|
|
 |
 |
|
|
May 2007
|
|
|
Finding opportunity in a tough year
Consumer attitudes toward shopping, products and meals are changing in many ways that provide clues of both major worries and opportunities for the supermarket industry going forward.
The concerns come in two distinct varieties. In some key areas, including food safety, health and wellness concerns, and the impacting of rising fuel costs, the changes are rapid and even startling. In others, including shopping trips and spending patterns, long term changes continue giving traditional operators more concern than ever about their ability to satisfy and retain their traditional shopper base. read more
|
Bringing clarity to channel choice
Understanding the importance of variety, value & convenience
In the 12+ years that we have been analyzing the phenomenon of Channel Blurring, we have demonstrated that most consumers take advantage of their channel options. But how much of that behavior is driven by consumer demand for variety; how much is driven by consumer demand for value as they seek either the best prices or price/value relationship for the products and services that they buy; or, how much of that behavior is driven by demand for convenience as consumers take advantage of retailers that enable them to get through their hectic day by offering quick in and out shopping solutions or by simply being in a location that is closer to their home or their place of work?
The complexity of channel choice has led to an expanded number of non-grocery retailers looking to leverage the power of food and beverage categories to drive store traffic, build larger baskets and drive shopper loyalty. read more
|
|
|
|
|
|
|
|
|
|
Oh baby, frozen organics catch fire
America's littlest consumersinfants and toddlersare also the purest. More moms intent on keeping them that way are flocking to the freezer case, which until now has been an unlikely place for the healthiest food choices in the store.
Today that aisle, in natural supermarkets such as Whole Foods, displays the sizzling frozen organic baby foods segment. Especially appealing to older, nutrition-sensitive Caucasian moms who gave birth later in life, and Hispanics whose processed foods typically include fewer additives than U.S. read more
|
|
|
|
Party on, premium rums
Where people pour rum, there's often a party. People link the liquor with its tropical roots, think happy thoughts and enjoy its sugar cane sweetness in a bevy of mixed drinksfrom the classic rum and Coke to a swelling array of cocktail recipes that now include it with other liquors.
Its versatility puts rum at the center of many drinking occasionsand secures its position behind vodka as the number two spirit in dollar sales, with a 12.3 percent share valued at $800 million in U.S. read more
|
|
|
|
Seniors' favorites include a few surprises
Senior couples that stick together are apparently devoted to the everyday items that sustain them as well. When an eastern Florida chain store promotes "prune juice on sale," know that that's no joke to seniors, who made it their most popular item in 2006, according to Homescan panel data tracking nearly 1,200 product types.
With a sky-high purchase index of 391, where 80 is less than expected, 120 is more, and 100 is average, prune juice led a family of related products for senior couples: canned prunes at #4, a 354 index; adult incontinence at #6 (307); dried prunes at #8 (302); canned apricots #11 (287); dates #22 (246); enemas at #24 (245); laxatives at #38 (219); diarrhea remedies at #52 (203), and rectal medication at #86 (184). read more
|
|
|
|
Grilling season tops $2B in classic fare
It's time again! Dad dusted off his Kiss The Cook apron with ardor for his perennial summer fling: the outdoor grill.
As predictably as springtime rains and summer sun beckons men to their backyards, Dad's ready to grill againa winter of meat and fish on the electric Foreman doesn't quite satisfy the same way. His enthusiasm stoked by Food Network shows, grilling competitions, and just plain missing high-heat food, are signs he'll be buying the classic fare at a high rate this season beginning Memorial Day: burgers, hot dogs, condiments and buns. read more
|
|
|
|
Baby Boomers reflect "poly-household" purchasing trend
A new study by The Nielsen Company suggests that there is a new market segmenta subset of the baby boom generationthat provides financial support to elderly and/or retired parents. More than one out of five baby boomers, according to the study, "contribute to the financial upkeep of a senior parent," while almost a quarter "help out an adult child not in college."
The broadest implications of the study are that baby boomers, already seen as driving a consumer economy, actually are casting a longer shadow than previously believed, responsible not just for purchases that are relevant to their own lives, but for purchases relevant to their dependents. read more
|
|
|
|
The failure of new product introductions
One fact that never ceases to surprise is the dismal performance of new product introductions. According to The Nielsen Company, there were more than 88,000 new UPCs introduced during the past year (ending March 24, 2007), of which 56 percent of them - or more than 49,000 UPCs - were in the food and beverage category, the rest being in non-food grocery and HBC.
Just how does anyone imagine that a supermarket could make room for even 10 percent of these introductions? And why should they? The same study found that just 2.9 percent of these products (2,561 SKUs) actually achieved $1 million or more in sales. read more
|
|
|
|
CHANNEL WATCH
The Nielsen Company estimates that in 2006, over $6.1 billion was spent across all retail channels in the baby food category which includes baby milk & milk flavorings, baby juice, baby cereal & biscuits, strained baby food, and junior baby food.
The following slides indicate the percentage of households who buy each type of baby food, a sampling of higher indexing household types who buy products in the overall baby food category, and channel share of category dollar sales. read more
|
|
|
|
|
|
 |
|
Why open a supermarket?
Especially a virtual one!
Now before you shake your head wondering just why. let me tell you about "Phil's." Phil's Supermarket, is the first virtual supermarket - and officially opened its cyber doors last Monday at the FMI annual convention.
My objective in creating Phil's is simple: to empower, educate and to celebrate food!
Phil's creates real world benefits through this unique new frontier of a virtual world experience. read more
|
|
Facts, Figures, & the Future Newsletter
Click here for your FREE subscription to Facts, Figures, & the Future.
|
|
Consumer 360
Don't miss the #1 marketing conference for the CPG industry!
Consumer 360: Winning Today, Transforming Tomorrow
May 15 - 17, 2007 at
The Westin Diplomat
Resort and Spa in
Hollywood, FL.
Click here
for more information.
|
|
FMI Annual Financial Review
This annual report provides you with a complete financial picture of the supermarket industry as well as the external business environment, including key ratios, balance sheet, income statement and statement of cash flow. The results are provided for the entire industry as well as by annual sales for more accurate benchmarking. read more
|
|
Xtreme Retail 23 Newsletter
XR23 will provide you with the latest information and analysis of technologies designed specifically for the retail environment. CLICK HERE for your FREE subscription.
|
|
|
|
