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Grocery / Drug / Mass

"While in the past 2 - 3 years, nearly all shoppers had developed as least some bargain-hunting habits born of necessity, today's market isn't so consistent. Because the economic recovery has been, and will continue to be, uneven, it is having a different impact on each of the various market segments. Finding deals that help stretch tight household budgets continues to be imperative to some shoppers, while others have started to show signs of letting up on money-saving behaviors and returning to pre-recession spending and shopping habits. This has led to an incredibly complex marketplace in which retailers and food manufacturers must have a clear understanding of where growth is likely to occur, where the opportunities lie and how to customize these initiatives to each shopper audience."
  • Women still making the majority of grocery shopping, but men are driving the (growing) quick trip
  • Rising gas and food prices are impacting # of trips taken - though spending at primary store declines
  • Supermarkets and Supercenters remain the most frequented store types
  • Private Label (Store Brands) continue to soar as a means to save money
  • Scratch cooking - by nearly three quarters of shoppers - is seen as a means of cost savings
  • Nutrition choices taking back seat to price and value
  • Enthusiasm for 'all things local' continues to grow
  • Social media and mobile technology show fast growth and opportunity for the vertical
  • Food safety confidence is at all-time highs
"The remainder of 2011 and 2012 will likely continue to be a mixed bag with spending increases among some shoppers and value-shopping among others... higher food commodity and energy process will exert pressure on retail food prices... consumers will remain cautious, and emphasis on price and promotion will continue... cautious spending and decline in trips will make trip capture and basket size paramount."

'To succeed, manufacturers and retailers must innovate by continuously introducing new products, packaging, pricing, merchandising, and promotional strategies, and customizing these initiatives to highly defined shopper segments."

That's exactly where we can help at Valassis!

Food Marketing Institute 2011
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