Private Label CPG Dollar Sales Trend Upward - Update
Private label CPG dollar sales rose 2.9%, while unit sales fell 1.3%, during the four-week sales period ended July 10, 2010, according to research firm The Nielsen Company. In contrast, CPG dollar sales rose 2.4% during the four-week period ending July 11, 2009, while unit sales climbed 2.9%.
Dollar Sales Total $6.8B
Dollar sales of private label prepackaged, UPC-coded CPG goods were $6.74 billion during the most recently tracked four-week period, compared to $6.55 billion during the same period a year earlier. Combo pack experienced the strongest sales growth rate of any department, rising 24.7% from $11.6 million to $14.5 million. Fresh meat trailed with a 20.9% growth rate, increasing from $39.3 million to $47.6 million, while fresh produce climbed 20.5%, from $199.1 million to $240 million.
The only department to experience a year-over-year decline in dollar sales was dry grocery, which fell 1.7% from $2.36 billion to $2.32 billion.
Dollar Segment Share Rises Again
Annual growth for private label CPG goods in terms of dollar segment share rose fractionally for the ninth straight four-week period. Dollar sales of private label CPG goods increased 0.6 percentage points, from 16.8% of the segment to 17.4%. Branded CPG goods accounted for the remaining 82.6% of the segment.
Every department except dairy, which slightly declined, and alcoholic beverages and dry grocery, which remained flat, experienced positive annual dollar segment share growth. Seven departments experienced an annual positive dollar segment share increase of 1% or more: fresh meat (3.4%), fresh produce (2.2%),combo pack (2.3%), deli (1.2%), non-food grocery (1.2%), and general merchandise and health and beauty aids (1.2% each).
Annual segment share growth in the dairy department declined 0.2%.
Unit Sales Fall to $3B
Total unit sales for the four weeks ended July 10, 2010 were $3 billion, down from $3.4 billion during the equivalent four-week period in 2009. Combo pack sales rose 28.3%, from 1.7 million units to 2.2 million units. Fresh produce sales climbed 18.3%, from 77.7 million units to 91.9 million units. Fresh meat sales rose 16.9%, from 8.6 million units to 10 million units.
On the negative annual growth side, packaged meat sales fell 4.1%, from 57.2 million units to 54.8 million units, while daily sales fell 3.8%, from 693.9 million units to 667.4 million units. Dry grocery sales declined 2.2%, from 1.45 billion units to 1.42 billion units.
Unit Segment Share Falls Again
Unit segment share declined for the third straight four-week period; and in the past five periods has been flat once and dropped four times. Private label CPG goods accounted for 21.6% of the segment, 0.1 percentage point less than 21.7% a year earlier. Branded CPG goods accounted for the remaining 78.4% of the segment.
Despite the overall decline in private label CPG unit segment share, only four departments reported negative unit segment growth. On the positive side, combo pack led all departments with 3% unit segment share growth, followed by fresh meat (2.6%) and general merchandise (2%).
Meanwhile, dairy lost 1.6% unit segment share, with packaged meat and dry grocery both losing 0.4%.
Economy Permanently Changes Shopping Habits
The ongoing economic recession has permanently altered the food and CPG shopping habits of U.S. consumers, according to a new study from Deloitte. Statistics from the “2010 Great American Pantry Study” indicate that even when the current recession finally ends, US consumers plan to maintain the more cautious and bargain-oriented shopping habits they have developed during the past few years.
For example, 93% of consumers expect to continue spending cautiously even when the economy improves, and 92% have made some kind of change in their food and CPG-related shopping habits. Another 89% feel they have become more resourceful because of the economy, while 84% have become a lot more precise in what they buy.