Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising clips
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Drug and other outlets driving sales
- Consumers cherry-picking categories most often
- Consumers’ perception of grocery retailers evolving
- Economy and household income primary market drivers
- Retailers are brands in their own right
- Manufacturers not the only ones being innovative
- Consumers keep options open when it comes to grocery shopping
Insights and Opportunities
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- Maximizing private label revenue
- Co-branding with like-minded retailers
- Creating environments that encourage shopping
- Online grocery shopping
- Frequent-buyer loyalty programs could drive purchases
- Portable grocery scanners
- Sourcing of product origin
Inspire Insights
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- Binge On
- What’s it about?
- What we’ve seen
- Specifics
- Implications
- Spice Station
- What is it?
- What we’ve seen
- Implications
Market Size and Forecast
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- Key points
- Drug and other outlets driving most of FDMx growth
- Sales and forecast for all products selling through FDMx channels
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- Figure 1: Total U.S. retail sales in FDMx, at current prices, 2004-14
- Food store sales growth continues to be small
- Sales and forecast for all products selling in supermarkets
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- Figure 2: Total U.S. retail sales in supermarkets, at current prices, 2004-14
- Impact of inflation primary source of food store growth
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- Figure 3: Total U.S. retail sales in supermarkets, at inflation-adjusted* prices, 2004-14
- Walmart sales
Competitive Context
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- Grocery industry not immune to recession
- Key points
- Recessionary effects linger
- Value positioning and promotions a key strategy
- Non-traditional grocery outlets well positioned for growth
- Grocery store sales growth pales in comparison to other outlets
- Total annual sales at various retailer outlets, 1992-2007
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- Figure 4: Total annual sales at selected retailer outlets, 1992-2007
- Supermarket sales share peaked in 2000
- At-home consumption of food, and locales where it’s purchased, 2000-08
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- Figure 5: Food purchased for off-premise (at home) consumption, by where purchased, 2000-08
- Brand loyalty still a factor in buying behavior
- Demographic changes influencing shopping trends
Case Study—Grocery Retailing: Mass and Club Outlets
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- Mass merchandisers
- Walmart
- Implications
- Target
- Implications
- Club Stores
- Costco
- Implications
- Sam’s Club
- Implications
Case Study—Grocery Retailing: Supermarkets
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- Traditional Supermarkets
- Kroger
- Implications
- SUPERVALU
- Implications
- Publix/GreenWise
- Implications
- Natural Supermarkets
- Whole Foods Market
- Implications
Market Drivers
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- Household income decrease magnifies recession’s impact
- Consumers eating at home more often
- Flu concerns creating market for wellness products
- Dynamics of retailer loyalty similar to brand loyalty
- Special offers/bargains a draw for majority of shoppers
Retailer Brand Qualities
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- Overview
- Private label share greater in food versus non-food
- FDMx sales by department, with private label sales subtotal, 2008-09
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- Figure 6: FDMx sales, by department, with private label sales subtotal, 2008 and 2009
- Supermarket private label results mirror FDMx
- Supermarket sales by department, with private label sales subtotal, 2008-09
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- Figure 7: Supermarket sales, by department, with private label sales subtotal, 2008 and 2009
Retailer Brand Qualities: Mass and Club Outlets
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- Mass Merchandiser Private label Programs
- Walmart
- Target
- Club Stores’ Private label Programs
- Costco
- Sam’s Club
Retailer Brand Qualities: Supermarkets
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- Traditional Supermarket Private label Programs
- Publix
- Kroger
- SUPERVALU
- Natural Supermarkets’ Private label Programs
- Trader Joe’s
- Whole Foods Market
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- Figure 8: Whole Foods upscale organics, 2009
Innovations and Innovators
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- Key points
- Trader Joe’s accounts for 10% of private label introductions during 2004-09
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- Figure 9: Private label product introductions, by retailer, 2004-09*
- Retailers’ product introductions include food and non-food items
- Convenience
- Health and wellness
- Health and beauty care
Advertising and Promotion
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- Overview
- Albertsons Holiday List
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- Figure 10: Albertsons “Your holiday list for less,” November 2009
- Albertsons nutrition iQ
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- Figure 11: Albertsons Nutrition IQ, April 2009
- Kroger featuring Lewis Taylor Farms
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- Figure 12: Kroger’s “Lewis Taylor Farms,” November 2009
- Vons Ingredients for Life
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- Figure 13: Vons “Ingredients for life,” February 22, 2009
- Wegmans’ Wine
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- Figure 14: Wegmans “Tell Albany to allow wine,” March 23, 2009
- Other promotional programs
Outlets Where Consumers Buy Groceries
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- Key points
- Supermarkets most popular outlet for groceries but threats loom
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- Figure 15: Outlets where groceries are purchased, October 2009
- Non-supermarket outlets more popular with younger shoppers
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- Figure 16: Outlets where groceries are purchased, by age, October 2009
- Higher-income shoppers willing to pay for convenience
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- Figure 17: Outlets where groceries are purchased, by household income, October 2009
- Regions favor different store types
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- Figure 18: Outlets where groceries are purchased, by U.S. region, October 2009
- Households with children favor more affordable grocery retailers
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- Figure 19: Outlets where groceries are purchased, by presence of children, October 2009
Frequency of Shopping and Spending at Grocery Outlets
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- Key points
- Number of monthly visits driven by convenience
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- Figure 20: Frequency of shopping at outlets where groceries are sold, October 2009
- Supermarket grocery shopping done primarily on a weekly basis
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- Figure 21: Frequency of shopping at supermarkets, October 2009
- Wealthiest households tend to buy groceries on weekly basis
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- Figure 22: Frequency of shopping at supermarkets, by household income, October 2009
- Walmart and supermarket visits nearly identical
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- Figure 23: Frequency of shopping for groceries at Walmart, October 2009
- Walmart’s shopper income profile yields surprises
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- Figure 24: Frequency of shopping for groceries at Walmart, by household income, October 2009
- Typical weekly spend on groceries at outlets where groceries are sold
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- Figure 25: Typical weekly spend on groceries at outlets where groceries are sold, October 2009
- Majority of respondents spend less than $100 a week at supermarkets
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- Figure 26: Typical weekly spend on groceries at supermarkets, October 2009
- Supermarkets need to maintain bond with growing families
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- Figure 27: Typical weekly spend on groceries at supermarkets, by age, October 2009
- Weekly spending grows with income
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- Figure 28: Typical weekly spend on groceries at supermarkets, by household income, October 2009
What Consumers Buy in Supermarkets
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- Key points
- Unique departments offer supermarkets a competitive advantage
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- Figure 29: Sectors frequently purchased at supermarkets, October 2009
- Older shoppers attracted to supermarkets regardless of product category
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- Figure 30: Sectors frequently purchased at supermarkets, by age, October 2009
- Supermarkets need to attract lower-income households
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- Figure 31: Sectors frequently purchased at supermarkets, by household income, October 2009
- Sectors infrequently purchased at supermarkets, and reasons
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- Figure 32: Sectors infrequently purchased at supermarkets and reasons not to purchase, October 2009
Barriers to and Reasons for Purchasing in Supermarkets
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- Key points
- When buying supermarket groceries, convenience beats price
- Primary reasons why consumers buy groceries at supermarkets
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- Figure 33: Primary reasons why consumers buy groceries at supermarkets, October 2009
- Convenience major draw regardless of age
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- Figure 34: Primary reasons why consumers buy groceries at supermarkets, by age, October 2009
- Price major reason for not buying groceries at supermarkets
- Primary reasons why consumers don’t buy groceries at supermarkets
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- Figure 35: Primary reasons why consumers don’t buy groceries at supermarkets, October 2009
Supermarket Innovations and Opportunities
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- Key points
- Survey shows desire for better pricing and promotions
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- Figure 36: Supermarket innovations and opportunities wanted, October 2009
- Pricing bigger concern with age
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- Figure 37: Supermarket innovations and opportunities wanted, by age, October 2009
- Types of improvements sought driven by income levels
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- Figure 38: Supermarket innovations and opportunities wanted, by household income, October 2009
Cluster Analysis
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- Piece-ers
- Super Fans
- Low-Grocers
- Cluster characteristics
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- Figure 39: Grocery retailing clusters, October 2009
- Figure 40: Outlets other than supermarkets where consumers bought groceries, by grocery retailing clusters, October 2009
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- Figure 41: Supermarket innovations and opportunities wanted, by grocery retailing clusters, October 2009
- Figure 42: Sectors frequently purchased at supermarkets, by grocery retailing clusters, October 2009
- Cluster demographics
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- Figure 43: Grocery retailing clusters, by gender, October 2009
- Figure 44: Grocery retailing clusters, by age, October 2009
- Figure 45: Grocery retailing clusters, by household income, October 2009
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- Figure 46: Grocery retailing clusters, by race/Hispanic origin, October 2009
- Cluster methodology
Custom Consumer Groups
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- Overview
- Singles and couples
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- Figure 47: Influence of in-store advertising on consumer behavior*, by marital status, April 2008-June 2009
- Marital status and presence of children
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- Figure 48: Influence of in-store advertising on consumer behavior*, by marital status and presence of children, April 2008-June 2009
- Gender and age
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- Figure 49: Influence of in-store advertising on consumer behavior*, by gender and age, April 2008-June 2009
- Race/Hispanic origin and household income
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- Figure 50: Influence of in-store advertising on consumer behavior*, by race and household income, April 2008-June 2009
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- Figure 51: Influence of in-store advertising on consumer behavior*, by Hispanic origin and household income, April 2008-June 2009
Appendix: Trade Associations
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