Organic products – which are often priced at a premium over non-organic products – have taken a sales hit over the last 12 months as consumers have cut back discretionary spending, according to new analysis by Nielsen’s Director of Industry Insights, Tom Pirovano.  In March 2008, monthly sales of organic products grew 24 percent; a year later, growth almost came to a standstill of 1 percent, marking a dramatic shift from previous monthly growth rates of more than 30 percent seen in 2005 and 2006.
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“The recession and …

Each new day seems to bring more bad news about the economy.  With uncertainty and fear looming, American consumers have cut back on their shopping trips and changed the way they spend their hard-earned money.  For food retailers and consumer packaged goods manufacturers, these new trends do not necessarily spell doom.  If they know how to address consumers’ changing needs and can successfully engage them by appealing to their desire for value, significant opportunities remain.
Even though some analysts predict that the U.S. economy may have hit bottom and are cautiously …

Grocery sales in the U.K. are holding their ground despite the continued economic difficulties, according to a new survey from Nielsen. Overall, sales grew 5.7 percent in the twelve-week period ended February 21 versus the same period last year, with all of the top 4 grocers attracting new customers.
Asda and Sainsbury showed solid growth during the quarter (7.6% and 5.5%, respectively), while Morrisons grew a strong 8.2 percent, driven by increased spending from its shoppers and Waitrose re-energized its business with 3.2 percent growth.
Discount retailers continued to make gains …

The days of super sizing are over. The big players in grocery are opting for smaller, niche footprints in urban locations featuring a focus on packaged fresh food offerings. The idea is to make shopping more rewarding, and to reward consumers with coffee boutiques, new ideas, special discounts, free groceries and gas cards.

Sales at grocery stores in the UK showed signs of life in January after several months of minimal growth. According to Nielsen, year-over-year sales growth of 6.5 percent was recorded by top grocers.
Interestingly, sales of general merchandise such as homeware, electrical and clothing showed improvement after months of softness. Over 2008, average growth in this category was just over 2 percent; in January 2009, sales grew 4.4 percent.
“Non-foods have struggled in supermarkets for months and it was one of the first categories to suffer as shoppers cut back …

Despite the slowing economy, new product introductions in 2008 remained steady compared to 2007.  According to a new Nielsen report, 122,743 new UPCs were sold through U.S. grocery, drug and mass merchandiser channels, excluding Walmart. Of these, 39 percent were food and beverage items, 29 percent were general merchandise items such as DVDs, 20 percent were health and beauty items with the remaining 12 percent non-food grocery items such as paper products, diapers and detergent.
Of the more than 122,000 items introduced, 3,882 (3.2%) achieved more than $1 million in sales, …

Sales in the British grocery sector picked up over the holidays, but were largely negated by weak sales at the beginning of December, Nielsen reported last week.
Growth (by value) of British food sales for the four-week period ending December 27 was up by 2.6% year-over-year overall and by 4.5% year-over-year for grocery multiples.
“The consumer was much more cautious this year, and it was a back to basics Christmas,” Mike Watkins, senior manager, retailer services, Nielsen, noted.  “Sales of packaged grocery (+11%), frozen (+10%), and confectionery (+8%) were buoyant, while sales of …

Sales in British supermarkets picked up during the last two weeks of November, as shoppers turned their backs on convenience stores and the high street retailers in favor of larger purchases at larger, value-oriented hypermarkets, Nielsen reported Tuesday. 
Year-over-year growth at hypermarkets reached 6% during the period, while the smallest convenience outlets declined by almost 2% during the 12-week period.
In comparison, year-over-year growth in the British grocery sector stood at 3.2% during the 12 weeks ending 29 November, according to Nielsen.  Grocery multiples showed stronger growth (+5.6%) during the period.
“In order …

For the past few years, we’ve seen the transition from random weight to pre-packaged, UPC-coded meat.  In 2009, as more retailers look for ways to cut costs, fresh meat will continue shift from the butcher to the shelf. 
Look for less meat to be cut in the store, and more UPC-coded meat to be packaged centrally and sold on the shelf. 
Retailers will need to decide whether they want to compete on price or rely on their butchers and deli counters to create differentiation and customization.
Read Nielsen’s complete 2009 Industry Outlook in …