Despite e-commerce's growth, 87% of grocery transactions still occur within the four walls of a store. This enduring consumer behavior underscores the importance of effective in-store promotions, which have become critical in an era of cautious consumer spending.
In Europe, the tussle over rising costs has led to unprecedented measures, such as Carrefour's boycott of PepsiCo products in over 9,000 stores across multiple countries. Similarly, in the United States, retailers are adopting various strategies to mitigate price hikes, from adjusting shelf space to emphasizing store brands, which outpaced national brands in growth last year, 11.3% vs. 6.1%.
As food prices have seen a substantial increase of 20.2% from 2018 to 2022, and with the USDA forecasting a further 4.6% rise this year, consumers are increasingly seeking value. The importance of private brands continues to grow as a strategic weapon for most leading retailers, who are attracting a broad consumer base with their competitive pricing and quality balance.
ShopLiftr meticulously aggregated and analyzed an expansive set of data, uncovering 1,628,536 active trade promotions from over 300 top grocery retailers across the United States in 2023. This data, sourced directly from the retailers' digital flyers by ShopLiftr's dedicated data teams – and not through web scraping – forms the backbone of ShopLiftr's proprietary database.
The data illuminated a strategic focus within key staple categories, showcasing that consumers are swayed by promotions on a wide spectrum of products, from luxury items to daily essentials. The even distribution of promotions throughout the year points to a deliberate effort by retailers to drive consistent customer engagement, steering away from the reliance on seasonal spikes.
ShopLiftr recognizes that in this climate, brands and retailers need to be strategic about their promotions. "2024 will be the year of hyper-localized trade promotions," states John Scott, Co-Founder & CEO of ShopLiftr. "We've seen the pressure mounting between brands and retailers over pricing, and it's clear that a granular approach to promotions will be key to driving traffic, increased sales and maintaining customer loyalty."
By leveraging ShopLiftr's technology, retailers can pinpoint the optimal product mix and promotion strategies to attract and retain budget-conscious shoppers. Meanwhile, brands can ensure their products remain competitive and visible in the complex retail environment.
As the industry grapples with the challenges of inflation and ongoing supply chain disruptions, ShopLiftr's solutions provide superior sales lift results. The company is committed to helping its partners thrive by fostering a deep connection between consumers and the places they shop most – their local retailer.
For more information about ShopLiftr and how its trade promotion intelligence can transform your business, visit www.ShopLiftr.com
About ShopLiftr: ShopLiftr provides advanced dynamic digital ad technology and trade promotion intelligence to brands and retailers, enabling data-driven and hyper-local marketing strategies that drive in-store sales. With a deep understanding of consumer behaviors and market trends, ShopLiftr empowers its partners to stay ahead in the competitive grocery industry.
Contact:
Ian Clark, VP of Sales
[email protected]
Genevieve Castonguay, Director of Marketing
[email protected]
SOURCE ShopLiftr
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