Trader Joe's Named Top U.S. Grocer
dunnhumby’s inaugural Retail Preference Index has determined that Trader Joe’s is the top grocer in the U.S. The following nine retailers with the highest preference index scores, in order, are Costco, Amazon, H-E-B, Walmart, Wegmans, Aldi, Sam’s Club, Sprouts Farmers Market, and Whole Foods Market.
The RPI study surveyed 11,000 U.S. households and analyzed consumer emotional sentiment for 59 grocery retailers and then combined the survey data with the retailers’ financial performance which then created each retailer’s preference index.
“Does the grocery retail world really need another top ten list?” asked Jose Gomes, Managing Director of North America for dunnhumby, a research company. “We believe there is a need because other studies either rank retailers on financial measures or survey responses, never both. Our model captures the complexity of customers’ preferences and their actual choices by quantifying the relationship between how they perceive a retailer with their emotional connection and the financial performance.”
The RPI found that the top quartile retailers share four effective strategies:
Price-Focused: Aldi’s laser focus on price and certain high-volume staple categories like dairy and packaged foods secured the discount retailer with high rankings on price and overall RPI. Stores that index high enough on price, can often sacrifice on convenience, speed, digital and personalized discounts and information and still rank highly.
Quality-Focused: Although Whole Foods Market performs below average on prices, it still achieves a high overall RPI because they index so high on quality.
Value-Focused: Trader Joe’s, Costco, Sprouts Farmers Market and H-E-B all indexed high on quality and price. Stores that index high enough on price and quality can sacrifice on convenience, speed, digital and personalized discounts and information and still rank highly.
Price-Focused and Supported by Digital Execution: Walmart’s success in digital translates into a high RPI ranking and from indexing high on price and convenience. Target ranked second on digital execution, but ranked only average on the other supporting factors, moving it out of the top quartile of the RPI.
European Union Named Region of Honor at SIAL China 2018
The European Union (EU) will serve as the Region of Honor at SIAL China, Asia’s largest food and beverage innovation exhibition scheduled May 16 to May 18, 2018, in Shanghai.
The selection celebrates the strong economic relationship between the EU and China. As the Region of Honor, the EU pavilion and some 25 EU member state pavilions occupying more than 6,000 sqm of exhibition space will receive increased exposure.
A new record-breaking crowd of 110,000 executives is expected at SIAL China 2018, presenting an opportunity to browse exhibits and network to open new avenues of distribution and collaboration. An estimated 3,400 exhibitors representing more than 70 countries will display their wares in 162,000 square meters of exhibition space divided into 21 unique food and beverage sectors across 13 halls.
For more information, visit www.sialchina.com
Call for Speakers for Spring LEAD Marketing Conference
CPGmatters and The Shopper Technology Institute (STI) has issued a call for speaker/sponsors for its 13th LEAD Marketing Conference set for Thursday, April 26.
LEAD is a virtual event that features some of the industry's most knowledgeable experts speaking on topics in the Loyalty, Engagement, Analytics, and Digital Applications areas.
For information about speaking/sponsorship opportunities, please contact Linda Winick at firstname.lastname@example.org.
Survey Notes Growth of Online Grocery Purchases
More than one-quarter of shoppers regularly buy grocery items online. In fact, 28 percent of consumers say they buy grocery items online compared with 23 percent in Q1 2016, says a Consumer Connect survey by IRI that also took a closer look at the latest trends in buying grocery, home care and personal care items online.
The IRI survey also revealed that consumers think shopping online provides the added benefit of reducing their impulse purchases. Overall, 51 percent of total shoppers, 54 percent of millennials, 55 percent of Generation X, 52 percent of baby boomers and 46 percent of seniors say they make fewer unplanned purchases online.
Of course, convenience plays a big role in online shopping, with 20 percent of consumers saying it is easier to find needed grocery items online. By age, 32 percent of millennials, 28 percent of Generation X, 16 percent of baby boomers and 12 percent of seniors say they find items more easily.
Ordering online with in-store pickup (click-and-collect) provides convenience without the added shipping fee. While 40 percent of total shoppers like this convenience, 55 percent of millennials, 52 percent of Generation X, 36 percent of baby boomers and 25 percent of seniors specifically like click-and-collect options.
Global FMCG Industry Finds Growth in New Channels
Pro-growth governmental policies are helping to fuel growth for Fast-Moving Consumer Goods in two of the world’s five largest markets: India and the U.S. China will also continue to be a growth engine in 2018 due to pro-growth policies. At the same time, a number of geographies are experiencing growth constraints due to government/ monetary policies or slow price inflation in the commodities market.
Those are among the key takeaways from an analysis of the current state of the global FMCG industry by Kantar Consulting.
At a retailer/channel level, eCommerce will remain the obvious global growth driver. However, they key question for retailers is how to ride the growth wave without disrupting the rest of their business. Key channels like discount and convenience continue to grow, but not all global businesses are prepared for fragmented retail growth landscape.
In the U.S, about 45 percent of all retail growth will come from online, while half of the rest will come from clubs, prescriptions and convenience stores. On the other hand, drug and discount are the stars in Europe, with almost all growth coming from Central and Eastern Europe.