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FMI releases U.S. Grocery Shopper Trends, supermarkets reclaim channel share

BY Michael Johnsen

CHICAGO, Ill. – The Food Marketing Institute on Wednesday released its annual analysis of U.S. Grocery Shopper Trends, presented by FMI president and CEO Leslie Sarasin at FMI Connect, which reveals dramatic changes in the consumer universe that have impacted the way food retailers do business.

“FMI’s U.S. Grocery Shopper Trends 2014, done in collaboration with the Hartman Group, shows supermarkets returning to a 54% level of channel share, supercenters down to 22% and each of the other categories, such as discount and specialty, registering one percent lower from the positions held the year before," Sarasin said. “Clearly, the traditional supermarket picked up a few points in all that movement, but what is most interesting is the leap in the number of people who claim they have no primary store. When FMI first started listing this option in 2011, only 2% said they had no primary store. This year, 9% claim no primary store.”

Laurie Demeritt, CEO of the Hartman Group, noted that the joint study identifies important shifts in the way Americans are food shopping, including not just an increasing reliance on multiple stores, but an increasing fragmentation of shopping responsibilities within the American household.

“We offered FMI a unique opportunity this year to approach the survey research through a cultural perspective, interviewing Americans in their homes and while shopping," Demeritt said. "Drawing upon ethnographic research into U.S. food consumption, we found that the convenient, formerly helpful idea of a ‘primary shopper’ — a single adult responsible for, and at least knowledgeable about, a household’s grocery purchases — no longer does justice to how American households manage their food purchases today.”

U.S. Grocery Shopper Trends 2014 identifies and explores five major trends:

  1. Diversification of the “primary store” as a touchstone of shopper behavior;
  2. Fragmentation of the “primary shopper” role within households;
  3. Generational transformation in what “planning” means to food shoppers;
  4. Re-orientation of consumer attitudes around wellness, with fresh, less-processed taking a center stage; and
  5. Opening for food retailers to become trusted allies in helping shoppers navigate food and wellness. 

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China Glaze creates ‘The Giver’-inspired limited-edition nail color collection

BY Antoinette Alexander

LOS ANGELES — China Glaze has teamed up with studio powerhouse the Weinstein Co. for a limited-edition collection of nail polish to debut in conjunction with the Aug. 15 release of “The Giver.”

Inspired by the themes and message of the story, “The Giver” collection by China Glaze brings key moments and characters to color, particularly the main character Jonas (Brendon Thwaites) and his friend Fiona (Odeya Rush) as he struggles to understand the dark, complex secrets behind his seemingly ideal community.  

The 12-shade collection brings the story to life in polish, creating an on-trend color palette with a mix of bold and neutral crèmes and glitters.

The limite- edition nail polish collection will be available Aug. 1 at beauty supply stores nationwide, including Sally Beauty and Ulta Beauty.  

 

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Ulta Beauty sees double-digit gains in Q1

BY Antoinette Alexander

BOLINGBROOK, Ill. — Ulta Beauty posted strong double-digit gains in sales and net income during first quarter 2014.

“Ulta Beauty delivered strong sales and earnings growth in the first quarter,” said Mary Dillon, CEO. “The team’s accomplishments included improving retail transactions which turned positive, driving continued momentum in our online business, successfully rolling out new brands, completing a smooth conversion of our loyalty program members onto one platform and managing inventory very well.”

For the first quarter ended May 4, net sales increased 22.5% to $713.8 million from $582.7 million in the first quarter of fiscal 2013. Comparable-store sales (sales for stores open at least 14 month and e-commerce sales) increased 8.7%. E-commerce comparable-sales grew 72.3%. Net income increased 19.4% to $50.0 million compared with $41.8 million in the first quarter of fiscal 2013. Income per diluted share increased 18.5% to 77 cents compared with 65 cents in the first quarter of fiscal 2013.

For the second quarter, Ulta currently expects net sales in the range of $706 million to $717 million, compared with actual net sales of $601 million in the second quarter of fiscal 2013. Comparable-store sales for the second quarter of 2014 are expected to increase 5% to 7%. The company reported a same-store sales increase of 8.4% in the second quarter of 2013.

Income per diluted share for the second quarter of fiscal 2014 is estimated to be in the range of 78 cents to 83 cents. This compares with income per diluted share for the second quarter of fiscal 2013 of 70 cents.

The company also reiterated its previously announced fiscal 2014 guidance. The company plans to achieve comparable-store sales growth of approximately 4% to 6%, including the impact of the e-commerce business; expand square footage by 15% with the opening of 100 net new stores; increase total sales in the mid-teens percentage range; remodel 12 locations; deliver earnings per share growth in the mid-teens percentage range; incur capital expenditures of approximately $265 million in fiscal 2014, compared to $226 million in fiscal 2013; and generate free cash flow in excess of $100 million.

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