Nielsen: Supercenters Outperforming Competing Channels
boxes rule. For all the talk about the shift to smaller box stores, consumers
are spending their hard earned money in supercenters more than any other
format, according to new research from The Nielsen Company.
analysis of unit sales in 2008 found that consumers looking to save money
spent more across nearly every department in supercenters. In fact, according
to Nielsen, supercenters were the only channel to post overall unit sales
growth (one percent) last year.
others, including drug, clubs and dollar stores, posted dollar sales gains,
frugal consumers actually purchased fewer units overall.
merchandisers and grocery stores are feeling the impact of the supercenter,"
Todd Hale, senior vice president, consumer & shopper insights for Nielsen,
said in a press release. "Where we really start to see the expanding
reach of the supercenter is in grocery, where a shift is occurring in everything
from dairy and produce to meat and frozen foods. While the grocery channel
has traditionally been viewed as recession-resistant, it is not recession-proof."
stores were able to make some gains as convenient locations led to the
channel capturing sales from other formats, including mass merchandisers,
dollar stores and others.
stores have found gas promotion tie-ins to be very successful in capturing
shopper trips, especially when high gas prices were putting a serious crimp
on consumer spending for the first eight months of the year," said
clubs have seen sales increases across all departments and dollar stores
have achieved gains in all but a couple of categories since the recession
continue to look for ways to stretch their dollar, and in some areas, that
means shifting their spending in traditional grocery departments such as
frozen and dry goods to warehouse clubs and dollar stores," said Mr.
"That said the positive shifting trends for the warehouse and dollar
channels are not enough to offset losses due to consumers simply cutting
back in this difficult economy."
year promises to be difficult for retailers as the ranks of the unemployed
grow and economic uncertainty continues to restrain purchases, according
good news for traditional retailers is that this means consumers will be
spending more time at home, serving up opportunities for at-home consumption
of food and non-food products," said Mr. Hale.
Questions: Why did supercenters apparently perform better in 2008 than
competitive formats, such as clubs and dollar stores? Do you see another
channel gaining similar ground in 2009?