Lack of deals, millennial disinterest translate to weak consumables sales

SHELTON, Conn. — A recent study of the consumables category revealed that weak promotional deals and a disinterest among women in the millennial age group are translating to sluggish sales. 

 

The Consumer Value Study of Consumables, conducted and sponsored by TABS Group in conjunction with the Promotion Optimization Institute, showed that total purchases of consumable items are flat when compared with a year ago. The study defines consumable categories as carbonated beverages, salty snacks, cereal, yogurt, water, ice cream, cookies, fruit juice, refrigerated juices, crackers, frozen pizza, frozen novelties, candy, popcorn and isotonics.

 

The study revealed that shoppers increased their search for deals across multiple retailers, but a lack of quality deals in the consumables category led to poor sales. Participation increased only in rebates and comparison shopping for better deals across retailers, according to the study. The only type of outlet that had a noticeable increase in consumable purchases were dollar stores (23%). The study also found a shift of consumable purchases to smaller format channels. A lack of low-price deals has been inhibiting consumable sales at grocery stores. 

 

“More promotions mean more sales. But it’s not that simple," said TABS Group CEO Dr. Kurt Jetta. "The promotions have to be easy for the shopper to carry out and represent enough savings for them to cause a big jump in corporate profits.” 

 

The study also revealed a trend in average consumables purchases among male and female millennials: Sales are down 14% overall among females, but up 6% among males. Women in this age group are making healthier eating decisions. Additionally, they're living at home longer, which allows them to spend money on expensive, healthy food choices. 

 

“Retailers need to embrace the fact that consumers will always want and need quality deals,” Jetta added. “Sellers of consumables should have a promotional strategy that includes both active and passive deal tactics and aggressive promotional discounting.”