Broad-based economic challenges could drive a potential price war among retailers
MADISON, Wis., Oct. 8, 2020 /PRNewswire/ -- The third installment of the CPG Clarity Study, a series designed to analyze real-time and future consumer shopping and usage behaviors, shows that shoppers across all income levels are increasingly worried about the economy and are planning to spend less. At the same time, shoppers are continuing to experience higher-than-normal prices at grocery stores — even as consumer behavior returns to pre-COVID levels.
This combination of heightened economic anxiety and sustained price sensitivity among consumers could signal an impending price war among retailers, says Ken Harris, managing partner of Cadent Consulting Group. "Winning here on price is going to be critical for retailers," Harris says. "Retailers must offer strong deals to shoppers who are going to multiple stores."
A quarter of survey respondents reported feeling pessimistic about the economy in August — up from 20% in June and 15% in April. Meanwhile, nearly 60% of in-store grocery shoppers and 35% of online grocery shoppers reported experiencing higher prices last month. Among lower-income shoppers, nearly 50% reported visiting multiple stores last month — presumably seeking out the best prices and looking for in-store deals. Higher-income shoppers are more likely to buy groceries online, the study found.
"These findings underscore the importance of providing meaningful, reliable ways for shoppers to save money," says Wes Schroll, founder and CEO of Fetch Rewards. "Now more than ever, there are opportunities for brands and retailers to build loyalty by delivering real value to consumers."
If a price war occurs, it will likely focus on staples like refrigerated meats, cheese, and alcohol. Over the past three months, shoppers are continuing to purchase these categories at higher levels than they did before COVID-19, the study found, signaling that these categories will be hotly contested and that price will be a key lever. Other categories like canned vegetables, frozen meals, nut butters, beauty and personal hygiene saw shoppers purchasing less.
"These are items that go to the top of the grocery list," Harris says. "With CPG companies holding back trade spend, some retailers are losing share. Competing on price here would be a strategy to capture more of the marketplace as shoppers return to more normal shopping patterns."
The study showed a continued stabilization of consumer behaviors, with shoppers returning to stores more frequently and spending less per trip compared to the height of the pandemic lockdown orders in March and April.
First launched in April, the CPG Clarity Study was developed by Cadent Consulting Group and Fetch Rewards with the goal of understanding the impact of COVID-19 on the Consumer Packaged Goods and Retail industries. By combining extensive consumer surveying with purchasing data gathered from more than 3 million consumers across the U.S., Cadent and Fetch have created a proprietary Clarity Projection Model to forecast post-COVID category and brand performance.
About Cadent Consulting Group
With offices in Wilton, CT. and Evanston, IL., Cadent Consulting Group is a company of highly experienced, practical strategists. It has 25+ years of experience bringing consulting leadership to consumer marketing, retail, supply chain, and sales. It leverages the Partners' operating experience as line managers at leading Consumer Goods manufacturers. Its mission is to help clients accelerate the pace of growth and profitability by translating insights into competitive actions. "Cadent helps big companies think small and small companies grow big."
About Fetch Rewards
Headquartered in Madison, Wis. with offices in Chicago, New York City and San Francisco, Fetch Rewards is the fastest-growing consumer loyalty and shopper rewards app in its category. With nearly 12 million downloads since launching in 2017 and more than 5.5 million active users, Fetch Rewards has processed more than 615 million receipts to date and has delivered nearly $82 million in savings to its shoppers.
By working directly with hundreds of popular brands, Fetch Rewards gives shoppers access to savings on thousands of products, whenever and wherever they are purchased. A top-ranked app in the App Store and Google Play Store, Fetch Rewards has more than 400,000 five-star reviews from happy shoppers. Download the app and visit https://www.fetchrewards.com for more information.
Press Contact: Allison Geyer, firstname.lastname@example.org
View original content to download multimedia:http://www.prnewswire.com/news-releases/cpg-clarity-study-price-war-301149012.html
SOURCE Fetch Rewards