Sainsbury's Local Insight on shoppers: insight on stores - May 2018 - IGD.com
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Sainsbury’s Local
Insight on shoppers: insight on stores
May 2018
© IGD 2018
Local:
focusing on
expansion
Sainsbury’s fastest growing channel
In Sainsbury’s latest full year (to 10 March
2018) sales, Sainsbury’s Local was ahead
7.5%, making it the best performing channel
within its business, including online (up
6.3%).
Growth underpinned by notably strong like- Sainsbury’s Local in numbers
for-like trend; with only nine net new stores
added in the year (an increase of 1.1%). 2017 2018 % change
• 24 new openings,
• 27 stores refurbished, driving the overall No of stores 806 815 1.1
quality of the estate.
• 2018/19; 15 new stores planned for, Sales area 1,885 1,913 1.5
ensuring a solid vein of additional growth. (000s sq ft)
Average store size; 2,300 sq ft, with the
range between 1,000 sq ft to 3,000 sq ft (and
Av sales area 2,340 2,350 0.4
even up to 11,000 sq ft in one case). (sq ft)
Est sales (£bn) 2.6 2.8 7.5
© IGD 2018 Source: J Sainsbury Plc, IGD Research Page 2
Targeting
high footfall /
affluence sites
Sainsbury’s high performance bar for
Local stores is evidenced by their exit
from a number of sites this year
including the Eurogarages trial.
Key locations:
Core: major metropolitan centres, and
above all in London, with high densities
of affluent working populations.
Commuter hubs: delivering high flows
of daily traffic during the working week.
Suburban: openings limited to affluent
areas with high traffic flows.
Segmentation:
• ‘food on the move’
• ‘neighbourhood local’
• ‘fresh local’
… all driven by the dynamics of location.
© IGD 2018 Source: IGD Research Page 3
Top 2 reasons shoppers choose The top 3 missions in
What defines the Sainsbury’s Local stores: Sainsbury’s Local stores are:
Sainsbury’s 1. They are conveniently
located
Sainsbury’s Local Channel avg
1. Top-up
Local shopper? 56% 54%
2. They offer a quicker and
easier in-store experience
2. Food-to-go
IGD’s ShopperVista, tracks shoppers in the 33% 29%
channel on a monthly basis over 14 months
(Sep’16-Nov’17) to create a picture of the
shopper profile of the 13 largest UK fascias
(multiple, co-op and symbol). 3. Evening meal
21% 17%
Here are some of the key characteristics of
the Sainsbury’s Local shopper. Note that
Sainsbury’s Local over-indexes vs the Sainsbury’s Local is 2nd (out of Vs the average the Sainsbury’s
channel average on the food-to-go and
evening meal missions, key growth areas. 13 c-store retailers) for animal Local shopper is:
Ethical buying concerns (especially animal welfare:
welfare) are higher compared to competitors. 51%
More southern 28% … live in London
With one of the youngest shopper profiles,
Sainsbury’s Local has a big opportunity to
address needs of these shoppers of the
74%
future.
Younger 42% … are aged
Understand in-depth how Sainsbury’s Local 18-44
shoppers compare to other convenience store
shoppers in our ShopperVista convenience
54%
retailers compared reports
More up 61% … are ABC1
…. of JS Local shoppers say that animal market shoppers
welfare is important when choosing products
© IGD 2018 Base: All last trip shoppers for Sainsbury’s Local, Sep’16-Nov’17. Page 4
Optimising
range for a
varied footprint
Optimised ranging: underpinning strong
Like For Likes in valuable locations,
Sainsbury’s has worked the range at its
disposal to meet the widest range of
shopper needs in each store.
Brands: in the growing number of stores
under 2,000 sq ft ranges are tightly curated
to create a breadth of category capability,
with brand leaders to ensure credibility.
Private Label: stores 3,000 sq ft plus,
space allows for broader ranges, including
private label alternatives.
Pack sizes: while larger C-stores can
deliver ‘bigger baskets’, the top-up mission
is core, therefore smaller pack sizes
should be considered to facilitate the
mostly foot-borne shoppers.
© IGD 2018 Source: IGD Research
Making space
for fresh
Even the smallest Local stores offer clear
credentials in fresh, across fresh fruit &
vegetables and fresh bakery fixtures.
Efficient use of space is delivered via vertical
displays, with the added benefit of creating a
strong visual impact front of store.
Where space allows, we see fresh bakery
and fruit & vegetables merchandised in low-
level fixtures that creates a more open and
relaxed shopping environment.
© IGD 2018 Source: IGD Research Page 6
Impulse categories such as snacks, soft drinks and confectionery,
Leading with as well as alcohol and tobacco, have a significant role to play in the
Local sales mix, chilled foods is the biggest single area of sales in
chilled and the format.
As well as providing for extended needs in food for now, stores also
prepared foods target a breadth of solutions for evening meals, offering fully and
part-prepared as well as from scratch cooking options.
© IGD 2018 Source: IGD Research Page 7
Opportunities High performing
stores offering
You can support the highly efficient ranging and
merchandising disciplines with products that
contribute to relevant shopper missions, offered
for suppliers breadth of category
capability
in the most relevant pack sizes for the limited
space and the basket shopper.
A chilled and With chilled and fresh products at the centre of
fresh-led offer many shopper baskets, innovation in these
with prepared categories is key to driving ongoing sales growth,
foods at the core creating compelling reasons for repeat visits
ShopperVista can help you understand how
Meet shoppers’ Sainsbury’s shoppers define quality and
quality value; how you appropriately communicate
expectations your proposition is key to delivering growth.
Ethical concerns Meet the needs of Sainsbury’s shoppers’ ethical
are higher concerns, with a focus on local ingredients and
amongst shopper higher animal welfare. Communicate ethical and
priorities provenance attributes in-store and on pack to
support Sainsbury’s strategic aims.
Adapt your strategy to post-millennials, their key
Target higher missions and tastes. With post-millennials more
spending, likely to shop everyday for food-for-now, and food
‘millennial’ for later, respond with product solutions that bring
shoppers inspiration to cook during the shop.
Speed is critical In these high traffic environments you can play a
to many role with product and merchandising solutions
Sainsbury’s that enable rapid selection, like meal deals and
Local shopper dual product sitings; help maximise shoppers’
missions time in store and boost basket size.
© IGD 2018
IGD Convenience Retailing Summit 18
26-27 September 2018
etc.Venues, County Hall
London
Understand Sainsbury’s
key priorities for its Local
format and what they mean
for your business at the
2018 IGD Convenience
Retailing Summit.
Find out more Graham Biggart, Director of Commercial Operations,
responsible for Sainsbury’s Local format, will share their
evolution for continued growth on 27 September:
• Hear directly what is driving sales growth in Sainsbury’s
Local and how you can access this opportunity
Book now » • Learn about Sainsbury’s plans for the convenience channel
for 2019 and beyond
© IGD 2018 Page 9
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