Private-label purchases continue to see growth
FORT LEE, N.J. — A vast majority of shoppers continue to purchase some private-label products on a regular basis, according to research from Perception Research Services.
Among roughly 600 primary household grocery shoppers ages 18 to 64 years polled, PRS found that 86% continue to purchase private-label items on a regular basis (compared with 84% in 2010), while 38% have purchased more private-label products than they did in 2010 (32%) and across additional categories. More than half (51%) said they feel smart/savvy when they buy private-label products.
The largest gains in private-label penetration among those surveyed included soft drinks (carbonated and noncarbonated), salty snacks, frozen meals, vitamins/medicines and cookies. Despite these gains, roughly one-third of respondents said they would not buy private-label versions of personal products, vitamins/medicines and frozen meals.
"It used to be that buying private-label products was a way to save a little money during the grocery trip — with many of these products bought by those in severe economic straits, or just a handful of them bought by many," PRS EVP Jonathan Asher said. "Now, these products offer both cost savings and product quality across many categories, increasing their penetration and frequency as shoppers feel good about buying them — even if they don’t feel the need to do so for economic reasons. It seems as if creating product innovations is the key to success — for retailers to achieve additional growth in those categories that have been met with some resistance, and for national brand manufacturers, who must give shoppers a meaningful reason to pay more for their offerings. In the long run, increased innovation will be a winning formula for all."
P&G launches everyday mid-year resolution campaign
CINCINNATI — Procter & Gamble has announced the launch of the P&G everyday mid-year resolution campaign to encourage consumers to make small pledges for themselves and their families in order to lead a more fulfilling life.
P&G everyday is a program that aims to improve the everyday lives of consumers by offering smart living tips, product savings and free samples via the website PGeveryday.com.
With five months into the New Year, a national survey conducted in May among 1,000 nationally representative men and women in the United States revealed 51% of Americans who made New Year’s resolutions failed to follow through on their goals. Mid-March was quitting time for most and, on average, Americans surveyed kept their New Year’s resolutions for 10 weeks before reverting back to old habits/practices.
Furthermore, 70% of those surveyed admitted they likely failed to achieve their resolutions because they were too big or they tried to achieve too much. However, 88% of those polled believed they would be more successful in sticking to their goals if they set smaller, more manageable resolutions versus committing to one single, large goal.
It’s with these consumers in mind that P&G conceptualized the P&G everyday resolution campaign. The idea: To encourage Americans to help better their families by enabling them to achieve everyday resolutions and goals.
“P&G and our products touch and improve the lives of millions of consumers every day, and we’re confident that by inspiring consumers to create simple, meaningful goals, we can further improve people’s everyday,” stated Brad Schwan, associate marketing director for P&G U.S. operations. “Knowing that 73% of Americans get discouraged with their New Year’s resolutions, and more than three-quarters of those polled see the value in smaller goals, we took this opportunity to create a campaign that aims to rethink resolutions, shifting the focus from lofty and unachievable ones to smaller, more impactful goals that will make a big difference in their everyday.”
P&G everyday has launched a month-long social media campaign designed to help kick-start the mid-year resolution movement. From June 1 to 25, P&G everyday will be giving away three $1,000 Visa prepaid debit cards a day, and from June 26 to 30, five $1,000 Visa prepaid debit cards a day.
Dollar General maintains momentum
GOODLETTSVILLE, Tenn. — Surging profits and a 6.7% first-quarter same-store sales increase prompted Dollar General to raise its full-year profit forecast by 3 cents.
Dollar General shows no signs of slowing down this year as net sales increased 13% to $3.9 billion and net income increase 36% to $213 million. The 6.7% comp increase was driven by an increase in customer traffic and average transaction size, according to the company.
"Dollar General is starting off 2012 with strong performance in the first quarter due to excellent same-store sales growth of 6.7%, representing the fifth consecutive quarter of accelerating improvement," Dollar General chairman and CEO Rick Dreiling said. "We are pleased to raise our full-year financial outlook to now reflect adjusted [earnings per share] of $2.68 to $2.78. Our first quarter was strong, and we are pleased with our May sales performance."
The company had previously forecast full-year earnings in the range of $2.65 to $2.75. "I believe we are positioned well to invest in the future of our business as we continue to redefine small-box retailing and reinforce Dollar General’s role as America’s general store," Dreiling said.
During the quarter, the company opened 128 new stores and remodeled or relocated 224 stores. In addition, a new distribution center in Alabama and a new leased distribution center in California began shipping merchandise to stores.