Times & Trends Report Looks at Channel Migration

Over the history of this column, we have occasionally previewed the findings of SymphonyIRI Group, Inc. and their monthly Times & Trends Reports. Their August 2010 edition examines the shopper channel strategy in terms of how many different channels consumers are shopping, how many trips they are making and what they are spending per trip and by department. It is important to keep our fingers on the pulse of these trends as the at-retail initiatives of CPG brand marketers and retailers are surely affected by them.

We know that consumers are continuing to seek money saving strategies in their shopping practices. According to SymphonyIRI, shopping in multiple channels to find the best deals on everyday CPG needs has been embraced by many, especially after fuel prices dropped. Three quarters of consumers shop at five or more channels for their CPG needs. However, a significant segment is starting to cut down on channels as 24% shop at five or less channels, a two percent increase from 2008.

Supercenters seem to be the big winner when it comes to shopper penetration. SymphonyIRI reports that nearly 70% of shoppers make CPG purchases in supercenters, an increase of 1.9 points over the past year. Supercenter shoppers seem to be migrating most heavily from the club, grocery and drug channels. Dollar stores are also gaining shoppers, mostly at the cost of club and mass merchandisers.

SymphonyIRI also reports on the drastic shift in consumer shopping trip behavior. Early in 2008, gas prices spiked and the number of consumer shopping trips dropped while basket sizes grew. Trip frequency recovered as gas prices eased and basket sizes went down in 2009 as consumers made more frequent and less productive shopping trips. Now it appears the frequency of trips is on a slow decline while basket sizes are still continuing to fall.

This is just a summary of the major themes covered in the SymphonyIRI August 2010 Times & Trends Report. To fully absorb and embrace the information, you should download and read the report in its entirety. It is a quick read and offers extensive data and insight as to what consumers are doing and where they are doing it.