Where Has All the Volume Gone?
According to CPG Brief: At Wal-Mart food products related to entertaining and baking performed well, in posting better than expected same store sales of 2.4% for the five weeks ending 1/4/08. Further, Costco added 7% same store sales increases with strength in produce deli, cooler, candy and foods.
At the same time the ShopLocal Index told us that consumer visits to the online promotion circulars of 50 major retailers enjoyed at 43% increase in December vs. last December and is up 36% for the year. Average page visits per visitor were up 5% as well.
What does all of this mean? Consumers are accelerating movement to price and “entertainment” shopping outlets for holiday entertainment food buying. This weakens sales of these products in traditional grocery outlets (the amount of food, bought and served is a fairly stable number, dependent on population….and of course weight gain!)
Consumers are looking for more specials and they are looking deeper in the ad and they are using a convenience tool, the online ad, to be more effective in their search.
Perhaps this can give a bit of guidance to retailers and manufacturers who are trying to balance value and convenience in their offering equation. Consumers will find a way to have both. And if you don’t offer it…someone else will.