According to a recent study conducted by the Acosta Group, it has been revealed that a significant percentage of consumers opt to purchase Health and Beauty Care (HBC) and General Merchandise (GM) products from channels other than grocery stores. The study, which focused on grocery shopper behaviors and perceptions, aims to provide strategies to encourage consumers to make these purchases at grocery stores.
While grocery stores are primarily associated with food and beverage purchases, the study found that nearly 70% of surveyed shoppers do not visit the HBC and GM aisles at their usual grocery stores. Instead, they prefer to purchase these products from mass merchandisers, online retailers, or drugstores.
The study also highlighted the key factors influencing shopper decisions when it comes to HBC and GM purchases. Price and selection were found to be the top considerations for consumers. Approximately 47% of surveyed consumers stated that they choose their favorite retailer based on everyday low prices, while 45% prioritize a retailer that offers a wide selection of products.
The findings also indicated that negative perceptions of prices and promotions at grocery stores deterred shoppers from making frequent HBC and GM purchases alongside their food and beverage shopping trips.
To encourage growth in HBC and GM sales at grocery stores, the study presented several strategies for retailers to implement. These strategies include overcoming negative perceptions of high prices by highlighting competitive pricing, driving impulse purchases by offering attractive discounts, and expanding the selection of HBC and GM products and brands to meet consumer demands.
Retailers are advised to create targeted marketing campaigns to effectively communicate these strategies to shoppers and incentivize them to include HBC and GM products on their grocery lists. Simple promotions such as discounts, buy one get one free (BOGO) offers, and loyalty/rewards programs are recommended to generate shopper interest.
By implementing these strategies and optimizing the selection of HBC and GM merchandise, grocery retailers have the potential to capture and grow their share of this market. By understanding and addressing consumer preferences, retailers can stay competitive in today’s dynamic marketplace.
In addition to the information provided in the article, there are a few facts and trends related to the topic that are worth mentioning.
1. Online Retail: One major trend in the retail industry is the rise of online shopping. Consumers are increasingly turning to online retailers for their health and beauty care (HBC) and general merchandise (GM) purchases. The convenience of shopping from home and the ability to compare prices easily has made online retail a popular option.
2. Market Growth: The HBC and GM market is experiencing steady growth. The demand for these products is driven by factors such as increasing awareness of health and wellness, changing consumer lifestyles, and evolving beauty trends. This growth presents an opportunity for grocery stores to tap into this market and expand their offerings.
3. Private Label Brands: Private label brands have gained popularity in recent years. These brands, also known as store brands or own brands, are products that are created and sold exclusively by a retailer. Grocery stores can leverage the popularity of private label brands in the HBC and GM categories to attract shoppers who are looking for quality products at a lower price.
4. Sustainable and Eco-friendly Products: There is a growing demand for sustainable and eco-friendly products in the HBC and GM industry. Consumers are becoming more conscious of their environmental impact and are actively seeking products that are made from natural ingredients, have minimal packaging waste, or are cruelty-free. Grocery stores can capitalize on this trend by offering a selection of sustainable and eco-friendly HBC and GM products.
Looking ahead, there are a few key challenges and controversies associated with the subject:
1. Competition from Mass Merchandisers: As mentioned in the article, one of the main reasons why shoppers prefer to purchase HBC and GM products from channels other than grocery stores is the presence of mass merchandisers. These retailers often offer a wider selection and competitive pricing, posing a challenge for grocery stores to attract shoppers in this category.
2. Pricing Strategies: Pricing is a crucial factor for consumers when making purchasing decisions. Grocery retailers need to strike a balance between offering competitive prices and maintaining profitability. This can be challenging considering the competitive landscape and the need to cover operational costs.
3. Changing Shopper Behavior: Consumer preferences and behaviors are constantly evolving. Grocery stores must stay informed and adapt to these changes in order to meet the demands of their shoppers. This includes understanding the evolving trends, preferences, and shopping patterns in the HBC and GM category.
Here are a few links to related articles and reports on the subject:
– “63% of consumers shopped online for beauty in 2020”: This article provides insights into the growing trend of online shopping for beauty products and includes statistics on consumer behavior.
– “Deloitte Global Powers of Retailing 2018”: This report offers a comprehensive overview of global retail trends and insights, including the impact of e-commerce and changing consumer preferences.
– IRI Retail Channels: IRI provides data and insights on various retail channels, including grocery stores, mass merchandisers, and drugstores, which can help retailers understand the competitive landscape and consumer preferences.
It is important for grocery retailers to stay informed about market trends, implement effective strategies, and adapt to changing consumer behavior in order to attract shoppers and drive growth in the HBC and GM category.