A recent story from the Wall Street Journal suggest another shift in the priorities people have when it comes to buying food. Of course, the pandemic led to an increase of curb-side pickup and delivery services. But now, the economic recession is moving people to focus more on value for the dollar.
Some people are migrating from higher-end retailers to more value-based stores, making more bulk purchases, doing more price comparisons and spending more time hunting for deals. The WSJ article even suggests that middle-income people who might not normally shop at "dollar stores" are increasingly adding them to their shopping itinerary.
Any time there is churn within an industry, marketing can play an important role. By explaining their extended value proposition (quality, freshness, service and special sale events), higher-end stores can defend against the unnecessary loss of market share. For stores that are on offense right now (stores that are focused on price points and value), it would be smart to revisit the messaging strategies that worked well during the great recession.
Ways you might use this issue to gain an appointment:
- CMG's custom research division has been surveying our local market for insights about what matters most to consumers right now, including everything from pandemic safety protocols to how their household income has been impacted. It would be smart for us to review those findings together and better understand the window of opportunity that exists in today's local landscape, both in terms of the pandemic and the economy.
- Retailers across the country are trying to figure out how they can appeal to consumers that are both making less frequent visits to the grocery store, and buying less on each visit. (I'm attaching a link to a Wall Street Journal article that explains this well.) My team specializes in brainstorming ideas to address precisely these kinds of issues. We have some rough ideas we'd like to share with you about connecting with [market] consumers in a meaningful way; perhaps with input about what you're seeing from your point of view, we can build on those ideas and help you stay stronger through all of this.
Using this issue in a Needs Analysis:
- A recent story from the Wall Street Journal suggests that "frequency of store visits" is down for many consumers, and that they are also spending less on each visit due to our current economic landscape. Is this consistent with what you're seeing at your store(s), and what kinds of steps are you taking to get more people into the store and lift basket sized?
- As you build your sales events and marketing strategies, have you considered any kind of an "internal stimulus program" to help a grocery budget go farther at a time when people are more cost-conscious? Should we be brainstorming ideas like that?