Channel Pulse: A Positive Outlook for Discounters, as Well as Foodservice Delivery
20th May 2020
Here we have our findings from week 8 (w/c 11 May 2020) of Channel Pulse - our weekly measure of consumer and shopper behaviour across all UK food and drink channels.
Positive outlook for discounters
Since we started Channel Pulse, consumers have consistently told us that the channels they plan to use more in the following week are supermarkets, convenience stores and online grocery. In the last few weeks we’ve seen the discounters building momentum and this week they overtake online grocery to third place in terms of the channels consumers expect to be visiting more in the next week. At the same time, we’ve seen online grocery fall slightly in terms of its predicted channel opportunity for next week, probably due to the easing of the lockdown restrictions.
Foodservice delivery grows share
For the first time, we’ve seen out of home delivered increase its share across all meal occasions this week and its share of the important dinner occasion is at its highest yet, at 9.9% (vs. 8.5% last week). This coincides with an increasing number of national operators announcing their intention to reopen on a delivery-only model, in some cases across a significant proportion of their estates. For instance, KFC has confirmed it will be reopening 500 of its stores for contactless delivery.
Looking forward to next week, consumers expect to be using food delivery/takeaway more in the next week (+33%). This represents the highest positive swing for the channel so far.
Quality decreases as a shopper need
Quality has decreased as a need across all meal occasions this week, most notably at breakfast and snack (both -5ppts). The only need that has increased this week is familiarity, which has increased at breakfast and dinner occasions. This suggests that shoppers are sticking to what they know rather than seeking out higher quality, with financial worries no doubt top of mind at this uncertain time.