Progressive Grocer Product

WIN 2015

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However, given that shoppers have shown they will visit multiple outlets to accomplish their shopping and meet budgetary needs, grocers feel the squeeze in this sector from other channels, including dollar and mass merchandise/ supercenters. According to a July 2015 Mintel report Shopping for Household Care Products, low price is a "key consideration" on where to purchase household care products, though there are more infuences than price. The London- and Chicago- based frm reports, "Other factors also come into play, and there are substantial diferences from retailer to retailer, refecting the diverse needs and preferences of household care product shoppers. To maintain their share of household care product purchases, retailers need to deliver on the core factors that are most likely to drive shoppers to their stores. To grow share they may need to explore ways to neutralize competitors' advantages." There are ways to stimulate this segment and drive a number of subcategories, some of which are outpacing the home care segment as a whole. Winning Categories Home care as a whole grew 1 percent during the With strong competition from other channels, grocers can still win in home care by delivering powerful and pleasing products. Make It Sparkle iven that people must continue to clean their homes regardless of the economic environment, home care products have proven to be somewhat recession-proof and thus continue to contribute signifcantly to the non- food segment at retail. according to Chicago's iri, home care products account for 12 percent of the $197-billion non-food sales, and thus generated close to $24 billion during the 52 weeks ending aug. 9, 2015. NON-FOODS Winter 2015 / Progressive Grocer Products Showcase 2 5 past year, according to IRI, while fve notable categories outpaced average sector growth. • Household cleaner cloths +8.5% • Laundry care +3.0% • Air fresheners +2.9% • Household cleaners +1.8% • Sponges & scouring pads +1.3% Source: IRI Market Advantage™, 52 weeks ending Aug. 9, 2015, and same period prior year For manufacturers and retailers to build strong subcategories, it's relevant to note what is driving the growth seen recently. Though the recession saw some usage trends emerge – stretching usage, using alternatives such as vinegar, reusable clothes instead of disposable options – as shoppers very closely watched their budgets, many shoppers still indicated that they buy into innovation and effectiveness. Consumers want products that work harder, faster, last longer. They want products that will make it easier and more enjoyable/ rewarding to clean the house. They want a pleasing, olfactory experience. According to IRI data and research:

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