Convenience Trumps Price For Supermarket, C-Store Shoppers

Ann Meyer
Retail Leader

New consumer research indicates what shoppers really want when they shop for food is convenient locations, friendly service and a pleasant atmosphere. Price is more important to grocery store shoppers than it is to c-store customers, who place a higher emphasis on cleanliness and other attributes.

Who’s winning with customers in the competitive food retail channel?

When it comes to delighting consumers, Trader Joe’s is the top-ranked grocery store, followed by Publix Super Markets and Whole Foods Market. Among convenience stores, QuikTrip is the most popular, according to new research conducted by Market Force International.

A company’s year-over-year revenue growth doesn’t always tell the story because many retailers have cut prices to boost turns and traffic. The research indicates consumers look for different attributes in different formats. Convenience ranks No. 1 in both formats, but c-store shoppers place more importance on cleanliness and friendly service than supermarket shoppers do.

In the supermarket survey, conducted in May among 6,600 consumers, Trader Joe’s scored highest for overall customer satisfaction and was the banner consumers most often said they were “very likely to recommend,” after the results were indexed, says Janet Eden-Harris, chief marketing officer and senior vice president of strategy at Market Force in Louisville, Colo. Market Force indexes the results according to the number of locations a banner operates, allowing it to determine how many “favorite” votes the banner received per location, so that those retailers with thousands of locations don’t automatically come out on top, Eden-Harris says.

Trader Joe’s ranked first in atmosphere and quick checkout and second in cleanliness, accurate pricing and courteous staff. Whole Foods Market dominated in the categories of consumers’ perception of high quality meat, produce, natural and organic foods, nutrition or health information, and environmental policies. Publix Super Markets came in first for cleanliness and courteous staff and was ranked second for high quality produce and inviting atmosphere.

Satisfaction Pays Off
In general, supermarkets that scored highest in customer satisfaction tended to outscore their competitors overall in the survey. Publix earned top marks for cleanliness and courteous staff and was second for atmosphere.

Among convenience stores, QuikTrip was the top banner after indexing, while 7-Eleven received the largest total number of votes, followed by Shell. Shell and 7-Eleven have more than 10,000 locations in the United States, exceeding other banners, Eden-Harris says.

The convenience store study suggests price generally doesn’t draw shoppers into a c-store. In fact, respondents rated merchandise prices the least important of the 11 store attributes provided in the survey. “In convenience stores, you’re going in because it’s fast,” Eden-Harris said.

The study suggests consumers care most about cleanliness, friendliness, amenities, and quality of food and service. QuikTrip ranked first for friendliness, service, cleanliness, amenities and atmosphere. It also was a leader in merchandise selection and merchandise prices. Wawa came in second place in most categories.

Supermarket Shoppers’ Values
Supermarket shoppers also want convenience, but they care more about pricing than c-store shoppers do, Eden-Harris says. “If you see data on the grocery sector, prices matter a lot,” Eden-Harris says. About 54 percent of respondents said “providing low prices” was the factor they liked about their preferred grocery, while 49 percent said “good sales and promotions” was an important attribute.

But they also value merchandise selection, cleanliness and friendliness. And competitive prices will take a supermarket only so far. “It’s really hard unless you’re a Walmart or Aldi to differentiate on price. Once you get them in the door, you have to execute to keep them,” Eden-Harris said.

Aldi and WinCo were the winners on price, while Ralph’s ranked No. 1 for convenience. Winn-Dixie drew the top spot for sales and promotions, and Meijer came in first for merchandise selection.

What’s the message for retailers in the research? “You better be in a good location, be providing good prices and promotions with fast checkout,” Eden-Harris says.