A recent study by Acosta Group reveals a missed opportunity for grocery stores to increase revenue from health and beauty care (HBC) and general merchandise (GM) products.
Key Findings:
Most shoppers skip HBC/GM aisles: Nearly 70% of surveyed grocery shoppers don't visit the HBC or GM sections in their usual grocery stores.
Preference for other channels: These shoppers prefer to buy HBC/GM products from mass merchandisers, online retailers, or drugstores.
Price and selection matter: The top reasons for choosing a retailer for HBC/GM purchases are low prices and a wide product selection.
Negative perception of grocery prices: 48% of shoppers avoid buying HBC/GM at grocery stores due to perceived high prices and poor promotions.
Strategies for Grocery Stores:
Overcome price perception: Grocers need to highlight their competitive prices and promotions to change consumer perception.
Focus on gateway categories: Prioritize promoting and improving the top 10 "gateway categories" that represent the majority of HBC/GM sales in grocery stores.
Communicate value: Effectively communicate the value proposition of buying HBC/GM products at grocery stores, emphasizing convenience and potential savings.
Improve product selection: Expand the variety of HBC/GM products and brands to meet consumer demand and offer a wider selection than competitors.
Offer targeted promotions: Implement targeted promotions and discounts to entice shoppers to explore HBC/GM aisles and make impulse purchases.
Additional Tips:
Highlight convenience: Emphasize the convenience of one-stop shopping for both groceries and HBC/GM needs.
Create attractive displays: Design visually appealing displays and endcap placements to draw attention to HBC/GM products.
Train staff on product knowledge: Ensure staff can answer questions and provide recommendations on HBC/GM items.
Leverage loyalty programs: Reward customers for purchasing HBC/GM products through loyalty programs and personalized offers.
By implementing these strategies, grocery stores can potentially c
apture a significant portion of the HBC/GM market and increase overall revenue.
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