From quarterly trends to top-performing categories, ShopLiftr's in-depth analysis of 2024 grocery trade promotions sheds light on the strategies of leading retailers and evolving consumer preferences.
Key Insights from ShopLiftr's 2024 Grocery Trade Promotion Report
Year-over-Year Growth: The total number of trade promotions in 2024 increased by 7.8% compared to 2023, reflecting a robust promotional strategy by retailers.
Quarterly Consistency: Each quarter in 2024 saw an increase in promotions, with Q3 experiencing the highest growth at 12.8% compared to Q3 2023.
Top Categories: Beer/Wine/Spirits remained the leading category, accounting for 14.72% of total promotions, followed by Snacks and Dairy.
Retailer Strategies: Hy-Vee continued to lead in the number of unique trade promotions, with Albertsons and Safeway also showing significant activity.
ShopLiftr 2024 Grocery Trade Promotion Data
In 2024, ShopLiftr's extensive examination of active trade promotions across more than 300 prominent grocery retailers in the United States revealed a total of 1,748,221 promotions. This data, meticulously sourced from retailers' digital flyers by dedicated data teams, ensures accuracy and relevance through manual weekly updates and UPC normalization.
Quarterly Analysis
The distribution of promotions throughout 2024 showed a significant increase compared to 2023, with each quarter experiencing growth:
Q1: 405,406 promotions (+30,463 from Q1 2023)
Q2: 431,783 promotions (+16,901 from Q2 2023)
Q3: 468,859 promotions (+53,160 from Q3 2023)
Q4: 442,173 promotions (+26,705 from Q4 2023)
Total: 1,748,221 promotions (+127,229 from 2023)
Stronger Trade Promotions in H2 of the Year
This consistent promotional approach throughout the year suggests that retailers are keeping a constant stream of promotions, steering clear of major seasonal changes, with a modest boost noticed in the latter half of 2024.
Retailer Performance
The top five retailers with the most unique trade promotions were Hy-Vee, Albertsons, Safeway, Pick n Save, and ShopRite. These retailers have adopted an aggressive promotional strategy, which likely contributes to their market competitiveness.
Hy-Vee, in particular, stands out by offering a wide range of regional flyers that highlight exclusive deals across various locations. ShopLiftr plays a crucial role in consolidating these hyper-local promotions, streamlining the amplification process, and simplifying the execution of complex campaigns through its dynamic advertising platform.
Top Categories
The categories with the most promotions reflect consumer preferences and possibly the strategic focus of retailers. The top ten categories in 2024 were:
Beer / Wine / Spirits: 257,394 promotions (14.72%)
Snacks: 117,163 promotions (6.70%)
Dairy: 116,523 promotions (6.67%)
Meat (Fresh): 96,857 promotions (5.54%)
Prepared Foods: 88,934 promotions (5.09%)
Fruit (Produce): 88,776 promotions (5.08%)
Soda: 81,048 promotions (4.64%)
Juice / Drinks: 67,084 promotions (3.84%)
Breakfast Foods: 65,553 promotions (3.75%)
Vegetables (Produce): 59,038 promotions (3.38%)
Insights for Brands and Retailers
Alcoholic Beverages: The dominance of Beer/Wine/Spirits in trade promotions highlights the importance of this category for driving sales. Retailers should consider leveraging promotions in this category to attract consumers looking for deals on popular items.
Snacks and Convenience Foods: The high number of promotions in Snacks and Prepared Foods suggests a consumer preference for convenience. Brands can capitalize on this trend by offering bundled deals or limited-time offers to boost sales.
Staple Categories: Dairy, Meat, and Produce remain essential categories with significant promotional activity. Retailers should focus on these staples to drive traffic and increase basket size, as consumers are likely to respond positively to deals on everyday necessities.
Beverages: The substantial number of promotions in Soda and Juice/Drinks indicates a strong consumer demand for beverages. Brands can enhance their promotional strategies by introducing new flavors or seasonal offerings to keep consumers engaged.
Health and Wellness: The presence of categories like Fruit and Vegetables in the top promotions reflects a growing consumer interest in health and wellness. Retailers can tap into this trend by highlighting the health benefits of these products and offering promotions that encourage healthier choices.
Impact of Inflation and Consumer Sentiment
The uptick in trade promotions in 2024 can be partly attributed to inflation and shifting consumer sentiment. As prices rise, consumers become more price-sensitive, seeking out deals and promotions to manage their budgets. Over 55% of US grocery shoppers have started shopping based on discounts and promotions in the past year. Retailers respond by increasing the number of promotions to attract cost-conscious shoppers and maintain market share.
Conclusion
The analysis of 2024 trade promotion data by ShopLiftr reveals a strategic focus on essential staple categories, showing that consumers are swayed by promotions on a variety of products, from luxury items to daily essentials. The continuous distribution of promotions over the year indicates that retailers aim to sustain a steady flow of customers instead of depending on conventional seasonal highs.
These insights are crucial for retailers and brands to comprehend consumer purchasing behaviors, enhance promotional strategies, and effectively meet consumer demand while boosting sales.
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