According to a report by technology company Proxi.cloud, which analyzes the behavior of more than 1.2 million consumers, this year more than 91% of customers of all grocery stores turned to Biedronka. However, the largest increase in the market’s reputation was recorded by Net, which improved last year’s result by more than 11 percent.
The situation with traffic is similar. The leader in this regard is Biedronka, who has recently been responsible for more than 64% of visits in this segment. In turn, the total traffic in stores increased by about 3 percent, mostly on Netto. According to the data collected, customers shop more often at discount stores than a year ago. At the same time, we can see less loyalty to discounters.
Monitoring the traffic of more than 1.2 million consumers in about 6,000. This and the discount stores held in the first eighteen weeks of last year showed which part of the customers in this segment visited the store of this chain at least once. Biedronka maintained a clear leadership position, penetrating the market by 91.5% (a year ago – 88.8%). It is followed by Lidl – 59.7% (previously – 59.1%), Netto – 32% (20.5%) and Aldi – 16.9% (a year ago it was 13.5%).
– In terms of market penetration, the Buyer Share Index, the Netto network is the biggest winner so far last year. He included. Thanks to its ambitious expansion strategy and acquisition of former Tesco stores, it has increased its customer base share and market reputation by a maximum of 11.5 percentage points. – Comments Mateusz Chołuj, Team Leader of Proxi.cloud Technology.
According to Chołuj, in 2021 Biedronka will reach almost 89% of discounted customers. However, it managed to increase the prestige of the discount market by 2.7 percent. The expert also noted that with the opening of new products, it remains to examine how the share of chain customers in the entire food segment has changed. sales outlets in small towns.
– Lidl is still the second largest network of discounts. However, it lags far behind in terms of growth. Among the institutions surveyed, it has the lowest increase in the share of buyers, the index increased by only 0.5 percentage points during the year. – Proxi.cloud analyst Adam Grochevsky reports.
The authors of the report also discuss the general traffic in stores (Share of Footfall indicator). Thus, we know that recently Biedronka was responsible for 64.2% of all visits to grocery stores (in the same period last year – 64.1%). The list is followed by Lidl – 21.5% (previously – 25.1%), Netto – 10.4% (7.4%) and Aldi – 3.9% (previously 3.3%).
– Looking at the discount market from year to year, Denmark’s Netto network has increased its share of total traffic, as Lidl, the only one of the four players surveyed, declined by 2.9 percentage points to 3.6 percentage points. However, this German network still remains in second place in the Netto rating with a result twice as high as the third. – Adam Grochevsky analyzes.
More frequent purchases
Taking into account the report, the frequency of visits to the checked discounts was also analyzed. There were 3 groups of buyers assigned to specific consumers according to the frequency of purchases. It is defined as high (visiting the stores of a certain network more than once a week), medium (more than once a month, but not more than once a week) and low (once a month or less).
– People buy from such enterprises more often than a year ago. 28.2% of discounted customers visit such stores at least once a week. This is an increase of 7.3 percentage points compared to the same period last year, when the result was 20.9%. – Mateusz Chołuj emphasizes.
In addition, research shows that yoy. On average, the group of customers who shop more than once a month, but not more than once a week has decreased. Recently, it was 35.3%, and a year ago it was 36.2%. At the same time, on average, the share of shoppers who come to the store once a month or less often has decreased. This year’s result is 36.4%, and 36.4% compared to the same period last year. – 42.8%.
– In terms of the frequency of customer purchases, discount food chains are in a similar situation with market shares. Biedronka remains the undisputed leader, with the share of buyers frequent and averaging 54.4%. Lidl is second – 30.9%, Netto – 24.8%, Aldi – 16.2%. Each discount chain saw an increase in the proportion of buyers who made frequent and moderate purchases – Adam Grochevsky informs.
Loyalty has declined
The collected data also show that y / y. decreased customer loyalty to special discount networks. This is clearly demonstrated by the Shoppers Loyalty Index. for Ladybugs recently 32.4% (in the same period last year – 41.8%). Thus, almost one in three customers of this network did not visit any store competing in the discount market during the period under review. But the index for this year Lidl 9% (previously – 15%), Net – 6.2% (8.7%), a Aldi – 4.8% (previously 8.3%).
– Loyalty to discount customers has declined sharply, and virtually every chain has seen a decline in the Shopping Loyalty Index compared to the previous year. This may indicate that society is more mobile, but the current macroeconomic situation is probably the main factor in the decline in loyalty. It encourages and forces more and more customers to look for deals. Therefore, buyers are watching the promotion more than the store sign – Says the head of the Proxi.cloud team.
According to Adam Grochevsky, on the one hand, the differences in the loyalty of the customer base of different networks indicate the strength of the board, on the other hand, the attractiveness of the promotion and the effectiveness of their communication. But to a large extent, they are also the result of a particular network expansion strategy. Firms that set up stores in densely populated areas compete with more outlets and attract fewer loyal customers. There are more shops near them in less populated areas.
The study was conducted on the basis of data for the first eighteen weeks of this year. (3.01-8.05) referring to the same period last year. (4.01-9.05).
In total, more than 1.2 million people were observed. Poles using discounted network services, including about 6,000, have branches in 16 provinces. About 570,000 of them have been registered. customers of this format in one of the analyzed periods.
The data were collected using proprietary technology based on geofencing – a method of determining entrances and exits from designated areas using mobile device placement services. The solution allows passive data collection and is characterized by high accuracy of user location (from 2 meters to 20 meters, depending on the method of positioning by mobile device). The radius of each geofencing is adjusted to the size of individual buildings. In addition, it is known that the time spent by the respondents in a certain place is an additional level of protection against the calculation of the movement of pedestrians or POS information officers in the area. The customer’s arrival in the store should have been at least 2 minutes and the user’s access to the geo-memory should not have been more than 2 hours.
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