November 2010
Executive Overview
SymphonyIRI's Times & Trends highlights new developments and critical events across all major CPG categories and channels, providing powerful benchmarking data to help guide your strategic decisions. This edition of Times & Trends explores center store sales and share trends, as well as strategies CPG marketers are leveraging in an effort to protect and grow share of this valuable piece of the CPG pie
Introduction
From health care and home care, to food and beverages, center store plays a vital role in meeting consumers’ everyday CPG needs. This area of the store represents about two-thirds of total CPG sales.
Long before the recession hit, competition for share of center store sales was intense. Since that time, and throughout the course of the recession, the battle for share of center store categories has remained quite intense. Across CPG channels, CPG marketers have aggressively priced and heavily promoted these categories in hopes of drawing in shoppers and winning share of wallet.
Private label is an important differentiator for retailers looking to protect and grow their center store sales. That said, national brand manufacturers have turned up the heat on their competitive strategies. Recent data suggest some of these strategies are working, as private label share growth has moderated, or even turned negative, across some CPG categories.
Select Findings
On average, center store experienced slow growth in the past year, but growth trends vary at the category level. Prevailing consumer trends, particularly self-driven health and wellness and home-based eating rituals, are key drivers of center store growth. Even as the economy improves, consumers remain quite conservative, and these trends are expected to remain strong in the foreseeable future.
 |
| Select chart to enlarge. |
Nearly three-quarters of center store categories experienced stepped-up promotional support during the past year. These efforts are geared toward driving demand and providing a measure of price relief to recession-weary shoppers. But, consumers quickly learned to shop around for the best deal, and became “trained” to seek out promotions. Today’s CPG marketers are in danger of leaving significant money on the table in their quest for share of wallet.
 |
| Select chart to enlarge. |
See the complete report in the "Center Store: At Center Stage for Future CPG Success" pdf.