ACNielsen Predicts Retail Trends

Increased sales of low-GI foods, innovations in the beer market, better customer service at small grocery stores, and dollar stores going upmarket. These are among the top retail trends for 2006, according to analysis from ACNielsen and fellow VNU company Spectra Marketing.

Low GI foods and antioxidants
The company predicts increased growth for foods making low glycemic index (GI) and antioxidant claims. This forecast is based on ACNielsen's LabelTrends analysis, which tracks health claims on labels, coupled with Spectra's BehaviorScape framework, which segments consumers according to their views of health issues.

Spectra estimates that 50% of American consumers are 'health neglectors', who care little about their health, love convenience foods, and tend to be overweight. LabelTrends analysis shows sales of low-GI products among the neglectors segment rose by 149% between December 2004 and December 2005. Sales of antioxidant products grew 52% in this group. According to Libbey Paul, Spectra's Senior VP of Marketing, 'Any new food trend needs to get at least some traction among this mainstream group to truly break out.'

Dollar store inflation
The second prediction is that dollar stores will expand their price point and offerings to attract higher income consumers and increase their market share. The company says it expects dollar stores to 'become mini super-centers by introducing non-traditional products, including fresh and frozen sections'.

Todd Hale, ACNielsen's Senior VP of Consumer Insights states: 'Dollar stores will be able to better compete as value-driven retailers and give customers an added opportunity to save on groceries.'

Extreme beer makeover
Beer constituted 54% of alcohol sales in 2005, but sales stalled compared with the previous year. According to ACNielsen, beer will regain momentum in 2006 as manufacturers offer new flavours, seasonal options and packaging innovations such as mini-kegs and cooler packs. It also states that consumers are opting for higher-priced beers, meaning continued growth for imports and craft beers.

Boomer backlash
As the first baby boomers turn 60, marketers need to cater to the different age groups in the 'boomer' generation. The study predicts a 'boomer backlash' from younger boomers who do not relate to the advertising tactics aimed at the older generation.

'It may be simply because the Boomer generation is our largest that marketers tend to focus on them as one segment,' says Hale. 'However, it's ineffective for marketers to lump boomers together when the generation spans two decades.'

The grocery store gets a face-lift
The final prediction is that grocery stores will increasingly focus on service rather than convenience. As consumers head to superstores, the company advises smaller retailers to place an emphasis on personal service - for example, assisting shoppers in the aisles, recommending products, or employing health consultants for basic prescription writing.

The companies are online at www.acnielsen.com and www.spectramarketing.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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