Winning the Cost Conscious Consumer
Consumers are still shopping conservatively, so what do supermarkets need to do?
This countries’ financial fallout may have been years ago, but consumers are still shopping conservatively and affordability remains a priority, especially for the “four in 10 financially challenged consumers,” states a new IRi report, Private Label & National Brands: Dialing in on Core Shoppers.
To support this idea, our own 2015 National Grocers Association-SupermarketGuru Consumer Survey Report released recently showed that “low prices are very important” to 38.4 percent of American adults in their selection of a primary supermarket - and six in 10 (59.8 percent) say that “items on sale or money-saving specials are very important.” This same research study reveals that just a quarter of consumers (24.2 percent) grade supermarkets as “excellent” at keeping prices low, and about four in 10 (41.4 percent) say their primary food stores excel at deals.
Adding to this is the fact that for many households, budgets have become even tighter due to SNAP cutbacks. So with all this in mind retailers need to assure their position as a place where customers will get value for their money.
According to IRi, “Some retailers are exploring the introduction of opening-price-point private label solutions. These no-frills products would target the most cost-conscious consumers...[to reinforce] their value message and stem the flow of dollars to value channels. But private label suppliers are apprehensive of the strategy, fearing it would negatively impact the strong quality perceptions they have worked so hard to achieve.”
Supermarkets need to remember that consumers are still very cost conscious and so value matters. Deals, promotions, even tips and samples on cost effective meal suggestions will continue to go a long way when it comes to winning and keeping shoppers.