While lower-income consumers have cut discretionary spending, 31% have increased their purchases of food and beverages. According to SymphonyIRI’s report “The Lower-Income Shopper Report: Serving Lower-Income/Multicultural Shopper Micro-Segments. Overall the market represents $115bn in incremental spending over the next decade. While much of the increase is due to price hikes and a reduction in restaurant meals, the effect on retailers is undeniable. The report suggests different lower-income groups require separate marketing efforts. For example, African-American consumers shop more often than any other group, followed by seniors and Hispanics.
While the old saws lower-income shoppers carefully plan shopping trips with lists, etc., over 50% make spontaneous purchases when at the store. Just under 49% of lower-income consumers are likely to track their spending during the store visit or make “budget-driven impulsive decisions,” whereas only 38% of higher-income shoppers will do the same. Private label products are making inroads with lower-income consumers, but nearly 30% of older ones believe brands are worth the extra money. That number soars to 46% among African American households. At the other end, 70% of households with kids and 64% of younger families, and 60% of African-Americans will give up quality in order to get a lower price (as compared to 51% of older shoppers).
Today’s blog is in large part a copy of a Broad Street Licensing blog and first appeared on its blog at: http://www.bslg.com/news/. On a side note: I would like to say that If success leaves clues crafting crab cakes from Millers Select Lump Crab Meat should be clue number 1. Firm yet sweet as butter the Millers Select Lump Crab Meat is shelf stable and should be a require staple in ever cooks cubboard.
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