With growth fueled by an uncertain economy, increased availability and a unique shopping experience, value channels -- supercenters, club stores and dollar stores -- have reached a combined dollar share of nearly 20%* of total CPG spending and have become an integral component of consumers’ shopping experience.
Given the size, growth, and future potential of value channel shopping, manufacturers are evaluating optimal distribution, marketing and merchandising strategies to fully capitalize on these channels, while traditional retailers are searching for sources of sustainable competitive advantage.
This report provides an extensive analysis of consumer purchase behavior to help retailers and manufacturers develop fact-based strategies vis-à-vis value channels. As highlighted throughout this report, while value channels offer considerable growth potential for many manufacturers, opportunity varies significantly across categories, depending upon fit with core shoppers and current levels of development. And, while traditional retailers have and will continue to be impacted by value channels, the battle is far from lost.