Fetch Rewards, a consumer-rewards app, has released its June Fetch Price Index report, which shows consumer demand declining for the second consecutive month amid record-setting consumer prices. Inflation remains high, but June also brought the first signs that the cost of food and household goods may be flattening after 18 consecutive months of increasing prices.
The Fetch Price Index shows how consumer prices are affecting shopper behavior by analyzing a panel of 405,101 shoppers and tracking 226 million in-store and e-commerce purchases over the past 24 months.
Key findings include a 3.5% drop in units per household in June compared with 2021, which comes after a 6.7% year-over-year decrease in May. The average grocery spend per household remains elevated, even though shoppers are bringing fewer goods into their homes.
Trips per household in June remained above the 2021 levels but are gradually slowing in year-over-year growth. Also, while total demand fell, shoppers are buying more private label brands – units per household in this category increased significantly for the first time in June, up 12.4% over last year. As consumers grapple with rising prices, they're bringing fewer items into their homes, and their regular purchase mix is in flux as they trade down to lower price points.
"Response to inflation is not a one-size-fits-all approach. Household demand differs within certain categories despite similar price increases, and brands must optimize pricing and portfolio strategy to win and identify categories that are at most risk of substitution or categories where consumers are willing to spend. After all, value is perceived differently across categories and even brands within a category," said Wes Schroll, founder and CEO of Madison, Wis.-based Fetch Rewards. "With down- trading becoming inevitable, brands will have to leverage accurate and precise data-led insights to understand evolving category sensitivities and value perception from consumers, to grow and maintain market share."
Gelson’s has named longtime executive John Bagan (pictured) to the role of president, with Rob McDougall remaining as CEO. The new position marks Bagan’s second promotion in little more than a year, as he was promoted from chief merchandising officer to COO in May 2021. In his latest role, he will assume greater strategic management of Gelson’s while serving on its executive team alongside McDougall, CFO Clare Bogle and CIO Ron Johnson.
Bagan joined Gelson’s as chief merchandising officer in 2016, having previously held high-level merchandising roles at Guitar Center, Albertsons and Target. He started his career as a business analyst at Morgan Stanley and then earned a MBA from Northwestern University’s Kellogg School of Management.
“John has been an integral part of the Gelson’s team for nearly six years, and we have benefited greatly from his business expertise and insight,” said McDougall. “I am confident that, as president, he will become an even stronger catalyst for our strategic initiatives and growth.”
Having joined Gelson’s in 2007 and risen to the dual role of CEO and president, McDougall will continue to drive company profitability and enhance the customer experience while facilitating the relationship between Gelson’s board of directors and Tokyo-based parent company Pan Pacific International Holdings.
“It has been a great honor to work with the best team in our business over these last six years, and I am excited to take on this new leadership opportunity,” said Bagan. “Gelson’s is uniquely positioned to be at the center of our customers’ food experience, whether they are looking for the best-quality ingredients for the perfect family meal, delicious fully prepared offerings ready to go, or a welcoming neighborhood spot to enjoy a glass of wine and tapas, or sushi with a friend.”
Having celebrated its 70th anniversary in 2021, Encino, Calif.-based Gelson’s operates 27 full-service specialty food stores in Southern California.
Southeastern Grocers Gives $140K to 7 Feeding America Food Banks
Southeastern Grocers Inc. and the SEG Gives Foundation, the company’s charitable arm, have donated $140,000 to seven Feeding America network food banks in the Southeast to help alleviate food insecurity among children during the summer, when millions of children lose access to daily meals while schools are closed.
“During these last few years, we have been faced with unimaginable challenges that seemingly never end, and more and more neighbors are finding it difficult to nourish their loved ones," said Raymond Rhee, chief people officer for Southeastern Grocers. "This donation to local Feeding America network food banks will help ease the burden on families in need while children are home for the summer.”
“Thanks to SEG’s generous donation, we will be able to provide nourishing meals to communities as we work to build a brighter, food-secure future,” added Erika Thiem, chief supply chain officer for Chicago-based Feeding America.
The following Feeding America network food banks will each receive $20,000 to help fight hunger during the summer: Feeding Northeast Florida (Jacksonville); Feeding Tampa Bay (Tampa, Fla.); Second Harvest Food Bank of Central Florida (Orlando); Feeding South Florida (Pembroke Park); Second Harvest Food Bank of Greater New Orleans and Acadiana; Community Food Bank of Central Alabama (Birmingham); and Feeding the Gulf Coast (Theodore, Ala.)
In 2021, Southeastern Grocers and SEG Gives Foundation donated more than 18.6 million meals to community members in need throughout the Southeast.
Jacksonville, Fla.-based Southeastern Grocers is one of the largest conventional supermarket companies in the United States, with grocery stores, liquor stores and in-store pharmacies serving communities throughout Alabama, Florida, Georgia, Louisiana and Mississippi. Its banners include Fresco y Más, Harveys Supermarket and Winn-Dixie grocery stores. The company is No. 39 on The PG 100,Progressive Grocer's2022 list of the top food and consumables retailers in North America.
It’s all systems go for a new e-commerce program at the Defense Commissary Agency (DeCA). Last week, the agency hosted a ribbon cutting at Fort Belvoir in Fairfax County, Va., marking the launch of its Click2Go platform.
In a test period that began June 1 and extends through Aug. 30, DeCA shoppers within a 20-mile radius of a participating commissary can order groceries online through the Click2Go service. The program is being piloted at Fort Belvoir, Scott Air Force Base in Illinois, Fort Bragg in North Carolina, MacDill Air Force Base in Florida, Naval Station Norfolk in Virginia, Joint Base Lewis-McChord in Washington and the Marine Corps Air Station Miramar and Naval Station San Diego, both in California.
“If we can’t get the patron to the store, then we’ve got to get the benefit to the patron – that’s what Click2Go delivery is really about at these eight locations,” said William “Bill” Moore, DeCA’s director and CEO. “So far, it’s working extremely well at Belvoir, we’re knocking it out of the park here. If this pilot continues its success, we’re going to go globally, as fast as the law and contracting rules allow.”
The e-commerce program is based in part on feedback from focus groups comprised of young, single enlisted service members seeking convenience. DeCA determined that Click2Go is also an appealing option for families and disabled veterans who are challenged to visit the store.
Added Moore: “As we spread the word on this much-needed benefit to all our eligible customers, we are using technology to expand access in more convenient ways than ever before – like online shopping and curbside pickup with online payment (available now at all stores) and now our test of delivery services.”
Fort Lee, Va.-based DeCA operates a worldwide chain of commissaries providing groceries to military personnel, retirees and their families in a safe and secure shopping environment. DeCA is No. 62 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.
CVS to Improve Digital Customer Engagement With New Hire
Driving a digital-first and tech-forward approach, CVS Health has appointed Tilak Mandadi EVP and the newly created role of chief data, digital and technology officer, effective July 25. Mandadi will be responsible for the company's data, digital and technology strategy while overseeing growth and innovation through digital-led, consumer-focused experiences and services.
"Technology is a catalyst for value-creation and growth at CVS Health," said CVS Health President and CEO Karen S. Lynch. "It is crucial that we continue to enhance customer engagement and experiences, and we’re confident Tilak will drive these efforts as we prioritize serving consumers wherever and whenever they need health care."
An example of these efforts includes the recent launch of CVS Health Virtual Primary Care, which connects the company’s services, clinical expertise and data for a more coordinated and consumer-centric health care experience. The solution enables consumers to choose care when and where they want – in a retail or community-based setting, through at-home health services, or virtually.
Mandadi joins CVS Health from MGM Resorts International, where he was chief strategy, innovation and technology officer. He also held senior digital strategy roles for Disney Parks, Experiences and Products, and American Express.
"CVS Health serves more than 44 million unique digital customers and is increasingly integrating digital solutions into the consumer health care experience," said Mandadi. "I look forward to helping make health care more seamless, convenient, and personalized, and driving business agility and growth through technology, data, digital and experiential innovations."
Mandadi will become a member of the company's executive leadership team and report directly to Lynch. He holds a master’s degree in computer science from the University of Oregon.
ShopLiftr, which connects shoppers with real-time, localized deals through digital advertising experiences, has shared the results of a recent partnership with a major discount retailer. According to the Canadian tech company, the combination of video and display advertising led to an additional 44,000 incremental customer visits and spurred a 13.98% incremental lift.
The test program also spurred increased repeat visits and average basket size per customer. ShopLiftr attributed the success of the initiative to the fact that the ads help value-seeking shoppers find reasonably-priced items from their favorite brands in store, something that reflects current market dynamics.
ShopLiftr is powered by a proprietary database of active trade promotions from all major grocery chains in North America. The company works with several CPG brands and retailers to deliver personalized ad experiences at scale across North America.
“We understand that consumers want to find the products they want with ease, while saving money. At the same time, our retailer and brand partners continue to face ongoing product availability concerns. Our ad tech platform offers key differentiators that bridge that gap by delivering timely deals, with creative triggers and flexible messaging, on products available in-store now, and the sales lift results we are observing are the proof-positive that it works,” said John Scott, ShopLiftr’s co-founder and CEO earlier this year about the platform’s goals.