Retail in Transformation

Impulse Shopping

Julie Craig
VP Shopper Insights / Kantar
Bob Musman
VP Client Experience / Kantar

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April 27, 2023
AGENDA
1 The impulse challenge

2 Impulse personas & categories

3 New impulse mindset & strategy

4 Evolve brand and retailer partnerships

5 Implications

2
1
The impulse
challenge

3
We have seen traditional ‘impulse’ in significant flux

EVOLVING COMMERCE EVOLVING STORE EVOLVING LIVES

More ecomm = less store impulsivity Store space = less store impulsivity Many still ‘at home’

Delivery, pick-up, saved baskets & Cleaner COVID store/floor plans, self- Work from home, shop at home, food
subscribe & save are threats checkouts, and the prospect of HFSS delivery, buying large/bulk packages

are ALL eroding the impulse opportunity

Source: Kantar 4
Kantar’s Retail in Transformation: Impulse research performs the forensics of impulse via
shoppers’ actions, triggers, photos, and words

Two pieces of location-based research plus US and

Global best practices shaped this content
Audits of 500 store shoppers

Audits of 200 online shoppers

Collected US best practices showcase

Global Streetscapes ‘Next Practices’

What happens in the moment

when impulse occurs

• What trigger? • What sentiment?

• What action? • What conditions?

Reference documents included in this bundle: data tables, best practices deck
5

Confidential Internal Only - Amber

Two-thirds of shoppers are likely to make an impulse purchase on a given trip;
Kroger, Target, and c-store shoppers have the highest propensity

Impulse Propensity — Likely/Very Likely to Buy Unplanned Items

(among all shoppers)

65% 71% 71% 70% 68%

of all shoppers 66%
purchase impulse items 62% 61%
51%

Target C-Store Kroger Dollar Club Non-Kroger Walmart Drug

Supermarkets Supermarkets

Source: Kantar Retail in Transformation: Impulse, July 2022 6

Just over two-thirds of impulse buyers purchase more than one impulse item
Club shoppers have the largest “impulse basket”

Impulse Propensity — >1 impulse item

(among all shoppers)
76%
70% 70% 70%
67% of all impulse purchasers buy
more than one impulse item
66% 64% 63% 61%

Average Number of Impulse Items

(among all impulse shoppers)

33% 27% 17% 16% 9%

1 2 3 4-6 >7
Kroger Walmart Club Dollar Non-Kroger Target C-Store Drug
All Supermarkets Supermarkets
shoppers
Avg. # of impulse
items in the basket 2.8 3.2 3.2 3.0 2.5 3.7 2.3 2.6 2.5
Higher than average Lower than average

Source: Kantar Retail in Transformation: Impulse, July 2022 7

The aisle is the primary location for impulse purchasing

Percentage of Impulse Purchases, by Location in Store

(among all impulse purchases)
While the aisle remains the most
REFRIGERATED 14% common location for impulse
purchases, variations exist among
ENDCAP
channels and retailers.
6%

STAND Notable channel overindices

ALONE
AISLE DISPLAY • Supermarket: Standalone display, refrigerated
FREE 5%
ZER 61% • Drug: Seasonal, checkout

6% • Dollar: Checkout, aisle

• Target: Seasonal
• Convenience: Refrigerated, standalone display
• Club: seasonal, freezer
SELF-
CHECK
CHECK SEASONAL 2%
OUT
OUT
7% 1%

Source: Kantar Retail in Transformation: Impulse, July 2022 8

2
Impulse personas
and categories

9
Impulse Personas: Summary
Impulse attitudes
define personas
6 63%
Unique impulse personas
emerge, based on attitudes
toward impulse purchasing:
Discovery, Deal Seeker, Save
a Future Trip, Treat Myself,
Forgotten Items, and Impulse
Averse.
Opportunity in
emotion, deals
Of all shoppers fall within the
three ‘growth’ personas:
Discovery, Treat Myself or Deal
Seeker.
Growth personas are the
largest overall groups of
impulse buyers and have
larger numbers of impulse
items in their baskets.
Source: Kantar Retail in Transformation: Impulse, July 2022
Personas differ in key
shopping habits
3
Opportunity personas
display distinct
characteristics and
preferences, including
channel, mood, trigger, and
location in store.
10
Among the 6 personas, Deal Seeker, Discovery, and Treat Myself encompass
nearly two-thirds of all in-store shoppers

Impulse Shopper Persona

(among all shoppers)

Deal Seeker Discovery Save a Future Trip Treat Myself Forgotten Items Impulse Averse

24% 23% 18% 16% 14% 6%

Open to buying additional
Open to buying additional Open to buying additional Open to buying additional Open to buying additional
items beyond my list,
items beyond my list, items beyond my list, I’m items beyond my items beyond my list, Only buy what’s on my
especially items
I’m always looking for a always looking for list, especially if it’s a especially items I may list and nothing else
that would save
great deal or value something new to try treat for myself have forgotten
me a trip later

Source: Kantar Retail in Transformation: Impulse, July 2022 11

Amid an inflationary environment, products purchased on impulse not only
include traditional categories like snacks, but also household supplies

Top 5 Categories Purchased on Impulse

Household Supplies Sweet Snacks Non-alcoholic Beverages Salty Snacks Personal Care and Beauty

14% 13% 13% 9% 9%

Source: Kantar Retail In Transformation 2022 12

One-quarter to one-third of impulse shoppers reported feeling hungry or thirsty during their
trip; shoppers with those sentiments were more likely to buy for immediate consumption

Percentage of Impulse Purchases, by Sentiment and Immediate Consumption Trigger

(among all impulse shoppers)

36% 27%
Hungry Thirsty

Source: Kantar Retail in Transformation: Impulse, July 2022 13

3
New impulse mindset
and strategies

14
Across the store, impulsive moments happen when emotion, interruption, and value coincide

Aisle Checkout Endcap Freezer Refrigerator

Caramello, C-store
I didn't come here for it, but they did a
good job on the packaging and I think
it looks way better than the other
chocolates
Impulse enablers
Vitamin Water, Family Dollar
It's actually been fairly hard to find this
particular flavor recently while in the
supermarket so I thought I'd grab a
few bottles while I was here. The
display was fully stocked and right
by the checkouts.
Mini Chips Ahoy, Walmart
Neighborhood Market
It was easy to see and on my way to
purchase other stuff.
Mayfield Ice Cream, Walmart
Supercenter
This item is buy one get one free.
Who does not love a good sale?
Macarons, Costco
I am pregnant and started craving
them right as I saw them and they
have a huge setup for them that
caught my eye

Interruption Location Interruption Scarcity Interruption Speedy Interruption Value Interruption Em otion
conversion
New and Speedy Location Five
Location Location
unique conversion Location senses

Source: Kantar Retail in Transformation: Impulse, July 2022 15

Online impulse is disadvantaged compared to store —
fewer shoppers buy impulse online

Rate of impulse
(among all impulse purchases in-store versus online)

“I'm not as impulsive on the

computer as I am in person.
65% I can stick to a list online.
58%
But when I'm in store I tend to
wander and add more things.”
Online shopper

Store Online shopping

Source: Kantar Retail in Transformation: Impulse, July 2022 16

Online impulse shoppers take on the Deal Seeker and Treat Myself personas, with opportunity
to draw more Discovery persona shoppers

Online Impulse Shopper Persona

(among online grocery shoppers who made impulse purchases)

Deal seeker Treat myself Discovery Forgotten items Save a future trip Impulse averse

41% 36% 11% 6% 3% 3%

Open to buying additional items Open to buying additional items Open to buying additional items Open to buying additional items Open to buying additional items
Only buy what’s on my list and
beyond my list, I’m always looking beyond my list, especially if it’s beyond my list, I’m always looking beyond my list, especially items I beyond my list, especially items
nothing else
for a great deal or value a treat for myself for something new to try may have forgotten that would save me a trip later
Index vs.
In-store
Impulse
Persona 171 225 48 43 17 50

Source: Kantar Retail in Transformation: Impulse, July 2022 17

Low sample size throughout online section. Please refer to speaker notes for details on base size.
Confidential Internal Only - Amber
Success today and ahead for impulse growth,
requires us to be ‘Impulse Entrepreneurs’,
where we utilize a growth marketing approach.

We must unlearn many past impulse approaches that are less

effective and move towards new experiments, and growth hacks to
accelerate successful solutions.

Source: Kantar 18
Retailers & manufacturers partner to find new moments of conversion across
traditional and non-traditional occasions

Solution selling in-store +1 development at pickup D2C brands via airport vending

Home Depot Shoprite

Source: Kantar 19
‘Ambient Commerce’ acknowledges commerce happens everywhere; but you
must develop opportunities & technology to find whitespace opportunities

Commerce Commerce Ambient Commerce

where I am on the move enablers of tomorrow
1. Vending 1. Rolling robots 1. Social commerce 1. Metaverse

2. Captive and commuter commerce 2. Unique delivery 2. Friction decreasers 2. White space
3. Pop-up and micro stores 3. Content-led commerce

Walmart curbside +1
Lush microlocker
Tik tok + Shopify, Mastercard K-Ring Roblox NFT shoes

Source: Kantar Retail in Transformation: Impulse, July 2022 20

Perhaps no channel is more important to retailers & FMCG brands
than . . . the home

During the pandemic the home became more than

a place to eat and sleep, it became our hub.

Post-pandemic, daily impulse moments are still

developing in homes

ꟷ Smart-view fridge
ꟷ Mixed-drink maker
ꟷ Pantry “merchandising”
ꟷ Visit-me ice cream
ꟷ Neighborhood grocery
ꟷ “Wonder” truck

ꟷ Snack subscriptions
ꟷ Alexa reminders
ꟷ Walmart + Roku TV

Source: Kantar Retail in Transformation: Impulse, July 2022;

Kantar BrandZ 2022 report
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4
Evolve brand and
retailer partnerships

22
Impulse moments happen when emotion, interruption, and value coincide

Invention of impulse Snacking / Candy / Gum My Persona - Discovery and Treat Myself

How do we “Crack the Code” on the future of Impulse

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 “ Most people overestimate what technology
can do in the next year and underestimate
what it can do in ten (10) years.
” - Bill Gates

Brands and retailers

investing in new
technologies to
accelerate partnership
opportunities

AI VR AR

Source: Kantar, Bill Gates Notes quote.

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Virtual Reality technology

VIRTUAL REALITY

Source: Kantar 25
VR technology simulation & research brings your ideas to life
Cross-functional – category management, sales, insights, marketing and ecommerce

Retail Digital Twins Impulse Visualization Mobile Video Shorts

In-Store Merchandising VR Collaboration Centers Online Consumer Research

Source: Kantar Perfect Category Customer Experience case studies

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In-Store Impulse
VR Consumer Insights Research

TECHNOLGY
VR shopping qualitative and
shopping basket metrics study

STORE – FRONT END

New item innovation impulse and
refrigeration / freezer options.

IMPULSE SHOPPER PERSONA

Treat Myself. . . open to buying
additional items beyond shopping list.
Looking for a great deal or value.

Source: Kantar Perfect Category Customer Experience case studies 27

In-Store Impulse
Cross-Merchandising / Non-Traditional

TECHNOLGY
VR “digital twin” store mapping and
3D virtual experience and video

STORE - WIDE LOCATIONS

Durable goods pairings with relevant
high-traffic perimeter categories.

IMPULSE SHOPPER PERSONA

Discovery. . . open to buying additional
items beyond shopping list. Looking for
a great deal or value.

Source: Kantar Perfect Category Customer Experience case studies 28

In-Store impulse
Cross-merchandising “plus-one”
TECHNOLGY
VR “digital twin” store mapping and
3D virtual experience and video

STORE – IMPULSE MOMENTS

Displays and messaging paired with
devices. Everyday aisle, endcaps,
checkout, pharmacy, BOPS

IMPULSE SHOPPER PERSONA

Forgotten items

Source: Kantar Perfect Category Customer Experience case studies 29

Digital Impulse
eCommerce check-out pairings 80%
of shoppers want
impulse online
TECHNOLGY
eCommerce website “digital twin”
and 3D virtual experience video

DIGITAL
Search category pairing suggestion
and e-Checkout plus one

10 sec
Digital vs.
IMPULSE SHOPPER PERSONA
Save a future trip . . . open to buying 53 sec
additional items beyond shopping list, In-store.
especially to if item will save a future trip

Source: Kantar Perfect Category Customer Experience case studies 30

Future Trends - be an “Impulse Entrepreneur”
Visualize, test and collaborate with retail partners on the future of impulse

eComm Curbside Pick-Up Transit – Healthier Meals The “smart” Home of Future

Cracking the code on high-impulse The revitalization of “better for you” Work and shop from home . . . food
categories - staff, technology unattended transit /travel - Airports delivery, buying large / bulk packages

Source: Kantar Perfect Category Customer Experience case studies 31

5
Implications

32
Turning insights into actions - 5 Things to remember

1. 2. 3. 4. 5.
Develop a holistic Any category can Shopper personas Drive online mpulse Become an
omni-impulse be an impulse can shed light on among Discovery “Impulse
growth strategy category how different shoppers Entrepreneur”
shoppers approach
impulse

Brands should While traditional Very few shoppers Create treasure hunt In-store
develop potent impulse categories manage to opportunities online, are the primary location
impulse growth still top the list of suppress their allowing shoppers to for impulse, but only
initiatives across what shoppers impulse moments “unlock” unique one part of the
four critical vectors impulsively buy, be altogether. products, while using shopping ecosystem.
which include the creative with color, movement and Layer impulse
store, ecommerce, category pairings sound on listing pages throughout the journey,
ambient & home to interrupt the scroll. especially at pickup
occasions. points.

Source: Kantar Retail in Transformation: Impulse, July 2022 33

For further information please contact Julie or Bob or refer to:

retailiq.kantar.com

www.kantar.com Julie Craig Bob Musman

VP VP, Client Development
https://connect.kantarconsulting.com/perfectcategorysolution Shopper Insights Technology/Perfect Category
Julie.Craig@kantar.com Bob.Musman@kantar.com

Source: Kantar Retail in Transformation: Impulse, July 2022 34

Want to learn more?
Contact Kantar today to access this exciting bundle of materials

Retail in Transformation: Impulse bundle contains:

• Full Report: over 150 pages of research-led insights, examples,

best practices and recommended actions

• Spotlight Deck: key themes in executive format

• Reference materials
• Our experts’ impulse best practices file
• Global ‘next practices’ deck
• Full data tables
• Full photo archive
• Questionnaires

Learn more and check out a

sneak peek here

Or contact your Kantar team or kantarshopper@kantar.com directly

Source: Kantar Retail in Transformation: Impulse, July 2022

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