CHICAGO — With deals topping $36 billion, 2010 is shaping up to be the costliest year from a promotional standpoint. But despite marketers' all-time spending high, shopper consumption isn't expected to radically change, according to Thom Blischok, global president of innovation and strategy for SymphonyIRI Group.
“We're going on a buying and consumption diet as a nation and today, for the average shopper, less feels good,” he said during the webinar “2010 — Business as Unusual: Understanding the Shopper in the New Decade.” It was co-hosted by Symphony-IRI here and the National Confectioners Association, Washington, last week.
The increased spending comes on the heels of a year where a plethora of promotions led to lost sales.
“The attitude of the more the merrier in deal offers cost the CPG industry between $26 billion and $32 billion in eroded sales,” Blischok said.
Promotions were also ineffective at driving retailer loyalty, with the average American shopping 2.67 banners each week in search of the best deals.
“Traditional retailer loyalty is gone,” Blischok said.
The sentiment was confirmed during conversations Blischok had with retail executives, he explained.
“There is an emerging reality that the promises of loyalty are not yielding the financial returns needed to support the current investment in loyalty programs,” he said.