Consumer Mindshift

Aug 17, 2009 12:00 PM

The recession has redefined the supermarket shopper


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Suppliers aren't quite ready to pass on permanent price reductions, but they are providing value in more prudent ways.

“We're seeing a lot more activity in temporary price reductions that offer some price relief without painting [suppliers] into a corner,” Viamari said. “Many are a little longer or a little steeper than they have been in the past.”

Makers of products merchandised in Center Store are also experimenting with size.

Procter & Gamble recently increased the amount of product contained in its Pringles Super Stacks, after Frito-Lay began offering 20% more product free, across its lineup, according to a recently published report.

Meanwhile, Wegmans Food Markets is heading in the opposite direction, by once again reducing the size of its store-brand Light Extra Churned ice cream, in order to maintain its price. It's holding fast to the rule that when prices are raised past a certain point, consumers buy less, but when they downsize the contents, sales remain the same.

Shoppers are taking such changes in stride, with most adopting one of three distinct mindsets — none of which is demographically driven or emerging as more popular than the other two, noted Viamari.

The first group is buying in bulk to save money on a per unit basis, as well as trips to the store. Members are leaving their mark by purchasing multi-serve packs of frozen entrees, cases of sub-premium beer for at-home consumption, and extended roll toilet tissue.

Others are stocking up on items when they go on sale. Discounts and special offers receiving the most attention are those in categories that make at-home eating convenient. Instant potatoes (6.3%), frozen side dishes (31.6%) and miscellaneous snacks like trail mix, and other lunchbox fillers (14.3%) experienced significant dollar growth, which was driven by volume movement in the food channel, during the 52 weeks that ended June 14.

Likewise, foods used for at-home entertaining also fared well, with salty snacks (9.8%), crackers (3.8%) and wine (3.7%) exhibiting dollar sales gains in the food channel. A third shopper group is sticking with a consistent budget, opting for smaller basket sizes and more frequent visits.

Some members of the group are even incorporating fill-in grocery trips with excursions to drug stores, which are becoming more frequent as consumers take health care into their own hands.

“Consumers are very much in health care mode, and they're frequenting the drug channel for their needs,” noted Viamari. “Members of the channel have done a commendable job on capitalizing on the opportunity with expanded Center Store categories.”

In fact, their efforts are so effective that the channel's dollar sales growth outpaced supermarkets, and food, drug and mass merchants combined, in all but two of the 20 Center Store categories profiled in this year's IRI issue.

The most dramatic increases took place with dog food (28.7%), toilet tissue (18.7%), pasta (18.2%) and cigarettes (16.8%).

Meanwhile, consumers seem to be sticking with traditional food channels when it comes to planning dinners prepared in not-so-traditional ways.

Sales of instant potatoes and frozen side dishes fell 4.4% and 30.2%, respectively, in the drug channel.

— Julie Gallagher



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