With consumers looking to stretch their money as far as possible, it’s no surprise that they might be attracted by promotions and sales at their local grocery store.

The number of drug stores in the U.S. has declined by more than 2,000 in the last 7 years (to 37,700 outlets), as independent pharmacies close.  And in the last decade, the percent of U.S. households shopping in drug stores has dropped from 89 percent to 81 percent.  But the drug store channel generates more than $43 billion in sales, excluding prescriptions, and the nation’s leading chains are continuing to innovate to grow their share of the consumer’s spend. 
So what are the top selling categories in the drug channel? Six …

If, when walking or driving around town, you’ve thought to yourself that it seems like there are a lot of new convenience stores that have sprouted up over the last few years, you’d be right.  Since December 2001, more than 20,000 new locations have opened, bringing the total to almost 145,000 such stores in the U.S.  But facing high gas prices last year as well as competition from groceries and mass merchandisers and the effects of the economy, C-Stores have actually been pulling back.  Since the end of 2007, more …

Retail grocery prices in the U.S. continue to creep higher overall compared with 2008, according to new research from The Nielsen Company. The good news is price increases appear to be slowing compared with the price spikes experienced by shoppers in the spring of 2008 and 2007.
These were some of the findings from the “Supermarket Pricing Trends” study which looked at pricing of the top-selling items across 45 categories over the course of five years. It concluded by measuring the 12 weeks ending May 16 in total U.S. supermarkets.
Overall, …

Tom Pirovano, Director, Industry Insights

For the past several months, we’ve seen sales for U.S. store brands grow at unprecedented rates with annual sales of $85.5 billion, up by $13.6 billion (+19%) vs. just two years ago. (Nielsen Grocery/Drug/Mass including Walmart). At first, this growth was driven by higher prices for milk and other commodities. Then the economy got even worse, and many just assumed that shoppers were switching from national brands to store brands to save money.
But what about the other factor we sometimes forget to mention? Could it be …

Tom Pirovano, Director, Industry Insights
There’s been some buzz in the news recently about Toys “R” Us acquiring FAO Schwartz. I’m confused by some of the perceived pessimism regarding toy retailers struggling to keep pace with mass merchandisers. From my “food guy” perspective, Toys “R” Us and FAO Schwartz have some very strong brand equity that has the potential to be leveraged in several creative ways. Here are a few opportunities I’d love to see Toys “R” Us pursue if they haven’t already been tested or discussed.

First, change the focus from …

Tom Pirovano, Director, Industry Insights
I recently shared some thoughts on how CPG manufacturers can protect their brands from private label expansion. Of course, it didn’t take long to hear back from retailers asking for tips on growing their own brands so here are a few private label ideas for our retailer friends.

Study the category consumer before going upscale. Consumer understanding is the common thread among top-selling brands. It’s not enough for a retailer to roll out a quality product in premium packaging.
Disguise your premium store brands. Many consumers still associate …

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.
[click to enlarge graph]

“The recession and …

Tom Pirovano, Director, Industry Insights
Sales of store brands, or private label products, began to spike in 2007 just as we were seeing the first signs of an economic downturn. At first, these private label sales were driven by higher commodity prices, but volume growth began to catch up with dollar growth in mid-2008. As the economy continues to struggle, more and more consumers are replacing their branded products with private label equivalents. Store brands are up 10% to $84.4 billion in annual sales across categories …

American shoppers have a huge range of options when choosing where to shop, from convenience and dollar stores to traditional grocery and drug stores to warehouse clubs and supercenters.  Who shops where? And what are they buying?  These are just a couple of the questions answered by Nielsen’s “U.S. Consumer Dynamics Across Channels & Categories” study released earlier this month.
On a dollar volume basis, grocery stores continue to capture the highest percentage of consumer dollars, with 33.1 percent.  In Grand Rapids, Michigan, groceries …