IRI CPG Trend Analysis Highlights Growth Opportunities Across Retail Channels

IRI has taken a closer look at shopping patterns as well as how emerging marketing programs are impacting retail channel trends in its “IRI Channel Performance Report.”
To help CPG marketers stay in lockstep with shoppers, IRI uncovered the following key insights regarding channel trends: Grocery is standing strong amid intense competition; Just-in-time shopping is impacting retail formats and channel selection; and Evolving shopping preferences are spurring format experimentation.
During the past year, CPG industry sales topped $760 billion. The grocery channel accounted for 41% of dollar sales and 51% of unit sales, and despite being flat, outperformed competing channels for the year. Where Different Generations Shop: Millennials and Generation X prefer shopping the mass market/supercenter channel, and spend 44% and 16% percent more of their CPG dollars in this channel, respectively, than the average shopper. Younger baby boomers show above-average spending in the convenience channel, while seniors and retirees spend more heavily at drugstores. Retailers Attracting Shoppers with New Store Formats: Many retailers are downsizing and shifting toward smaller formats. These small-footprint stores-under 50,000 sq. ft. allow retailers to move into more densely populated and underserved areas and combat online competition in areas like convenience, turnaround time and delivery.