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Specialist Food and Drink Retailers - UK - March 2016

Published By :

Mintel

Published Date : Mar 2016

Category :

Retail

No. of Pages : N/A

The trend towards convenience shopping is driving footfall back into towns and cities where the specialists tend to be located, but with this comes additional competition from c-stores, discounters and online. While e-commerce isn

Table of Content

Overview

What you need to know
Products covered in this Report

Executive Summary

The market
Specialist retailers’ sales grow 1.5% in 2015
Figure 1: Market size and forecast: consumer spending at specialist food and drink retailers (incl. VAT), 2010-20
Butchers and off-licences take the largest share of sales
Figure 2: Share of specialist food and drink retailers’ sales, 2014
Price deflation continues to impact the sector
Companies, strategies and innovations
Foodservice grows in importance
Innovative approaches to convenience
Non-standard society
The consumer
62% of consumers have shopped at a food and drink specialist
Figure 3: Usage of food and drink specialists, December 2015
Satisfaction with food and drink specialists
Figure 4: Attitudes towards specialists, December 2015
What they buy and where
Figure 5: What they bought and where they bought it, December 2015
What would encourage more frequent shopping at specialists
Figure 6: Factors that would encourage greater use of food and drink specialists, any rank, December 2015
How specialist food and drink retailers are used
Figure 7: How they choose to shop at specialist food and drink retailers, December 2015
What we think

Issues and Insights

The growth of c-stores; help or hindrance?
The facts
The implications
Do Aldi and Lidl now pose the greatest threat?
The facts
The implications
Should specialists be improving online?
The facts
The implications

The Market - What You Need to Know

Market size and forecast
Number of specialists continues to decline
Channels to market
Price deflation
Modest growth in total food retailers’ sales
Consumer confidence

Market Size and Forecast

Specialists’ sales begin to grow again
Figure 8: Market size and forecast: consumer spending at specialist food and drink retailers (incl. VAT), 2010-20
Figure 9: Market size and forecast: consumer spending at all specialist food and drink retailers (incl. VAT), at current and constant prices, 2010-20
Forecast methodology

Channels to Market

Number of specialists continues to decline
Figure 10: Number of UK enterprises, by specialist type, 2011-14
Butchers and off-licences take the largest share of sales
Figure 11: Share of specialist food and drink retailers’ sales, 2014
Figure 12: Share of specialist food and drink retailers’ sales, 2011-14

Market Drivers

Price deflation
Figure 13: CPI for food and alcoholic beverages, 2010-16
Growth of the discounters
Figure 14: Grocery sector market shares for Aldi and Lidl, 2010-15
Figure 15: People who shop more or the same at Aldi and Lidl, December 2013-August 2015
All food retailers’ sales
Figure 16: All food retailers: Sales, 2010-20
Consumer confidence
Figure 17: Consumers’ perceived financial health index, 2010-16
Figure 18: Consumers’ perceived financial health, by age, January 2016
Figure 19: Consumers’ perceived financial health, by region, January 2016

Key Players - What You Need to Know

Preserve of the Independent
Food service – the way forward
Specialist delis and ready prepared meals
The premium end of the market
Other developments

Competitive Strategies

Figure 20: Key financials of the key food and drink specialist retailers, 2013-15
Foodservice option is increasingly important
Specialists offering delivery lead growth
The rise and rise of subscription services
Mergers and acquisitions

Launch Activity and Innovation

Drinks retailers
Text for wine service for busy customers
New hybrid wine store
Butchers and greengrocers
Mock meat butchers
Raw meat vending machine
Butcher Shop of the Year 2015-2016
Graze enters retail arena
Cornish pasty drive-thru
Bakeries and confectioners
100% gluten-free bakery store
Doughnut courier service
Purity and provenance
New artisan micro-bakery
Artisan bakery chain grab-and-go concept
Mr Crisp
Krispy Kreme broadcasting live video to Twitter followers
Not-for-profit bakery
Health food stores
‘Holland & Barrett More’

The Consumer - What You Need to Know

Bakers are most popular specialist
Overall, specialists attract consumers with a higher income
Specialists are delivering on quality, but struggling on convenience
Specialists are the second most popular destination for meat and fish
Health food shops attract a quarter of visits
Price is a driving factor for food and drink
Young consumers prioritise convenience
Consumers go to specialists when they can’t get what they want in supermarkets
Specialists leveraging consumer trust
Over-55s like to shop around

Use of Food and Drink Specialists

Bakers are the most popular specialist
Figure 21: Usage of food and drink specialists, December 2015
Choice of specialists differs by gender
Figure 22: Usage of food and drink specialists, by gender, December 2015
Specialists attract consumers with a higher income
Figure 23: Usage of food and drink specialists, by age and affluence, December 2015
Specialists are most popular in Scotland, London and the North
Figure 24: Usage of food and drink specialists, by region, December 2015
Bakeries are popular in Scotland and Wales
Figure 25: Usage of bakeries, by region, December 2015
Butchers popular across the board
Figure 26: Usage of butchers, by region, December 2015
Use of delicatessens varies widely by region
Figure 27: Usage of delicatessens, by region, December 2015
Confectionery stores lack popularity in the South West and East Midlands
Figure 28: Usage of confectionery shops, by region, December 2015
Londoners love health food shops
Figure 29: Usage of health food shops, by region, December 2015
Scotland most popular for fishmongers
Figure 30: Usage of fishmongers, by region, December 2015
Consumers spend the most at butchers
Figure 31: Usage of food and drink specialists, December 2015

Attitudes towards Specialists

Delivering on quality but struggling on convenience
Figure 32: Attitudes towards specialists, December 2015
Bakeries perform best on location and value for money
Figure 33: Attitudes towards bakeries, December 2015
Butchers deliver high satisfaction levels
Figure 34: Attitudes towards butchers, December 2015
Confectionery shops deliver the goods
Figure 35: Attitudes towards confectionery shops, December 2015

Key Driver Analysis

Methodology
Figure 36: Key drivers of overall satisfaction with specialist retailer store, December 2015
Figure 37: Overall satisfaction with specialist retailer store – key driver output, December 2015

Where They Buy Different Types of Product

Meat is the most popular product to buy from a specialist
Figure 38: What they bought and where they bought it, December 2015
Discounters in second place for alcohol sales
Health food specialists account for a quarter of visits
Figure 39: Where they buy health foods or supplements, December 2015
Convenience stores are popular for bread, milk and confectionery

What Would Encourage Greater Use of Specialists

Price a driving factor when it comes to buying food and drink
Figure 40: What would encourage greater use of food and drink specialists, December 2015
Getting customers involved
Figure 41: What would encourage greater use of food and drink specialists, any rank, December 2015
Young consumers prioritise convenience
Figure 42: Customer profiles of factors (any ranking) that would encourage greater use of food and drink specialists, December 2015

How They Use Specialist Food and Drink Retailers

Finding items the supermarkets don’t stock
Specialists are leveraging additional trust
Figure 43: How they choose to shop at specialist food and drink retailers, December 2015
Younger consumers more likely to buy on impulse from specialists
Figure 44: How they choose to shop at specialist food and drink retailers, by age, December 2015
Over-55s prefer to shop around
Figure 45: How they choose to shop at specialist food and drink retailers, by age, December 2015

Appendix - Data Sources, Abbreviations and Supporting Information

Abbreviations
Consumer research methodology

Appendix - Market Size and Forecast

Forecast Methodology
Key Driver Analysis
Interpretation of results
Figure 46: Overall satisfaction with specialist retailer store – key driver output, December 2015
Figure 47: Satisfaction with specialist retailer store, December 2015

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