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September 2006
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The hunt for low prices


High quality products and meal time convenience may be the attention getters in many supermarkets these days, but price is still king in the minds of many shoppers. Virtually every shopper in the supermarket says price is very or, at least, somewhat, important to them according to FMI's annual study of consumer trends.

However, the methods shoppers use to manage their spending either in planning their trip or in the store can differ widely, giving the industry plenty of strategies to consider. read more
Channel Blurring - Value and/or variety seeking!

When we began reporting on the topic of "channel blurring" in mid-1990, we wanted to understand how consumers were shopping across retail channels to fulfill their annual category needs. A key component of our work was to understand the importance of exclusive versus dual and multiple-channel category buyers within our ACNielsen Homescan Consumer Panel*. While exclusive and dual-channel category buyers represent the vast majority of buying households in the categories that we have examined, the dollar importance of exclusive-channel category buyers usually pales in comparison to dual, 3 channel and 4+ channel category buyers. read more
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Ethnic, sweets, meal starters heat up frozens sales

What are the greatest goodies consumers crave with their cold convenience-ethnic flair in entrees, easier meal preparation, zesty desserts, or better-than-fresh value benefits? These product category attributes are hot. And with them, lower sodium and fat content offerings fuse more shoppers to frozens, which suggests the sales success of some segments.

People still have to look hard behind the closed (glass) doors to spot these choices amid duller or less-healthful varieties, but ACNielsen Strategic Planner data show people are clearly making certain frozens a greater part of their daily diet. read more
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Intoxicating sales in cocktail mixes

The best bartenders have a trademark flourish that captivates patrons. Likewise, retailers are growing bolder in their merchandise displays of cocktail mixes-particularly during the prime summer months for outdoor partying-to make home entertainment baskets larger and more profitable.

Flashy cranberry red, apple green martini and daiquiri mixes entice from edgy chrome fixtures and promotional freestands set adjacent to frozen ice cream treats and hot dogs, sausages and chilled beer-all of which are high-traffic backyard fare. read more
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Stanford/UCLA Study: Circulars influence at least 10% of major shopping trips

Chain executives believe that circulars, a mainstay promotional vehicle for supermarkets for decades, draw consumers to their stores for different product and price features each week. Where else, they feel, can they discount hundreds of products to drive traffic throughout an entire store that sells 30,000 SKUs or more.

Marketers hooked on inserts so believe in their magnetism that they closely guard content and spend $8 billion a year to produce them. read more
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Survey suggests women consumers have more time than money (or at least shop that way)

A new study released by Shop Smart magazine, published by Consumer Reports, suggests that almost nine out of ten American women shoppers are concerned with getting the best price on the products they buy, with 72 percent of the women polled saying that price is key when purchasing clothing/groceries. About 57 percent of poll respondents said that the best values are found at discount department stores such as Wal-Mart and Target. read more
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A jug of wine, a loaf of bread...& then it's ready for bed

Supermarkets are designed to meet consumer needs for breakfast, lunch, dinner and even in-between meals ... what about catering to what some consider the "ultimate meal" - the bedtime snack.

It used to be a glass of warm milk; milk actually has been proven to calm the nerves and make one sleepy. Milk contains tryptophan, and the calcium and magnesium in milk help enhance the conversion of tryptophan to serotonin - but today the assortment of foods found between the bed sheets is as varied as the assortment in the supermarket itself. read more
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ERA's Annual Research Study

Consumers are growing accustomed to having an abundance of information at their disposal through multiple channels, but they might not be ready to use all of the new technologies available to them, according to the Electronic Retailing Association's (ERA) recent findings in their 2006 Annual Research Study.

The study, which looked at 600 respondents who had purchased a product or service in the past year through a television or radio advertisement with an 800-number, a 24-hour home shopping network, or via email or online advertising, found that, in general, buyers were disinterested in the idea of cell phone videos and interactive television - two of the newer technologies on the market. read more
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CHANNEL WATCH

  • ACNielsen estimates that in 2005, over $4.0 billion was spent across all retail channels in the yogurt category which includes refrigerated yogurt and refrigerated yogurt shakes & drinks.
  • The following slides indicate the percentage of households who buy each type of yogurt, a sampling of higher indexing household types who buy products in the overall yogurt category, and channel share of category dollar sales. read more
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    Phil Lempert - Editor
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    Consumers Care About What They Eat

    Which is why this week's annual National Food Policy Conference in Washington DC is more important than ever.

    Carol Tucker Forman, the director of the Food Policy Institute and Consumer Federation of America has been at the forefront of leading the "consumer charge" in the food world. This year's conference, "Food Policy in a Time of Change: Consumer Impact, Challenges and Opportunities" is designed to be a wake up call to meet the fast changing needs of our shoppers - especially in terms of health and wellness. read more
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    Facts, Figures, & the Future Newsletter


    Click here for your FREE subscription to Facts, Figures, & the Future.


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    Shopping for Health


    This national survey examines shoppers' interest and attitudes, as well as in-store activities, regarding health and nutrition, consumers' efforts to manage their health, and the ways in which health and nutritional concerns play out in purchase decisions at the grocery store. This report brings a practical understanding of the relationship between food shopping and health. read more
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    Speaks


    FMI's Speaks is the annual state of the industry report for food retailers. The report reviews the important changes and trends and puts them into an industry perspective. It presents detailed information on supermarket operations, store-level benchmarks and outlines strategic and competitive issues. read more
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    U.S. Grocery Store Shopper Trends 2006


    The FMI U.S. Grocery Store Shopper Trends 2006 is available. Click on the image above for more info.


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    Category Management


    ACNielsen's new book on category management, published by John Wiley & Sons, is now available. To order, click on the image above. Or, for discounted orders of 10 or more, contact Jeff Gould at Wiley at jgould@wiley.com.


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    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.


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