A frequent myth is that lower-income shoppers rely on deals and only buy products on sale. The facts show, however, that lower-income shoppers are no more likely to purchase sale items than other shoppers. Survey results tell us that lower income shoppers select stores on the basis of many key factors that are just as important as price. While retail marketing often focuses on large package sizes and volume purchases, i.e. 10 for $10.00, much of this messaging is not appealing to the lower income shopper.

Further, retailers have enormous untapped opportunities to target these shoppers with valuebased private label products and innovative messaging. Progressive retailers will continue to drive private label growth if they effectively build stronger relationships with lower-income shoppers. The upside appears great for retailers who make smart investments in private label assortment, innovation, packaging and value merchandising focused on these shoppers.

The new Learning to Better Serve Lower Income Shoppers report is a great place for you to assess your competitiveness in this emerging battleground. You can also reach out to me at any time to discuss emerging trends in our retail environment at (312) 474-2325 or Thom.Blischok@infores.com.

Source: Learning to Better Serve Lower Income Shoppers Report; IRI Consumer Network™ - YR 4/30/07 versus YR 5/2/04