INSIGHTS FOR GROWTH®

WAYS TO WIN AND RETAIN DIFFERENT DEMOGRAPHICS

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RETAINING DIFFERENT DEMOGRAPHICS THAT INCLUDE YOUNGER GENERATIONS WITH NEW MINDSETS

Over the past 6 months, 79% of Shoppers have changed their spending habits to save money.

Circana Shopper Survey, April 2024

A majority of Shoppers are still focused on buying specific items they had pre-planned to buy (47%). Out of all Generations, Gen Z/Younger Millennials were the most interested in browsing for products outside of what they originally planned on buying to try.

Circana Shopper Survey, April 2024

Younger Generations are less invested in fresh

For younger generations, Total food/beverage average trip spending favors center-store more than older generations and is declining.

Circana OmniConsumer Integrated Fresh Scan Panel, Total US All Outlets, 52 weeks ending 04-21-2024

Younger Generations are more likely to cook from scratch

Younger generations are investing less in Fresh, but are most interested in browsing for products outside of what they originally planned on buying and looking to cook meals from scratch more than other generations, this is a great opportunity to target the younger demographic with creative in-store signage, digital marketing, and personalized consumer brand experiences.

Circana Shopper Survey, March 2024

Total Bakery saw higher dollars per buy & frequency per trip, while declined basket size in YTD 2024 vs YA

OmniConsumer Integrated Fresh CY 2021-2023, L52W, YTD 2024, L13W, L4W data ending 04/21/24, All Outlets.

Flavors Showing strong growth in Perimeter Layer Cakes

Get-togethers and celebratory events ignited an increase in Perimeter Layer Cakes buyers (+4.3%) and product trips (+2.1%) in L13W (Latest 13 Weeks), while bringing in an incremental $8M vs YA.

  • Confetti/Rainbow: +17.7%
  • Cookies & Cream: +14.2%
  • Milk/Tres Leches: +14.1%
  • Assorted: +11%

Fresh Departments usually cater to their biggest shoppers

Focusing on core buyers has been an efficient, winning strategy.

How can we deepen engagement within bakery?

Source: Circana OmniConsumer Integrated Fresh, Total US All Outlets, Latest 52 weeks ending 04-21-2024

Ways to Win and Retain the Top 10%:

Inspire & Reignite

Target different pockets of growth and opportunities; low/ middle income, GenZ/Millennial, single HHs, etc. Accelerate digital marketing, personalize consumer brand experiences and measure ROAS.

Value Beyond Price

Leverage other categories to attract shoppers, drive dollars per buyer and/or increase share of requirements (Loyalty). If you do not compete on lowest price – consider other variables Quality, Relevance, Experience and/or Uniqueness.

Trip Buster

All shoppers are making more trips to more stores – the heaviest especially shop around. Win both quick trips with easy and convenient ways to find the most frequent items. Win deeper baskets by incenting buy-this-get-that specials.

Excite & Delight

Each department’s core consumers are heavily invested in that type of food/beverage. They are discerning and will want to feel what they buy is special, valuable, and worthwhile. Ensure their experience at your store or with your brand creates that value different from others.

Ways to Win Growth Pockets Among the Rest:

Pockets of Potential

Find specifically for your store or product WHO is your audience. Fact-based, unique, differentiated. Measure, test, and learn.

Speak Directly to Them

Tailor assortment strategies to ensure uniqueness- not just highest velocity. Ensure promotional vehicles educate your core audience. Utilize digital marketing to not waste impressions on non-core buyers.

Deepen the Baskets

The majority are not buying across departments. Encourage trial in and outside of the store to introduce more shoppers to new categories. Suggestive selling and solutions not silos.

Stand Out from the Crowd

Few shoppers are seeing themselves in today’s grocery retail the way they do in beauty, in technology, in media. Whether through branding, variety, exploration, or just different messaging and displays — separate from the “typical fresh” way of thinking.

 

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