StudyThought Leadership | 3.27.23
Unlock Your Grocery Store’s Success: Tips From NGA Show 2023
Intrics at NGA Show 2023
The way we shop for groceries has changed dramatically since 2020 — from supply chain disruptions to inflationary pressures and shifts in consumer behavior, the retail industry is facing volatility like never before. The NGA Show 2023 presented an opportunity for attendees to gain the latest and most comprehensive insights into retail innovation, network with industry leaders, and discover solutions to drive the grocery business forward. Intrics was there to present the most pressing trends that we’ve seen impacting the grocery industry.
At Intrics’ seminar during the National Grocers Association Show 2023 in Las Vegas, Patrick Fisher explored these changes and how retailers can adapt their pricing, promotional, and assortment strategies to stay competitive without disruption to operational processes.
The infographic below outlines the major shifts that have occurred in today’s grocery market and highlights valuable tactics for helping retailers prepare for 2023 and beyond. Keep reading to learn more about what you can do to adapt to these shifts.
Evolving Promotional Strategies
Promotional strategies are evolving from historical norms, with some brands decreasing discounts while others increase everyday price points. Retailers are utilizing more UPCs in their weekly circulars, creating more value for shoppers. This is making it increasingly important for retailers to understand how to create value with their weekly circulars. To optimize circular strategies, retailers need increased visibility into promotional activity within their trade areas to highlight value created by existing and new products.
Shrinkflation is also impacting CPG companies as manufacturers look to pass cost increases on to consumers. A reported 45% of consumers who notice shrinking pack sizes choose to switch to a different brand that gives more value for the money. This rise in shrinkflation shows that consumers should be given more options when it comes to finding value for their money. Additionally, understanding price positioning in a timely manner is essential to stay ahead of market shifts.
The Private Label Imperative
The private label imperative is another key trend, as economic and market pressures provide a large tailwind for private labels as shoppers search for value. Private Label products provide additional benefits by creating differentiated assortments for shoppers who value having unique items available with more options for pricing and promotions. New product introductions have stalled over the past 18 months, prompting 91% of food retailers & manufacturers to ramp up their private label efforts over the next 2 years. Private label is becoming essential to the grocery industry as more manufacturers and retailers shift resources toward this sector. This further increases the importance of a diversified and unique assortment for shoppers who want more options when it comes to pricing & promotions.
NGA Show 2023 Key Takeaways:
Refining Circular & Assortment Strategies
In order to stay ahead of market shifts, retailers should leverage their weekly circular strategy to highlight value created by existing and new products for shoppers, understand their price positioning in a clear and timely manner, understand what new private label products are being introduced, and leverage private label to create a differentiated assortment for their shoppers. With this approach, retailers have an opportunity to provide better value for shoppers while simultaneously experimenting with pricing & promotional strategies.
In conclusion, grocery industry trends are changing rapidly, and retailers must stay aware in order to remain competitive. Promotional strategies should focus on creating value through weekly circulars while also providing shoppers with more options when it comes to finding value for their money. Private label is becoming an essential part of the grocery industry, making it even more important for retailers and manufacturers to offer differentiated assortments with better pricing & promotions. By staying ahead of market shifts and understanding price positioning in a timely manner, retailers can capitalize on these changes and provide consumers with better value.
From “shrinkflation” to the rise of private brands, it’s more important than ever for retailers to recognize and respond to volatile trends in order to remain successful. Make sure you’re setting yourself up for future success by downloading the full copy of our NGA Show 2023 presentation today.