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Below is a brief excerpt from a complimentary research note written by our Consumer Staples analysts Howard Penney and Daniel Biolsi. If you are an institutional investor interested in accessing our research email sales@hedgeye.com |
Advantage Solutions, a business solutions provider for retailers, recently published its survey results that said six in ten shoppers opted to try an alternative to their primary food retailer (including online options) during the pandemic.
Magid, a brand research consultancy, found in its consumer survey that 28% of consumers have continued to shop at new food retailers in May, down slightly from 30% in April. Out of stocks fell from 46% earlier in the pandemic to 32% as the cause of switching retailers.
Other reasons given by shoppers for shopping elsewhere included one-stop shopping (27%), convenient location (23%), and lower prices (17%).
Out of stocks and a change in retail locations caused 55% of shoppers to purchase other brands during the pandemic. Magid reported that 78% of consumers who have tried new brands during the pandemic are continuing to buy them even when their preferred brand is available.
Conagra said yesterday that the repeat purchase rate for consumers whose first trial of a Conagra brand in March was 28%. The repeat rate increased to 37% in the four weeks ended April 19 and to 38% in the four weeks ended May 17.
60% of consumers said they would continue to purchase new private label brands after the pandemic ends.
The categories with the most switching to private label Magid found are baby food (80%), snack bars (78%), spices (76%), dry goods (74%), and vitamins (74%).
The pandemic has caused several changes in consumers’ food shopping behaviors. To learn more please join us for the Grocery Black Book Part 2 presentation on Thursday at 10 AM when we will dig into those changes. If you are interested in accessing the presentation please reach out to sales@hedgeye.com.
