Shoppers becoming more budget conscious, research reveals

Cash

The average weekly spend of convenience store shoppers decreased by 1% during the four weeks ending 25 July.

The latest data from the Lumina Intelligence Convenience Tracking Programme shows the average weekly spend of a convenience store shopper declined from £23.56 in the four weeks ending 27 June to £23.27 in the four weeks ending 25 July.

During the same period, the average basket size remained stable at 2.8 items per trip, indicating that shoppers are becoming more budget conscious and opting for alternatives to higher value items.

This is apparent in a decline in impulse purchasing, which decreased by 0.7ppts during the four weeks ending 25 July, as consumers increasingly restrict spending on non-essentials. Impulse items were increasingly bought due to promotions, further emphasising a move towards value conscious shopping.

The average visit frequency of convenience shoppers has also fallen slightly, from 2.8 times per week to 2.6, reflecting the easing of restrictions and pre-pandemic shopping habits returning.

This is further highlighted by a decline in the proportion of shoppers using delivery and click-and-collect services. The proportion of shoppers using delivery fell 4ppts, from 7.1% to 3.1%. Click-and-collect saw a decline of 1.9ppts, from 2.2% to 0.3%.

Senior Insight Manager at Lumina Intelligence, Katherine Prowse, said: “With restrictions easing, convenience stores are having to compete with other grocery channels, as well as hospitality. Shoppers are becoming more comfortable out and about, so larger shops within supermarkets are more prominent. As hospitality reopens and events return, there is also a challenge around budgets. Shoppers will be keen to make up for lost time, which could result in them becoming more budget conscious with their groceries. This is already apparent with spend declining and impulse purchasing on promotions increasing. Retailers can lean on this demand for promotions to drive footfall and highlight value.”

She added: “It is a really positive picture for convenience, with spend, footfall and basket size all growing. Despite hospitality rules easing, rising coronavirus cases and the ‘Pingdemic’, will have resulted in many consumers being cautious and opting to cook at home more.”