CACI, the UK’s leading data intelligence company that advises a number of the country’s biggest retailers, has revealed new analysis that shows the strong link between retail spend and catering options.
48% more retail spend by consumers
Based on 170,000 exit interviews with shoppers in over 100 retail centres across the country as part of its annual Shopper Dimensions report, CACI’s research shows that consumers who use catering spend approximately 48% more on retail goods than those who don’t. The research also reveals that the different types of catering outlets available to shoppers strongly influence how much they spend.
The latest Shopper Dimensions data indicates that the average spend on catering increased by 9% between 2012 and 2013, a trend largely driven by growth in restaurant spend accounting for 55% of catering spend in 2013 as opposed to 49% in 2012. However, the proportion of spend in cafes and fast food restaurants has fallen from 25% to 23% and from 26% to 22% respectively.
Casual dining contributes to biggest growth in spend
CACI also looked at how people who use different types of catering engage with retail. In 2013, 27% of shoppers used catering but not all types of catering drive retail spend equally. Further analysis of the average number of shops visited by those who use catering showed that:
- Destination dining restaurants: 1.33 shops visited
- Fast food/takeaway: 1.35 shops visited
- Cafes: 1.46 shops visited
- Casual dining restaurants: 1.48 shops visited
Casual dining restaurants such as Nando’s, Frankie & Benny’s, Wagamama’s and Pizza Express attract people who are shopping and as a result have contributed to the biggest growth in spend.
Convenience and Leisure shoppers
Alex McCulloch, Principal Consultant at CACI, said:
“This change in behaviour is indicative of a wider shift in the way that people behave and what they expect of a retail activity. In a world where 10% of retail spend is online and is expected to double in the next 10 years, we see shoppers split into two camps: convenience and leisure.
1) Convenience which represents the path of least resistance, from mobile and iPad shopping to click and collect and the growth of local, high frequency/low basket shopping.
2) Leisure which represents a future for the high street, a pleasurable experience where shopping is part of a more relaxed trip focussed on multi-use activities and includes leisure and catering.
Retail centres must engage with growth of shopping as a leisure activity
The shift in catering behaviour seen in CACI’s Shopper Dimensions database shows the growth of shopping as a leisure activity and emphasises the importance for retail centres to provide a fully rounded experience encompassing destination retail, high quality catering and a good leisure environment.
McCulloch added:
“The centre that gets a shopper to pause and engage with catering is the centre that sees a significant increase in spend across all retail and ultimately a happy shopper.”
CACI’s Shopper Dimensions includes over 170,000 exit interviews with shoppers in over 100 retail centres across the country and is undertaken throughout the year.
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