By Corina Casparis, Senior Sales Consultant, Retailers
We all know that the demand for convenience products is on the rise. In our recent study the Quest for Convenience, we reported that as busy lifestyles and rising connectivity further increase, consumers demand convenient solutions that help simplify their lives.
In 2018, around 38% of Swiss households visited a convenience shop to purchase food — representing a 1% increase from the previous year and 37,000 households.
But convenience stores aren’t the only place shoppers by convenience products. Our research shows a (growing) large number of shopping baskets in the classic retailer trade that specifically cover convenience requirements, as consumers specifically go to the store for products that will be consumed the same day (what we define as the shopper mission “Fresh for Today”).
Of all “Fresh for Today” purchases measured in 2018, 51% took place at traditional supermarkets, 29% at other retailers (convenience stores, bakeries, etc), and 19% at discounters.
How valuable is a typical “Fresh for Today” shopping basket? While it has an average receipt value of just under 15 Swiss francs, it’s an incredibly important shopper mission — representing almost a third (27%) of all purchases. In the battle to get shoppers to come to your store, more often, finding the right offer for this convenience mission is a crucial factor in gaining repeat visits.
Standouts in Convenience
When looking at growth opportunities in convenience, convenience food (ready-made salads and sandwiches) offers particular potential — with sales growth of 7.8% over the previous year.
New products are a key factor here. In fact, the strong growth in sandwiches and ready-made salads comes almost exclusively from new products. In 2018, newly listed products contributed to more than 33 million in sales. By contrast, the core range grew by only 5.6 million.
Using the trends of 2018, we see the growth potential of the Swiss convenience market in the coming years as very promising. To fully capitalize on this growing trend, manufacturers and retailers should pay high focus on targeted product offerings for on-the-go consumption, varied, innovative product ranges, and should keep laser focused on unfulfilled consumer demands resulting from changing behavioral trends.