Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
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- Figure 1: Fan chart forecast of total U.S. retail sales of groceries sold through supermarkets and drug stores, 2007-17
- Market Factors
- Consumers’ interest in healthy eating will encourage grocery shopping
- Food deserts create opportunity for growth among grocery retailers
- Consumer price index for food at home increasing
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- Figure 2: Changes in the Consumer Price Index for food, 2008-12
- Retail channels
- Despite a variety of channels, most shop for groceries at supermarkets
- The consumer
- Most consumers solely responsible for grocery shopping
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- Figure 3: Who is responsible for the household grocery shopping? March 2012
- Traditional supermarkets shopped most regularly for groceries
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- Figure 4: Retailers shopped for groceries, March 2012
- On average, club store shoppers spend the most per trip
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- Figure 5: Amount spent on groceries, by channel, March 2012
- Most shop supermarkets for convenience, pleasant experience
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- Figure 6: Reasons for shopping at supermarkets, March 2012
- Half of all shoppers look at fliers before going shopping
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- Figure 7: grocery shopping behavior, March 2012
- What we think
Issues in the Market
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- How has the retail landscape for groceries shifted?
- Where do people shop for groceries most often?
- Why do consumers shop at supermarkets for groceries?
- What innovations and improvements would shoppers like when grocery shopping?
Insights and Opportunities
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- Offer discounts on most frequently purchased items to increase loyalty
- Enhance sampling programs to offer larger-size portions
- Offer home delivery of items purchased in store
Inspire Insights
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- Inspire Trend: Carnivore, Herbavore…Locavore
- Inspire Trend: Access All Areas
Market Size and Forecast
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- Key points
- Consistent growth expected for groceries sold at supermarkets and drug stores
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- Figure 8: Total retail sales and forecast of groceries sold through supermarkets and drug stores, at current prices, 2007-17
- Figure 9: Total retail sales and forecast of groceries sold through supermarkets and drug stores, at inflation-adjusted prices, 2007-17
- Fan chart forecast
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- Figure 10: Fan chart forecast of total U.S. retail sales of groceries sold through supermarkets and drug stores, 2007-17
Market Drivers
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- Key points
- Consumers’ interest in healthy eating will encourage grocery shopping
- Food deserts spur growth for grocery retailers
- Interest in sustainable, natural, and organic foods will impact grocery shopping
- Consumer price index increasing for food at home
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- Figure 11: Changes in the Consumer Price Index for food, by category, 2008-12
- Other key drivers
Segment Performance—Supermarkets
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- Key points
- Food and drink leading segment at supermarkets
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- Figure 12: Total U.S. retail sales and forecast of grocery products sold at supermarkets, by segment, at current prices, 2007-17
- Food and drink represents majority of supermarkets’ sales
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- Figure 13: Total U.S. retail sales of groceries sold at supermarkets, by segment, 2010 and 2012
- Stable growth predicted for food and drink category
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- Figure 14: Total U.S. retail sales and forecast of food and drink sold at supermarkets, at current prices, 2007-17
- HBC smallest share of segments, expected to grow
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- Figure 15: Total U.S. retail sales and forecast of HBC sold at supermarkets, at current prices, 2007-17
- Sales of other non-food at supermarkets expected to decline
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- Figure 16: Total U.S. retail sales and forecast of other non-food sold at supermarkets, at current prices, 2007-17
Segment Performance—Drug Stores
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- Key points
- HBC leading segment at drug stores
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- Figure 17: Total U.S. retail sales and forecast of groceries sold at drug stores, at current prices, by segment, 2007-17
- HBC represents more than half of drug stores’ sales
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- Figure 18: Total U.S. retail sales of groceries sold at drug stores, by segment, 2010 and 2012
- Increased range of food and drink to drive drug store sales
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- Figure 19: Total U.S. retail sales and forecast of food and drinks sold at drug stores, at current prices, 2007-17
- HBC leading sector among drug store sales
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- Figure 20: Total U.S. retail sales and forecast of HBC sold at drug stores, at current prices, 2007-17
- Other non-food smallest share of drug store sales
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- Figure 21: Total U.S. retail sales and forecast of other non-food at drug stores, at current prices, 2007-17
Retailer Overview
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- Traditional Supermarkets
- Ahold USA
- Delhaize America
- Giant Eagle
- Kroger
- Publix Super Markets
- Safeway
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- Figure 22: Safeway’s private label brands and positioning, June 2012
- Supervalu
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- Figure 23: Supervalu’s store banners, number of stores, and key markets, June 2012
- Wegmans
- Whole Foods Market
- Trader Joe’s
- Market threats and opportunities for supermarkets
- Mass Merchandisers and Supercenters
- Target
- Walmart
- Meijer
- Market threats and opportunities for mass merchandisers and supercenters
- Warehouse Clubs
- Costco
- SAM’S CLUB
- BJ’s Wholesale Club
- Market threats and opportunities for warehouse clubs
- Drug Stores
- Walgreens
- CVS
- Rite Aid
- Market threats and opportunities for drug stores
- Dollar Stores and Discount Food Stores
- ALDI
- Bottom Dollar
- Food 4 Less
- Save-A-lot
- Dollar General
- Dollar Tree
- Family Dollar
- Market threats and opportunities for dollar stores and discount food stores
- Online Retailers
- Amazon.com
- Peapod.com
- FreshDirect.com
- Market threats and opportunities for online retailers
- Other notable grocery retailers
- Farmers Markets
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- Figure 24: Number of operating farmers markets, 1994-2011
Innovations and Innovators
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- Whole Foods Market tests smart cart
- Peapod creates virtual shopping wall
- Price Chopper debuts new concept with Limited store
- Walmart expands its Express format
- Grocers take note of men doing more shopping
- United Supermarkets tests Red Mango in-store concept
- Los Angeles bans plastic bags at supermarkets
- Supermarkets take on the wedding market with custom-made cakes
Marketing Strategies
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- Television advertising
- Albertsons
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- Figure 25: Albertsons TV ad, “Fresh,” August 2011
- Kroger
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- Figure 26: Kroger TV ad, “Save,” May 2012
- Figure 27: Kroger TV ad, “The best milk,” June 2012
- Publix Super Markets
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- Figure 28: Publix Super Markets TV ad, “Meat department,” June 2012
- Safeway
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- Figure 29: Safeway TV ad, “Simple nutrition,” August 2011
- Stop & Shop
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- Figure 30: Stop & Shop TV ad, “Summer Savings,” July 2011
- Other marketing activity
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- Figure 31: Peapod email ad, June 2012
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- Figure 32: Garden Fresh LivingSocial deal, June 2012
Who Is Responsible for the Grocery Shopping?
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- Key points
- Most consumers solely responsible for grocery shopping
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- Figure 33: Who is responsible for the household grocery shopping? March 2012
- Women are more likely to be primary grocery shoppers in household
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- Figure 34: Who is responsible for the household grocery shopping? by gender, March 2012
- 18-24s least likely to be solely responsible for grocery shopping
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- Figure 35: Who is responsible for the household grocery shopping? by age, March 2012
- Those in lower-income households less likely to share shopping responsibilities
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- Figure 36: Who is responsible for the household grocery shopping? by household income, March 2012
Retailers Shopped for Groceries
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- Key points
- Traditional supermarkets shopped most regularly for groceries
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- Figure 37: Retailers regularly shopped for groceries, March 2012
- Few demographic differences among supermarket shoppers
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- Figure 38: Incidence of regularly shopping at supermarkets for groceries, by gender, age, and household income, March 2012
- Younger shoppers visit Walmart, Target more regularly than older shoppers
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- Figure 39: Incidence of regularly shopping at mass merchandisers, Walmart, and Target for groceries, by gender, age, and household income, March 2012
- Men more likely than women to shop at club stores regularly for groceries
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- Figure 40: Incidence of regularly shopping at club stores for groceries, by gender, age, and household income, March 2012
Amount Spent on Groceries
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- Key points
- Club store shoppers spend most, convenience store shoppers spend least
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- Figure 41: Amount spent on groceries, by named store or channel, March 2012
- 35-44s spend the most at supermarkets
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- Figure 42: Average amount spent on groceries at supermarkets, by gender, age, and household income, March 2012
- The more people in household, the higher the spend on groceries
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- Figure 43: Average amount spent on groceries at supermarkets, by marital status, presence of children, and household size, March 2012
- Walmart shoppers spend more than Target shoppers
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- Figure 44: Average amount spent on groceries at Walmart and target, by gender, age, and household income, March 2012
- Spend correlates to household dynamics
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- Figure 45: Average amount spent on groceries at Walmart and target, by marital status, presence of children, and household size, March 2012
- Club store shoppers spend the most on groceries compared to all other channels
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- Figure 46: Average amount spent on groceries at club stores, by gender, age, and household income, March 2012
- Irrespective of household dynamics, club shoppers spend around $100 per trip
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- Figure 47: Average amount spent on groceries at club stores, by marital status, presence of children, and household size, March 2012
Retailers Shopped by Product Category
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- Supermarkets shopped most often for fresh produce, meat, and dairy
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- Figure 48: Where grocery items are purchased, March 2012
Reasons for Grocery Shopping at Supermarkets
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- Key points
- Most shop supermarkets for convenience, pleasant experience
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- Figure 49: Reasons for shopping at supermarkets, March 2012
- Men and women have similar reasons for supermarket shopping
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- Figure 50: Reasons for shopping at supermarkets, by gender, March 2012
- Convenience, store cleanliness important to shoppers in all age groups
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- Figure 51: Reasons for shopping at supermarkets, by age, March 2012
- Few differences in sentiments toward supermarkets by income
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- Figure 52: Reasons for shopping at supermarkets, by household income, March 2012
Grocery Shopping Behavior
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- Key points
- Half of all shoppers look at fliers before going shopping
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- Figure 53: Grocery shopping behavior, March 2012
- Women more price sensitive compared to men
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- Figure 54: Grocery shopping behavior, by gender, March 2012
- Younger shoppers least likely to plan for shopping trips
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- Figure 55: Grocery shopping behavior, by age, March 2012
- Shopping behavior similar across all household income groups
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- Figure 56: Grocery shopping behavior, by household income, March 2012
- Store brochures/fliers most influential on purchase decisions
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- Figure 57: Influences when food shopping, by gender, October 2010-November 2011
Coupon Use
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- Key points
- Most shoppers redeem coupons at supermarkets
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- Figure 58: Use of cents-off coupons, by retailer type, October 2010-November 2011
- Most use coupons to save money
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- Figure 59: Reasons for using cents-off coupons, October 2010-November 2011
- Coupons most commonly used for food/grocery products
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- Figure 60: Types of coupons used/products coupons are used for, by gender, October 2010-November 2011
Innovations/Improvements Desired in Grocery Shopping
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- Key points
- More than half of primary grocery shoppers want coupons mailed to them
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- Figure 61: Grocery shopping innovations and improvement desired, March 2012
- Women seek more innovations/improvements in grocery shopping compared to men
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- Figure 62: Grocery shopping innovations and improvement desired, by gender, March 2012
- Regardless of age, all shoppers seek more coupons and promotions
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- Figure 63: Grocery shopping innovations and improvement desired, by age, March 2012
- Despite household income differences, all groups seek coupons
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- Figure 64: Grocery shopping innovations and improvement desired, by household income, March 2012
Impact of Race/Hispanic Origin
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- Key points
- Most respondents in all race/ethnic groups are primary shoppers
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- Figure 65: Who is responsible for the household grocery shopping? by race/Hispanic origin, March 2012
- Hispanics and non-Hispanics likely to shop at supermarkets
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- Figure 66: Incidence of shopping at supermarkets for groceries, by race/Hispanic origin, March 2012
- Hispanics more likely than non-Hispanics to shop mass merchandisers
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- Figure 67: Incidence of shopping at mass merchandisers, Walmart, and Target for groceries, by race/Hispanic origin, March 2012
- Asians most likely to regularly shop at club stores for groceries
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- Figure 68: Incidence of shopping at club stores for groceries, by race/Hispanic origin, March 2012
- Average amount spent highest at club stores, lowest at Target
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- Figure 69: Amount spent on groceries at specific stores/store types, by race/Hispanic origin, March 2012
- Convenience, clean stores appeal to shoppers in all race/ethnic groups
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- Figure 70: Reasons for shopping at supermarkets, by race/Hispanic origin, March 2012
- Whites most likely to look at store fliers before shopping
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- Figure 71: Grocery shopping behavior, by race/Hispanic origin, March 2012
- Hispanics least likely to use coupons for food/groceries
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- Figure 72: Types of coupon used/products coupons are used for, by race/Hispanic origin, October 2010-November 2011
- Hispanics less likely influenced than non-Hispanics by promotional tactics
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- Figure 73: Influences when food shopping, by race/Hispanic origin, October 2010-November 2011
- Whites prefer traditional coupons via mail, Hispanics would like to use coupons via smartphone
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- Figure 74: Grocery shopping innovations and improvement desired, by race/Hispanic origin, March 2012
Cluster Analysis
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- Focused Buyers
- Demographics
- Characteristics
- Opportunity
- Savvy Shoppers
- Demographics
- Characteristics
- Opportunity
- Deal Seekers
- Demographics
- Characteristics
- Opportunity
- Indifferents
- Demographics
- Characteristics
- Opportunity
- Cluster characteristic tables
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- Figure 75: Shopping for groceries cluster groups, March 2012
- Figure 76: Who is responsible for the household grocery shopping? by cluster groups, March 2012
- Figure 77: Amount spent on groceries, by cluster groups, March 2012
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- Figure 78: Reasons for shopping at supermarkets, by cluster groups, March 2012
- Figure 79: Grocery shopping behavior, by cluster groups, March 2012
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- Figure 80: Grocery shopping innovations and improvement desired, by cluster groups, March 2012
- Cluster demographic tables
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- Figure 81: Shopping for groceries, cluster group demographics, part 1, March 2012
- Figure 82: Shopping for groceries, cluster group demographics, part 2, March 2012
- Figure 83: Shopping for groceries, cluster group demographics, part 3, March 2012
- The supermarket(s) I shop at has a loyalty card that helps me save money
Appendix—Other Useful Consumer Tables
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- Who is responsible for the household grocery shopping?
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- Figure 84: Who is responsible for the household grocery shopping? by marital/relationship status, March 2012
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- Figure 85: Who is responsible for the household grocery shopping? by presence of children in household, March 2012
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- Figure 86: Who is responsible for the household grocery shopping? by household size, March 2012
- Retailers Shopped for Groceries
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- Figure 87: Incidence of shopping at supermarkets for groceries, by marital/relationship status, March 2012
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- Figure 88: Incidence of shopping at supermarkets for groceries, by presence of children in household, March 2012
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- Figure 89: Incidence of shopping at supermarkets for groceries, by education, March 2012
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- Figure 90: Incidence of shopping at mass merchandisers for groceries, by marital status, March 2012
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- Figure 91: Incidence of shopping at mass merchandisers for groceries, by presence of children in household, March 2012
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- Figure 92: Incidence of shopping at mass merchandisers for groceries, by household size, March 2012
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- Figure 93: Incidence of shopping at club stores for groceries, by marital/relationship status, March 2012
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- Figure 94: Incidence of shopping at club stores for groceries, by education, March 2012
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- Figure 95: Incidence of shopping at club stores for groceries, by household size, March 2012
- Reasons for Shopping at Mass Merchandisers
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- Figure 96: Reasons for shopping at mass merchandisers (net any agree), March 2012
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- Figure 97: Reasons for shopping at mass merchandisers, by gender, March 2012
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- Figure 98: Reasons for shopping at mass merchandisers, by age, March 2012
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- Figure 99: Reasons for shopping at mass merchandisers, by household income, March 2012
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- Figure 100: Reasons for shopping at mass merchandisers, by race/Hispanic origin, March 2012
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- Figure 101: Reasons for shopping at mass merchandisers, by marital/relationship status, March 2012
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- Figure 102: Reasons for shopping at mass merchandisers, by presence of children in household, March 2012
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- Figure 103: Reasons for shopping at mass merchandisers, by household size, March 2012
- Grocery Shopping Behavior
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- Figure 104: Grocery shopping behavior, by marital/relationship status, March 2012
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- Figure 105: Grocery shopping behavior, by household size, March 2012
- Innovations/Improvements Desired in Grocery Shopping
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- Figure 106: Grocery shopping innovations and improvement desired, by marital/relationship status, March 2012
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- Figure 107: Grocery shopping innovations and improvement desired, by presence of children in household, March 2012
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- Figure 108: Grocery shopping innovations and improvement desired, by household size, March 2012
Appendix—Trade Associations
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