IPA (Institute of Practitioners in Advertising)’s Post

Survey Shows Consumers Blame Government Policies for High Grocery Prices Article by Super Market News Excerpts: "The survey, from consumer survey company The Feedback Group, surveyed some 1,150 consumers nation-wide about their experience shopping in supermarkets for food and groceries." "Supermarket shoppers rated a variety of entities and factors, using a five-point scale where five is “highly responsible” and one “not at all responsible” as to their degree of responsibility for higher prices in supermarkets." "Doug Madenberg, chief listening officer of The Feedback Group, commented, “In this politically charged environment, supermarket shoppers believe that government policies are the leading influence on higher supermarket prices. Product manufacturers and suppliers follow closely behind, while supermarkets are viewed as further down the list, along with other factors. More holistically, what emerges is a picture of multiple factors that the average consumer navigates, all contributing in various degrees to the price tag they face at the checkout.” "Clearly shoppers believe supermarkets could do more in terms of supporting them when it comes to fighting inflation, as well as communicating why product prices have increased. This is especially important in light of the inaccurate profit perception we continue to find in our research,” concluded Brian Numainville, a principal at The Feedback Group." Link to full article: https://lnkd.in/gzqd-CQZ

NIQ Total Till for the 4 weeks to 2nd December shows a marked slowdown in food retail sales from +8.7% last month to +6.8% as shoppers take stock of their finances. Whilst this is partly due to slowing food inflation, we know that shoppers are prioritising saving money. 48% of households are saying they are in a worse financial situation than this time last year (no energy bill relief for most, increases to mortgages and rental costs for many, and a final run down of any pandemic savings for some), so it’s no surprise that sales of General Merchandise at the big supermarkets (clothing, home, seasonal etc) had a value sales fall of -6.6% and units of -10.2%.  But shoppers are probably also delaying spend to take advantage of seasonal food and drink promotions during the final weeks of Christmas. The other significant trend is an  increase in promotional activity with 25% of fmcg sales purchased on promotion, up from 23% last year, and pushing promotional spend to the highest level since February 2020. In particular for brands where 38% of branded sales were purchased on promotion. The majority of these savings are now executed using Loyalty schemes (e.g. Nectar Prices) and whatever the CMA may decide in the future, shoppers are taking advantage of these offers with over half of shoppers looking for personalised loyalty card prices to help them save money this Christmas. (NIQ Homescan Christmas Survey). In terms of retailer performance, Sainsbury (sales +9.5%) was the best performing supermarket of the ‘big four’ over the last 12 weeks. Lidl (+17.3%) and Aldi (+14.3% ) continue to maintain their position as the fastest growing retailers with M&S (+12.8%) and Ocado (+11.7%) also showing steady growth. So, this year value for money will be even more important. In order to dish up a successful Christmas the key for retailers is to get the basics right and this means low price, quality, and availability - the top drivers important to shoppers when planning where to do their main Christmas grocery shop in 2023. ( NIQ Homescan Christmas Survey).

High grocery prices are causing significant frustration among consumers. A recent study by PYMNTS found that 23% of grocery shoppers feel alienated by the rising costs, impacting their purchasing decisions and overall shopping experience. This study highlights the growing need for solutions that address affordability and access to essential goods. Check out the full article on PYMNTS: https://lnkd.in/gHvtySbn #ConsumerFinance #GroceryShopping #HighPrices #FinancialSolutions #PYMNTSStudy

Shrinkflation Vs Price Increases - Can inflation ever be a good thing for shoppers? The holy grail for manufacturers and retailers alike is to grow category value, to increase their sales and profitability by capturing a higher spend from shoppers at the till. With cost driven food inflation starting to slow, brands and retailers will once again be faced with a challenge as to how best to approach growing category value in an organic and sustainable way. While the industry may often kid itself and hide behind customer research that proudly announces “customers tell us they would happily pay more for our brand” the truth is simple: in any walk of life we all resent paying more for the same or for less. Broadly speaking there are only a handful of ways to drive brand or category value: 🍫 Sell less for the same price (Shrinkflation) - Reducing the pack size increases the price the consumer pays per serve. 💷 Sell the same for a higher price (price increase) - Increasing the price of your product means the customer pays more today than they paid for the same product yesterday. 📣 Promote the product less often or to a shallower promotional price - effectively the same as increasing the price, this lever will increase the average price shoppers pay for the product. 📉 Offer lower quality for the same price (recipe or packaging reformulation) - Reducing costs by lowering quality or removing cost from product packaging. In every case above, the customer is left less satisfied and is less of an advocate for your brand - it’s just a fact of life we don’t like to feel like we’re getting worse value than we did yesterday. …but there is another way - offer the customer something different, something that creates value for them in the transaction. By changing the value proposition for the customer, they reappraise the whole transaction. Now rather than the perception you have worsened value, there is the understanding you are offering something different and a new purchasing decision can now be made. One of the best examples of driving category value I witnessed during my time with ASDA was the introduction of porridge pots. In a category that had been largely devoid of innovation for decades, creating a product that unlocked an entirely new usage occasion (out of home) and offered the customer something really valuable to them (a convenient solution for breakfast that was cheaper than buying out of home) enabled manufacturers to hugely premiumise the cost per serving in a way the consumer was delighted with as they saw value in the transaction too. This example might be a unicorn and I’m under no illusions, there won't be magic NPD coming over the hill in every category but have you challenged yourself and your teams to innovate to create category value rather than taking the road that risks shopper engagement? #fmcg #retail #revenuegrowth #categorymanagement #groceryretail

Wow, what is happening with our Canadian Grocery Retailers? With a national average customer experience score of 71.8% that is a B-. If one of the kids came home with a B- report card we would be discussing what happened. On first read, I thought that maybe the low scores were a consequence of how Canadian's rate things generally, and maybe the distribution needed to be Bell Curved. But then I saw that M&M Meats (an adjacent retailer) received an overall 93.7%. So it is not that Canadian's are resistant to giving high praise. I then speculated the low scores could be explained by last year's high-profile inflation, but then I saw that the ratings were across 16 different dimensions of experience. So it can not be solely explained by consumer backlash against pricing. I am happy to be wrong, but it seems that our grocery sector does not have a comprehensive understanding of what consumers want in their shopping experience. This may be a wake up call to get an objective understanding of what drives shopper sentiment, why shoppers buy, and then construct shopping experiences that surprise and delight. Perhaps it would be instructive to look a little deeper at what the top rated retailer, Lee Valley Tools, is doing to engage shoppers. Either way, I believe Canadians should receive better then a B- experience from the retail sector in which we spend our money weekly.

This information is eye-opening 👀. In the past, inflation has hindered sales of what are considered luxury items or luxury spending. However, chips and soda were never part of this equation. Now, due to inflation 🎈 and the high cost of groceries 💸, even chips and soda are being considered a splurge for millions of shoppers. We have said it before inflation is real, it's here, and it's affecting millions of shoppers. The only real tool 🛠 we have as consumers is to use coupons to reduce the price of our favorite products. However, the amount of coupon money going unused and wasted 💸 🚽 due to the confusing nature of using coupons in different supermarkets leaves shoppers with little to no options. They either leave the product or have to choose another brand that wasn't their first choice but has a lower price. This is one of the reasons INSTALANE was created. We saw 🔍 this problem coming, along with others that we also help solve or mitigate, and we knew it would only get worse unless we took action. Our solution is INSTALANE’s one-tap coupon feature 👉 📲, making it as easy as one tap to add a coupon to the product you are purchasing (if a coupon is available at that store). INSTALANE is here to help you buy the products you truly want, so you don't have to settle for less due to inflation. We're committed to making your shopping experience both fast 🛒 💨 and affordable 💵 Please Help us Help and share this message with your family and friends. 📨 🤝 https://lnkd.in/eFX5NPEE

Between inflation and supply, keeping customers happy has been an undertaking since the beginning of the pandemic. For a moment, it seemed retailers were down and out, but many have bounced back stronger than before. Satisfaction among supermarkets skyrockets 4% to an ACSI score of 79 as food inflation slows and consumers perceive stronger value through better sales and promotions we found in our Retail and Consumer Shipping Study. But which retailer took home the gold for the top #customersatisfaction score in the grocery category? Find out the answer in Progressive Grocer's analysis of the study: https://lnkd.in/guzPAzkk

🛍️ Consumers are tightening their belts in 2024, with a quarter planning to spend less on retail items in January, according to GlobalData's latest report. After the festive season splurge, many are stretching their budgets until payday, impacting non-food retailers. To thrive in Q1, businesses must prioritize value, quality, and strategic promotions. Let's navigate this challenging landscape together! https://lnkd.in/gUs6XUTi #retailtrends #globaldata #valueformoney #retail #consumer

The data shows that food unit sales have declined faster (-2.4%) than equivalent volume (-1.4%) in the past year, indicating a clear preference for larger-sized products—but it's important to note that overall volume is down for both, confirming that consumers are making more calculated purchases and contributing to a volume sales decline.

According to the article, #shoppers are paying $50 more for groceries per week than they were five years ago. Consequently, 66% of shoppers said they spend 30 minutes or more preparing for their regular #grocery trip. Relevantly, a Trend Watch Report from 2022 shows that while #Marketers think quality tops the list of shoppers' priorities, it's not as crucial as #retailers believe; #consumers say fair prices drive them to choose a new retailer, but marketers don't rank it as the most important. Hence, there has never been a more crucial time to examine the market landscape through a Darwinian lens than now! Meanwhile, consumers are more open to everything and less attached to nothing. #retailindustry #CPGindustry #groceryindustry #ecommerce #socialmedia #marketing #strategy #socialmedia #cmos #ceos https://lnkd.in/ezxa6ViC