Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer data
- Advertising clips
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Grocery products market grows minimally in 2010
- Non-supermarket channels continuing expansion into grocery
- Consumer spending may stay restrained beyond recession
- More shoppers buying only what they need rather than stocking up
- Supermarkets still seen as not offering the best value proposition
- New product introductions down during 2009-10, but there are highlights
- Grocery marketing strategies focus on value and freshness
- Who is the grocery consumer and where do they shop?
Insights and Opportunities
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- Drive-thru retailers
- Going beyond eco-friendly: labeling of products as animal-friendly
- Let the children play—in-store play areas may drive business/loyalty
- Make it easier for patrons to be healthier, while also driving loyalty
- Pharmacists offering food “prescriptions”
- Promote private label for meal solutions
- Wider adoption of nutritional rating systems
Inspire Insights
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- Trend—New Fundamentalism
Market Size and Forecast
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- Key points
- Supermarkets and specialty channels losing sales to formats perceived as offering better value
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- Figure 1: Expenditures for food at home, share by type of retail channel, 2000-10
- Non-supermarket total U.S. retail sales expected to continue outselling supermarkets
- Sales and forecast for all grocery products selling through FDMx channels
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- Figure 2: Total FDMx sales of grocery products*, at current prices, 2005-15
- Sales and forecast for all products selling in supermarkets
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- Figure 3: Supermarket sales of grocery products*, at current prices, 2005-15
- Figure 4: Supermarket sales of grocery products*, at inflation-adjusted prices, 2005-15
- Sales and forecast for all products selling in drug/other outlets
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- Figure 5: Drug/other outlet* sales of grocery products**, at current prices, 2005-15
- Figure 6: Drug/other outlet* sales of grocery products**, at inflation-adjusted prices, 2005-15
- Fan-chart forecast
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- Figure 7: FDMx sales of grocery products*, with fan-chart forecast, 2005-15
- Walmart sales
Market Drivers
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- Consumers are interested in trying to eat better
- Hispanics favor supermarkets for grocery shopping
- Price index forecast favorable for at-home food purchases
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- Figure 8: Consumer Price Index: all food, food at home and food away from home, 2008-11
- Shoppers cutting back on stocking up
- Sustainability of growing interest to younger shoppers
Competitive Context
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- Key points
- Drug and dollar stores aggressively ramping up grocery efforts
- Food deserts provide reservoir of opportunity
- Getting store brand/name product assortment right
- Frugality may extend beyond recession
- Online grocery emerging around the world and in the U.S.
- Technology as a competitive advantage
Format Developments—Supermarkets
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- Overview
- Supermarkets
- Retailers promoting BFY product choices
Format Developments—Drug Stores
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- Overview
- Walgreens
- CVS
Format Developments—Mass Merchandisers
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- Overview
- Walmart
- Target
Format Developments—Club Stores
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- Costco
- Sam’s Club
Format Developments—Dollar Stores
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- Overview
- Dollar General
- Family Dollar
- Dollar channel posing threat to Walmart and other discount outlets
Format Developments—Online
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- Overview
- Peapod
- Amazon
Private Label Impact on Grocery Operations
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- Overview
- Private label gains market share across all FDMx departments
- FDMx sales by department, with private label sales
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- Figure 9: FDMx sales, by department, with private label sales, 2009 and 2010
- Private label accounts for nearly a fifth of supermarket sales
- Supermarket sales by department, with private label sales subtotal, 2009-10
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- Figure 10: Supermarket sales, by department, with private label sales, 2009 and 2010
- Private label programs reinforce retailer’s brand identity
- Successful private label over-the-counter (OTC) and HBA programs boosting drug stores’ grocery sales as well
Innovations and Innovators
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- Key points
- Product introductions, 2005-10
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- Figure 11: Private label product introductions, by grocery retailer, 2005-10
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- Figure 12: New product introductions, by department and category, 2005-10
- Private label product innovations
- BFY
- Premium
- Value
- Non-food
Marketing Strategies
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- Key points
- Supermarket marketing strategies
- Supermarkets increasing ad spending to project new pricing image
- Target getting fresh with its food marketing
- Target updates coupon processing policy
- Walmart and P&G “go Hollywood” to boost sales
- Advertising effectiveness in grocery stores
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- Figure 13: Influence of in-store advertising on consumer behavior, by age and gender, April 2009-June 2010
- Target and Walmart putting best face forward in social media
- Television commercials
- Aldi
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- Figure 14: Aldi, “Honest to Goodness Savings,” June 2010
- Kroger
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- Figure 15: Kroger, “Tested for the Things that Matter,” June 2010
- Publix
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- Figure 16: Publix, “Where Shopping is a Pleasure,” August 2010
- Target
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- Figure 17: Target, “Expect More. Pay Less.,” October 2010
- Walmart
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- Figure 18: Walmart, “Save Money. Live Better.,” March 2010
Outlets Where Consumers Buy Groceries
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- Key points
- The grocery shopper
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- Figure 19: Grocery shopping frequency, by gender, September 2010
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- Figure 20: Grocery shopping frequency, by gender and age, September 2010
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- Figure 21: Grocery shopping frequency, by gender and household income, September 2010
- Outlets shopped
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- Figure 22: Types of stores where shoppers buy groceries, by gender, September 2010
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- Figure 23: Types of stores where shoppers buy groceries, by age, September 2010
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- Figure 24: Types of stores where shoppers buy groceries, by household income, September 2010
Grocery Shopping Frequency and Spending by Outlet
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- Key points
- Frequency
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- Figure 25: Frequency of grocery shopping, September 2010
- Frequency of visits at top outlets
- Supermarkets
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- Figure 26: Frequency of grocery shopping at supermarkets, by household income and age, September 2010
- Mass merchandisers
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- Figure 27: Frequency of grocery shopping at specific mass merchandisers, by household income and age, September 2010
- Club stores
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- Figure 28: Frequency of grocery shopping at club stores, by household income and age, September 2010
- Spending on groceries by outlet/outlet type
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- Figure 29: Spending on groceries, by outlet/outlet type, September 2010
The Supermarket Shopping Cart
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- Key points
- What consumers buy at supermarkets
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- Figure 30: What consumers buy at supermarkets versus other outlets, September 2010
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- Figure 31: What consumers buy at supermarkets versus other outlets, by age, September 2010
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- Figure 32: What consumers buy at supermarkets versus other outlets, by household income, September 2010
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- Figure 33: What consumers buy at supermarkets versus other outlets, by race/Hispanic origin, September 2010
Why Shoppers Prefer Supermarkets
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- Key points
- Reasons consumers choose supermarkets
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- Figure 34: Reasons for choosing supermarkets, September 2010
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- Figure 35: Reasons for choosing supermarkets, by age, September 2010
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- Figure 36: Reasons for choosing supermarkets, by race/Hispanic origin, September 2010
What Shoppers Don’t Buy at Supermarkets and Why
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- Key points
- What and why
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- Figure 37: What and why consumers don’t buy at supermarkets versus other outlets, September 2010
- What and why
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- Figure 38: Reasons for not buying groceries at supermarkets, September 2010
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- Figure 39: Reasons for not buying groceries at supermarkets, by household income and age, September 2010
Supermarket Innovations/Improvements Consumers Want
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- Key points
- Innovations and improvements interesting to supermarket shoppers
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- Figure 40: Innovations and improvements consumers would like in supermarkets, by gender, September 2010
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- Figure 41: Innovations and improvements consumers would like in supermarkets, by age, September 2010
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- Figure 42: Innovations and improvements consumers would like in supermarkets, by household income, September 2010
Cluster Analysis
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- Pricers
- Demographics
- Characteristics
- Opportunity
- Selectors
- Demographics
- Characteristics
- Opportunity
- Alternators
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 43: Grocery retailing clusters, September 2010
- Figure 44: Types of stores where shoppers buy groceries, by grocery retailing clusters, September 2010
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- Figure 45: Innovations and improvements consumers would like in supermarkets, by grocery retailing clusters, September 2010
- Cluster demographics
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- Figure 46: Grocery retailing clusters, by gender, September 2010
- Figure 47: Grocery retailing clusters, by age, September 2010
- Figure 48: Grocery retailing clusters, by household income, September 2010
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- Figure 49: Grocery retailing clusters, by race, September 2010
- Figure 50: Grocery retailing clusters, by Hispanic origin, September 2010
- Cluster methodology
Custom Consumer Groups
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- Key points
- Younger men willing to tune into non-supermarket channels
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- Figure 51: Types of stores where shoppers buy groceries, by gender and age, September 2010
- What consumers buy at supermarkets
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- Figure 52: What consumers buy at supermarkets versus other outlets, by gender and age, September 2010
- Reasons consumers choose supermarkets
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- Figure 53: Reasons for choosing supermarkets, by gender and age, September 2010
Appendix—Other Useful Consumer Tables
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- Figure 54: Mean weekly spending on groceries in supermarkets and at Walmart, by household income and age, September 2010
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- Figure 55: Spending on groceries in a typical week, April 2009-June 2010
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- Figure 56: Grocery outlets shopped at in last four weeks, April 2009-June 2010
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- Figure 57: Reasons for choosing supermarkets, by race/Hispanic origin, September 2010
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- Figure 58: Innovations and improvements consumers would like in supermarkets, by race/Hispanic origin, September 2010
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- Figure 59: Innovations and improvements consumers would like in supermarkets, by gender and age, September 2010
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Appendix—Trade Associations
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