More Trips Shifting to Mass

Articles
July 04, 2010

More Trips Shifting to Mass

Retailers and CPG, keep the promotional heat on this summer to help protect store trips.

Retailers and CPG, keep the promotional heat on this summer to help protect store trips.

That’s our conclusion from a recent Symphony IRI Group consumer survey on summer rituals. First, the good news: More staycations to save money are planned. This creates a vast opportunity for supermarkets that innovate to help families believe their backyards and dens are mini-pleasure domes. 

Our suggestions at The Lempert Report: think beyond foods for grilling to include cocktail mixes, pet treats, movie night at home merchandising (DVDs and delivered foods) and nonfood items such as bug repellents, water toys and sunscreens.

Second, the bad news: To fill their family food necessities, close to two-thirds of shoppers “plan to continue their trips to mass merchandisers…with an average of 20% across income groups who say they plan to increase their trips within this channel,” the study said.

Also significant:

  • 12% to 18% of consumers across income segments plan to increase trips to the club channel. The rates range from12% among lower-income households ($35,000 or less annually) up to 18% among higher-income households ($100,000 or more annually).
  • Dollar stores will also capture more trips. Some 11% of higher-income shoppers plan more trips there, compared with 5% in the lower-income households.
  • By comparison, trips to grocery and drug stores “show a slight increase in expected shopper trips this summer” vs. 2009 across all income segments, the survey noted.

We interpret that the lower- and middle-income tiers are already going to these big-box outlets more frequently, and as the recession persists higher-income shoppers feel compelled to similarly save money.

Some 40% said deals and promotions would have more influence on where they shop this summer, and 42% said deals and promotions would have more influence on the brands they buy. “This underscores the degree of entrenchment into conservative shopping patterns, where even the wealthiest consumers are heavily focused on deals,” said Susan Viamari, editor of SymphonyIRI’s Times & Trends. Deals affect brand selection among higher-earning households more than the general population and the lower-earning households, she added.