Supermarkets Swing Back To Center
For years, the “center store” of the supermarket has been considered as passé as the cans of fruit cocktail sold there, with consumers spending more time -- and money -- wandering the produce, meat, deli and bakery aisles.
But new research from SymphonyIRI reports that the center aisles are now grabbing some two-thirds of grocery dollars, or about $440 billion, and 70% of unit sales. “When you put all the aisles together, the center store is actually outperforming the perimeter,” Susan Viamari, editor of Times & Trends, SymphonyIRI Group, tells Marketing Daily.
Driving the change is consumer realization that these aisles hold solutions that are cheaper, yet not much of a sacrifice.
“A lot of the things that started as belt tightening in the early part of the recession have become habits,” she says. “And consumers aren’t finding it painful. Just as K-cups have become an answer to the coffee shop, some of the high-end, shelf-stable meals and meal components are bringing the restaurant into the home. This bent toward a new, smart way to save is really transcending many of the aisles.”
Other examples include supermarkets’ hair and nail products replacing salon trips, and pharmacy-aisle services replacing doctor visits.
The year’s biggest center-store gains in unit sales came in coffee, energy drinks and bottled water, and nearly one-half of the 50 largest center store categories posted above-average unit sales growth during the past year, it reports.
Still, grocery stores are struggling. Symphony IRI also reports that grocers hold 54% of general food sales, but share declined sharply during the past year, with convenience stores, mass merchandisers and club retailers all gaining as a result.
For grocers, she says the takeaway is that striving to connect with consumers in those center aisles is critical. “For some time, retailers have been saying, 'If I’m going to differentiate myself, it will be in offerings in the perimeter. Now, we’re realizing they have the ability to differentiate themselves anywhere in the store.”
Recent Marketing Daily Articles
-
Fat Tire 'Pairs Well With People' May 24, 12:49 a.m.
New Belgium Brewing, the nation’s third-largest craft brewer, is launching a campaign including the company’s second-ever ... -
Mobile Important For Hispanic Shoppers May 23, 5:10 p.m.
Marketers looking to capture more of the growing Hispanic market in the U.S. would do well ... -
CoreBrand: Brand Favorability Low May 23, 4:33 p.m.
Brand consultancy CoreBrand says awareness isn't everything. Awareness is up across the board for the top ... -
Ford Launches European Campaign May 23, 1:36 p.m.
Ford of Europe is backing the 2013 UEFA Champions League Final football match and launching a ... -
Study: Social Media Driving CSR May 23, 11:32 a.m.
With tax evasion and third-world factory collapses dominating headlines, a new study on the role of ... -
Mondelez Goes Social, AR In Band-Tour Sponsorship May 23, 8:14 a.m.
In two firsts for the company, Mondelez International is using a fan as a social media ... -
Beer Category Grows Most In Brand Rankings May 23, 12:40 a.m.
Beer was the highest growth category in this year’s BrandZ rankings -- up 36% year-over-year, according ... -
Saks Soars; Target Misses May 22, 6:10 p.m.
It’s a buzzy week for retailers. While mass chains such as Target and Lowe’s say the ... -
Cricket Makes More From Less May 22, 4 p.m.
Prepaid wireless carrier Cricket Communications is taking direct aim at customers of the larger, post-paid companies ... -
Seattle's Best Promos New Drive-Thru Format May 22, 3:43 p.m.
Seattle’s Best Coffee has simultaneously opened 10 “drive-thrus” in the Dallas/Fort Worth area. This marks the ...
Be the first to comment on "Supermarkets Swing Back To Center "
Leave a Comment