CPG Category Sales Vary by Channel

September 9, 2008 - Over the last year, supercenters were the only store type to achieve sales gains across six key grocery retail department areas, according to Information Resources Inc.'s (IRI) latest research, "Times & Trends: Channel Migration 2008." The segment now holds a 15.1 percent share of the market, a 1.4 percent gain over 2007. Meanwhile, traditional grocery retailers showed declines in four of six departments. IRI attributes these findings to the trend wherein consumers are making fewer and larger shopping trips to save money on consumer packaged goods as well as to conserve gas. The supercenters' big draw is not only convenience, but its reputation as an "everyday low price" provider versus grocery or drug stores, which may have a good sale price on one or two items periodically.

 

Key findings from the IRI study regarding shopping shifts by department include:

Beauty/Personal Care: While the largest share shift in 2008 versus 2007 was from mass (-1.7 dollar share points) to supercenters (+2.1), drug stores also lost nearly half a share point. This is a significant loss, as the channel had recently gained positive momentum as a beauty care destination.

Food and Beverage: The grocery channel has suffered large losses in both fresh/perishable (-1.3) and frozen (-1.6), with supercenters the primary beneficiaries in both departments. Grocers have a dire need to protect and grow share across these areas, which are growing as consumers return home for meal preparation. An "affordable" positioning is paramount.

Healthcare: For simple healthcare ailments, consumers are increasingly trying to diagnose/treat themselves before heading to the doctor's office. This reality has intensified the battle for consumers' healthcare dollars. The battle is now spanning channels, where it has historically been most fierce between grocery and drug. Supercenters are right in the thick of things, posting larger share gains versus drug in key categories such as gastrointestinal liquid (supercenter, +3.3/drug, +0.8), cold/allergy/sinus liquids (+2.9/+0.2) and home health care kits (+1.0/-2.0).