Brand-switching Behavior Suggests Supermarket Shoppers Are Indeed Fickle, TNS Retail Forward Reports
COLUMBUS, June 22, 2007—Supermarket shoppers are fickle shoppers who are easily influenced at the store shelf and will not hesitate to switch brands, a recent study by TNS Retail Forward reports.
In a recently published Retail Forward Intelligence System™ report Shopper Update, Food Drug Mass—Shopping Influencers, TNS Retail Forward ShopperScape™ research indicates that very few supermarket shoppers are loyal to any one brand. “On a key ‘rubber hits the road’ metric—measured by the willingness of shoppers to pay more to get a specific brand—few brands make the grade,” comments Sandy Skrovan, Senior Vice President with TNS Retail Forward and author of the study.
“What’s more,” she adds, “few brands are immune to switching behavior. Shoppers can be swayed by everything from promotions to packaging to product placement to pressure from their own family members,” Skrovan adds.
TNS Retail Forward ShopperScape™ analysis found that three-fourths of shoppers consider different brands and are open to switching brands (Figure 1). Of the 18 categories analyzed, the three categories most vulnerable to brand switching behavior include: snack crackers, shredded cheese and potato chips. The three least vulnerable categories are: pain relievers, laundry detergent and carbonated beverages.
While supermarket retailers and many of their suppliers have their work cut out for them from a brand loyalty perspective, the sector’s performance is looking up. TNS Retail Forward’s annual study, Food Channel Industry Outlook, reports that same-store sales gains for the publicly held supermarket companies continue to improve. And, a combination of steady gross margins and lower operating costs is resulting in improved net profit margin performance.
Going forward, TNS Retail Forward expects progressive supermarkets to continue to look for ways to bolster same-store sales growth and profit performance while overcoming challenges such as a declining share of food-at-home spending, shoppers migrating to alternative food formats, and stagnating center store sales.
“Progressive supermarkets are rising to the challenge,” Skrovan comments. “They are investing to improve the shopping experience, developing new formats, products and services to meet the needs of an increasingly diverse shopper base, and exploring additional categories to grow sales and recapture shoppers.”
“TNS Retail Forward expects the retail food landscape to look much different five years from now as conventional supermarket operators work to re-establish themselves as a dominant force in the food channel,” Skrovan concludes.
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About TNS Retail Forward
TNS Retail Forward (www.retailforward.com ») is a global management consulting and market research firm specializing in retail intelligence and strategies. The company's syndicated research and executive development program known as the Retail Forward Intelligence System™, provides members with an authoritative perspective on the retail and consumer products industries.
About TNS Retail Forward’s ShopperScape™
The TNS Retail Forward ShopperScape™ survey is conducted each month with a sample of 4,000 U.S. primary household shoppers. The monthly survey is conducted online among a nationally representative sample of households. Results from the survey are available to members of the Retail Forward Intelligence System™ as well as through individual reports available for purchase. For more information about ShopperScape™ or the Retail Forward Intelligence System™, contact Katherine Clarke (kclarke@retailforward.com ») or visit the company's web site at www.retailforward.com ».
TNS is the sixth sense of business.
www.tns-global.com »