June 21, 2016 — Chicago –The Food Marketing Institute (FMI) today released initial research findings from a study conducted by Acosta Strategic Advisors on winning growth strategies for General Merchandise (GM) and Health and Beauty Care (HBC) in food retail. The presentation during FMI Connect provided a preview of research underway that educates food retailers on the sales growth opportunities for GM & HBC in the grocery channel.
“Total store collaboration is about bringing together suppliers and retailers to enhance business operations,” said Mark Baum, chief collaboration officer at FMI. “One way to do that is to look beyond retailers’ food offerings at other possible growth areas to better serve our customers. GM & HBC categories represent an opportunity for both food retailers and manufactures to optimize the store environment, and enhance consumer satisfaction.”
The research suggests that shoppers primarily purchase GM & HBC products in the grocery stores for convenience value, which is attractive to food retailers since baskets containing these products average $88 for GM products and $82 for HBC products, second to meat- and produce- containing baskets averaging $77 and $70, respectively. Still, the research identifies challenges hindering potential growth for traditional food retailers due to shopper perceptions on price and variety in addition to the very basic food-centric nature of grocery stores.
Along with specific examples of how supermarkets can enhance GM & HBC offerings in store, the presentation focused on how food retailers can leverage in-store traffic drivers and highlighted what grocery stores are already doing in this area. These initial findings shared today are part of a larger, ongoing education campaign by FMI and Acosta Strategic Advisors on GM & HCB that will include a white paper/playbook, webinar and annual metrics.
For Media:
• 2020 Retail Food Channel Vision for GM and HBC Categories will be held in S104 at 8:00 a.m. Central on June 21 at FMI Connect
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