Transcript US Buying Trends version 8 - NFRA | National Frozen

U.S. Buying Trends
July 26, 2010
Todd Hale
SVP, Consumer & Shopper Insights
Version 8
Confidential & Proprietary • Copyright © 2010 The Nielsen Company
Buying
Trends
U.S. Buying Trends
July 17, 2015
Page 2
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Edible Departments Driving Growth; Less Growth in
Fresh Meat & Dairy (Where Prices Have Been Cut)
% Dollar Growth (FDM w/WM)
3.2
1.8
1.1
1.1
0.9
0.6
0.2
0.0
HBA
Non
Food
Total
-0.3
Alco
Bev
Pkgd
Meat
Frozen
Dry
Fresh
Produce Grocery
Deli
Latest
Fresh
Meat
Dairy
General
Merch
-3.2
-4.9
52 wk
-6.4
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
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Copyright © 2010 The Nielsen Company
Non-Edibles Leading Unit Decline
% Unit Growth (FDM w/WM)
Economy driving
consumers to make
trade-offs or buy less
4.8
3.0
2.3
2.3
1.9
1.4
1.3
0.6
0.2
Total
HBA
Fresh
Produce
Fresh
Meat
Deli
Pkgd
Meat
Dairy
Alco
Bev
Frozen
Non
Food
General
Merch
Dry
Grocery
-2.4
-3.0
Latest
52 wk
-7.6
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
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Softness in Recent Quarter Driven by Price
Cuts
% Dollar Growth (FDM w/WM)
Fresh
Produce
6
Alco
Bev
4
Pkgd
Meat
2
Frozen
Dry
Grocery
Deli
HBA
Total
Non
Food
0
-2
Fresh
Meat
-4
Latest
Dairy
-6
52 wk
13 wk
General
Merch
-8
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 13 & 52 weeks ending 06/12/2010 (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
Page 5
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Copyright © 2010 The Nielsen Company
Price Wars in Chicago
Source: Company websites
U.S. Buying Trends
July 17, 2015
Page 6
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Copyright © 2010 The Nielsen Company
Weekly Value E-mails & Continuity Value
Promotion from Dominick’s
Source: Dominick’s customer email advertisements; Jewel-Osco
U.S. Buying Trends
July 17, 2015
Page 7
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Copyright © 2010 The Nielsen Company
Aggressively Promoting “Unbeatable Prices”;
Carry 25,000 Items at Less Than $1
Source: Walmart sale circular, January 3 - January 9, 2010
U.S. Buying Trends
July 17, 2015
Page 8
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Copyright © 2010 The Nielsen Company
Value Price Program
Source: Katy Batdorff | The Grand Rapids Press | New signs at a Spartan-owned Family Fare in Kentwood highlight the store's sale prices
U.S. Buying Trends
July 17, 2015
Page 9
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Food Lion Launches Low Price Heritage
Campaign
Source: Food Lion
U.S. Buying Trends
July 17, 2015
Page 10
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A&P Lowering Prices Too
U.S. Buying Trends
July 17, 2015
Page 11
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Copyright © 2010 The Nielsen Company
Kroger: “Low Prices Plus More”
Source: Kroger
U.S. Buying Trends
July 17, 2015
Page 12
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Copyright © 2010 The Nielsen Company
Sweetbay Going Public w/Price
Comparisons
Source: http://www.takebackyourlist.com/
U.S. Buying Trends
July 17, 2015
Page 13
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Copyright © 2010 The Nielsen Company
A Caution for Retailers on Price Rollbacks
• Be careful what you ask for!
• Price rollbacks are market-wide:
–No competitive advantage for individual retailers so no
inherent traffic gains
• Nielsen research shows that price rollbacks reduce
category dollars:
–Categories are far less price-sensitive than brands
–Category volume will increase slightly, but not as much as
price goes down – so dollar sales go down
U.S. Buying Trends
July 17, 2015
Page 14
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Consumer Packaged Goods Prices Have
Fallen & Units on Promotion Have Grown
All Departments
% Change Unit Prices
6
4
2
0
-2
% Change Feature and/or Display Unit Sales
4
/0
10
2/
/1
06 /10
5
/1
05 /10
7
/1
04 /10
0
/2
03 /10
0
/2
02 /10
3
/2
01 /09
6
/2
12 /09
8
/2
11 / 09
1
/3
10 09
3/
/0
10 /09
5
/0
09 / 09
8
/0
08 09
1/
/1
07 / 09
3
/1
06 09
6/
/1
05 /09
8
/1
04 /09
1
/2
03 / 09
1
/2
02 / 09
4
/2
01 / 08
7
/2
12 08
9/
/2
11 / 08
1
/0
11 08
/
10
12
8
4
0
-4
-8
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
Page 15
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Copyright © 2010 The Nielsen Company
Most Category Prices Up Marginally or Falling
in Latest Quarter
4 category w/increase
10.6–12.4%
Category % Unit Price Change
58 categories
w/increase 0–4.9%
20
15
10
48 categories w/decrease
up to 9.1%
5
0
5 categories
w/increase 5.1–7.7%
-5
2 categories w/increase
17.7– 18.4%
-10
Source: Scantrack®, a service of The Nielsen Company; (FDM w/ Walmart), 13-weeks ending 06/12/2010 (versus prior year) – 117 major category groupings
U.S. Buying Trends
July 17, 2015
Page 16
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Copyright © 2010 The Nielsen Company
What a Difference From Year Ago: 41% of
Categories w/Price Cuts Versus 18% 2009
% of Categories w/Unit Price Change of:
100%
90%
18
80%
41
70%
60%
-0.1% to -9.1%
0% to 4.9%
5% to 9.9%
10% to 14.9%
15% +
48
50%
40%
50
30%
20%
10%
0%
24
4
3
2
8
2
06/13/2009
06/12/2010
13-week period ending
Source: Scantrack®, a service of The Nielsen Company; (FDM w/ Walmart) – 117 major category groupings
U.S. Buying Trends
July 17, 2015
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Copyright © 2010 The Nielsen Company
Only One of the Categories w/Biggest Unit Price
Cuts Grew in Dollar Sales
Seasonal Gen Merchandise
% Unit Price Change
% Change in $ Sales
Baby Food
Seafood-Canned
Diet Aids
5
Candles/Incense & Acces
Juices Drinks-Shelf Stbl
0
Dough Products-Refrig
Frozen Novelties
-5
Flour
Light Bulbs Telephone
-10
Shortening/Oil
Vegetables & Grains-Dry
-15
Pet Food
Pasta
-20
Ice Cream
Cereal
-25
Source: Scantrack®, a service of The Nielsen Company; (FDM w/ Walmart), 13 weeks ending 06/12/2010 (versus prior year) – 117 major category groupings
U.S. Buying Trends
July 17, 2015
Page 18
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Copyright © 2010 The Nielsen Company
Weak Total Store Performance – Price Cuts
& Heightened Promotions Not Working
Avg U Price Chg, 13 w/e 06/12/10:
All Departments
% Change Dollar Sales
6
Positive:
Neutral:
Negative:
67
2
48
(categories)
4
2
0
-2
% Change Unit Sales
5
Or would situation
be worse without
value efforts?
0
4
/0
10
2/
/1
06 /10
5
/1
05 /10
7
/1
04 /10
0
/2
03 /10
0
/2
02 /10
3
/2
01 /09
6
/2
12 /09
8
/2
11 / 09
1
/3
10 09
3/
/0
10 /09
5
/0
09 / 09
8
/0
08 09
1/
/1
07 / 09
3
/1
06 09
6/
/1
05 /09
8
/1
04 /09
1
/2
03 / 09
1
/2
02 / 09
4
/2
01 / 08
7
/2
12 08
9/
/2
11 / 08
1
/0
11 08
/
10
-5
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
Page 19
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Lower Prices Versus the End of 2008, w/Some
Increases in Recent Quarters
Percent Change in Unit Prices
10
5
0
-5
-10
-15
09/13/08
12/13/08
03/14/09
06/13/09
09/12/09
12/12/09
03/13/10
06/12/10
13-week period ending
Total All Depts
Dry Grocery
Alcoholic Bevs
Fresh Meat
Dairy
Fresh Produce
Deli
Frozen Foods
General Merch
HBA
Non-Food Grocery
Pkgd Meat
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart); versus prior year
U.S. Buying Trends
July 17, 2015
Page 20
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Copyright © 2010 The Nielsen Company
Similar Trend for Dry Grocery Department
Avg U Price Chg, 13 w/e 06/12/10:
Dry Grocery
% Change Dollar Sales
12
Positive:
Neutral:
Negative:
12
1
27
(categories)
9
6
3
0
-3
% Change Unit Sales
4
/0
10
2/
/1
06 /10
5
/1
05 /10
7
/1
04 /10
0
/2
03 /10
0
/2
02 /10
3
/2
01 /09
6
/2
12 /09
8
/2
11 / 09
1
/3
10 09
3/
/0
10 /09
5
/0
09 / 09
8
/0
08 09
1/
/1
07 / 09
3
/1
06 09
6/
/1
05 /09
8
/1
04 /09
1
/2
03 / 09
1
/2
02 / 09
4
/2
01 / 08
7
/2
12 08
9/
/2
11 / 08
1
/0
11 08
/
10
6
4
2
0
-2
-4
-6
-8
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
Page 21
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Frozen Department Was on
Stronger Trend
Avg U Price Chg, 13 w/e 06/12/10:
Frozen
% Change Dollar Sales
8
Positive:
Neutral:
Negative:
7
0
5
(categories)
4
0
-4
% Change Unit Sales
4
2
0
-2
4
/0
10
2/
/1
06 /10
5
/1
05 /10
7
/1
04 /10
0
/2
03 /10
0
/2
02 /10
3
/2
01 /09
6
/2
12 /09
8
/2
11 / 09
1
/3
10 09
3/
/0
10 /09
5
/0
09 / 09
8
/0
08 09
1/
/1
07 / 09
3
/1
06 09
6/
/1
05 /09
8
/1
04 /09
1
/2
03 / 09
1
/2
02 / 09
4
/2
01 / 08
7
/2
12 08
9/
/2
11 / 08
1
/0
11 08
/
10
-4
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
Page 22
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Prices Have Risen & Are Generating
Better Trend on Dairy Dollar Sales
Avg U Price Chg, 13 w/e 06/12/10:
Dairy
% Change Dollar Sales
4
2
0
-2
-4
-6
-8
-10
Positive:
Neutral:
Negative:
9
1
2
(categories)
% Change Unit Sales
9
6
3
0
4
/0
10
2/
/1
06 /10
5
/1
05 /10
7
/1
04 /10
0
/2
03 /10
0
/2
02 /10
3
/2
01 /09
6
/2
12 /09
8
/2
11 / 09
1
/3
10 09
3/
/0
10 /09
5
/0
09 / 09
8
/0
08 09
1/
/1
07 / 09
3
/1
06 09
6/
/1
05 /09
8
/1
04 /09
1
/2
03 / 09
1
/2
02 / 09
4
/2
01 / 08
7
/2
12 08
9/
/2
11 / 08
1
/0
11 08
/
10
-3
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
Page 23
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Deli Department Holding Up
Better Than Most
Avg U Price Chg, 13 w/e 06/12/10:
Deli
% Change Dollar Sales
8
Positive:
Neutral:
Negative:
0
0
1
(categories)
6
4
2
0
-2
% Change Unit Sales
6
4
2
0
4
/0
10
2/
/1
06 /10
5
/1
05 /10
7
/1
04 /10
0
/2
03 /10
0
/2
02 /10
3
/2
01 /09
6
/2
12 /09
8
/2
11 / 09
1
/3
10 09
3/
/0
10 /09
5
/0
09 / 09
8
/0
08 09
1/
/1
07 / 09
3
/1
06 09
6/
/1
05 /09
8
/1
04 /09
1
/2
03 / 09
1
/2
02 / 09
4
/2
01 / 08
7
/2
12 08
9/
/2
11 / 08
1
/0
11 08
/
10
-2
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
Page 24
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Packaged Meat Growth Stalled in Recent
Periods
Avg U Price Chg, 13 w/e 06/12/10:
Packaged Meat
% Change Dollar Sales
10
Positive:
Neutral:
Negative:
1
0
0
(categories)
6
2
-2
% Change Unit Sales
4
/0
10
2/
/1
06 /10
5
/1
05 /10
7
/1
04 /10
0
/2
03 /10
0
/2
02 /10
3
/2
01 /09
6
/2
12 /09
8
/2
11 / 09
1
/3
10 09
3/
/0
10 /09
5
/0
09 / 09
8
/0
08 09
1/
/1
07 / 09
3
/1
06 09
6/
/1
05 /09
8
/1
04 /09
1
/2
03 / 09
1
/2
02 / 09
4
/2
01 / 08
7
/2
12 08
9/
/2
11 / 08
1
/0
11 08
/
10
8
6
4
2
0
-2
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
Page 25
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Lower Prices Not Bolstering Fresh Meat
Dollar or Unit Sales
Avg U Price Chg, 13 w/e 06/12/10:
Fresh Meat
% Change Dollar Sales
15
11
7
3
-1
-5
-9
Positive:
Neutral:
Negative:
0
0
1
(categories)
% Change Unit Sales
12
8
4
0
4
/0
10
2/
/1
06 /10
5
/1
05 /10
7
/1
04 /10
0
/2
03 /10
0
/2
02 /10
3
/2
01 /09
6
/2
12 /09
8
/2
11 / 09
1
/3
10 09
3/
/0
10 /09
5
/0
09 / 09
8
/0
08 09
1/
/1
07 / 09
3
/1
06 09
6/
/1
05 /09
8
/1
04 /09
1
/2
03 / 09
1
/2
02 / 09
4
/2
01 / 08
7
/2
12 08
9/
/2
11 / 08
1
/0
11 08
/
10
-4
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
Page 26
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Fresh Produce Sales Improving
Avg U Price Chg, 13 w/e 06/12/10:
Fresh Produce
% Change Dollar Sales
8
Positive:
Neutral:
Negative:
1
0
0
(categories)
6
4
2
0
-2
% Change Unit Sales
12
8
4
0
4
/0
10
2/
/1
06 /10
5
/1
05 /10
7
/1
04 /10
0
/2
03 /10
0
/2
02 /10
3
/2
01 /09
6
/2
12 /09
8
/2
11 / 09
1
/3
10 09
3/
/0
10 /09
5
/0
09 / 09
8
/0
08 09
1/
/1
07 / 09
3
/1
06 09
6/
/1
05 /09
8
/1
04 /09
1
/2
03 / 09
1
/2
02 / 09
4
/2
01 / 08
7
/2
12 08
9/
/2
11 / 08
1
/0
11 08
/
10
-4
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
Page 27
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Continued Weakness in Health & Beauty
Avg U Price Chg, 13 w/e 06/12/10:
HBA
% Change Dollar Sales
2
Positive:
Neutral:
Negative:
16
0
5 (categories)
1
0
-1
-2
% Change Unit Sales
2
0
-2
10
2/
/1
06 /10
5
/1
05 /10
7
/1
04 /10
0
/2
03 /10
0
/2
02 /10
3
/2
01 /09
6
/2
12 /09
8
/2
11 / 09
1
/3
10 09
3/
/0
10 /09
5
/0
09 / 09
8
/0
08 09
1/
/1
07 / 09
3
/1
06 09
6/
/1
05 /09
8
/1
04 /09
1
/2
03 / 09
1
/2
02 / 09
4
/2
01 / 08
7
/2
12 08
9/
/2
11 / 08
1
/0
11 08
/
4
/0
-6
10
-4
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
Page 28
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Continued Weakness in Non-Food
Avg U Price Chg, 13 w/e 06/12/10:
Non-Food Grocery
% Change Dollar Sales
8
Positive:
Neutral:
Negative:
9
0
3
(categories)
6
4
2
0
-2
% Change Unit Sales
2
0
-2
-4
10
2/
/1
06 /10
5
/1
05 /10
7
/1
04 /10
0
/2
03 /10
0
/2
02 /10
3
/2
01 /09
6
/2
12 /09
8
/2
11 / 09
1
/3
10 09
3/
/0
10 /09
5
/0
09 / 09
8
/0
08 09
1/
/1
07 / 09
3
/1
06 09
6/
/1
05 /09
8
/1
04 /09
1
/2
03 / 09
1
/2
02 / 09
4
/2
01 / 08
7
/2
12 08
9/
/2
11 / 08
1
/0
11 08
/
4
/0
-8
10
-6
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
Page 29
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Continued Weakness in Non-Edibles, with
General Merchandise Suffering the Most
Avg U Price Chg, 13 w/e 06/12/10:
General Merchandise
% Change Dollar Sales
4
Positive:
Neutral:
Negative:
14
0
5 (categories)
0
-4
-8
-12
% Change Unit Sales
0
-5
4
/0
10
2/
/1
06 /10
5
/1
05 /10
7
/1
04 /10
0
/2
03 /10
0
/2
02 /10
3
/2
01 /09
6
/2
12 /09
8
/2
11 / 09
1
/3
10 09
3/
/0
10 /09
5
/0
09 / 09
8
/0
08 09
1/
/1
07 / 09
3
/1
06 09
6/
/1
05 /09
8
/1
04 /09
1
/2
03 / 09
1
/2
02 / 09
4
/2
01 / 08
7
/2
12 08
9/
/2
11 / 08
1
/0
11 08
/
10
-10
-15
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
Page 30
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
The Shining Star of Departments
Avg U Price Chg, 13 w/e 06/12/10:
Alcoholic Beverages
% Change Dollar Sales
9
Positive:
Neutral:
Negative:
2
0
2
(categories)
6
3
0
% Change Unit Sales
6
4
2
0
4
/0
10
2/
/1
06 /10
5
/1
05 /10
7
/1
04 /10
0
/2
03 /10
0
/2
02 /10
3
/2
01 /09
6
/2
12 /09
8
/2
11 / 09
1
/3
10 09
3/
/0
10 /09
5
/0
09 / 09
8
/0
08 09
1/
/1
07 / 09
3
/1
06 09
6/
/1
05 /09
8
/1
04 /09
1
/2
03 / 09
1
/2
02 / 09
4
/2
01 / 08
7
/2
12 08
9/
/2
11 / 08
1
/0
11 08
/
10
-2
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
Page 31
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
As Prices Fall, So Have Same-Store Sales
Trends for These Retailers
Same-Store-Sales Trends
6
4
2
Kroger
Sam's Club
Walmart
Safeway
SuperValu
0
-2
-4
-6
6
5
4
1
2
3
-8
Last Six Reported Quarters
Source: Company Press Releases
U.S. Buying Trends
July 17, 2015
Page 32
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Unit Sales Growing Slower or Declining
Faster (in Recent Quarter) in Most Dept’s
% Unit Growth (FDM w/WM)
Fresh
Produce
6
Fresh
Meat
4
Deli
2
Pkgd
Meat
Dairy
Alco
Bev
Frozen
Total
Dry
Grocery
0
-2
HBA
-4
Latest
-6
52 wk
-8
Non
Food
13 wk
General
Merch
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 13 & 52 weeks ending 06/12/2010 (versus prior year); UPC-coded
U.S. Buying Trends
July 17, 2015
Page 33
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Inflationary Pressures Drove Stronger Growth
Last Year
Top 10 Fastest Growing Categories (Dollar %—Change vs YAGO)
52-Weeks Ending June 13, 2009
%
52-Weeks Ending June 12, 2010
%
Canning/Freezing Supplies
26.1 Canning/Freezing Supplies
Vegetables & Grains-Dry
24.8 Tobacco & Accessories
9.1
Flour
22.6 Sugar/Sugar Substitutes
8.1
Pasta
19.7 Vitamins
7.7
Seasonal Gen Merchandise
14.3 Nuts
6.3
Shortening/Oil
13.4 Snacks/Spreads/Dip-Dairy
6.2
Butter & Margarine
11.4 Yogurt
6.2
Baking Mixes
11.1 Vegetables-Canned
5.5
Vegetables-Canned
11.1 Wine
5.3
Pet Food
11.0 Pizza/Snacks-Frozen
5.1
30.1
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – *minimum $100 million in sales
U.S. Buying Trends
July 17, 2015
Page 34
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
This Year it Is Less About Food Basics
Top 10 Fastest Growing Categories (Unit %-Change vs YAGO)
52-Weeks Ending June 13, 2009
%
52-Weeks Ending June 12, 2010
Canning/Freezing Supplies
15.2 Frozen Novelties
%
9.2
Combo Pack
8.1 Canning/Freezing Supplies
8.2
Wine
6.4 Nuts
7.2
Fresh Meat
6.0 Fragrances - Women
6.5
Prepared Foods-Dry Mixes
5.2 Seafood-Canned
6.2
Vitamins
4.9 Vitamins
6.1
Pasta
4.3 Yogurt
5.6
Baking Mixes
3.7 Juices & Drinks-Refrig
5.4
Frozen Novelties
3.4 Pizza/Snacks-Frozen
4.8
Juices & Drinks-Refrig
2.7 Fresh Produce
4.8
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – *minimum $100 million in sales
U.S. Buying Trends
July 17, 2015
Page 35
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Hy-Vee “Get Growing”
Source: Hy-Vee
U.S. Buying Trends
July 17, 2015
Page 36
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Store Brand $ Share Growth Began in Mid-2007;
Leveled Off, But Still Growing
Store Brand $ Share
Share point
Gain from 2007
18.0
17.5
+1.9
17.0
Still
Posting
Share
Gains
16.5
16.0
15.5
Initially Led By Rising
Commodity Prices
15.0
14.5
14.0
06/16/07
09/08/07
12/01/07
02/23/08
05/17/08
08/09/08
11/01/08
01/24/09
04/18/09
07/11/09
10/03/09
12/26/09
03/20/10
06/12/10
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
U.S. Buying Trends
July 17, 2015
Page 37
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Dairy Department, Where Price Cuts Were
Deep, Off From 2008 & 2009 Highs
Store Brand $ Share
Share point
Gain from 2007
41.5
41.0
40.5
40.0
39.5
39.0
+ 0.1
38.5
38.0
37.5
37.0
36.5
06/16/07
09/08/07
12/01/07
02/23/08
05/17/08
08/09/08
11/01/08
01/24/09
04/18/09
07/11/09
10/03/09
12/26/09
03/20/10
06/12/10
Dairy
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
U.S. Buying Trends
July 17, 2015
Page 38
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Long-Term Store Brand $ Share Growth in
Other Edible Departments
Store Brand $ Share
Share point
Gain from 2007
30.0
+ 3.7
25.0
+ 2.7
20.0
+ 4.0
+ 5.4
15.0
+ 1.5
+ 0.6
10.0
5.0
0.0
06/16/07
09/08/07
12/01/07
Deli
02/23/08
05/17/08
Frozen Foods
08/09/08
11/01/08
Fresh Meat
01/24/09
04/18/09
Fresh Produce
07/11/09
10/03/09
Dry Grocery
12/26/09
03/20/10
06/12/10
Packaged Meat
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
U.S. Buying Trends
July 17, 2015
Page 39
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Solid Store Brand $ Share Growth in NonFood and Health & Beauty Department
Store Brand $ Share
Share point
Gain from 2007
18.0
16.0
+ 1.8
14.0
+ 3.3
12.0
+ 1.6
10.0
8.0
6.0
4.0
2.0
0.0
06/16/07
09/08/07
12/01/07
02/23/08
05/17/08
08/09/08
11/01/08
Non-Food Grocery
01/24/09
HBA
04/18/09
07/11/09
10/03/09
12/26/09
03/10/10
06/12/10
General Merch
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
U.S. Buying Trends
July 17, 2015
Page 40
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Store Brand Unit Share Growth Continues,
But Softness in Latest Three Periods
Store Brand Unit Share
Share point
Gain from 2007
23.0
22.5
22.0
+ 1.7
21.5
Real
Shifting
Gains
From
Brands
21.0
20.5
20.0
19.5
19.0
Still
Posting
Share
Gains
18.5
18.0
06/16/07
09/08/07
12/01/07
02/23/08
05/17/08
08/09/08
11/01/08
01/24/09
04/18/09
07/11/09
10/03/09
12/26/09
03/20/10
06/12/10
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
U.S. Buying Trends
July 17, 2015
Page 41
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Dairy Dragging Down Store Brand Unit
Share, But Still Growing Long-Term
Store Brand Unit Share
Share point
Gain from 2007
42.0
41.0
40.0
+ 1.4
39.0
38.0
37.0
36.0
35.0
06/16/07
09/08/07
12/01/07
02/23/08
05/17/08
08/09/08
11/01/08
01/24/09
04/18/09
07/11/09
10/03/09
12/26/09
03/20/10
06/12/10
Dairy
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
U.S. Buying Trends
July 17, 2015
Page 42
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Store Brand Growth in Other Edible
Departments, But Slippage in Latest Periods
Store Brand Unit Share
Share point
Gain from 2007
25.0
+ 2.3
+ 2.5
20.0
+ 1.1
+ 2.7
+ 4.6
15.0
+ 0.3
10.0
5.0
0.0
06/16/07
09/08/07
12/01/07
02/23/08
Frozen Foods
05/17/08
08/09/08
Dry Grocery
11/01/08
Deli
01/24/09
04/18/09
Fresh Meat
07/11/09
10/03/09
Fresh Produce
12/26/09
03/20/10
06/12/10
Packaged Meat
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
U.S. Buying Trends
July 17, 2015
Page 43
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Gradual Store Brand Unit Share Growth in
Non-Edibles
Store Brand Unit Share
Share point
Gain from 2007
25.0
+ 2.3
20.0
+ 2.9
15.0
+ 2.2
10.0
5.0
0.0
06/16/07
09/08/07
12/01/07
02/23/08
05/17/08
08/09/08
11/01/08
Non-Food Grocery
01/24/09
HBA
04/18/09
07/11/09
10/03/09
12/26/09
03/10/10
06/12/10
General Merch
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
U.S. Buying Trends
July 17, 2015
Page 44
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Retailer Brand $ Share Varies by Department
% of $ Sales (FDM w/WM)
Greater development in food & beverage;
share growth in all departments, but Dairy
38.8
26.6
17.2% AVG ( + 0.3 pts)
21.3
17.5
17.2
15.9
14.9
14.6
13.7
8.6
Packaged
Meat
General
Merch
Alcoholic
Bevs
+1.9
Non-Food
Grocery
+1.9
Fresh
Produce
Fresh Meat
Frozen
Foods
+0.6
HBA
+1.0
Dry Grocery
(-1.1
Deli
Dairy
0.8
+0.3
+1.1
+0.6
+0.7
+0.6
+0.1)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 (versus prior year)
U.S. Buying Trends
July 17, 2015
Page 45
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Retailer Brand Unit Share Varies by Department
% of Unit Sales (FDM w/WM)
Greater development in food & beverage;
share growth in all departments but Dairy
40.1
21.9% AVG ( + 0.4 pts)
22.2
21.9
20.0
18.9
17.5
16.7
16.3
14.8
14.1
+1.0
+2.0
+0.8
+0.6
Alcoholic
Bevs
+1.6
Packaged
Meat
+0.9
General
Merch
Fresh
Produce
+0.1
Deli
Dry Grocery
Frozen
Foods
+0.5
Fresh Meat
+1.0
HBA
(-0.2
Non-Food
Grocery
Dairy
0.9
+0.1)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 (versus prior year)
U.S. Buying Trends
July 17, 2015
Page 46
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Stronger $ Growth from Store Brands &
Overlap in Just Three Mega-Categories
Top 15 Fastest
Growing
Categories
(% $ Change)
Categories
on both lists
Non-Edible
Categories
Edibles no
longer
dominate
store brand
list
Branded*
Canning/Freezing Supplies
%
30.0
Store Brands*
%
Fragrances - Women
77.6
Tobacco & Accessories
9.2
Canning/Freezing Supplies
69.5
Snacks/Spreads/Dip-Dairy
9.0
Laundry Supplies
26.5
Nuts
7.7
Fruit-Dried
23.2
Yogurt
7.2
Wine
22.0
Vitamins
6.2
Cookware
21.3
Wine
5.1
Skin Care Preparations
20.1
Insecticides Repellants
5.0
Combo Pack
20.0
Candy
4.8
Detergents
19.7
Frozen Novelties
4.7
Personal Soap/Bath Needs
18.8
Pizza/Snacks-Frozen
4.4
Cosmetics
17.8
Vegetables-Canned
4.0
Diet Aids
16.8
Baking Supplies
3.8
Soft Drinks-Non Carb
15.2
Tea
3.6
Tea
14.8
Pickles/Olives/Relishes
3.5
Gum
14.5
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 wks ending 06/12/2010 (versus prior year) – *minimum $100 million in sales
U.S. Buying Trends
July 17, 2015
Page 47
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Stronger Unit Growth from Store Brands &
Duplication in Just Two Categories
Top 15 Fastest
Growing
Categories
(% Unit Change)
Categories
on both lists
Non-Edible
Categories
Edibles less
dominant on
store brand list;
is duplication
from similar or
different
consumers?
Branded*
%
Store Brands*
%
Frozen Novelties
9.6
Fragrances - Women
69.7
Snacks/Spreads/Dip-Dairy
8.6
Canning/Freezing Supplies
58.5
Seafood-Canned
8.4
Combo Pack
21.8
Canning/Freezing Supplies
8.1
Fruit-Dried
19.6
Nuts
8.1
Fresh Produce
19.2
Yogurt
6.8
Cookware
17.2
Vitamins
6.0
Wine
17.0
Juices & Drinks-Refrig
5.5
Personal Soap/Bath Needs
15.8
Shortening/Oil
4.8
Tea
15.3
Pizza/Snacks-Frozen
4.8
Tobacco & Accessories
14.9
Wine
4.5
Salad Dressings/Mayo/Top
14.7
Pkg'd Milks & Modifiers
4.5
Fresh Meat
13.7
Bread & Baked Goods
3.7
Cosmetics
12.7
Spices/Seasoning/Extract
2.8
Beer
12.3
Condiments/Gravies/Sauce
2.8
Skin Care Preparations
12.0
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 wks ending 06/12/2010 (versus prior year) – *minimum $100 million in sales
U.S. Buying Trends
July 17, 2015
Page 48
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Non-Edibles Top the List of Categories
Driving Bigger Unit Declines
Top 15 Declining
Categories
(% Unit Change)
Categories
on both lists
Non-Edible
Categories
Faster
declines
for store
brands
Branded*
%
Store Brands*
%
Film & Cameras
-35.7
Computer/Electronic Prods
-84.0
Ethnic HABA
-13.9
Deodorant
-39.9
Seasonal Gen Merchandise
-13.1
Film & Cameras
-26.6
Juices/Drinks-Frozen
-11.8
Insecticides Repellants
-23.1
Diet Aids
-11.5
Light Bulbs Telephone
-22.1
Computer/Electronic Prods
-10.9
Snacks/Spreads/Dip-Dairy
-20.9
Office/School Supplies
-10.8
Gum
-20.8
Battery/Flashlite/Charge
-10.2
Housewares Appliances
-13.9
Pain Remedies
-9.1
Men's Toiletries
-12.7
Kitchen Gadgets
-8.6
Seasonal Gen Merchandise
-11.4
Baby Needs
-8.5
Lawn and Garden
-10.9
Fresheners/Deodorizers
-8.4
Battery/Flashlite/Charge
-10.6
Pet Care
-8.2
Hair Care
-10.5
Magazines Selected Title
-7.8
Disposable Diapers
-10.1
Feminine Hygiene
-7.8
Juices/Drinks-Frozen
-9.6
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 wks ending 06/12/2010 (versus prior year) – *minimum $100 million in sales
U.S. Buying Trends
July 17, 2015
Page 49
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Good $ Growth For These Non-Edible
Categories, But Considerable Duplication
Top 15 Fastest
Growing NonEdible Categories
(% $ Change)
Categories
on both lists
Non-Edible
Categories
Is
duplication
driven by
similar or
different
consumers?
Branded*
Canning/Freezing Supplies
%
30.0
Store Brands*
%
Fragrances - Women
77.6
Tobacco & Accessories
9.2
Canning/Freezing Supplies
69.5
Vitamins
6.2
Laundry Supplies
26.5
Insecticides Repellants
5.0
Cookware
21.3
Family Planning
3.5
Skin Care Preparations
20.1
Personal Soap/Bath Needs
3.2
Combo Pack
20.0
Cosmetics
2.7
Detergents
19.7
Lawn and Garden
2.5
Personal Soap/Bath Needs
18.8
Shaving Needs
0.4
Cosmetics
17.8
Grooming Aids
0.4
Diet Aids
16.8
Motor/Vehicle Care/Acc
-0.1
Vitamins
12.0
Cookware
-0.3
Pain Remedies
11.8
Deodorant
-0.4
Kitchen Gadgets
10.8
Medications/Remedies
-0.5
Buckets/Bins/Bath Acc
10.1
Men's Toiletries
-0.6
Lawn and Garden
8.9
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 wks ending 06/12/2010 (versus prior year) – *minimum $100 million in sales
U.S. Buying Trends
July 17, 2015
Page 50
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Weaker Overall Unit Growth for Non-Edibles,
But Store Brands Gaining Traction
Top 15 Fastest
Growing NonEdible Categories
Branded*
%
Store Brands*
Canning/Freezing Supplies
8.1
Fragrances - Women
69.7
(% Unit Change)
Vitamins
6.0
Canning/Freezing Supplies
58.5
Personal Soap/Bath Needs
2.2
Combo Pack
21.8
Family Planning
1.1
Cookware
17.2
Buckets/Bins/Bath Acc
0.0
Personal Soap/Bath Needs
15.8
Categories
on both lists
Non-Edible
Categories
Store brands
showing
resurgence
%
Cookware
-0.2
Tobacco & Accessories
14.9
Cosmetics
-0.4
Cosmetics
12.7
Disposable Diapers
-0.5
Skin Care Preparations
12.0
Tobacco & Accessories
-0.8
Detergents
10.4
Sanitary Protection
-0.9
Pain Remedies
9.1
Insecticides Repellants
-1.7
Kitchen Gadgets
8.4
Detergents
-2.0
Vitamins
6.3
Fragrances - Women
-2.1
Diet Aids
4.8
Shaving Needs
-2.4
Feminine Hygiene
4.7
Motor/Vehicle Care/Acc
-2.7
First Aid
3.8
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 wks ending 06/12/2010 (versus prior year) – *minimum $100 million in sales
U.S. Buying Trends
July 17, 2015
Page 51
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
29 Large Store Brand Share Categories
14 categories
w/40 + share
Store Brand Category Unit Shares
70
60
50
43 categories
w/10 to 20 share
15 categories
w/30 to 40 share
18 categories
w/20 to 30 share
40
30
27 categories w/share
below 10
21.9% Total Store
20
10
0
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 – 117 major category groupings
U.S. Buying Trends
July 17, 2015
Page 52
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Store Brand Share Strength in Commodity
Categories or Those with Little Differentiation
Food & Beverage
Store Brand Unit Share Rankings
1st Tier: 64.1 – 41.4 share
2nd Tier: 40.7 – 30.8 share
3rd Tier: 30.6 – 22.1 share
Milk
Juices/Drinks-Frozen
Ice Cream
Eggs-Fresh
Pain Remedies
Butter & Margarine
Sugar/Sugar Substitutes
Dessert/Fruit/Tops-Froz
Pasta
First Aid
Pickles/Olives/Relishes
Ice
Wrapping Materials Bags
Paper Products
Nuts
Vegetables-Canned
Table Syrups/Molasses
Dough Products-Refrig
Vegetables & Grains-Dry
Bread & Baked Goods
Medications/Remedies
Fruit-Canned
Charcoal/Logs/Accessries
Flour
Cot Chs/Sour Cream/Topping
Bottled Water
Laundry Supplies
Unprep Meat/Seafood-Frz
Kitchen Gadgets
Pkg'd Milks & Modifiers
Cheese
Vitamins
Disposable Diapers
Shortening/Oil
Jams/Jellies/Spreads
Candles/Incense & Acces
Vegetables-Frozen
Cough and Cold Remedies
Pet Care
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 – 117 major category groupings
U.S. Buying Trends
July 17, 2015
Page 53
Confidential & Proprietary
Copyright © 2010 The Nielsen Company
Store Brand Share Strength in Commodity
Categories or Those with Little Differentiation
Food & Beverage
Store Brand Unit Share Rankings
4th Tier: 21.8 – 18.6 share
5th Tier: 18.3 – 16.3 share
6th Tier: 16.0 – 13.0 share
Fruit-Dried
Salad Dressings/Mayo/Top
Buckets/Bins/Bath Acc
Spices/Seasoning/Extract
Fragrances - Women
Pet Food
Breakfast Foods-Frozen
Snacks/Spreads/Dip-Dairy
Prepared Foods-Dry Mixes
Seafood-Canned
Yogurt
Office/School Supplies
Baked Goods-Frozen
Baking Supplies
Cookware
Feminine Hygiene
Light Bulbs Telephone
Soft Drinks-Non Carb
Film & Cameras
Combo Pack
Crackers
Condiments/Gravies/Sauce
Fresh Meat
Packaged Meat
Cookies/Ice Cream Cones
Motor/Vehicle Care/Acc
Juices & Drinks-Refrig
Baby Needs
Cereal
Prepared Foods-Rdy Serve
Desserts/Gels/Syrups
Lawn and Garden
Household Supplies
Dressing/Salad/Pr Fd-Deli
Sanitary Protection
Grooming Aids
Frozen Novelties
Fresh Produce
Battery/Flashlight/Charge
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 – 117 major category groupings
U.S. Buying Trends
July 17, 2015
Page 54
Confidential & Proprietary
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Categories with Strong Marketing & High Level
of Innovation at Bottom of Share Groupings
Food & Beverage
Store Brand Unit Share Rankings
7th Tier: 12.9 – 9.0 share
8th Tier: 8.4 – 3.6 share
9th Tier: 3.0 – 0 share
Family Planning
Housewares Appliances
Baby Food
Carbonated Beverages
Detergents
Hair Care
Personal Soap/Bath Needs
Prepared Foods-Frozen
Fresheners/Deodorizers
Soup
Shaving Needs
Wine
Juices Drinks-Shelf Stbl
Baking Mixes
Tobacco & Accessories
Breakfast Foods
Diet Aids
Gum
Coffee
Candy
Canning/Freezing Supplies
Tea
Puddings/Desserts-Dairy
Beer
Skin Care Preparations
Insecticides Repellants
Computer/Electronic Prods
Oral Hygiene
Cosmetics
Deodorant
Snacks
Liquor
Ethnic HABA
Pizza/Snacks-Frozen
Men's Toiletries
Magazines Selected Title
Household Cleaners
Seasonal Gen Merchandise
Coolers
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 – 117 major category groupings
U.S. Buying Trends
July 17, 2015
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Store Brands Now Growing Share from Lead
Brands as well as Smaller Brands
All Category Unit Share Trends
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Change
versus 2007
54.0%
53.3%
52.4%
52.7%
- 1.3 Pts
20.1%
21.1%
22.4%
22.3%
+ 2.2
25.9%
25.6%
25.2%
25.0%
- 0.9
CY 2007
CY 2008
CY 2009
YTD Thru
6/12/10
Lead Brands*
Store Brands
Other Brands
* Lead brand could be
# 1 or 2 depending on
store brand share
Source: Scantrack, a service of The Nielsen Company; (U.S. FDM ex/ Walmart) – based on 50,000 top-selling brands
U.S. Buying Trends
July 17, 2015
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Stronger Store Brand Share in Markets w/High
Retailer Concentration
30%
25%
5%
LOUISVILLE
SAN ANTONIO
MEMPHIS
LITTLE ROCK
COLUMBUS
BUFFALO
DENVER
NASHVILLE
SYRACUSE
CINCINNATI
PHOENIX
INDIANAPOLIS
DETROIT
LAS VEGAS
GRAND RAPIDS
ATLANTA
JACKSONVILLE
SALT LAKE CITY
ORLANDO
SAN DIEGO
BALTIMORE
ALBANY
SEATTLE
RICHMOND
LOS ANGELES
DALLAS
TOTAL US
PORTLAND
RALEIGH/DRM
TAMPA
CHARLOTTE
SACRAMENTO
WEST TEXAS
WASHINGTON DC
HOUSTON
OMAHA
KANSAS CITY
CLEVELAND
SAN FRANCISCO
BOSTON
PITTSBURGH
MIAMI
PHILADELPHIA
ST. LOUIS
HARTFORD/NEW
BIRMINGHAM
MINNEAPOLIS
NEW ORLEANS
CHICAGO
DES MOINES
OKLAHOMA
MILWAUKEE
NEW YORK
OAHU
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U.S. Buying Trends
Higher presence of
dominant retailers:
(Kroger, HEB, Wegmans)
Lower presence of
dominant retailers
0%
Total U.S.
Grocery
18.7%
Store Brand Dollar Share of Store
20%
15%
10%
Source: Scantrack®, a service of The Nielsen Company; (U.S. Grocery Channel) 52 weeks ending 03/20/2010
Consumer Perception of Private Label Quality is Strong;
Value for Money Dropping as Higher Quality Now Seen
Consumer panel survey on Retailer Brands:
Quality & Price/Value
71
74
63
65
2008
67
2009
58
33
37
20
18
11 11
% saying
they Agree/
Strongly
Agree:
Store brand Quality of
SB usually
Some SB
good
SB is at least are good
are higher
alternative as good as value for the quality than
to name
name
money
name brand
brands
brands
SB for
Don’t feel
people on comfortable
tight
serving SB
budgets & to my guests
can’t afford
the best
Source: Homescan®, a service of The Nielsen Company PanelViews survey 2008 & 2009
U.S. Buying Trends
July 17, 2015
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Generational Gap in How Consumers Cope in Economic
Downturn - Younger Using More Private Label
Due to Economic Downturn?
% saying they would …
Greatest
Boomers
Gen
Total US HH
Fewer Carry-Out/ Home
Delivery Meals
45
43
Use More Private Label
Use More Basic
Ingredients
Make Coffee at Home
Serve Desserts Less
Often
36
30
27
Gen X
Millennials
32
45
50
50
35
41
48
50
35
37
36
35
33
31
27
26
25
28
25
26
Greatest Generation: born Prior to 1946; Boomers: 1946-1964, Gen X: 1965-1976, Millennials 1977-1994
Source: Homescan® 09/2009 survey, a service of The Nielsen Company
:
U.S. Buying Trends
July 17, 2015
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Do You Have Your Value Equation Right?
In departments & categories with extreme price gaps, the
potential to enhance sales is significant
Health &
Beauty
NonFood
Gen
Merch
Dairy
Dry
Grocery
Frozen
Food
Deli
0%
Read as: Frozen Foods
department
store brand prices 25%
lower than branded
1 cent decrease in the price gap between
Store Brand vs. Brand = $400MM annual sales
-100%
% Price Gap: Store Brand versus Brand
U.S. Buying Trends
July 17, 2015
Page 60
Source: Scantrack®, a service of The
Nielsen Company; (U.S. FDM w/
Walmart); 4-weeks ending 06/16/2007
vs 4-weeks ending 06/12/2010
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Kroger’s New "mirra" Beauty Care Brand
Source: Kroger.com
U.S. Buying Trends
July 17, 2015
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“Wegmans’ Special Blends Is a New Line
of Private-label Frozen Mixed Vegetables”
Source: Wegmans
U.S. Buying Trends
July 17, 2015
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HEB Rolls Out Household Cleaning Tools
with Sweepstakes Promotion
Source: http://www.heb.com
U.S. Buying Trends
July 17, 2015
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Supervalu Leverages Consumer Research to
Roll Out New Baby Line
Source: SUPERVALU
U.S. Buying Trends
July 17, 2015
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A New Look & Focus From IGA
Source: IGA
U.S. Buying Trends
July 17, 2015
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Store Brand Food & Beverages From
Duane Reade
Source: DuaneReade.com
U.S. Buying Trends
July 17, 2015
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7-Eleven Continues March into
Private Label Territory
“7-Eleven stores already has introduced approximately 225 private-label
food and non-food products under the 7-Select brand, and another 40 new
items are scheduled to be in stores before the end of the year.”
Source: 7-Eleven.com
U.S. Buying Trends
July 17, 2015
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7-Eleven’s Store Brand Beer
Photo: Associated Press
U.S. Buying Trends
July 17, 2015
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…In With the New Target “up & up” Store Brand
Source: Company website
U.S. Buying Trends
July 17, 2015
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The Number One Reason Why Store
Brands Will Have Continued Success
Source: Walmart national ad
U.S. Buying Trends
July 17, 2015
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Store Brand Growth – Linked to Downturn
or Long-term Trend?
Retailer Do’s & Don’ts:
Don’t let price gaps get too large & drive declining
category sales
Don’t de-list high penetration, high frequency or strong
niche brands & drive shoppers to retailers who carry them
Do promote store brands with brands where there is
limited shopper overlap to drive category sales
Do promote store brands along with non-competitive or
complimentary branded offerings to build larger baskets
Do select credible suppliers & hold them to high standards
U.S. Buying Trends
July 17, 2015
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Store Brand Growth – Linked to Downturn
or Long-term Trend?
Manufacturer Do’s & Don’ts:
Be current in branded versus store brand pricing analytics
Be proactive in assortment analytics to show why your
brand assortment aligns well w/store brand assortment
Provide retail partners with analytics to show which of your
branded offerings make good promotional partners
Take a collaborative approach to how you assess branded
versus store brand risks & opportunities – retailer focus
has never been greater
Explore options for using excess capacity for store brand
production
U.S. Buying Trends
July 17, 2015
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Buying
Trends
Summary
U.S. Buying Trends
July 17, 2015
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“Great Recession” Driving Fundamental
Shifts in Consumer Buying
Back to basics & increased at-home consumption continue
Store brand success will continue
Risk for mid-tier brands as retailers make room for expanded store brand
offerings & seek to eliminate clutter & simplify shopping experience
Manufacturers move store brand manufacturing or direct-to-consumer options
Can retailers make gains in categories with high marketing support and/or
high levels of innovation?
Premium & discretionary brand segments and retailers need to
innovate & work harder than ever to differentiate & give consumers a
reason to buy
U.S. Buying Trends
July 17, 2015
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Thank You
[email protected]
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