Decoding the Data: June 2024

Let our insider insights connect the dots between data and decisions, empowering your brands to thrive across all channels.??

For more thought leadership from Acosta Group, explore here.?

73%?

The share of CPG executives who identified the growing prominence of value shoppers as their biggest challenge over the next 18 months, per Acosta Group’s annual CPG Confidential survey.?

Our takeaway: As financial constraints persist, a new consumer has emerged at the forefront: the value shopper. This savvy group, characterized by their relentless search for maximum value and quality at minimal cost, is now the norm in a struggling economy. Brands should note that value shoppers are not just bargain hunters but informed shopaholics making calculated, family-led decisions to stretch their limited budgets. They prioritize a balance of cost, quality, and convenience, not just the lowest price. To appeal to this segment effectively, brands should leverage partner programs to form meal solutions and drive basket size.??

74%?

The share of CPG executives increasing retail media investments with Walmart and Target, followed by 67% with national grocers and 59% increasing spend with Amazon, per Acosta Group’s annual CPG Confidential survey.?

Our takeaway: When used effectively, retail media networks (RMNs) can boost brand visibility and market share. Understanding how each retailer defines and measures attribution is paramount for brands optimizing their marketing strategies effectively. Each RMN may have unique ways of calculating Return on Ad Spend (ROAS), which can significantly influence the perceived performance of ad investments. Brands must align their Key Performance Indicators (KPIs) with these attribution methods to ensure that they are measuring success in a way that is consistent with the RMN’s reporting. Where available, Advanced Analytics and Data Clean Rooms are essential tools for dissecting the consumer’s journey. They provide a granular view of how upper-funnel activities, such as brand awareness campaigns, influence lower-funnel outcomes like conversions and sales. This deep dive analysis helps brands gauge the true efficacy of their marketing efforts across different stages of the funnel. Avoid relying solely on off-the-shelf metrics and seek insights into online vs. in-store brand share to guide spending decisions.??

74%?

The share of consumers who abandoned purchases because they felt overwhelmed by too many choices. (Accenture Consumer Pulse Survey 2024)?

Our takeaway: Quality over quantity is the new mantra for success in the age of choice overload. Information overload impacts people’s confidence in their purchase decisions, regardless of product category. Retailers are adding complexity with private label and clean label expansions. Brands must streamline their product offerings and simplify decision-making to counter overwhelm.??

44%?

The share of new dollar channel shoppers (within the last three years) who use dollar stores as their primary retailer, per Kantar. Acosta Group’s 2024 Dollar Store Shopper Insights found that 30% of shoppers are new to the channel within the past four years.?

Our takeaway: The surge in new dollar store shoppers underscores a shifting retail landscape. Brands must recognize dollar stores as essential outlets, not just for budget-conscious consumers but for a diverse array of shoppers valuing affordability and convenience. Embrace the evolving profile of dollar store clientele by expanding product offerings, particularly in fresh produce and refrigerated/frozen items. Commonly, dollar shoppers can’t afford to make a mistake in their product selection, so they prioritize familiar labels and name brands for the perception of quality. Shoppers are also open to experimenting with new products at lower price points. Brands should confidently introduce innovative or niche products to dollar stores, tapping into consumers’ desire for value and novelty.?

42%?

The portion of Kroger’s EBITDA that was generated from alternative revenue streams such as retail media last quarter. (Path to Purchase Institute)?

Our takeaway: Kroger continues to reinvent itself and embrace emerging trends. Their transformation from a traditional grocer to a top natural retailer and now a multi-faceted business with a thriving media company has proven highly lucrative. Brands should explore partnerships that leverage both digital and in-store media opportunities, such as Kroger's partnership with Cooler Screens. With 85% of retail sales still occurring in physical stores, integrating media touchpoints at the point of purchase can significantly boost sales potential. For more, read Unpacking the Value of Retail Media Networks.?