Lack of trust from Shoppers

Back to blogs

Lack of trust from Shoppers

Supermarket retailers have been faced yet again with a decline in sales. The retailers suspect that this is due to shoppers fleeing to Discounters in order to grab better bargains.

Our on-going Continuous Shopper Insights data supports this, revealing that less shoppers were using supermarkets as their main grocery channel in August 2014 compared to August 2013, and instead an increase was seen in shoppers using Discounters as their main grocery store.

The most popular assumption is that shoppers are moving towards Discounters due to their cheap items. Although our CSI data supports price being one factor in this shift, another important factor is trust: Shoppers are no longer trusting supermarkets.

When over 1000 shoppers were asked to rate how much they trusted each main supermarket chain, Tesco was perceived as the least trustworthy Supermarket out of the big 8 in the UK.

supermarket-trust-ratings-sep-14

Instead of focusing all their attention on trying to offer the shopper the cheapest prices in attempt to keep them shopping in store, perhaps retailers need to focus more on regaining their trust…

Relevant articles:

http://www.dailymail.co.uk/news/article-2766306/Tesco-crisis-national-issue-affects-British-business-community-say-critics-supermarket-brings-new-finance-director-three-months-early.html

http://www.cityam.com/1412330582/tesco-share-price-drops-yet-again-supermarket-misery-continues