary responsibility for food shopping and to have shopped in the previous two weeks.
Trends in the United States: Consumer Attitudes and the Supermarket 2004, is available for $45 to FMI retailer/wholesaler members, $115 for FMI associate members and $135 for nonmembers, with multiple-copy discounts. To order a copy, call 202-220-0723 or visit www.fmi.org/pub for details.
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