We're desperate to report some news on how shoppers are making dramatic changes to their their shopping habits because of the recession.
Problem is that they haven't here in Canada.
Sure there are some changes but we are not seeing the kind of channel shifts to supercentre and dollar stores that they see at the moment in America.
We just completed our 2009 World of the Shopper research and do not see dramatic changes to channel choice. We see some more pre-planning (flyer checking has increased) and shifts in trip triggers. We can see some greater focus on pricing and we also see a higher value stock up trip while quick trips remain flat.
Oh, and by the way, in the last issue of Canadian Grocer Nielsen is reporting that that private label is not disproportionately growing here either.
Sorry. I know everyone wants some news about the recession. And I know journalists are trying to fill pages with anecdotal stuff about 'recessionistas' but the fact is that we haven't changed much. When people are skeptical I ask them simply "what have you changed?". Usually there is some micro and in store behaviour but not major shifts.
Showing posts with label Private label. Show all posts
Showing posts with label Private label. Show all posts
Sunday, June 7, 2009
Tuesday, May 12, 2009
Americans and Private Label
I am getting a little bored with the coverage of the success of private label in the US. No offence to them. I am sure it is big news there.
But the rest of the Western world has been through it. Private label penetration in Europe is almost double that of the US. Retail brands are trusted. Often they are not value options but in the case of Tesco's Finest or Marks and Spencer considered better quality. Partly because retailers have been far more consolidated in those markets and were able to build their brands.
I read today that dollar stores is the one channel in the US that brands are not facing private label competition. Cold comfort really. I recall in the early 1990's before I left the UK you could go slumming and buy national brands at discount grocery stores or you could get quality private label at the national retail chains. Not a great position for brands to be in.
American brands need to face up to a new reality. This will not go away with economic recovery. Why should it? They need to start thinking about their value.
But the rest of the Western world has been through it. Private label penetration in Europe is almost double that of the US. Retail brands are trusted. Often they are not value options but in the case of Tesco's Finest or Marks and Spencer considered better quality. Partly because retailers have been far more consolidated in those markets and were able to build their brands.
I read today that dollar stores is the one channel in the US that brands are not facing private label competition. Cold comfort really. I recall in the early 1990's before I left the UK you could go slumming and buy national brands at discount grocery stores or you could get quality private label at the national retail chains. Not a great position for brands to be in.
American brands need to face up to a new reality. This will not go away with economic recovery. Why should it? They need to start thinking about their value.
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