Are stock-up grocery trips becoming a thing of the past?




A new study says that a lot of shoppers today don’t like to linger, and that’s something retailers might want to take note of.
Almost half of shoppers (46 percent) view shopping as a chore, according to a new Nielsen report discussed in Convenience Store News. That reluctance to spend time in stores has led to a decline in big stock-up grocery trips in favor of more need-based trips. Only 10 percent plan as far as ahead as the meal they’ll be having later that day, according to the study.
These changes in shopping habits could explain what has been going on in segments dependent on stock-up shoppers, like warehouse clubs.
As far back as 2014, Costco began noting difficulties reaching younger shoppers and discussed adding organic offerings in order to appeal to both Millennials and health-conscious older customers. This year’s closing of 63 Sam’s Club stores likewise points to warehouses not having the draw they once did.
Smaller and more nimble startups may be waiting in the wings with smaller format stores. Warehouse-style online retailer Boxed, for instance, was gesturing at moving omnichannel with standalone stores earlier this year (after rejecting a $400 million buyout offer from Kroger).
Other retailers have been taking steps to cater to the speedier shopper, in part by going smaller.
Target, for instance, has successfully tackled urban environments that had once been tough to crack with its smaller, flexible-format stores.
Smaller stores now account for 25 percent of fast-moving consumer good sales and 70 percent of shopping trips, according to Convenience Store News.
Target has also been reworking the design of its larger mainline concept in part to speed things up for those looking to get in and out quickly. Last year, Target announced a “dual concept” store redesign that features two separate entrances. One leads shoppers to a department store-style layout for those apt to dwell. The other leads shoppers to grab-and-go foods, wine and beer and a spot to pick up orders.
- Nielsen: Convenience Is Ultimate Currency in Today’s FMCG Marketplace – Convenience Store News
- Does a Boxed acquisition make sense for Kroger? – RetailWire
- Boxed Rejects Kroger’s $400 Million Purchase Offer – Bloomberg
- Does Costco have a youth problem? – RetailWire
- Sam’s Club takes on Costco and Amazon with a new strategy – RetailWire
- Forget Kroger, will Boxed open its own stores? – RetailWire
- Gallup Poll says consumers prefer to shop for their own groceries – RetailWire
- Will ambitious store redesign lift Target to new heights – RetailWire
DISCUSSION QUESTIONS: What have you seen retailers doing to successfully facilitate smaller, faster trips? What can big box operators do, aside from rolling out smaller store concepts, to meet the needs of fast trip shoppers?
Join the Discussion!
30 Comments on "Are stock-up grocery trips becoming a thing of the past? "
You must be logged in to post a comment.
You must be logged in to post a comment.
Managing Director, GlobalData
Our data also show a decline in the number of consumers undertaking big grocery shops. There are several implications. First, the number of grocery stores used has gone up, so spend is spread more thinly among more players. Second, the way in which consumers use stores has changed — fewer visits to the center aisle, more focus on quick meal fix areas like the deli counter, etc. This change is big and is one of the forces reshaping grocery.
Principal, Retail Technology Group
It may be me, but I find myself going to multiple grocery stores (ACME, Trader Joe’s, Cobb’s Bread, and a local upscale country market) and purchasing my family’s favorite products from each. I actually spend more time shopping this way but I don’t compromise on brands, quality or flavor.
Managing Director, GlobalData
I do something similar! And I don’t think we’re alone. Grocery shopping has become much more fragmented than it used to be!
Principal, KIZER & BENDER Speaking
I shop like that, too.
Retail Transformation Thought Leader, Advisor, & Strategist
Same here. For certain products our family loves to have, we’ll shop at multiple stores when needed. We try to plan ahead sometimes so one week we may go to different grocery stores than the next to reduce the number of trips overall each week.
Retail Tech Marketing Strategist | B2B Expert Storytelling™ Guru | President, VSN Media LLC
Very astute observation about split shopping, Neil. When more shoppers cobble together a household pantry solution using 3 or 5 or more grocery product retailers, each store must adapt to compete with known and unknown rivals.
This also means nearly all grocery sellers — physical or digital — are “flying half-blind” with respect to their membership or loyalty programs. Each retailer can only see a partial picture of household buying patterns, which makes it nearly impossible to visualize their true preferences or potential lifetime value.
President/CEO, The Retail Doctor
This is also due to the consumer interest in fresh. You don’t buy a month’s worth of fresh corn like you could have purchased a month of frozen corn like our parents. This is part of the reason the middle of grocery stores are dying — fewer people want provisions; they want fresh food.
Chief Executive Officer, The TSi Company
Principal, Retail Technology Group
Again, generalizations don’t work here. The answers depend on product categories. Bob Phibbs is right. If you want fresh you shop daily (like my mother did). The Costcos of the world have made it easier to stock up on dry goods and packaged goods and save money in the process, if you can front the money and have the space to store the products. Judging from the sales reports and other articles, both trends are in motion; multiple trips of short duration for fresh products, fewer trips of larger value for packaged goods.
VP Consumer Insights, DISQO
Agree, and also potentially worth noting that lots of those “stock up” items and packaged goods can be bought easily online with added convenience and potentially better prices. You also don’t need to buy 100 rolls of paper towels because the shipping is free and you can now subscribe to save even more.
Managing Partner, Advanced Simulations
I’m hoping you all realize that this is a global study, not a U.S. study. This may have nothing to do with U.S. shopping patterns changing. The clue — there is no way that 70 percent of U.S. shopping trips are at small stores.
Principal, Retailing In Focus LLC
It’s tough to generalize without understanding the “benefit segmentation” of the shopper. Is the customer shopping for a large family, where a stock-up run to Kroger or buying bulk quantities at Costco makes practical and economic sense? Or is the grocer targeting a smaller household (downsizing Boomer, or Millennial in an apartment) where there simply isn’t enough room to stock up? Does the shopper live in the suburbs and drive an SUV, or is she an urban dweller with easy access to home delivery?
You get my point — although if there is a common thread that may drive more frequent and smaller trips, it’s the desire for more fresh product and the parallel desire to reduce waste.
Advisor, MyAlerts
I am noticing these grab-and-go merchandising upgrades at Aldi for instance. Shoppers can now go down the first aisle for coffee, snacks, bread, refrigerated produce, eggs and milk and then veer to the checkout without traversing any other aisles.
Marketing Strategy Lead - Retail, Travel & Distribution, Verizon
There is no debate that people are busy and value their time – and it seems like this is amplified every year. Stores recognize this and are catering to customer needs with services and stores that make shopping easier and faster – smaller stores, meal kits, prepared meals, online ordering, curb-side pickup, home delivery, and the list goes on.
There are some shoppers that continue to have the stock-up shopping trips, as there are many things they buy repeatedly every week or month. Retailers need to make the process easier for reoccurring shopping trips and offer incentives for them to buy these items from their store. Maybe a special discount for purchasing X of the same item in a specific time period.
Senior Marketing Manager, RW3
Shoppers are definitely looking for fast and efficient ways to shop hence the increase of in-store lockers by Whole Foods and Walmart but, after talking to multiple groups of shoppers, I have found there is a significant desire for a hybrid shopping model. When families are running around over the weekend they want to get in and get out as quick as possible however when there is a big BBQ or holiday event they want to take their time and find the perfect items for their recipes at the right price. Grocers need to remember this.
Big box operators are doing some great things such as offering digital commerce and getting involved with Instacart. The biggest thing they need to continue to do is to keep the checkout lines short and fast.
Global Retail & CPG Sales Strategist, IBM
There is definitely a trend toward smaller average item counts per transaction in food and mass discount stores. I see this as somewhat generational. Baby Boomers have a hard time getting away from stocking up. While younger people make more trips per month comparably.
I actually think food and discounters have catered to smaller transactions better over the past decades, and have even gotten ahead of this trend … to the detriment of the large stock-up orders. Large orders have rarely been prioritized by retailers, which is counterintuitive because you’d think the merchant would want to cater to the large orders. Now, with the transactions trending smaller, I suppose this will become less of an issue.
Chairman Emeritus, Relex Solutions
Principal, Mark Heckman Consulting
CEO, FutureProof Retail
Convenience stores are hitting grocery stores hard – for smaller trips it’s nicer not to have to wait in line! Grocery stores and big box operators don’t need smaller store concepts, they need more convenient ones – and mobile checkout/Amazon Go-type initiatives are the way forward there.
Principal, KIZER & BENDER Speaking
President, The Treistman Group LLC
I’m not seeing any mention of consumer access to buying bulk items for less (paper towels, cases of bottled water and even smaller items like shampoo that last a long time) online. Shoppers can now avoid the stock-up nature of shopping trips to focus on what they need in the near future. It all plays into what current behavior looks like. We have to see beyond the numbers that simply highlight grocery store transactions before we can plan future strategies.
VP Consumer Insights, DISQO
Yes, plus if you’re ordering — say paper goods — online, you actually don’t even need to purchase bulk to get the discount. You can just “subscribe” to it. So for everyone living in a city, or low on storage, it’s the best of all scenarios. And if you’re in suburbia, the free/2-day shipping is huge time benefit. It’s hard for me to look at the landscapes and the demographic data and not imagine that every major category besides “fresh” has major online upside. Big categories like household, snacks, beverage, condiments, pet care, etc. — why not online?
EVP Thought Leadership, Marketing, WD Partners
Smaller stores. There’s a 30,000 square-foot Whole Foods in our area and I can hit that for just about anything, including an entire grocery trip, in less that 45 minutes. It’s excellent compared to their 150,000 square-foot store north of here. I’m sure that Target and others are finding out the same thing now; that convenience and frequency are more important than ever. Aldi already knows that fact. Someone should tell Giant Eagle and Kroger that as they continue to open massive stores.
Editor-in-Chief, CPGmatters
There are surveys and then there are other surveys. How many say shoppers do not like to go grocery shopping? So now we are to believe they prefer to go grocery shopping “several times” as needed as opposed to “once” for a big stock up. Huh?
CFO, Weisner Steel
I agree this article could have benefitted from comparative numbers (from prior years), as the claim is at odds with what I’ve observed (ever-larger stores); perhaps the Bay Area is atypical (or maybe I’m a poor observer … both seem like possibilities).
Vice President, Research at IDC