Market overview continued
Consumer trends
Overview
Business review Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
Value
Consumers’ continued focus on value and
budget-consciousness comes in the wake of
the post-2008 economic downturn and the
growth of low-cost players operating stores
and online. At the same time, customers are
redefining what value means to them. They are
less loyal to brands and formats, and online
and mobile technology makes it quick and
easy to compare offers - so providing great
value for money remains a license to operate.
Being affordable increasingly means being
able to present customers with the right
personalized offers at the right time.
Convenience
Customers have busy lifestyles and are
increasingly pressed for time. While their
awareness of healthy eating is on the rise,
both the time they have available and their
ability to cook these foods is on the decline
- especially among Millennials. This explains
the growing popularity of fresh ready meal
offerings that can be eaten immediately
or quickly prepared at home. In addition,
customers are looking for smaller store
formats that provide a fast and easy shopping
experience, convenient locations that reduce
their travel time and cost, and multiple delivery
options for their online orders.
Health and well-being
Although consumers have become more aware
of the relationship between the food they
eat and their overall health and well-being,
diet-related diseases - such as heart disease,
diabetes and malnutrition - remain a growing
worldwide issue.
Customers increasingly demand transparency
on product ingredients. For example, they want
to understand the effects on their health from
additives like sweeteners and artificial colors,
but also from the use of plastics in packaging
and the preventative use of antibiotics in
animals and poultry. Consumers inspired to
strive for healthier and cleaner lifestyles are
prioritizing fruits, vegetables, nuts and grains
and increasingly adopting a vegetarian
or vegan diet.
Transparency and sustainability
Food is safer today than ever before. At the
same time, people are increasingly interested
in where their food comes from and how their
buying decisions can impact the environment
and people’s lives all over the world, for
example through climate change or working
conditions. They expect retailers to help them
make responsible choices, and to ensure the
integrity of the supply chain wherever they can.
Connection and communities
In all our markets, people are searching for a
feeling of community and personal connection.
They are finding it in traditional ways, through
involvement in their local neighborhoods, but
also in new ways, through social media and
online communities. They want to connect
with others who have common interests and
shared values. Customers increasingly buy local
products and support local businesses to feel
more involved in their communities.
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