Shoppers purchase less than 1 percent of available products at their grocers
According to a new report published by Catalina, a St. Petersburg, Fla.-based personalized digital media company, shoppers are highly selective when making consumer packaged goods (CPG) purchases, buying on average less than 1 percent of products available on grocery store shelves during a one-year period. The report, “Engaging the Selective Shopper,” which is based on a study that took place over 52 weeks and examined the purchasing choices of more than 32 million American shoppers across 9,968 U.S. grocery stores, reveals that every shopper has a different purchasing profile, and no two shoppers ever purchased the same items.
“At a time of unparalleled choice in the grocery store, shoppers ignore all but a tiny fraction of available products,” said Todd Morris, executive vice president of corporate development and marketing, Catalina. “To reach today’s selective shoppers, CPG marketers need to adopt a more personalized approach to the way they market and promote their products and reward their buyers. Since no two shoppers are the same, retailers and brands should tailor their communications to the specific needs and preferences of individual shoppers and households.”
Over the course of a year, shoppers buy just 0.7 percent of all available products in the grocery store, the report states. Even top shoppers â?? those who account for 80 percent of all store purchases â?? buy just 1 percent of available products.
This trend applies across all aisles of the grocery store, the report notes. For example, the average department shopper is buying just 1.7 percent of available dairy products and 0.2 percent of available health and beauty care products. Although demographics are a long-held segmentation practice for product marketers, the results of this study indicate that age and income have very little impact on shopper selectivity.
John Bastone, executive director, retail product marketing at Catalina, told Private LabelStore Brands that the news discovered in the report could be of great benefit to retailers looking to grow sales of store brand products.
“Retailers can encourage consumers to buy store brands by fishing where the fish are,” he stated. “Shoppers with private label affinity make themselves known every day, by buying private label brands.
“And by getting smarter about how to engage that group of shoppers to spend just a bit more, retailers can increase private label sales and product loyalty,” he added. “Whether it is getting a set of consumers to purchase more by increasing quantity or buying more frequently, or promoting a new product to those most likely to respond, the most important piece is keeping the individual shopper preferences in mind.”
For more information, please visit: http://info.catalinamarketing.com/selective-shopper/
