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Deloitte: Smartphones will influence $689 billion in retail store sales by 2016

BY Allison Cerra

NEW YORK — Smartphones will continue to influence retail sales and will grow to represent 19% of total store sales by 2016, according to new Deloitte research.

"The Mobile Influence Factor in Retail Sales" study — polled a national sample of 1,041 random consumers and then augmented the sample with additional smartphone owners to reach a sample of 1,557 smartphone owners — found that the "mobile influence factor" captures the in-store sales driven by consumers’ store-related smartphone activity, such as product research, price comparison or other mobile application use. These mobile-influenced sales, which currently influence 5.1% of annual retail store sales — translating into $159 billion in forecasted sales for 2012 — is expected to reach $689 billion by 2016.

Additional findings from the study included:

  • Consumers’ store-related mobile activities are contributing to — not taking away from — in-store sales, and that smartphone shoppers are 14% more likely to convert and make a purchase in the store than nonsmartphone users. This means that mobile is an important tool for retailers to incrementally drive traditional in-store sales, strengthening the relationship between retailer and consumer to increase engagement and loyalty;

  • Nearly half (48%) of smartphone owners who use their devices for in-store shopping said it has influenced whether or not they purchased an item in a store. Deloitte found that consumers’ smartphone use tends to be highest at or near the point of purchase; and

  • Retailers’ mobile applications appear to be the inroads to consumer engagement. Nearly 4-out-of-10 (37%) smartphone owners surveyed who used a smartphone on their last shopping trip utilized a third-party mobile shopping application, and more than one-third (34%) used a retailer’s mobile application. "Retailers that do not engage shoppers through specialized mobile applications or targeted smartphone-based promotions leave the door open for competitors to reach a customer who is standing in the retailer’s store and at the point of purchase," said Kasey Lobaugh, principal and direct-to-consumer and multichannel leader for Deloitte Consulting LLP. "To make the connection with consumers, retailers need to understand how mobile shoppers are willing to interact with their specific store category, format and merchandise, both inside and outside the store, and customize their mobile strategy around the shopper’s needs and experience."

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Nielsen unveils winners of Breakthrough Innovation Awards

BY Allison Cerra

HOLLYWOOD, Fla. — Nielsen announced the winners of an award that honors new products that succeed on multiple dimensions over a three-year period.

The Nielsen Breakthrough Innovation Awards, which were presented at the company’s Consumer 360 event in Hollywood, Fla., honored products for exhibiting the following attributes:

  • Distinctiveness: a new value proposition. Brand re-stages, ingredient reformulations, re-packaging, size changes, and close-in line extensions were excluded;

  • Relevance: One-year sales of $25 million or greater in the channels Nielsen historically measures;

  • Category impact: Outperformance of the average product in its category on sales velocity, as measured by sales per distribution point; and

  • Endurance: True success is measured over time. Winners were required to at least maintain or grow sales in year two, achieving at least 90% of year-one sales in year two.

Nielsen analyzed more than 11,000 new products in the United States between 2008 and 2010. Of the products evaluated, only 34 products met award criteria. These products included:

    Platinum Winners

  • 2008: Zyrtec, Bud Light Lime, Arnold Select Sandwich Thins

  • 2009: Chobani, Prevacid24HR

  • 2010: Glaceau Vitaminwater Zero

    Gold Winners

  • 2008: Nature Sweet Cherubs, Powerade ION4 Zero, Wonderful Pistachios, Tide Total Care

  • 2009: SoBe zero-calorie Lifewater, Trop 50, Trident Layers, Plan B One-Step, Budweiser Select 55, Next Choice, Dove Men+Care

  • 2010: Silk PureAlmond milk, Thomas’ bagel thins, U by Kotex, PF Chang’s Home Menu, Schick Hydro

    Silver Winners

  • 2008: Keebler Town House Flipsides, Miller Genuine Draft 64, Always Infinity, K-Y Yours+Mine

  • 2009: Nature Pride Variety Bread, Olay Professional Pro-X, Align Probiotic, Tide Stain Release, Fancy Feast appetizers

  • 2010: Special K fruit crisps, Oscar Mayer Selects, Lean Cuisine market collection

This is the first year Nielsen has presented the award.

"To successfully launch a new product in any economy is beating the odds, but to launch and sustain success during a recession is remarkable," Nielsen SVP product innovation Vicki Gardner saod. "Breakthrough Innovation Award winners have unique bragging rights among CPG innovators."

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Active Health Foods announces deal with GNC

BY Allison Cerra

RIVERSIDE, Calif. — Active Health Foods announced that its Active X energy bars will be sold across 600 GNC outlets, thanks to an agreement the company has inked with the retailer.

Two varieties of the Active X line — Almond Chocolate Delight and Peanut Butter Chocolate Joy flavors — will be sold at GNC stores. The bars are all-natural, certified organic, kosher and vegan.

"Our agreement with GNC for our Active X Almond Chocolate Delight and Peanut Butter Chocolate Joy energy bars represents a monumental opportunity for Active Health Foods," aactive Health Foods president and CEO Greg Manos said. "Active Health Foods is looking forward to building on this success and further expanding our exposure to the public through the thousands of GNC outlets."

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