The following list of findings from the IRI report provides a
quick snapshot of the state of CPG/center store today.
• Grocery Sales: A Positive Performance.
An above-average year-over-year performance marks a positive change for the CPG industry. According to IRI, CPG sales
topped $760 billion during the past year, with the grocery channel accounting for 41 percent of dollar sales and 51 percent of
• Club and Dollar Stores: Growing Faster than
From 2013 to 2016, club and dollar stores outperformed grocery
in average annual growth: club channel dollar sales rose 2.6
percent annually; dollar channel sales climbed an average 2.5
percent per year; grocery sales grew 1.6 percent; and industry
sales rose 1.8 percent during that three-year period.
• Just-in-Time Shopping: Leading to New
Quick trips account for more than half of all shopping trips—
a fact that hasn’t really changed for several years. However,
retailers have been investing heavily in new store formats in an
attempt to find new paths to profitability. Smaller store formats,
click-and-collect and subscription-based e-commerce programs
are increasingly prevalent. The rise of the younger and more
ethnically diverse generations, particularly Millennials, is also
• E-commerce: Making Its Mark.
E-commerce share of CPG sales is hovering around 8 percent
of sales. “But growth is fast and furious, leaving traditional
brick-and-mortar retailers scrambling to protect and grow their
share of the CPG pie,” the report says. To compete, retailers
are building out high-traffic aisles and departments—think
snacks, beverages and frozen foods, which are important center
• Demographics: Driving Shopping Choices.
Millennials and Generation X shoppers prefer shopping the
mass market/supercenter channel; younger baby boomers
show above-average spending in the convenience channel; and
seniors and retirees spend more heavily at drugstores. “
Limited-selection discounter Aldi has gained momentum across all
generations, and value retailer Dollar Tree has traction with
Boomers and seniors,” IRI reports.
• New Formats: Trending Toward Smaller
Big-box retailers once reigned supreme. But growth has slowed,
and many retailers are shifting toward small-footprint stores—
under 50,000 square feet compared to 110,000-plus square feet.
This allows them to move into more densely populated and
underserved areas and, in the process, combat online competition in convenience, turnaround time and delivery.
• Personalization Programs: Attracting and
Retaining Key Shoppers.
Retailers are using loyalty programs, social media and mobile
apps to know more about their customers than ever before,
then tailoring their offerings to specific tastes and behaviors. If
a store discovers many of its shoppers are “foodies,” it can offer
more gourmet and ethnic options that cater to these shoppers’
For additional insights on CPG/center store trends from
Viamari, see the Q&A on page 12.