Brick-and-mortar (B&M) retailers around the world, particularly food, drug, and mass (FDM) retailers, are becoming increasingly aware of the opportunities created in the wake of what is being called an ongoing “selfcare” revolution. Better-for-you products are found in shoppers’ baskets now more than ever. This focus is amplified by both the high cadence of trips consumers make to these retailers and their growing demand for more fresh food, vitamins, and supplements.
Full Report Coming Fall 2019
While online sellers are undeniably capturing an ever-increasing share of many general merchandise (GM) categories, brick-and-mortar retailers still have plenty of opportunities to evaluate their individual situations on a category-by-category, platform-by-platform, and customer segmentation basis, and fine-tune their offerings to stay competitive.
In this report, GMDC draws on a number of key data providers and consumer surveys, aggregates their findings where others have not dared, then helps our members get to the heart of knowing the new shopper based on digital or physical spending tendencies. This new data will enable your business to take a holistic view of apparent and emerging behavior, attitudes, and motivations that will help you understand the future of merchandising strategies, how assortments must be reinvented, and know the key differences that your customers expect when they shop stores and omnichannel.
The momentum that Prime Day generates industry-wide is staggering, while its exclusive deals can be leveraged in brick-and-mortar as top-of-mind spends. Prime Day also has been setting the trends for future categories growth, while advising traditional retailers of what the online leakage will look like in the months and years to follow.
Traditional food, drug, and mass retailers must take a second look at Health, Beauty and Wellness (HBW) items as a growing consumer demand for more personalized HBW solutions and Selfcare occasions. GMDC and ATK interviewed over 100 retailers who are interested in cashing in on these new opportunities and as a result of this report, were able to demonstrate that it is not “business as usual” in today’s disruptive marketplace. To passively sit by and watch trends without adjusting their strategies, assortment, merchandising and staffing, means a severe loss of traffic and profitability.
Successful Health, Beauty and Wellness retailers across all channels employ an integrated strategy to support the departments, informed by the trends, but driven by focused analysis and execution. Download this report to discover how best-in-class retailers are: On-Trend, Create Narratives and In-Store Storytelling, Educate Consumers, Provide Relevant Services, and are Online.
The purpose of this GMDC report is to demonstrate how suppliers and retailers can leverage consumer and shopper insights to inform merchandising stategies and drive profitable sales of core and unexpected categories that are often overlooked. The case studies included span three very different product categories yet share the same formula: fact-based insights enable smart execution which delivers significant sales growth.
The GMDC GM Benchmarking Report, with research provided by AT Kearney, dives into conclusions and analysis about how retailers should be seeking creative ways to maintain their share of general merchandise. Since GM is a high-margin critical category for all channels of trade, over 100 retailers were surveyed to discover how they were fighting for survival on multiple fronts and leveraging GM as a weapon.
Consumers have a growing distrust of the US healthcare system. In this report, GMDC demonstrates that 9 out of 10 consumers desire to have their local store be more involved in their personal wellness. GMDC also identifies specific occasions and categories that continue to drive growth and profitability well beyond the results of industry-wide total store YOY gains.
If you’re not thinking about your store’s Front-End as an engagement center with pop-up shops, foodservice, spa-like wellness centers, farmers’ markets, and a town square vibe, you’re missing an opportunity to meet expectations of shoppers and new revenue streams. Too many retailers have failed to contemporize their merchandising, payment processes, and environment at the last mile - even though digital-savvy shoppers have evolved. Next-practices revealed in this report will help close the $2B performance gap at the Front-End, such as: Go Tech, Redefine the Space, Streamline, Leverage Nonfoods, Be Flexible/Modular, and More Adjacency.
Health is a universally positive attribute. It is a marker of growth and prosperity for individuals, families, communities, and societies. It implies security for companies and global systems, and it bridges the gap between needs and provisions in a needs-based world. Institutions are representations of human health, and those that offer provisions to people must be interested in and invested in their health and well-being.
As the grocery industry increasingly pushes online and some of the biggest retailers ramp up Click-and-Collect models, what the future might hold is making many a bit jittery – including non-food, center-store categories.
Non-food categories – beauty and personal care, household essentials, office/school supplies and other general merchandise items – have long been recognized as basketbuilding categories for the retail grocery industry and possess some of the highest gross margins in the store. And they still do! In other words, they help drive in-store transaction size. No one – manufacturer or retailer – wants to lose these benefits as a result of the Click-and-Collect movement.
Conventional retailers face a life-changing choice today: Rethink store environments and online strategies to satisfy how people really want to shop, or fade into irrelevancy.
The rapid rise of digital shopping is pressing retailers to not just think about online, but commit to “all-line” strategies. “All-line” better informs shoppers before and during trips, and lets them choose where and when they want to buy. And with endless aisle technology, online is available directly in the store.
Through new merchandising strategies and understanding of evolving missions for the shopper, this next-practice report will help you build intuitive, logical, and addicting mind-share with consumers that will drive repeat visits.
Sales of the food storage category rose 3.1% in the food channel and 8.4% in drug since last year. The category overall represents $1.06 billion across all retail and is outpacing total store growth. Custom findings from a collection of research providers have built this robust retail “next practice” that identifies the importance of food storage for consumers health and wellness. Retail executives contributed insights and experience in the whitepaper that reinforce these dynamic trends, such as Meijer, Weis, HyVee, Ahold and other sources. “Last year, we saw sales of food storage grow tremendously as an item our shoppers were looking for,” said Steve Davis of Weis Markets. “It achieved close to a double-digit increase."
How can a brand that has been in the market for 150 years continue to build double-digit sales? The brand must be aggressively better than itself year over year. This report represents a valuable case-study of how legacy brands can maintain, and renew, their value to consumers and retail partners.
The "next practices" identified in this report will help your business take advantage of the health and wellness movement and understand the “tensions” that your consumers are dealing with. It addresses potential barriers as they relate to your organization and meets them head-on so your stores, or brands, can become a destination. The analysis begins by helping you gain a deeper knowledge of how the shopper shops and concludes with insights into the 4 C’s that represent your roadmap for the evolving health and wellness consumer.
This GMDC case study illustrates a highly innovative partnership between Unilever and CVS Pharmacy that has added a new dimension to skin care merchandising. In many ways, skin care plays a singular role in the health, beauty and wellness aisle, one that brings together beauty and health care, offering brands and products that address aesthetic concerns as well as items that target specific skin conditions. That characteristic provided the groundwork for these companies to collaborate in promoting three Unilever skin care lines that are primarily beauty brands but also have strong health and wellness claims.
In addition to the educational innovation that distinguished Love Your Skin, Unilever developed new business processes and procedures to bring different brand teams and its ad agency together to drive the partnership and a customized shopper experience with CVS Pharmacy. This report reveals how a retailer and supplier can together create new ways to reach customers if they are prepared to try new things and leverage each other’s strengths.
Technology has forever changed the way consumers live, work, and shop - and the changes keep coming. This report looks ahead to what's next in communicating with connected consumers in the following five technology areas: social media, wearables, augmented and virtual reality, voice connections and directional audio.
An evolution is occurring across health care systems in America, placing much more of the responsibility and control in the consumers’ hands. Patients are becoming increasingly empowered, particularly given the impact of technology. These unprecedented demands on the health care system and issues stemming from chronic conditions have placed overall U.S. health care at a threshold of required change.
Health and wellness has emerged as a leading concern among consumers of all ages and ethnicities, creating rich opportunities for retailers and their suppliers. More than many other areas, health and wellness presents a broad scope for collaboration, as manufacturers in the healthcare space can bring unmatched expertise and understanding of highly complex health issues. In addition, tectonic shifts in the healthcare landscape are not only transforming the way healthcare is delivered but also in the way people view their own role in maintaining their health.
A combination of factors have revived interest in cooking and made the kitchen once again a major center of activity in the home. As a result, perhaps more than ever kitchenware is emerging as a natural complement to food purchases and is one of the most important purchases according to shoppers when making decisions about their health and wellness.
Actionable insights within this study will highlight evolving opportunities in one of the most important and promising categories for food and drug retailers: BABY CARE.
Read "Why Baby Products Matter to Retailers" to learn more about how to:
- Consolidate your baby businesses and make them a destination department. Leverage shopper loyalty data to understand Mom better.
- Take advantage of digital and mobile communications technology to engage this customer.
- Offer natural/organic options, which are proving to have strong appeal to the Millennial shopper.
- Involve your employees. Many of them are parents, and their first-hand experience and insights can help you differentiate your offering and increase shopper engagement.
Whether searching for the perfect frizz taming spray or for the longest-lasting deodorant, women and men, young and old are shopping the beauty aisle. And it’s about time the industry paid more attention. In fact, 99% of all U.S. households purchase beauty products, spending an average of $257 annually. Today, total U.S. beauty sales are estimated at $47.9 billion. Beauty is one of those categories that touches every American household, every ethnicity, every demographic, every culture, every day.
Click the "Read Executive Summary" link below to download the FULL white paper,
you DO NOT need to login to your myGMDC account.
On Friday, May 29th, 2015, Dan O’Connor, President & CEO of RetailNet Group, was the keynote speaker at the 2015 General Merchandise Conference. Dan highlighted key drivers of change for Retailers, opportunities and challenges they are facing, and what the retail environment will look like by 2020.
The full white paper is available by clicking on "Read Executive Summary".
The answer is simple: opportunity. True, pet is already the top-selling general merchandise category in grocery, with annual sales of $6.64 billion. In drug, understandably, it plays a much smaller role, not making the 10 best-selling GM categories in the channel. When it comes to sales growth, though, the picture is reversed...
In a GMDC*Connect videocast, Tim O’Connor, Vice President of RetailNet Group, presented “Canadian Retail Outlook: The Next 18 Months and Beyond.” This whitepaper for GMDC members summarizes O’Connor’s exploration of the key drivers of change that are significantly impacting and will continue to impact the Canadian retail landscape over the coming years.
In a GMDC*Connect Videocast, Hannah Donoghue, Senior Analyst at RetailNet Group, presented “North America Retail 2020.” This whitepaper for GMDC members summarizes Donoghue’s exploration of specific drivers of change that are significantly impacting and will continue to impact the North America retail landscape over the next five years.
Retailers and Wholesalers that are members of GMDC have access to the data as a benefit of their membership. These members represent the top 60% of Retailers and Wholesalers in North America that influence how General Merchandise product is distributed, merchandised and sold to consumers.
The GM Hierarchy is an exclusive GMDC Member tool created through a partnership between GMDC and Nielsen to be used as a measurement tool that tracks and creates visibility to important sales information by subcategory within the GM Industry. The data in this previously unavailable tool is convenient, consolidated and presented in an easy-to-follow format for GMDC Retailers, Wholesalers, Suppliers and Service Companies.
This whitepaper, Seasonal Best Practices, for the New World of Shopping: Part Two, expands on Part One’s retail strategies to build baskets and satisfy shoppers through nonfoods seasonal—and delivers actionable insights for the new ways customers buy today.
In a GMDC*Connect Videocast, Juan Carlos Davila, SVP, General Manager Hispanic Market COE at Nielsen, presented “The New Face of the Hispanic Consumer,” introducing retailers and manufacturers to the rise of the new Hispanic consumer. The purpose of the videocast and whitepaper is not just to show the rising numbers of the Hispanic population, Davila’s analysis goes deeper into the numbers to show what’s driving them and exactly how the Hispanic consumer’s interests and lifestyle have evolved as a result.
In a GMDC*Connect Videocast, Keith Anderson, VP Digital Strategy at RetailNet Group, presented “Amazon in Focus Part II,” a follow-up to the Part I Videocast which is also available as a whitepaper. While Part I focuses on Amazon’s growth model from a competitive standpoint, Part II places more emphasis on the vendor perspective of maximizing growth on Amazon. This whitepaper for GMDC Members offers strategies and insights into Amazon’s unique sales conversion tool and the various programs it has made available to assist its online merchants. Whether you’re a vendor looking to sell product on Amazon or a vendor looking to enhance current business on Amazon, the following data can ultimately help you win with Amazon.
This paper summarizes the second phase of a multi-year research project, Consumer Shopping Habits for Wellness and Environmentally Conscious Lifestyles, conducted with The Hartman Group. This just released 2010 Phase II final report updates the current state of the health, wellness and environmentally conscious lifestyle market, identifies any trends or changes from Phase I conducted in 2009, and reports on new observations identified in 2010.
This White Paper release will offer insights on:
- Beauty care/cosmetics attitudes, usage behavior and shopping channel preferences
- General Merchandise preferences and shopping behavior in grocery stores
- Importance of natural/organic product options
- Pharmacist usage behavior and information sought
Let the seller beware. That, in a nutshell, is the problem facing general merchandise distributors and retailers as more and more plaintiffs in product liability cases train their sights not only on the manufacturers of injurious products but also on companies that sell or distribute them.
In a GMDC*Connect Videocast, Keith Anderson, VP & Senior Analyst at RetailNet Group, presented "Amazon in Focus," an analysis of Amazon's complex business. The following whitepaper for GMDC members includes a breakdown of Anderson's video highlighting Amazon's Growth Model and the company's past, current and future strategies to continue growing and enhancing their presence in the retail industry.
Amazon is consolidating the Non-Store Retail landscape in the U.S. and many of their international markets at a pace and rate that has never before been reported, even from the world's largest Brick & Mortar retailers. In Developed Markets where GDP and formal retailing growth have taken place, Brick & Mortar retailing is growing on average by 3% to 4%. E-commerce is growing at a Compound Annual Growth Rate of 2-3x more than Brick & Mortar retail and Amazon is growing at an even greater rate of 2x more than ecommerce. Even as it scales, Amazon's growth rate is outpacing U.S. store-based retail growth rate by 6x.
The GM Hierarchy organizes and quantifies GM category data in order to increase marketplace performance and provide better understanding of the GM categories. There are 18 major categories identified and defined as 'Level 1' in the GM Hierarchy including - Apparel, Baby, Candy, Electronics & Personal Entertainment. Each ‘Level 1' category is then divided further down the scale based on its level of detail. This organizational structure offers retailers the ability to gauge channel activity and sales trends in the GM industry while only having to search a single resource.
This whitepaper, Seasonal Best Practices, For The New World of Shopping: Part One, reveals retail strategies to build baskets and satisfy shoppers through non-foods seasonal—plus insights and action tips for the new ways customers buy today.
In addition, New Data from the GMDC / Nielsen GM Hierarchy shows key non-foods seasonal data quantifies opportunities for the first time ever. Case studies show sales can soar with top-down support, analytics-based strategies, and joint presence with holiday foods.
Meet the digital shopper: connected, savvy and actively seeking choice, convenience and value for money. As a marketer, what does it take to succeed in an increasingly digital environment? Nielsen conducted extensive research among 20,000 U.S. shoppers of consumer packaged goods (CPG) products to identify enablers and barriers to e-commerce, and to understand the role of digital touchpoints on the shoppers’ path to purchase. This whitepaper will examine the impact of digital on the CPG industry and outline winning principles for marketers.
This Tutorial offers a step-by-step process for using the GMDC / Nielsen GM Hierarchy, based off a GMDC*Connect Videocast, "The New General Merchandise Hierarchy" presented by Stuart Taylor, Vice President of Custom Analytics at Nielsen. The GM Hierarchy is the first ever standardized view of categories within the General Merchandise industry. This tutorial will take you through the steps of accessing, viewing and analyzing the new GMDC member exclusive data in order to best utilize the information provided by the GM Hierarchy to support and build your business in the increasingly competitive GM industry.
Consumers are buying Health and Wellness today like never before. In many households, wellness overrides the desire for low prices, and is a primary reason to shop a particular store or buy a specific brand. Retailers can leverage this new wellness urgency to raise performance in nonfood and food categories storewide. With wellness strategies that ring true to customers, and cohesive messaging, assortments and merchandising, stores can become credible wellness authorities.
Why does this matter?
Widespread consumer acceptance seems likely today. While national leaders try to fix a massive healthcare system that underperforms, lacks ample accountability, is beset by soaring costs, and fails to reach everyone, retailers offer a wide, refined mix of health products and services that are relatively accessible and affordable.
Stores increasingly address both acute care and preventative needs-at a time when millions of Americans lack access to primary care physicians, and most who struggle in this economy feel they can't afford to get sick so they'd better act more responsibly for their own wellness.
This provides a sweet spot for stores: Pharmacy and OTCs/nutritionals continue to anchor the retail-health portfolio, as they have for decades. Clinics are on the rise. And, led by fresh thinkers such as Safeway, retailers increasingly try to connect the better-for-you food and nonfood sides of consumer health more closely.
EPC, or Electronic Product Code, combined with RFID, or Radio Frequency Identification, may well bring a far vaster rev-olution to mass market retailing than did the bar code 30 years ago. Anumber of industry initiatives from major retailers could well impact virtually every GMDC member company in some way, and indeed, the potential of EPC/RFID can be described as extremely large.
The IRS rules regarding healthcare flexible spending accounts, better known as FSAs, changed in Sept. 2003, so that certain over-the-counter (OTC) medicines can now be covered by these programs. This opens up human resource opportunities within every GMDC member company. In addition, the new ruling creates marketing opportunities for GMDC Wholesaler/Retailer members and the specific member companies that manufacture and distribute OTC products covered by FSAs.
The issue is simple enough: How to protect the public against the growing threat of methamphetamine abuse while still preserving access to medicines that people need to alleviate the irritating and often debilitating symptoms of colds and allergies. The hard part is achieving the right balance between these two vital public health goals. Before this White Paper looks at how that might be done, it is important to step back and put the issue into historical perspective.
Data synchronization is a business tool of tremendous importance to retailers, wholesalers and suppliers in GM/HBC in mass-market retailing. Its usage is growing, and expectations are that at least some version of data synchronization will be a core requirement to do business in the mass market in not too long a time. Implementation will bring huge tangible productivity benefits, while delay or noncompliance may have a serious downside for suppliers and retailers alike.
The need for accessible, affordable, quality health care in the United States has never been greater. In response to this need, convenient care clinics (CCC) are being launched across the country to help provide care to meet the basic health care needs of the public.
The retail opportunities related to flexible spending accounts (FSAs) are often overlooked. More consumers are signing up for their employer-offered FSAs every year, so well-informed retailers can reap the rewards of customer loyalty and increased market-basket that these shoppers offer. This white paper also discusses what is needed for the mandatory installation of an inventory information approval system (IIAS) by retailers to continue accepting FSA debit cards by brick-and-mortar pharmacies mandated by January 1, 2009.
In an effort to help members understand consumer buying behavior for health, wellness and environmentally conscious lifestyles, GMDC, the Global Market Development Center, has taken a thought leadership role in understanding the concerns, priorities and shopping habits to identify new retail business opportunities
This study utilizes a multi-dimensional approach to the understanding of Multicultural Marketing. It explores a broad range of topics and was designed to address the fundamental issues regarding the marketing of General Merchandise and Health and Beauty Care items to a wide range of culturally defined customer groups.
This study goes beyond identifying barriers to growth by focusing on how to overcome them. It reviews business model challenges as organizations seek to more directly focus on growth. It reviews go-to-market requirements in total, as well as across specific areas including strategy, process, structure and execution. Growth priorities and barriers to success in each area are examined, and techniques addressing these barriers are offered, along with case study illustrations. The study defines action steps that can be applied to drive top-line results for your business.
This study is a comprehensive document that provides a framework for planning and implementing a year-around seasonal selling program. Study content gives input on key seasons, shows how GM and HBC categories fit into seasonal selling, and presents checklists and forms for use in seasonal merchandising operations.
Seasonal Best Practices Operational Forms Include:
- Seasonal Plan Builder
- Seasonal Plan Template
- Seasonal Plan Checklist
- Seasonal Event Planner
- Seasonal Event Buy Sell Plan
- Seasonal Usage Plan
- Cross-Merchandising Suggestions
- Executive Plan
- Seasonal Purchase Worksheet
- Seasonal Event Survey
- Last-Minute Seasonal Event Checklist
The purpose of this study is to provide an in-depth view into how well pharmacies are integrated within the whole store, how they are driving center store sales and providing the type of health and wellness information desired by consumers. This research examines shopping dynamics in pharmacies across the full range of brick and mortar channels and provides sections that focus on mail order and drive-thru pharmacy purchasing. This study also provides actionable recommendations, for both retailers, wholesalers, and manufacturers for reaching these important prescription-purchasing shoppers. Finally, this study builds on the Leveraging the Connection Between Pharmacy and the Whole Store study.
This project was designed to acquire a multidimensional understanding of the concept of Women's Well-Being as defined by female consumers. Four key objectives were identified to guide the research:
- Create an industry-wide platform for successfully marketing to the Women's Health and Wellness movement.
- Provide insight and information on the buying habits of female shoppers within the context of Women's Well-Being.
- Expand the scope of "Women's Health" to include personal care, beauty care, and other categories that women directly link to their overall sense of wellness.
- Identify successful approaches to Women's Well-Being and show 'best practice' examples that retailers can emulate in designing their own programs.
A wide range of both qualitative and quantitative information was acquired to explore the important issues from several different perspectives.
This 180 page report presents the current state of the health, wellness and environmentally conscious lifestyle market and identifies the trends most relevant for wholesalers, retailers and manufacturers in the general merchandise and health, beauty, and wellness space. The report provides "Actionable Ideas" and "Real Life" examples that provide the background and framework to take advantage of this dynamic customer and their growing sales appetite for products and retailers that support their Health and Wellness lifestyle.
The primary objective of this research was to define the Health and Wellness consumer and identify and present future retail sales opportunities across general merchandise, health, beauty and wellness categories. Additionally, this study details consumers' level of interest in buying Health and Wellness items, what Health and Wellness means to consumers, the top Health and Wellness categories, and products or services that consumers identify as most important.
- Summarize current research that defines the wellness consumer
- Identify typical product and category cycles, in terms of the order in which categories are usually adopted, and how categories may serve as gateways for additional Health and Wellness interest and involvement
- Summarize shopping habits - types of services and products purchased, types of retail locations visited and frequency of purchases
- Highlight top wellness opportunities to include consume wants and needs, product categories, services and retail practices.
Research approaches used:
- Qualitative research, specifically here as ethnographic consumer research (in-home, in-store, and group interviews)
- Quantitative research, as implemented through standard on-line survey methods
To access this study - go to the Education Section in the Member Area.
In the spring of 2011, GMDC partnered with the consulting group Radian to launch a multi-year study that will focus on the importance and value of General Merchandise at retail. The new study will be released in the fall of 2011 and will quantify and demonstrate the facts around the value and importance that GM products bring to retailers and their long-term competitiveness and success.
Highlights from GMDC's Recently Completed Primary Research On Consumer Shopping Habits for Wellness and Environmentally Conscious Lifestyles.
This White Paper release from the Consumer Shopping Habits Study, will report on:
- Consumer Channel Use by Health and Wellness Orientation
- Critical Issues That Impact Health & Wellness at the Retail Level
Leveraging the information in this report will be helpful for any retailer looking to increase their level of positive H+W impressions with their shoppers. The report will also provide manufacturers with insights on consumer shopping behaviors by segment orientation.
As part of GMDC's ongoing commitment to research, GMDC launched a major multi-year research project to identify the Consumer Shopping Habits for Wellness and Environmentally Conscious Lifestyles.
This White Paper release will offer insights on:
- Which Retail Channels Consumers are Using for Wellness Purchases
- Top Health and Wellness Categories Purchased in each Retail Channel
It is year three of tracking the consumer shopping habits of the health, wellness and environmentally conscious lifestyle arena. We have been taking the pulse of Health and Wellness (H+W) shoppers and closely tracking the trends of the market over the past three years. We see signs that consumers are continuing in their quest for wellness activities making the H+W market a fast growing and very exciting market to operate in. Consumers have access to new and compelling products and services to meet their H+W goals. Likewise, companies have great opportunities to target the vast world of H+W consumers with carefully selected products and services. In addition to the broad dimensions, this study is intended to:
Identify any changes or trends that have occurred between 2009 through 2011
Examine new areas of interest such as the Inner Mid-level and Outer Mid-level consumer, nutrition bar and functional food consumers, improving the pharmacy department, digital media sources and natural beauty