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IRI MarketPulse survey: 2014 holiday sales expected to rise to $616.9 billion, up 3.1% year-over-year

BY Michael Johnsen

 

CHICAGO — Shoppers are rolling into the holiday season on a high note and are willing to spend a bit more, according to the latest IRI MarketPulse survey released Tuesday.
 
The National Retail Federation is predicting retail sales will be up by 4.1%in November and December. Overall, 2014 holiday sales are expected to rise to $616.9 billion, which is more than a 3.1% increase over 2013.
 
”Marketers have a lot to feel good about as we enter the 2014 holiday season,” stated Susan Viamari, editor, Thought Leadership, IRI. “Despite the bumps along the road, consumer confidence is definitely on an upward trajectory and this is clearly evidenced in holiday spending plans.”
 
Constructed against a benchmark of first-quarter 2011, IRI’s Shopper Sentiment Index provides insight into how the economy is impacting consumers and changing how they approach grocery shopping. The index provides perspective in terms of price sensitivity, brand loyalty and changes in spending required to maintain desired lifestyles. With a benchmark score of 100, a Shopper Sentiment Index score of more than 100 reflects consumers who are less price driven, more loyal to favorite brands and better equipped to maintain their desired lifestyles without changes as compared to Q1 2011.
 
The latest index across all ages surveyed for Q3 is 121.4 compared to 108.5 in Q3 2013, which is the highest point the index has reached, since it was launched in 2011. In addition, 20% of Americans feel that their financial situation has improved during the past year compared to 17% in Q3 2013. And, 25% also expect continued improvement in the coming months — a sizable jump versus 19% in Q3 2013.
 
Consumers’ sunnier sentiment is expected to bring good tidings to marketers. Consumers say they will be getting into the spirit and are planning to spend just a bit more on holiday celebrations. As many as 8% of consumers say they will be spending more on celebrations compared to 6% in both 2013 and 2012. In contrast, 36% of shoppers will be spending less on celebrations in 2014 compared to 43% in 2013 and 45% in 2012.
 
Overall 5% of consumers say they will be spending more on food and beverages in 2014 compared to 4% in 2013 and 3% in 2011. Furthermore, budgetary cutbacks are becoming less pervasive, with approximately one-quarter of consumers (28%) intending to spend less this year versus a year ago, compared to 33% in 2013 and 36% in 2012.
 
“The operative word here is ‘caution,’” Viamari said. “These aren’t huge gains, but they are cautious gains. And, a 2% increase in the overall holiday pie for CPG marketers is definitely good news, where a point gain can make a huge difference to the top line.”
 
The MarketPulse survey also uncovered the following key consumer attitudes regarding the holiday meal:
 
  • 62% will prepare the best meal possible, but will work to keep cost down;
  • 18% will put on the best meal possible and view holidays as a time to splurge; and
  • 65% will buy as many or more gourmet/premium products this year versus last year.
When it comes to holiday shopping, nearly everyone is entering the process with a shopping list in hand. And it’s absolutely critical to make it on consumers’ shopping lists, because 33% of consumers say they are cutting back on additional/unplanned purchases this year. On the flip side, impulse buying cannot be ruled out completely. With 33% of consumers saying they will be leveraging in-store promotions, there is a chance for last-minute purchases. So, compelling in-store promotions are still a must for CPG marketers.
 
Savings are at the top of the wish list for shoppers, so many different savings tools are being embraced this year. The notable point here is that consumers will rely more heavily on online coupons from a variety of cyber locations:
 
  • 30% will use more coupons from manufacturer websites;
  • 28% will rely more on coupons from retailer websites;
  • 27% will embrace coupons received via email;
  • 26% will tap into coupons offered on group couponing sites; and
  • 22% will leverage more coupons on social networking sites. 
”Marketers are certainly in a position to unwrap a nice boost in sales this holiday season,” Viamari said. “But, maximizing this opportunity will require marketers to communicate a clear and concise value proposition early and often throughout the shopper journey.”

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Delhaize America names CIO

BY Antoinette Alexander

 

SALISBURY, N.C. — Delhaize America, whose retail banners include Bottom Dollar Food, Food Lion and Hannaford Supermarkets, has hired Michael Laurenti as CIO.

He succeeds Deb Dixson who announced her retirement from Delhaize America earlier this year. Dixson joined the organization in 2010 and led significant transformation of the information technology and information security functions during her tenure.

As CIO, Laurenti will have responsibility for all information technology and information security operations, which support the company's millions of customers, 100,000 associates and 1,300 stores.

Laurenti has more than 20 years of retail leadership in information technology. Laurenti previously served as CIO for Belk Department Stores. Prior to Belk, he worked at Family Dollar Stores, Linens 'N Things and Toys "R" Us.

"Mike brings a wealth of information technology leadership to Delhaize America," stated Kevin Holt, Delhaize America CEO. "I am confident that as our new CIO he will continue to deliver a world-class Information Technology infrastructure and innovation for our company. We look forward to Laurenti joining Delhaize America and tapping into his extensive experience to propel our U.S. operations forward, enhance service in our retail stores and leverage technology to better serve our customers."
 

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DSNTV: HDS’ Rochol talks validation solutions

BY DSN STAFF

Are you potentially facing billions of dollars in prescription-related fines? With the rise in activity at the federal and regulatory level, the need for pharmacy retailers to implement a reliable prescriber validation solution is growing increasingly critical. However, retailers can save time and perhaps avoid potentially hefty fines by having the right prescription validation solution in place.

To shed further light on the topic and to discuss the role that her company Healthcare Data Solutions can play in retail pharmacy, DSNTV recently talked with Miranda Rochol, VP product and strategy at Healthcare Data Solutions, for the latest installment of DSN’s Executive Viewpoint video series.
 
Healthcare Data Solutions, which recently introduced a new, vendor-neutral prescriber validation solution, is a data company that specializes in healthcare provider/healthcare organization data. It processes more than 1.5 million prescriptions through its validation solution every day.

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s.kraft says:
Oct-14-2014 01:54 pm

HDS is a great company that gets the job done no matter what it takes. Great video Miranda!!

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