From Insight to Opportunity

SymphonyIRI outlines strategies for convenience store retailers at the NACS State of the Industry Summit.

April 16, 2010

CHICAGO - Economic stress has resulted in the emergence of a very smart and savvy shopper, according to Matt McCourt of Chicago-based SymphonyIRI Group Inc. at the 40th annual NACS State of the Industry Summit, which took place April 13 to 15.

McCourt looked at what that "new norm" can mean in terms of insights and opportunities for convenience store retailers.

One insight was that that 38 percent of all CPG purchases are made on deal, but that 2 percent point increase costs retailers about $2 billion in revenues. "We??ve actually created a shopper now that??s looking for a deal, and that??s a hard thing to walk away from...Consumers, if they start seeing prices go up, could be a little bit retaliatory toward retailers and manufacturers if they feel they??re being 'price gouged.??"

McCourt also pointed out 55 percent of shoppers are shopping at 10 or more retailers to stretch their dollars. "This is a new loyalty to value," he said, suggesting that rewiring loyalty programs and working with suppliers to create a value proposition can help obtain a greater piece of that loyalty.

As one example, he pointed to the snack category. The convenience channel is up 1.7 percent in dollar growth in snacks ?" but mass retailers are up 11 percent. That??s because SymphonyIRI research has found 42 percent of consumers are cutting back on money spent on snacks, 31 percent are snacking less frequently, 26 percent are trying to make household snacks last longer and 22 percent are eliminating unplanned snack purchases.

"These new norms are really impacting our channel," he said, emphasizing the need to offer a value proposition.

Other key retailer strategies suggested by McCourt included:

  • Develop new shopper intelligence capability, by looking at what really gets them to come into your stores
  • Market to the home, as that??s where 86 percent of CPG decisions are made
  • Implement influence-based marketing
  • Accelerate assortment redesign efforts by working with manufacturer and supplier partners in providing what makes sense for you
  • Rewire loyalty programs, thinking about how you want to continue bringing consumers into the store
  • Implement shopper-centric collaborations with manufacturers and suppliers
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