Research for analysis was conducted at Super Stop & Shop, in Glendale, NY. Slideshow is a result of student research and is not the result of research conducted by The Stop & Shop Company, LLC or their affiliates. Photos of the Stop & Shop store logo, smartphone application, products, coupons, and Stop & Shop Card are property of The Stop & Shop Company, LLC.

1. +
Consumer Behavior
Grocery Store Analysis
Joseph Avellino, Marc Ball, Tommy Chow, Seamus
MacCrory, James Mulligan, & Zach Schwan

2. Background
+ of the
Industry

3. +
Background of the
Supermarket Industry
 First
true supermarket in US: King Kullen
(1930) in Jamaica, NY2
 Stop & Shop’s origins in the U.S. date back to
19143
 Closeto 400 locations in the U.S., located in
the Northeast3
 Subsidiary of Royal Ahold (Dutch company)3

4. +
Current State of the
Consumer
 46million people on food stamps according
to US Department of Commerce4
 7.9% unemployment rate (11/02/12)5
 Over
62 million receive Social Security
payments6
 Urban vs. Suburban Environment?

5. +
Advances in the
Supermarket
Industry
• Self-Checkout Registers
• “SCAN IT!” Self-Checkout
System
• Smartphone App

6. Study Design
+ And
Rationale

7. Objective:
• Supplement knowledge of industry
background through qualitative
+ research
• Use secondary and qualitative data to
conduct a strategic quantitative study
that will provide an understanding of
consumers in the supermarket industry
and identify opportunities for
improvement

8. +
Primary Data
Qualitative Quantitative
Online Feedback Observational Research
 Study the effects that store
layout and signage have on
 Research Stop & Shop the behavior of consumers
customer feedback on
Google Maps and Yelp Questionnaire
 Open-ended questions
 Identify similar themes and focused on the buying
behavior of specific age
common complaints within groups
comments
Likert Scale
 Discover customer attitudes
and identify opportunities for
improvement

9. +
Primary Data Evaluation
 52
Questionnaires completed by Stop &
Shop customers in store
 85Likert Scales filled out by customers in
store
 Information
is entered into Excel
spreadsheet, quantified, and analyzed

10. Research
+ Results

11. +
Observational Research
 Price tag encourages consumers to buy in bulk
 Unit price of an orange is $1.00

12. +
Questionnaire Results
 On Average:
 Customers 18-29 years old shop at grocery stores
once every two weeks
 Customers 30+ years old shop at grocery stores
once a week
 Mostcommon spontaneous purchases are
snack foods and soft drinks
 Mostcommon complaints include not enough
open registers and lack of parking

13. +
Name brand products are higher
in quality compared to the store’s
brand.

14. +
Name brand products are higher
in quality compared to the store’s
brand.
Agree
• 80% of customers surveyed have
purchased store brands in the past
• Only 48% say they regularly purchase
Stop & Shop branded items

15. +
I often use coupons with my
purchase.

16. +
I often use coupons with my
purchase.
Neutral
• Only 40% of customers surveyed say they
use coupons
• 47% say they will try a new product if they
have a coupon for it

17. +
Sale items are displayed on the
end of an aisle.

18. +
Sale items are displayed on the
end of an aisle.
Agree
• 56% of customers surveyed say they buy in
bulk when there is a sale

19. +
Self-checkout registers are more
convenient than traditional
registers.

20. +
Self-checkout registers are more
convenient than traditional
registers.
Agree
• 52% of customers surveyed prefer self-
checkout to traditional registers

21. +
Stop & Shop
Customer Loyalty
 52% of customers surveyed say they shop at
grocery stores other than Stop & Shop
 Biggest Competition: Trader Joe’s, Key Foods, &
Walbaum’s
 58% claim that Stop & Shop is their preferred
grocery store

22. +
Loyalty Program:
Stop & Shop Card
 65% of customers surveyed say they use
their own card with their purchase
 24% say they have the employee at the
register use the store’s card
 9% say they do not use a Stop & Shop Card
 33% of consumers’ purchasing behavior not
being tracked

23. +
Use of Technology
“SCAN IT!” System Smartphone App
 84% of consumers
 51% of customers surveyed claim to own
surveyed are aware smartphones
of the system  Of these customers,
only 20% had
 Only25% are actually downloaded the Stop &
using it Shop app
 Only 8% actually found
the app to be useful

24. Conclusion
+

25. +
Stop & Shop Consumers
 Store signage is effective at encouraging customers to
buy sale items in bulk
 Placement of snack foods and soft drinks is most
effective at the end of aisles nearest to checkout, where
customers are likely to make spontaneous purchases
 Many customers are not using traditional coupons but
would try a new brand if they had a coupon for it
 Customers have been slow to adopt advances in the
supermarket industry such as self-checkout systems and
the use of smartphone apps

26. +
Suggestions for
Improvement
 Increase use of customer’s Stop & Shop Card
 Existing Members – Cashiers should look up missing
card by using customer’s telephone number
 New Members – Incentive should be offered with
sign-up, such as a special one-time discount
– More accurate tracking of purchase
 Result
behavior

27. +
Suggestions for
Improvement
 Increase adoption of smartphone app
 Send e-mail to all Stop & Shop Card members
communicating the benefits of the application
 Increase sales of store brand
 Hold blind taste tests in stores, allowing customers to
compare the quality of store brand products to name
brands
 Coupons for store brand – available through flyers, Stop &
Shop Card, “SCAN IT!” system, and smartphone app
 Result – Increased customer loyalty

28. Thank
+ You!

29. +
Sources
1. Stop&Shop. The Stop & Shop Supermarket Company, LLC.
2012. Web. 02 Nov. 2012
2. “About King Kullen Supermarket.” King Kullen. King Kullen.
2012. Web. 02 Nov. 2012.
3. “The History of Stop & Shop.” Company History. Stop & Shop.
2012. Web. 02 Nov. 2012.
4. Cox, Jeff. “Record 46 Million Americans on Food Stamps.”
CNBC. Yahoo! Finance. 04 Sep. 2012. Web. 02 Nov. 2012.
5. Luhby, Tami. “October jobs report: Hiring increases,
unemployment up.” CNN Money. Time Warner. 02 Nov. 2012.
Web. 02 Nov. 2012.

30. +
Sources
6. “Social Security Announces 1.7 Percent Benefit Increase for
2013.” Press Office. Social Security Administration. 16 Oct.
2012. Web. 02 Nov. 2012.
7. Kilbourne, Dwayne. “Scanning Success at Self-Checkout
Lanes.” DW. Dwayne Kilbourne. 17 Jul. 2011. Web. 01 Dec.
2012.
8. “Scan It at Stop and Shop.” SuzySaid. Suzy Said LLC. 2009.
Web. 01 Dec. 2012.
9. “Stop & Shop iPhone app.” onurteler. Wordpress. 11 Jun. 2011.
Web. 01 Dec. 2012.
10. “Bargain Alert of the Day for Fairfield, CT.” Two Frugal
Fairfielders. Wordpress. 28 Jan. 2010. Web. 01 Dec. 2012