Rising prices, less promotional support and soaring temperatures have led to falling sales of US consumer-packaged goods. Further tough times are predicted by global research firm Nielsen. Higher prices, a fall in promotional support and a warm autumn and winter in 2011 all impacted on US category sales of consumer-packaged products.
From late September to mid-April, declining sales were recorded in 50 of 64 major food and non-alcoholic drinks categories; 16 of the categories were responsible for 71 per cent of the losses. Meanwhile, eight categories were made up of products suited to cold weather e.g. soup, canned vegetables and frozen prepared foods.
It was not all bad news with 14 food and drinks categories enjoying unit gains e.g. bottled water, fresh produce and ice.
Retailers and manufacturers also have to deal with rising gas prices, an aging population, more lines of prepared foods and increasing sales at fast food restaurants – up 8.4 per cent to $21.5 billion in 2011. Businesses must ensure they are adapting their product lines to match the needs of shoppers. Offering competitively priced products will also help to grow sales in the current economic times.
Pricing intelligence company Profitero provides retailers with actionable price intelligence data, monitoring over 50 million products across 4,000 eCommerce retailers every day, observing pricing, promotions and stock availability. We work with the world’s leading retailers, enabling them to acquire new customers and grow profit margins by monitoring and responding to changes in competitor pricing and promotional activity as they happen. For more information on Profitero price intelligence and competitor monitoring, visit www.profitero.com or email email@example.com