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Archives (2005 to 2008)


	2/4/2009 IRI Examines Pantry Stocking in a Down Economy Latest IRI Study Finds Consumers Revisiting Largest Shopping Trip Mission: Pantry Stocking CHICAGO, Feb. 4, 2009 – Shoppers are continuously adjusting their attitudes and behaviors as the U.S. economy sinks into an increasingly deep recession. In particular, shoppers are revisiting the largest trip mission they make: the pantry stock-up. According to the latest IRI Times & Trends Report: “Pantry Stocking in a Down Economy,” manufacturers and retailers ignore pantry-stocking trends at their peril. While stock-ups represent just 14 percent of shoppers’ trips, these trips account for a whopping 42 percent of consumer packaged goods (CPG) expenditures. The pantry-stocking trip, more broadly a household stocking trip, is a shopping excursion characterized by the presence of a wide variety of items—food and/or non-food—in the shopping basket, resulting in a high basket ring. Pantry stocking most frequently occurs in grocery and supercenter outlets. Within these channels, pantry stock-up missions represent 21 percent of trips and close to half of channel sales. “Staying abreast of rapidly changing consumer attitudes and behaviors has never been more critical,” says IRI Consulting and Innovation President Thom Blischok. “The shopper is redefining the components in their pantry each and every day through a ‘new lens of affordability.’ That ‘lens’ is projected to last for at least the next four plus years until the shopper gains confidence that the economic conditions have returned to a degree of normalcy. Our latest research takes an in-depth look at the consumer mindset during the single largest shopping trip mission, pantry stocking, and provides a road map for developing and executing marketing strategies that address the complex and changing needs of U.S. consumers in a recessionary economy.” Consumers initially increased purchases during stock-ups in line with rising gas prices, and, since gas prices began falling, average stock-up basket size has diminished. IRI anticipates this dip in stock-up rings to be a temporary trend due to several factors. Gas prices are beginning to climb again as oil producers cut back production and demand increases in response to an improving U.S. economy in late 2009 or 2010. Also, as market forces take hold and recognize anew that oil sources are increasingly rare and more difficult to exploit, energy prices will face renewed upward pressure. Supercenters are effectively capitalizing on the recession to capture pantry stock-up market share from grocery, club and drug channels. Among different income levels, pantry stock-ups at mass merchandisers continue to increase as well. It is not a surprise that shoppers, which IRI classifies as “Getting By” (2+ member household with an annual income of $34,900 or less), and those “Living Comfortably” (2+ member household with an annual income of $35,00-$55,900) are flocking to mass merchandisers to stock up. More revealing are the “Doing Well” shoppers (2+ member household with an annual income of $55,000+). These shoppers are shifting their pantry stocking dollars away from every other channel and increasing their spending at mass merchandisers, reflecting increase price sensitivity, even among this group. Of course, there is also regionality and seasonality to stock-up trends that retailers must consider. IRI research also takes into account the literally hundreds of shopper micro-segments that exist today, and the ongoing shift in the composition of these micro-segments, to develop the following action items for retailers and manufacturers: Step up frequency and granularity of consumer and market assessment in order to anticipate and proactively address changes in trip mission rituals Assess the risk versus reward equation associated with establishing a product assortment specialized against the pantry stock-up mission Create highly targeted marketing strategies to address region- and market-level drivers of consumer attitudes and purchase behavior Re-evaluate pack sizes and pricing tactics; drive basket rings through temporary price reductions and BOGO/multi-pack promotions Develop cross-promotion and cross-merchandising strategies, with target messaging and a focus on affordability and value “While today’s economic transformation makes understanding and planning for shopper behaviors exceedingly difficult, for those who gain an intimate understanding of the consumer mindset and act on it effectively, abundant opportunities exist,” adds Blischok. About the Report The Times & Trends report, “Pantry Stocking in a Down Economy” is available from IRI, the leading global leading provider of consumer, shopper, and retail market intelligence and insights for the consumer packaged goods (CPG), retail, and healthcare industries. The findings of this report were compiled based on IRI Trip Typology™, IRI Consumer Network™ and IRI Shopper Insights Explorer™. To download the report, visit http://us.infores.com/page/news/times_and_trends. About Information Resources, Inc. IRI is the world’s leading provider of consumer, shopper, and retail market intelligence and insights supporting 95 percent of the FORTUNE Global 500 consumer packaged goods (CPG), retail and healthcare companies. Only IRI offers the unique combination of integrated market information, automated and predictive analytics, innovative enabling technologies, and domain expertise. With IRI, leading retailers and manufacturers are able to quickly discover breakthrough insights driving smarter decisions and actions across the enterprise for breakthrough results. Companies around the world depend on IRI for improved productivity, stronger brands, and dramatic revenue growth. For more information, visit http://us.infores.com. ### IRI CONTACTS: John McIndoe E-mail: john.mcindoe@infores.com Phone: (312) 474-3862 Fax: (312) 726-1091 Shelley Hughes E-mail: shelley.hughes@infores.com Phone: (312) 474-3675 Fax: (312) 726-1091

Archives (2005 to 2008)

IRI Examines Pantry Stocking in a Down Economy