Grocery buys too selective for circulars
Through a special arrangement, presented here for discussion is a summary of a current article from MarketingCharts, a Watershed Publishing publication providing up-to-to-minute data and research to marketers.
An analysis of more than 32 million shoppers across almost 10,000 grocery stores during a 52-week period ending in mid-year 2013 found that, on average, shoppers bought just 0.7 percent of available products. The study, conducted by Catalina Marketing, also reveals that this selectivity tends to apply across various grocery departments and is relatively consistent when segregating shoppers by age and income.
Consumers’ selectivity was even more pronounced when looking at their weekly and quarterly shopping habits.
What’s interesting to see is that the figures don’t appear to have been dragged down by infrequent or low-value shoppers. Instead, the top shoppers in the study — who accounted for 80 percent of retailers’ sales during the period — still only bought 1 percent of available items.
The researchers point out that "the proliferation of targeted products has achieved the goal of meeting the more individualized preferences of today’s consumers."’ But Catalina makes the case that traditional promotions don’t work for these selective shoppers, arguing instead for more personalized programs.
As a case study, the researchers present data concerning a major grocery store’s Memorial Day weekly circular. Of the 1,172 items included in the circular, not a single one showed up in two-thirds of the shopping baskets during the week, while another 17 percent of baskets included only a single advertised item (equating to less than 1 percent of the items advertised). A week later, 74 percent of baskets didn’t include any items from the circular, while 15 percent contained just one.
The takeaways? Catalina recommends that:
- Retailers and brands better understand the individual needs and behaviors of shoppers so as to deliver them more relevant offers and communications;
- Marketers examine mobile solutions that can pinpoint shoppers’ buying histories and in-store location so as to get their attention at the "point of decision;" and;
- Marketers retool their delivery of promotions and offers so as to enhance their effectiveness for the customer and brand.
- The Average Grocery Shopper Buys Less Than 1 percent of Available Items Over the Course of A Year – MarketingCharts
- Engaging The Selective Shopper – Catalina Marketing
Has the circular become irrelevant for grocery’s hyper-selective shoppers? What are the best current alternatives for grocers that want to personalize deals? Do you see the circular being reinvented or becoming increasingly irrelevant over the next decade?