Beauty

Development Alternatives For Well being And Magnificence Care Income In Grocery Shops


Some 114 million households purchase food and beverages at grocery stores every month, according to NIQ. And while they also need health and beauty (HBC) products, consumers are spending on those needs elsewhere.

In fact, nearly 70% of those surveyed say that they typically do not visit the general merchandise, household products, personal care, or health and beauty products aisles at their traditional grocery stores, according to Acosta Group. Most of these shoppers are choosing mass merchandisers for their non-food and beverage products, with a smaller percentage purchasing these products online or at drug stores.

Acosta says there are strategies that can convert a percentage of consumers that are currently purchasing HBC and general merchandise (GM) in other channels to shop for these items at grocery.

Jacksonville, FL-based Acosta released its proprietary Shopper Community study on Health and Beauty Care and General Merchandise sales in grocery, which identifies the biggest challenges grocery retailers face and presents solutions for how to reset shopper perceptions and expectations,

Top shopper considerations for HBC and GM purchases are price and selection. According to Acosta, 47% of consumers surveyed say that they shop at their favorite retailer for the lowest everyday prices, while 45% say that it is because their preferred retailer offers the selection of products they want to buy.

Conversely, 48% of these shoppers say that it is because of their negative perceptions of price and promotions at grocery that they do not shop for HBC and GM products frequently when making their food and beverage purchases.

While HBC and GM shopping habits are admittedly hard to break, Acosta Group’s study focuses on ways retailers can help to shift habits and capitalize on opportunities.

The study identifies the top ten “gateway categories” that represent 85% of volume for HBC and 76% of volume for GM in grocery, per NIQ Panel data, including over-the-counter (OTC), nutrition, oral care, bath/shower, kitchen, outdoor recreation, batteries and others.

In addition to understanding gateway categories for conversion, Acosta has also identified three key strategies to shift shopper behaviors and perceptions and drive expanded sales at grocery for HBC and GM, according to Shannon Hodock, SVP, client development. They are:

• Overcome perceptions of high prices and take credit for good prices: 80% of shoppers say that better prices and promotions could help grocers gain more business, and grocers have some good stories they need to tell on competitive pricing.

• Drive shopper impulse purchasing: While 90% of shoppers are planners when purchasing food, HBC and GM, 70% admit to buying products on impulse. Shoppers are interestingly far more open to impulse purchases in HBC and GM (27%) vs. food (8%). And if consumers see that an item is on sale, one-third are prompted to purchase before or during their shopping trip.

• Expand selection of HBC and GM products and brands: Customers want better variety, selection, and brand availability. Of note, national brands are the fastest path to conversion and trip growth, but 59% of retailers say that they will continue to prioritize private label.

“We believe grocery retailers have an exciting and expansive opportunity to capture and grow HBC and GM sales,” said Hodock. “Strategically, retailers need to create a targeted ‘get on the grocery list’ campaign for their shoppers, incorporating a holistic omnichannel strategy and a customized marketing plan as they tackle the three key challenges to overcoming current perceptions and shopping habits.”

The promotional goal for grocery retailers should be to build their shoppers’ total basket at grocery, focusing on key gateway categories for conversion. Implementation of simple promotions, such as discounts or temporary price reductions, buy one get one free (BOGOs), and loyalty/rewards programs will drive the greatest shopper interest. Customization of offer types, features, or displays, will help to drive the strongest results.

“Retailers will want to optimize their selections in HBC and GM merchandise, especially in the gateway categories where selection is highlighted as being most important to shoppers,” said Hodock. “Harnessing the power of national brands can also assist in driving growth.”

Acosta Group’s Accelerating Growth of HBC & GM at Grocery study was conducted Sept. 1-7, 2023 with 1,017 primary household shoppers. Respondents are part of the company’s proprietary Shopper Community.  



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