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DEEP DIVE INTO THE TRENDS
Understanding and optimizing trip missions—ranging from quick errands to stock-ups—can enhance retail strategy.
In the US, trip missions are now shifting in favor of smaller and quicker missions across the board. Stock-up trips remain important in Large Store for Grocery and Supercenters, but they have lost share of trips to smaller/medium baskets for shoppers. Additionally, small/medium trips grow in favor of small format stores like Dollar, Convenience, and Drug channels.
Source: iSHOP 12MMT Dec 23 vs 12MMT Dec 14
TRIP MISSIONS TELL US HOW
All trips in iSHOP are segmented into 6 trip missions based on specific trip characteristics.
CHANGES WORTH NOTING
ON-THE-GO TRIPS
Conversion opportunities for ‘Home’ Mission
For overall on-the-go trips, home has increased as the final destination. Heading home has been growing since 2019, but beverage conversion remains lower than those missions where consumption occurs in the shoppers' car. Conversion may be lower due to shoppers' relying on beverages already at home to consume, which leaves a large opportunity for retailers to capture those beverage purchases.
FILL-IN TRIPS
Consistency and Growth in Fill-In
The frequency of Fill-in trip missions has been stable from where it was in 2019-2020. Fill-in trips, where Food and Beverage are the priority, have seen growth in beverage conversion from 2019 to 2023. However, Fill-in trips where Food and Beverage are not the priority have seen subsequent beverage conversion declines, providing an opportunity for closing the gaps between Food and Non-Food Missions.
VARIETY BETWEEN MISSIONS
Missions differ widely across channels. Various factors drive purchasers to one store over another, including their preferred product categories, motivations for the store they choose, and their destination after the visit.
Pharmacy drives the Non-Food Mission in the Drug Channel (50%)
Food & Drink drives the Grab & Go Home Mission in the Grocery Channel
Fuel & tobacco drives the Need It Now Mission in Convenience Retail (32%, 24% respectively)
Source: iSHOP 12MMT Dec 23
ONLINE SHOPPING ON THE RISE
Online grocery shopping has evolved, giving way to a new type of trip mission—online ordering.
The continued use and frequency of fast-moving consumer goods (FMCG) shopping online is a new reality post-pandemic. After a steep increase from 2019 to 2021, grocery dollars spent online continue to stay elevated. However, consumers have shifted to more app usage and building their orders online over time. Based on insights from iSHOP, online orders via smartphone continue to increase in a way that suggests they may soon overtake computer orders.
IN SUMMARY
- Trips are shifting in favor of smaller and quicker missions across the Total US.
- Grab & Go missions may be lower than pre-pandemic, but are experiencing growth in different places. Fill-in trips remain stable.
- Missions differ widely across channels—each occasion should be approached with intention.
- Online fast-moving consumer goods shopping is continuing to grow post-pandemic, especially in ordering on a mobile device.
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