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Transcript of Confidential & Proprietary Copyright © 2010 The Nielsen Company U.S. Buying Trends July 26, 2010...
Confidential & Proprietary • Copyright © 2010 The Nielsen Company
U.S. Buying Trends
July 26, 2010
Todd Hale SVP, Consumer & Shopper Insights
Version 8
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 2U.S. Buying Trends
Buying Trends
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 3U.S. Buying Trends
Edible Departments Driving Growth; Less Growth in Fresh Meat & Dairy (Where Prices Have Been Cut)
LatestLatest
TotalTotal DairyDairyFreshMeat
FreshMeat
DeliDeliFreshProduce
FreshProduce
AlcoBevAlcoBev
DryGrocery
DryGrocery
PkgdMeatPkgdMeat
HBAHBA NonFoodNonFood
GeneralMerch
GeneralMerch
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 (versus prior year); UPC-coded
FrozenFrozen
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 4U.S. Buying Trends
LatestLatest
TotalTotal DairyDairyFreshMeat
FreshMeat
DeliDeliFreshProduce
FreshProduce
AlcoBevAlcoBev
DryGrocery
DryGrocery
PkgdMeatPkgdMeat
HBAHBANonFoodNonFood
GeneralMerch
GeneralMerch
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 (versus prior year); UPC-coded
FrozenFrozen
Non-Edibles Leading Unit Decline
Economy driving consumers to make
trade-offs or buy less
Economy driving consumers to make
trade-offs or buy less
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April 18, 2023 Page 5U.S. Buying Trends
Softness in Recent Quarter Driven by Price Cuts
LatestLatest
TotalTotal
DairyDairy
FreshMeat
FreshMeat
DeliDeli
FreshProduce
FreshProduce
AlcoBevAlcoBev
DryGrocery
DryGrocery
PkgdMeatPkgdMeat
HBAHBANonFoodNonFood
GeneralMerch
GeneralMerch
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 13 & 52 weeks ending 06/12/2010 (versus prior year); UPC-coded
FrozenFrozen
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April 18, 2023 Page 6U.S. Buying Trends
Source: Company websites
Price Wars in Chicago
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April 18, 2023 Page 7U.S. Buying Trends
Weekly Value E-mails & Continuity Value Promotion from Dominick’s
Source: Dominick’s customer email advertisements; Jewel-Osco
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 8U.S. Buying Trends
Aggressively Promoting “Unbeatable Prices”; Carry 25,000 Items at Less Than $1
Source: Walmart sale circular, January 3 - January 9, 2010
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April 18, 2023 Page 9U.S. Buying Trends
Value Price Program
Source: Katy Batdorff | The Grand Rapids Press | New signs at a Spartan-owned Family Fare in Kentwood highlight the store's sale prices
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April 18, 2023 Page 10U.S. Buying Trends
Food Lion Launches Low Price Heritage Campaign
Source: Food Lion
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April 18, 2023 Page 11U.S. Buying Trends
A&P Lowering Prices Too
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April 18, 2023 Page 12U.S. Buying Trends
Kroger: “Low Prices Plus More”
Source: Kroger
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April 18, 2023 Page 13U.S. Buying Trends
Sweetbay Going Public w/Price Comparisons
Source: http://www.takebackyourlist.com/
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April 18, 2023 Page 14U.S. Buying Trends
A Caution for Retailers on Price Rollbacks
•Be careful what you ask for!
•Price rollbacks are market-wide:–No competitive advantage for individual retailers so no inherent traffic gains
•Nielsen research shows that price rollbacks reduce category dollars:–Categories are far less price-sensitive than brands–Category volume will increase slightly, but not as much as price goes down – so dollar sales go down
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April 18, 2023 Page 15U.S. Buying Trends
Consumer Packaged Goods Prices Have Fallen & Units on Promotion Have Grown
% Change Unit Prices
-2
0
2
4
6
All Departments
% Change Feature and/or Display Unit Sales
-8-4048
12
10/04/08 11/01/08 11/29/08 12/27/08 01/24/09 02/21/09 03/21/0904/18/0905/16/09 06/13/09 07/11/09 08/08/09 09/05/0910/03/09 10/31/09 11/28/0912/26/0901/23/1002/20/1003/20/1004/17/1005/15/1006/12/10
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
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April 18, 2023 Page 16U.S. Buying Trends
-10
-5
0
5
10
15
20
Category % Unit Price Change
48 categories w/decrease up to 9.1%
2 categories w/increase 17.7– 18.4%
4 category w/increase 10.6–12.4%
58 categories w/increase 0–4.9%
Most Category Prices Up Marginally or Falling in Latest Quarter
Source: Scantrack®, a service of The Nielsen Company; (FDM w/ Walmart), 13-weeks ending 06/12/2010 (versus prior year) – 117 major category groupings
5 categories w/increase 5.1–7.7%
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April 18, 2023 Page 17U.S. Buying Trends
What a Difference From Year Ago: 41% of Categories w/Price Cuts Versus 18% 2009
% of Categories w/Unit Price Change of:
4
48
50
18
41
2238
24
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-0.1% to -9.1%
0% to 4.9%
5% to 9.9%
10% to 14.9%
15% +
06/13/2009 06/12/2010
13-week period endingSource: Scantrack®, a service of The Nielsen Company; (FDM w/ Walmart) – 117 major category groupings
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April 18, 2023 Page 18U.S. Buying Trends
-25
-20
-15
-10
-5
0
5
Seasonal Gen Merchandise
Baby Food
Seafood-Canned
Diet Aids
Candles/Incense & Acces
Juices Drinks-Shelf Stbl
Dough Products-Refrig
Frozen Novelties
Flour
Light Bulbs Telephone
Shortening/Oil
Vegetables & Grains-Dry
Pet Food
Pasta
Ice Cream
Cereal
Only One of the Categories w/Biggest Unit Price Cuts Grew in Dollar Sales
Source: Scantrack®, a service of The Nielsen Company; (FDM w/ Walmart), 13 weeks ending 06/12/2010 (versus prior year) – 117 major category groupings
% Unit Price Change % Change in $ Sales
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April 18, 2023 Page 19U.S. Buying Trends
Weak Total Store Performance – Price Cuts & Heightened Promotions Not Working
% Change Dollar Sales
-2
0
2
4
6
% Change Unit Sales
-5
0
5
10/04/08 11/01/08 11/29/08 12/27/08 01/24/09 02/21/09 03/21/0904/18/0905/16/09 06/13/09 07/11/09 08/08/09 09/05/0910/03/09 10/31/09 11/28/0912/26/0901/23/1002/20/1003/20/1004/17/1005/15/1006/12/10
All Departments
Or would situation be worse without
value efforts?
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
Avg U Price Chg, 13 w/e 06/12/10:
Positive: 67
Neutral: 2 Negative: 48 (categories)
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April 18, 2023 Page 20U.S. Buying Trends
Percent Change in Unit Prices
-15
-10
-5
0
5
10
09/13/08 12/13/08 03/14/09 06/13/09 09/12/09 12/12/09 03/13/10 06/12/10
13-week period ending
Total All Depts Alcoholic Bevs Dairy Deli
Dry Grocery Fresh Meat Fresh Produce Frozen Foods
General Merch HBA Non-Food Grocery Pkgd Meat
Lower Prices Versus the End of 2008, w/Some Increases in Recent Quarters
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart); versus prior year
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April 18, 2023 Page 21U.S. Buying Trends
% Change Dollar Sales
-3
0
3
6
9
12
% Change Unit Sales
-8-6-4-20246
10/04/08 11/01/08 11/29/08 12/27/08 01/24/09 02/21/09 03/21/0904/18/0905/16/09 06/13/09 07/11/09 08/08/09 09/05/0910/03/09 10/31/09 11/28/0912/26/0901/23/1002/20/1003/20/1004/17/1005/15/1006/12/10
Dry Grocery
Similar Trend for Dry Grocery DepartmentAvg U Price Chg, 13 w/e 06/12/10:
Positive: 12 Neutral: 1 Negative: 27 (categories)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 22U.S. Buying Trends
% Change Dollar Sales
-4
0
4
8
% Change Unit Sales
-4
-2
0
2
4
10/04/08 11/01/08 11/29/08 12/27/08 01/24/09 02/21/09 03/21/0904/18/0905/16/09 06/13/09 07/11/09 08/08/09 09/05/0910/03/09 10/31/09 11/28/0912/26/0901/23/1002/20/1003/20/1004/17/1005/15/1006/12/10
Frozen
Frozen Department Was on Stronger Trend
Avg U Price Chg, 13 w/e 06/12/10:
Positive: 7 Neutral: 0 Negative: 5 (categories)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 23U.S. Buying Trends
% Change Dollar Sales
-10-8-6-4-2024
% Change Unit Sales
-3
0
3
6
9
10/04/08 11/01/08 11/29/08 12/27/08 01/24/09 02/21/09 03/21/0904/18/0905/16/09 06/13/09 07/11/09 08/08/09 09/05/0910/03/09 10/31/09 11/28/0912/26/0901/23/1002/20/1003/20/1004/17/1005/15/1006/12/10
Dairy
Prices Have Risen & Are Generating Better Trend on Dairy Dollar Sales
Avg U Price Chg, 13 w/e 06/12/10:
Positive: 9 Neutral: 1 Negative: 2 (categories)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 24U.S. Buying Trends
% Change Dollar Sales
-2
0
2
4
6
8
% Change Unit Sales
-2
0
2
4
6
10/04/08 11/01/08 11/29/08 12/27/08 01/24/09 02/21/09 03/21/0904/18/0905/16/09 06/13/09 07/11/09 08/08/09 09/05/0910/03/09 10/31/09 11/28/0912/26/0901/23/1002/20/1003/20/1004/17/1005/15/1006/12/10
Deli
Deli Department Holding Up Better Than Most
Avg U Price Chg, 13 w/e 06/12/10:
Positive: 0 Neutral: 0 Negative: 1 (categories)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
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April 18, 2023 Page 25U.S. Buying Trends
% Change Dollar Sales
-2
2
6
10
% Change Unit Sales
-202468
10/04/08 11/01/08 11/29/08 12/27/08 01/24/09 02/21/09 03/21/0904/18/0905/16/09 06/13/09 07/11/09 08/08/09 09/05/0910/03/09 10/31/09 11/28/0912/26/0901/23/1002/20/1003/20/1004/17/1005/15/1006/12/10
Packaged Meat Growth Stalled in Recent Periods
Packaged Meat Avg U Price Chg, 13 w/e 06/12/10:
Positive: 1 Neutral: 0 Negative: 0 (categories)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
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April 18, 2023 Page 26U.S. Buying Trends
% Change Dollar Sales
-9-5
-137
1115
% Change Unit Sales
-4
0
4
8
12
10/04/08 11/01/08 11/29/08 12/27/08 01/24/09 02/21/09 03/21/0904/18/0905/16/09 06/13/09 07/11/09 08/08/09 09/05/0910/03/09 10/31/09 11/28/0912/26/0901/23/1002/20/1003/20/1004/17/1005/15/1006/12/10
Lower Prices Not Bolstering Fresh Meat Dollar or Unit Sales
Fresh Meat Avg U Price Chg, 13 w/e 06/12/10:
Positive: 0 Neutral: 0 Negative: 1 (categories)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 27U.S. Buying Trends
% Change Dollar Sales
-2
0
2
4
6
8
% Change Unit Sales
-4
0
4
8
12
10/04/08 11/01/08 11/29/08 12/27/08 01/24/09 02/21/09 03/21/0904/18/0905/16/09 06/13/09 07/11/09 08/08/09 09/05/0910/03/09 10/31/09 11/28/0912/26/0901/23/1002/20/1003/20/1004/17/1005/15/1006/12/10
Fresh Produce
Fresh Produce Sales Improving Avg U Price Chg, 13 w/e 06/12/10:
Positive: 1 Neutral: 0 Negative: 0 (categories)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
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April 18, 2023 Page 28U.S. Buying Trends
% Change Unit Sales
-6
-4
-2
0
2
10/04/08 11/01/08 11/29/08 12/27/08 01/24/09 02/21/09 03/21/0904/18/0905/16/09 06/13/09 07/11/09 08/08/09 09/05/0910/03/09 10/31/09 11/28/0912/26/0901/23/1002/20/1003/20/1004/17/1005/15/1006/12/10
HBA
Continued Weakness in Health & Beauty
% Change Dollar Sales
-2
-1
0
1
2
Avg U Price Chg, 13 w/e 06/12/10:
Positive: 16 Neutral: 0 Negative: 5 (categories)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 29U.S. Buying Trends
% Change Dollar Sales
-2
0
2
4
6
8
% Change Unit Sales
-8
-6
-4
-2
0
2
10/04/08 11/01/08 11/29/08 12/27/08 01/24/09 02/21/09 03/21/0904/18/0905/16/09 06/13/09 07/11/09 08/08/09 09/05/0910/03/09 10/31/09 11/28/0912/26/0901/23/1002/20/1003/20/1004/17/1005/15/1006/12/10
Non-Food Grocery
Continued Weakness in Non-FoodAvg U Price Chg, 13 w/e 06/12/10:
Positive: 9 Neutral: 0 Negative: 3 (categories)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 30U.S. Buying Trends
% Change Dollar Sales
-12
-8
-4
0
4
% Change Unit Sales
-15
-10
-5
0
10/04/08 11/01/08 11/29/08 12/27/08 01/24/09 02/21/09 03/21/0904/18/0905/16/09 06/13/09 07/11/09 08/08/09 09/05/0910/03/09 10/31/09 11/28/0912/26/0901/23/1002/20/1003/20/1004/17/1005/15/1006/12/10
General Merchandise
Continued Weakness in Non-Edibles, with General Merchandise Suffering the Most
Avg U Price Chg, 13 w/e 06/12/10:
Positive: 14 Neutral: 0 Negative: 5 (categories)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 31U.S. Buying Trends
% Change Dollar Sales
0
3
6
9
% Change Unit Sales
-2
0
2
4
6
10/04/08 11/01/08 11/29/08 12/27/08 01/24/09 02/21/09 03/21/0904/18/0905/16/09 06/13/09 07/11/09 08/08/09 09/05/0910/03/09 10/31/09 11/28/0912/26/0901/23/1002/20/1003/20/1004/17/1005/15/1006/12/10
Alcoholic Beverages
The Shining Star of DepartmentsAvg U Price Chg, 13 w/e 06/12/10:
Positive: 2 Neutral: 0 Negative: 2 (categories)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 4 week periods (versus prior year); UPC-coded
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April 18, 2023 Page 32U.S. Buying Trends
Same-Store-Sales Trends
-8
-6
-4
-2
0
2
4
6
1 2 3 4 5 6
Last Six Reported Quarters
KrogerSam's ClubWalmartSafewaySuperValu
As Prices Fall, So Have Same-Store Sales Trends for These Retailers
Source: Company Press Releases
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April 18, 2023 Page 33U.S. Buying Trends
Unit Sales Growing Slower or Declining Faster (in Recent Quarter) in Most Dept’s
LatestLatest
TotalTotal
DairyDairy
FreshMeat
FreshMeat
DeliDeli
FreshProduce
FreshProduce
AlcoBevAlcoBev
DryGrocery
DryGrocery
FrozenFrozen
PkgdMeatPkgdMeat
HBAHBA
NonFoodNonFood
GeneralMerch
GeneralMerch
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 13 & 52 weeks ending 06/12/2010 (versus prior year); UPC-coded
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April 18, 2023 Page 34U.S. Buying Trends
Inflationary Pressures Drove Stronger Growth Last Year
52-Weeks Ending June 13, 2009 % 52-Weeks Ending June 12, 2010 %
Canning/Freezing Supplies 26.1 Canning/Freezing Supplies 30.1
Vegetables & Grains-Dry 24.8 Tobacco & Accessories 9.1
Flour 22.6 Sugar/Sugar Substitutes 8.1
Pasta 19.7 Vitamins 7.7
Seasonal Gen Merchandise 14.3 Nuts 6.3
Shortening/Oil 13.4 Snacks/Spreads/Dip-Dairy 6.2
Butter & Margarine 11.4 Yogurt 6.2
Baking Mixes 11.1 Vegetables-Canned 5.5
Vegetables-Canned 11.1 Wine 5.3
Pet Food 11.0 Pizza/Snacks-Frozen 5.1
Top 10 Fastest Growing Categories (Dollar %—Change vs YAGO)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – *minimum $100 million in sales
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April 18, 2023 Page 35U.S. Buying Trends
This Year it Is Less About Food Basics
52-Weeks Ending June 13, 2009 % 52-Weeks Ending June 12, 2010 %
Canning/Freezing Supplies 15.2 Frozen Novelties 9.2
Combo Pack 8.1 Canning/Freezing Supplies 8.2
Wine 6.4 Nuts 7.2
Fresh Meat 6.0 Fragrances - Women 6.5
Prepared Foods-Dry Mixes 5.2 Seafood-Canned 6.2
Vitamins 4.9 Vitamins 6.1
Pasta 4.3 Yogurt 5.6
Baking Mixes 3.7 Juices & Drinks-Refrig 5.4
Frozen Novelties 3.4 Pizza/Snacks-Frozen 4.8
Juices & Drinks-Refrig 2.7 Fresh Produce 4.8
Top 10 Fastest Growing Categories (Unit %-Change vs YAGO)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – *minimum $100 million in sales
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April 18, 2023 Page 36U.S. Buying Trends
Hy-Vee “Get Growing”
Source: Hy-Vee
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April 18, 2023 Page 37U.S. Buying Trends
Store Brand $ Share
14.0
14.5
15.0
15.5
16.0
16.5
17.0
17.5
18.0
06/16/07 09/08/07 12/01/07 02/23/08 05/17/08 08/09/08 11/01/08 01/24/09 04/18/09 07/11/09 10/03/09 12/26/09 03/20/10 06/12/10
Store Brand $ Share Growth Began in Mid-2007; Leveled Off, But Still Growing
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
Initially Led By Rising Commodity Prices
Still Posting Share Gains
+1.9
Share point Gain from 2007
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April 18, 2023 Page 38U.S. Buying Trends
Store Brand $ Share
36.5
37.0
37.5
38.0
38.5
39.0
39.5
40.0
40.5
41.0
41.5
06/16/07 09/08/07 12/01/07 02/23/08 05/17/08 08/09/08 11/01/08 01/24/09 04/18/09 07/11/09 10/03/09 12/26/09 03/20/10 06/12/10
Dairy
Dairy Department, Where Price Cuts Were Deep, Off From 2008 & 2009 Highs
+ 0.1
Share point Gain from 2007
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 39U.S. Buying Trends
Store Brand $ Share
0.0
5.0
10.0
15.0
20.0
25.0
30.0
06/16/07 09/08/07 12/01/07 02/23/08 05/17/08 08/09/08 11/01/08 01/24/09 04/18/09 07/11/09 10/03/09 12/26/09 03/20/10 06/12/10
Deli Frozen Foods Fresh Meat Fresh Produce Dry Grocery Packaged Meat
Long-Term Store Brand $ Share Growth in Other Edible Departments
+ 3.7
+ 2.7
+ 4.0
+ 5.4
+ 1.5
+ 0.6
Share point Gain from 2007
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 40U.S. Buying Trends
Store Brand $ Share
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
06/16/07 09/08/07 12/01/07 02/23/08 05/17/08 08/09/08 11/01/08 01/24/09 04/18/09 07/11/09 10/03/09 12/26/09 03/10/10 06/12/10
Non-Food Grocery HBA General Merch
Solid Store Brand $ Share Growth in Non-Food and Health & Beauty Department
+ 1.8
+ 3.3
+ 1.6
Share point Gain from 2007
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 41U.S. Buying Trends
Store Brand Unit Share Growth Continues, But Softness in Latest Three Periods
Still Posting Share Gains
Real Shifting Gains From
Brands
+ 1.7
Share point Gain from 2007
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
Store Brand Unit Share
18.0
18.5
19.0
19.5
20.0
20.5
21.0
21.5
22.0
22.5
23.0
06/16/07 09/08/07 12/01/07 02/23/08 05/17/08 08/09/08 11/01/08 01/24/09 04/18/09 07/11/09 10/03/09 12/26/09 03/20/10 06/12/10
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April 18, 2023 Page 42U.S. Buying Trends
Store Brand Unit Share
35.0
36.0
37.0
38.0
39.0
40.0
41.0
42.0
06/16/07 09/08/07 12/01/07 02/23/08 05/17/08 08/09/08 11/01/08 01/24/09 04/18/09 07/11/09 10/03/09 12/26/09 03/20/10 06/12/10
Dairy
Dairy Dragging Down Store Brand Unit Share, But Still Growing Long-Term
+ 1.4
Share point Gain from 2007
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 43U.S. Buying Trends
Store Brand Unit Share
0.0
5.0
10.0
15.0
20.0
25.0
06/16/07 09/08/07 12/01/07 02/23/08 05/17/08 08/09/08 11/01/08 01/24/09 04/18/09 07/11/09 10/03/09 12/26/09 03/20/10 06/12/10
Frozen Foods Dry Grocery Deli Fresh Meat Fresh Produce Packaged Meat
Store Brand Growth in Other Edible Departments, But Slippage in Latest Periods
Share point Gain from 2007
+ 2.3
+ 2.5
+ 1.1
+ 2.7
+ 4.6
+ 0.3
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 44U.S. Buying Trends
Store Brand Unit Share
0.0
5.0
10.0
15.0
20.0
25.0
06/16/07 09/08/07 12/01/07 02/23/08 05/17/08 08/09/08 11/01/08 01/24/09 04/18/09 07/11/09 10/03/09 12/26/09 03/10/10 06/12/10
Non-Food Grocery HBA General Merch
Gradual Store Brand Unit Share Growth in Non-Edibles
+ 2.3
+ 2.9
+ 2.2
Share point Gain from 2007
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) – 4-week increments
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 45U.S. Buying Trends
% of $ Sales (FDM w/WM)
38.8
26.6
21.3
17.5 17.2 15.9 14.9 14.6
0.88.6
13.7
Da
iry
De
li
Fro
zen
Fo
od
s
Fre
sh
Me
at
Fre
sh
Pro
du
ce
Dry
Gro
ce
ry
HB
A
No
n-F
oo
dG
roc
ery
Pa
ck
ag
ed
Me
at
Ge
ne
ral
Me
rch
Alc
oh
oli
cB
ev
s
Retailer Brand $ Share Varies by Department
17.2% AVG ( + 0.3 pts)
Greater development in food & beverage; share growth in all departments, but Dairy
(-1.1 +1.0 +0.6 +1.9 +1.9 +0.3 +1.1 +0.6 +0.7 +0.6 +0.1)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 (versus prior year)
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 46U.S. Buying Trends
% of Unit Sales (FDM w/WM)
40.1
22.2 21.920.0
18.9 17.5 16.7 16.3
0.9
14.114.8
Da
iry
No
n-F
oo
dG
roc
ery
Fro
zen
Fo
od
s
Dry
Gro
ce
ry
De
li
HB
A
Fre
sh
Me
at
Fre
sh
Pro
du
ce
Ge
ne
ral
Me
rch
Pa
ck
ag
ed
Me
at
Alc
oh
oli
cB
ev
s
Retailer Brand Unit Share Varies by Department
21.9% AVG ( + 0.4 pts)
Greater development in food & beverage; share growth in all departments but Dairy
(-0.2 +1.0 +0.5 +0.1 +1.0 +0.9 +1.6 +2.0 +0.8 +0.6 +0.1)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 (versus prior year)
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 47U.S. Buying Trends
Stronger $ Growth from Store Brands & Overlap in Just Three Mega-Categories
Branded* % Store Brands* %
Canning/Freezing Supplies 30.0 Fragrances - Women 77.6
Tobacco & Accessories 9.2 Canning/Freezing Supplies 69.5
Snacks/Spreads/Dip-Dairy 9.0 Laundry Supplies 26.5
Nuts 7.7 Fruit-Dried 23.2
Yogurt 7.2 Wine 22.0
Vitamins 6.2 Cookware 21.3
Wine 5.1 Skin Care Preparations 20.1
Insecticides Repellants 5.0 Combo Pack 20.0
Candy 4.8 Detergents 19.7
Frozen Novelties 4.7 Personal Soap/Bath Needs 18.8
Pizza/Snacks-Frozen 4.4 Cosmetics 17.8
Vegetables-Canned 4.0 Diet Aids 16.8
Baking Supplies 3.8 Soft Drinks-Non Carb 15.2
Tea 3.6 Tea 14.8
Pickles/Olives/Relishes 3.5 Gum 14.5
Categories on both lists
Non-Edible Categories
Top 15 Fastest Growing Categories
(% $ Change)
Edibles no longer
dominate store brand
list
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 wks ending 06/12/2010 (versus prior year) – *minimum $100 million in sales
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 48U.S. Buying Trends
Stronger Unit Growth from Store Brands & Duplication in Just Two Categories
Branded* % Store Brands* %
Frozen Novelties 9.6 Fragrances - Women 69.7
Snacks/Spreads/Dip-Dairy 8.6 Canning/Freezing Supplies 58.5
Seafood-Canned 8.4 Combo Pack 21.8
Canning/Freezing Supplies 8.1 Fruit-Dried 19.6
Nuts 8.1 Fresh Produce 19.2
Yogurt 6.8 Cookware 17.2
Vitamins 6.0 Wine 17.0
Juices & Drinks-Refrig 5.5 Personal Soap/Bath Needs 15.8
Shortening/Oil 4.8 Tea 15.3
Pizza/Snacks-Frozen 4.8 Tobacco & Accessories 14.9
Wine 4.5 Salad Dressings/Mayo/Top 14.7
Pkg'd Milks & Modifiers 4.5 Fresh Meat 13.7
Bread & Baked Goods 3.7 Cosmetics 12.7
Spices/Seasoning/Extract 2.8 Beer 12.3
Condiments/Gravies/Sauce 2.8 Skin Care Preparations 12.0
Top 15 Fastest Growing Categories
(% Unit Change)
Edibles less dominant on
store brand list; is duplication
from similar or different
consumers?Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 wks ending 06/12/2010 (versus prior year) – *minimum $100 million in sales
Categories on both lists
Non-Edible Categories
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 49U.S. Buying Trends
Non-Edibles Top the List of Categories Driving Bigger Unit Declines
Branded* % Store Brands* %
Film & Cameras -35.7 Computer/Electronic Prods -84.0
Ethnic HABA -13.9 Deodorant -39.9
Seasonal Gen Merchandise -13.1 Film & Cameras -26.6
Juices/Drinks-Frozen -11.8 Insecticides Repellants -23.1
Diet Aids -11.5 Light Bulbs Telephone -22.1
Computer/Electronic Prods -10.9 Snacks/Spreads/Dip-Dairy -20.9
Office/School Supplies -10.8 Gum -20.8
Battery/Flashlite/Charge -10.2 Housewares Appliances -13.9
Pain Remedies -9.1 Men's Toiletries -12.7
Kitchen Gadgets -8.6 Seasonal Gen Merchandise -11.4
Baby Needs -8.5 Lawn and Garden -10.9
Fresheners/Deodorizers -8.4 Battery/Flashlite/Charge -10.6
Pet Care -8.2 Hair Care -10.5
Magazines Selected Title -7.8 Disposable Diapers -10.1
Feminine Hygiene -7.8 Juices/Drinks-Frozen -9.6
Top 15 Declining Categories
(% Unit Change)
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 wks ending 06/12/2010 (versus prior year) – *minimum $100 million in sales
Faster declines for store brands
Categories on both lists
Non-Edible Categories
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 50U.S. Buying Trends
Good $ Growth For These Non-Edible Categories, But Considerable Duplication
Branded* % Store Brands* %
Canning/Freezing Supplies 30.0 Fragrances - Women 77.6
Tobacco & Accessories 9.2 Canning/Freezing Supplies 69.5
Vitamins 6.2 Laundry Supplies 26.5
Insecticides Repellants 5.0 Cookware 21.3
Family Planning 3.5 Skin Care Preparations 20.1
Personal Soap/Bath Needs 3.2 Combo Pack 20.0
Cosmetics 2.7 Detergents 19.7
Lawn and Garden 2.5 Personal Soap/Bath Needs 18.8
Shaving Needs 0.4 Cosmetics 17.8
Grooming Aids 0.4 Diet Aids 16.8
Motor/Vehicle Care/Acc -0.1 Vitamins 12.0
Cookware -0.3 Pain Remedies 11.8
Deodorant -0.4 Kitchen Gadgets 10.8
Medications/Remedies -0.5 Buckets/Bins/Bath Acc 10.1
Men's Toiletries -0.6 Lawn and Garden 8.9
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 wks ending 06/12/2010 (versus prior year) – *minimum $100 million in sales
Top 15 Fastest Growing Non-Edible Categories
(% $ Change)
Is duplication driven by similar or different
consumers?
Categories on both lists
Non-Edible Categories
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 51U.S. Buying Trends
Weaker Overall Unit Growth for Non-Edibles, But Store Brands Gaining Traction
Branded* % Store Brands* %
Canning/Freezing Supplies 8.1 Fragrances - Women 69.7
Vitamins 6.0 Canning/Freezing Supplies 58.5
Personal Soap/Bath Needs 2.2 Combo Pack 21.8
Family Planning 1.1 Cookware 17.2
Buckets/Bins/Bath Acc 0.0 Personal Soap/Bath Needs 15.8
Cookware -0.2 Tobacco & Accessories 14.9
Cosmetics -0.4 Cosmetics 12.7
Disposable Diapers -0.5 Skin Care Preparations 12.0
Tobacco & Accessories -0.8 Detergents 10.4
Sanitary Protection -0.9 Pain Remedies 9.1
Insecticides Repellants -1.7 Kitchen Gadgets 8.4
Detergents -2.0 Vitamins 6.3
Fragrances - Women -2.1 Diet Aids 4.8
Shaving Needs -2.4 Feminine Hygiene 4.7
Motor/Vehicle Care/Acc -2.7 First Aid 3.8
Top 15 Fastest Growing Non-Edible Categories (% Unit
Change)
Store brands showing
resurgence
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 wks ending 06/12/2010 (versus prior year) – *minimum $100 million in sales
Categories on both lists
Non-Edible Categories
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 52U.S. Buying Trends
29 Large Store Brand Share Categories
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 – 117 major category groupings
14 categories w/40 + share
15 categories w/30 to 40 share
18 categories w/20 to 30 share 27 categories w/share
below 10
43 categories w/10 to 20 share
21.9% Total Store
0
10
20
30
40
50
60
70
Store Brand Category Unit Shares
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 53U.S. Buying Trends
Store Brand Share Strength in Commodity Categories or Those with Little Differentiation
1st Tier: 64.1 – 41.4 share 2nd Tier: 40.7 – 30.8 share 3rd Tier: 30.6 – 22.1 share
Milk Juices/Drinks-Frozen Ice Cream
Eggs-Fresh Pain Remedies Butter & Margarine
Sugar/Sugar Substitutes Dessert/Fruit/Tops-Froz Pasta
First Aid Pickles/Olives/Relishes Ice
Wrapping Materials Bags Paper Products Nuts
Vegetables-Canned Table Syrups/Molasses Dough Products-Refrig
Vegetables & Grains-Dry Bread & Baked Goods Medications/Remedies
Fruit-Canned Charcoal/Logs/Accessries Flour
Cot Chs/Sour Cream/Topping Bottled Water Laundry Supplies
Unprep Meat/Seafood-Frz Kitchen Gadgets Pkg'd Milks & Modifiers
Cheese Vitamins Disposable Diapers
Shortening/Oil Jams/Jellies/Spreads Candles/Incense & Acces
Vegetables-Frozen Cough and Cold Remedies Pet Care
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 – 117 major category groupings
Store Brand Unit Share Rankings Food & Beverage
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 54U.S. Buying Trends
Store Brand Share Strength in Commodity Categories or Those with Little Differentiation
4th Tier: 21.8 – 18.6 share 5th Tier: 18.3 – 16.3 share 6th Tier: 16.0 – 13.0 share
Fruit-Dried Salad Dressings/Mayo/Top Buckets/Bins/Bath Acc
Spices/Seasoning/Extract Fragrances - Women Pet Food
Breakfast Foods-Frozen Snacks/Spreads/Dip-Dairy Prepared Foods-Dry Mixes
Seafood-Canned Yogurt Office/School Supplies
Baked Goods-Frozen Baking Supplies Cookware
Feminine Hygiene Light Bulbs Telephone Soft Drinks-Non Carb
Film & Cameras Combo Pack Crackers
Condiments/Gravies/Sauce Fresh Meat Packaged Meat
Cookies/Ice Cream Cones Motor/Vehicle Care/Acc Juices & Drinks-Refrig
Baby Needs Cereal Prepared Foods-Rdy Serve
Desserts/Gels/Syrups Lawn and Garden Household Supplies
Dressing/Salad/Pr Fd-Deli Sanitary Protection Grooming Aids
Frozen Novelties Fresh Produce Battery/Flashlight/Charge
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 – 117 major category groupings
Store Brand Unit Share Rankings Food & Beverage
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 55U.S. Buying Trends
Categories with Strong Marketing & High Level of Innovation at Bottom of Share Groupings
7th Tier: 12.9 – 9.0 share 8th Tier: 8.4 – 3.6 share 9th Tier: 3.0 – 0 share
Family Planning Housewares Appliances Baby Food
Carbonated Beverages Detergents Hair Care
Personal Soap/Bath Needs Prepared Foods-Frozen Fresheners/Deodorizers
Soup Shaving Needs Wine
Juices Drinks-Shelf Stbl Baking Mixes Tobacco & Accessories
Breakfast Foods Diet Aids Gum
Coffee Candy Canning/Freezing Supplies
Tea Puddings/Desserts-Dairy Beer
Skin Care Preparations Insecticides Repellants Computer/Electronic Prods
Oral Hygiene Cosmetics Deodorant
Snacks Liquor Ethnic HABA
Pizza/Snacks-Frozen Men's Toiletries Magazines Selected Title
Household Cleaners Seasonal Gen Merchandise Coolers
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/ Walmart) 52 weeks ending 06/12/2010 – 117 major category groupings
Store Brand Unit Share Rankings Food & Beverage
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 56U.S. Buying Trends
Store Brands Now Growing Share from Lead Brands as well as Smaller Brands
All Category Unit Share Trends
25.9% 25.6% 25.2% 25.0%
20.1% 21.1% 22.4% 22.3%
54.0% 53.3% 52.7%52.4%
0%10%20%30%40%50%60%70%80%90%
100%
CY 2007 CY 2008 CY 2009 YTD Thru6/12/10
Lead Brands* Store Brands Other Brands
* Lead brand could be # 1 or 2 depending on store brand share
Change versus 2007
- 1.3 Pts
+ 2.2
- 0.9
Source: Scantrack, a service of The Nielsen Company; (U.S. FDM ex/ Walmart) – based on 50,000 top-selling brands
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 57U.S. Buying Trends
Stronger Store Brand Share in Markets w/High Retailer Concentration
0%
5%
10%
15%
20%
25%
30%
OA
HU
NE
W Y
OR
KM
ILW
AU
KE
EO
KL
AH
OM
AD
ES
MO
INE
SC
HIC
AG
ON
EW
OR
LE
AN
SM
INN
EA
PO
LIS
BIR
MIN
GH
AM
HA
RT
FO
RD
/NE
WS
T. L
OU
ISP
HIL
AD
EL
PH
IAM
IAM
IP
ITT
SB
UR
GH
BO
ST
ON
SA
N F
RA
NC
ISC
OC
LE
VE
LA
ND
KA
NS
AS
CIT
YO
MA
HA
HO
US
TO
NW
AS
HIN
GT
ON
DC
WE
ST
TE
XA
SS
AC
RA
ME
NT
OC
HA
RL
OT
TE
TA
MP
AR
AL
EIG
H/D
RM
PO
RT
LA
ND
TO
TA
L U
SD
AL
LA
SL
OS
AN
GE
LE
SR
ICH
MO
ND
SE
AT
TL
EA
LB
AN
YB
AL
TIM
OR
ES
AN
DIE
GO
OR
LA
ND
OS
AL
T L
AK
E C
ITY
JAC
KS
ON
VIL
LE
AT
LA
NT
AG
RA
ND
RA
PID
SL
AS
VE
GA
SD
ET
RO
ITIN
DIA
NA
PO
LIS
PH
OE
NIX
CIN
CIN
NA
TI
SY
RA
CU
SE
NA
SH
VIL
LE
DE
NV
ER
BU
FF
AL
OC
OL
UM
BU
SL
ITT
LE
RO
CK
ME
MP
HIS
SA
N A
NT
ON
IOL
OU
ISV
ILL
E
Total U.S. Grocery18.7%
Store Brand Dollar Share of Store
Lower presence of dominant retailers
Lower presence of dominant retailers
Higher presence of dominant retailers:
(Kroger, HEB, Wegmans)
Source: Scantrack®, a service of The Nielsen Company; (U.S. Grocery Channel) 52 weeks ending 03/20/2010
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 58U.S. Buying Trends
Consumer Perception of Private Label Quality is Strong; Value for Money Dropping as Higher Quality Now Seen
71 7463 65 67
58
3337
20 1811 11
Store brandgood
alternativeto namebrands
Quality ofSB is at leastas good as
namebrands
SB usuallyare good
value for themoney
Some SBare higher
quality thanname brand
SB forpeople on
tightbudgets &can’t afford
the best
Don’t feelcomfortableserving SB
to my guests
2008 2009
Consumer panel survey on Retailer Brands:Quality & Price/Value
Consumer panel survey on Retailer Brands:Quality & Price/Value
% saying they Agree/
Strongly Agree:
% saying they Agree/
Strongly Agree:
Source: Homescan®, a service of The Nielsen Company PanelViews survey 2008 & 2009
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 59U.S. Buying Trends
45
43
36
30
27
Fewer Carry-Out/ HomeDelivery Meals
Use More Private Label
Use More BasicIngredients
Make Coffee at Home
Serve Desserts LessOften
Generational Gap in How Consumers Cope in Economic Downturn - Younger Using More Private Label
Due to Economic Downturn? % saying they would …
Due to Economic Downturn? % saying they would …
Greatest Gen
Boomers Gen X Millennials
32 45 50 50
35 41 48 50
35 37 36 35
33 31 27 26
25 28 25 26
Greatest Generation: born Prior to 1946; Boomers: 1946-1964, Gen X: 1965-1976, Millennials: 1977-1994Source: Homescan® 09/2009 survey, a service of The Nielsen Company
Total US HH
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 60U.S. Buying Trends
In departments & categories with extreme price gaps, the potential to enhance sales is significant
Do You Have Your Value Equation Right?
Source: Scantrack®, a service of The Nielsen Company; (U.S. FDM w/
Walmart); 4-weeks ending 06/16/2007 vs 4-weeks ending 06/12/2010
Health & Beauty
Health & Beauty
Read as: Frozen Foods department
store brand prices 25% lower than branded
Non- FoodNon- Food
Gen MerchGen
Merch DairyDairy DeliDeliDry
GroceryDry
GroceryFrozen Food
Frozen Food
-100%
0%
% Price Gap: Store Brand versus Brand
1 cent decrease in the price gap between Store Brand vs. Brand = $400MM annual sales
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 61U.S. Buying Trends
Kroger’s New "mirra" Beauty Care Brand
Source: Kroger.com
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 62U.S. Buying Trends
“Wegmans’ Special Blends Is a New Line of Private-label Frozen Mixed Vegetables”
Source: Wegmans
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 63U.S. Buying Trends
HEB Rolls Out Household Cleaning Tools with Sweepstakes Promotion
Source: http://www.heb.com
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 64U.S. Buying Trends
Supervalu Leverages Consumer Research to Roll Out New Baby Line
Source: SUPERVALU
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 65U.S. Buying Trends
Source: IGA
A New Look & Focus From IGA
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 66U.S. Buying Trends
Store Brand Food & Beverages From Duane Reade
Source: DuaneReade.com
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 67U.S. Buying Trends
7-Eleven Continues March into Private Label Territory
Source: 7-Eleven.com
“7-Eleven stores already has introduced approximately 225 private-label food and non-food products under the 7-Select brand, and another 40 new items are scheduled to be in stores before the end of the year.”
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 68U.S. Buying Trends
Photo: Associated Press
7-Eleven’s Store Brand Beer
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 69U.S. Buying Trends
…In With the New Target “up & up” Store Brand
Source: Company website
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 70U.S. Buying Trends
The Number One Reason Why Store Brands Will Have Continued Success
Source: Walmart national ad
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 71U.S. Buying Trends
Store Brand Growth – Linked to Downturn or Long-term Trend?
Don’t let price gaps get too large & drive declining category sales
Don’t de-list high penetration, high frequency or strong niche brands & drive shoppers to retailers who carry them
Do promote store brands with brands where there is limited shopper overlap to drive category sales
Do promote store brands along with non-competitive or complimentary branded offerings to build larger baskets
Do select credible suppliers & hold them to high standards
Retailer Do’s & Don’ts:
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 72U.S. Buying Trends
Manufacturer Do’s & Don’ts:
Store Brand Growth – Linked to Downturn or Long-term Trend?
Be current in branded versus store brand pricing analytics
Be proactive in assortment analytics to show why your brand assortment aligns well w/store brand assortment
Provide retail partners with analytics to show which of your branded offerings make good promotional partners
Take a collaborative approach to how you assess branded versus store brand risks & opportunities – retailer focus has never been greater
Explore options for using excess capacity for store brand production
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 73U.S. Buying Trends
Buying Trends
Summary
Confidential & ProprietaryCopyright © 2010 The Nielsen Company
April 18, 2023 Page 74U.S. Buying Trends
“Great Recession” Driving Fundamental Shifts in Consumer Buying
Back to basics & increased at-home consumption continue
Store brand success will continue
Risk for mid-tier brands as retailers make room for expanded store brand offerings & seek to eliminate clutter & simplify shopping experience
Manufacturers move store brand manufacturing or direct-to-consumer options
Can retailers make gains in categories with high marketing support and/or high levels of innovation?
Premium & discretionary brand segments and retailers need to innovate & work harder than ever to differentiate & give consumers a reason to buy