Leaning into Generational Differences at CPG Retail

The Diversity Advantage

Diversity, equity, and inclusion in business has positive benefits for workers, for business results, and for people and communities engaging with these businesses. Cecilia Ogude, Circana’s senior vice president, Global Diversity, Equity, and Inclusion, breaks down the benefits and talks about what’s missing without DEI.

• Diversity doesn’t just focus on one element or group and doesn’t diminish the value of one group over another. It includes and supports everyone.
• Equity – not equality – gives everyone access to opportunities.
• Inclusion allows individuals the freedom to bring their lived experiences to their work, contributing to a rich corporate tapestry.
• Without support for DEI, businesses stand to lose a connection among employees, leading to reduced collaboration and innovation.

Leaning into Generational Differences at CPG Retail

Some 93% of Gen Z and younger millennials are changing their behavior based on higher prices, a much higher percentage than previous generations. Stepping back for a wider view, Jonna Parker, team lead, Circana’s Fresh Foods Group, believes these younger consumers have been impacted by more trauma, from terrorism and a recession to pandemic and current inflation. Given the world they’ve grown up in, they aren’t going to become like their older counterparts. Parker and Anne-Marie Roerink, president of 210 Analytics, dive into generational differences and how retailers and brands can connect.

Highlights:

• 2024 is an inflection point where generational differences in eating, cooking, and shopping will need to be balanced.
• Retailers and brands need to recognize that older consumers still shop the separate store departments (such as butcher, dairy, and produce) while younger consumers rely more on cross-merchandising that brings different departments together for easy solutions.
• Even as butcher service counters are closing, store butchers have social currency, providing service via recommendations and tips on social media platforms.

Retailers Recognize the Value of SNAP Shoppers

Nearly 13% of Americans, or 17% of U.S. households, receive Supplemental Nutrition Assistance benefits, yet they represent nearly a third of total store sales. Sally Lyons Wyatt, Circana’s global executive vice president for consumer goods and foodservice insights, talks about who is winning the SNAP shopper and strategies all retailers should use to engage this valuable shopper group.

Highlights:

• SNAP shoppers represent nearly 50% of dollar store sales, and nearly 40% of convenience channel sales.
• SNAP is intended as a short-term benefit, meaning that SNAP is always new to many recipients. Retailers can help onboard shoppers and navigate the store for SNAP-eligible purchases.
• Retailers that make online search easy for SNAP shoppers will build loyalty that lasts after the benefits are no longer needed.

How To Win the Trip in Grocery Retail

Moving from full-service to self-service in meat and deli departments, increasing value-added offerings in produce and deli, these are just a few examples of grocery retail’s evolution. Jonna Parker, team lead, Circana’s Fresh Foods Group, and Anne-Marie Roerink, president of 210 Analytics, advocate for learning about the most important shopper groups and meeting their changing needs.

Highlights:

• Baby boomers, long the biggest spenders, are on the cusp of being overtaken by Gen X and millennials. While it’s still important to please boomers, long-term success depends on answering the call of younger shoppers.
• Younger consumers start their shopping journey online. The key to winning store traffic is securing the shopper before they enter the store.
• While older consumers value service, younger shoppers look for relevance and experience; think solutions, not stalls.
• Low-price and fresh offerings are no longer a reason to shop a store. Point of difference and only-available-here offerings will drive traffic.

Improvements Outnumber New Consumer Tech Products at CES 2024

Most of the consumer tech innovation at the Consumer Electronics Show 2024 are enhancements to existing technology; think better quality audio and new capabilities. Despite lackluster levels of product innovation showcased at CES, Circana tech analyst Ben Arnold and audio analyst Ashley McCann are optimistic about opportunities in kitchen, home and audio for growth in the year ahead.

Highlights:

• While artificial intelligence was the buzzword at CES, AI hardware was harder to find. Chatbots in cars and a new keyboard function are standout examples.
• Kitchen products that speed or improve cooking and mix cocktails were on display at CES, indicating increased innovation in the small home appliance space.
• Products that support digital creators, including digital cameras and accessories, are experiencing sales growth.
• There’s still penetration opportunity, especially among older consumer, for smart home products, including security cameras and smart lighting.