This issue of COMPETE Magazine is all about being best in class. From private brands to value proposition messaging to digital coupons and omnichannel marketing, today’s local independent grocers must provide best in class solutions and offerings to their customers and employees to set them apart from their competition.
We have seen several challenges to the consumer emerge over the last few years. The biggest challenge is inflation. In a CNBC survey conducted recently, 54% of consumers choose food pricing as their number one concern with inflation. Many people have been trying to stretch their dollars and find values, especially at the grocery store.
Another issue affecting some of today’s consumers is the recent decrease in SNAP benefits. Pandemic-related benefits, known as emergency allotments (EAs), ended after February 2023. The USDA SNAP administrative data show that SNAP benefits fell 40% or more in the states that ended EAs after the February deadline. Following the end of the EAs, SNAP households saw their monthly benefits reduced by at least $95, with many experiencing even larger cuts. This decrease in food assistance comes at a time when food prices are rising, leading SNAP households to seek out retailers that offer the best value.
With these challenges, it’s vital to create an environment where you can offer best in class solutions to keep customers engaged and their basket sizes up. For example, private brands are becoming more popular and more important in the grocery industry than ever before. Whole Foods recently announced the reduction of their retail pricing on their 365 Brands across the board. Wal-Mart just launched a new private label called Bettergoods, and Target recently launched a new private label for accessories, essentials and beauty called Dealworthy. All these moves are being made due to the need to service today’s extremely price-conscious consumers.
The good news for AWG member retailers is that we already offer best in class private label products with AWG Brands. Each brand is unique to AWG and brings something different to the marketplace.
BEST CHOICE®
Comparable quality, better price. Best Choice® offers customers more than 3,300 products that meet or exceed the quality standards of national brand alternatives while leveraging scale and efficiency to keep the pricing lower than equivalent items. The portfolio includes center store, dairy, frozen, fresh, non-food, health, beauty, and general merchandise to help build brand trust and awareness throughout your store.
ALWAYS SAVE®
An opening price point brand consumers can trust. Hundreds of key value items across the store carry the opening price point or best price per unit of measurement, every day.
CLEARLY BY BEST CHOICE™
The Clearly by Best Choice™ brand aims to provide member retailers a way to attract better-for-you, lifestyle-driven consumers. These consumers want products that meet their organic, gluten free, and plant-based preferences with more segments being addressed as they become mainstream. Clearly by Best Choice™ food products are free from artificial flavors and synthetic colors, while non-food products are free from synthetic dyes and synthetic fragrances.
BEST CHOICE® SUPERIOR SELECTIONS®
Cater to consumers elevating their favorite recipes, adding a touch of something special to weeknight dinners, or sharing sweet treats by offering the full assortment of elevated everyday items in Best Choice® Superior Selections®. Seasonal and value-added items make up this brand and deliver delight to consumers looking for the most delicious deals.
Full distribution at the shelf is key. This includes AWG Category Initiatives, Reviews and Refreshes, which the Merchandising Execution team executes on an annual basis. These activities occur in collaboration with vendor partners to help member retailers win at shelf and realize long-term cost of goods improvement. Working with your field teams to find the right distribution for your store will set you up for success in today’s competitive market.
It’s also important to remain focused on the value proposition messaging coming from your store. Highlight consistent messaging in your weekly ads, in-store signage, and digital marketing and make sure you are always pushing the value proposition of shopping at your store.
With that in mind, don’t make digital marketing an afterthought when it comes to your value proposition planning, especially digital coupons. We’re seeing redemption on digital coupons grow exponentially. Consumers are looking for those value offerings plus convenience, which equals digital coupons. American consumers are using digital grocery coupons more each year, with 76% of shoppers using digital grocery coupons and 75% using coupons to decide what they will put on their shopping list (Capital One Shopping Research, January 23, 2024).
If you are looking for digital programs, AWG’s Retail Marketing Network is a great place to start. We provide digital marketing services to help boost your omnichannel shopper engagement, such as websites, eCommerce, loyalty and digital coupons, mobile apps, social media, email marketing, text messages, and online targeted advertising. Our team will manage all your accounts for you, helping you be seen where your customers are.
Additionally, AWG’s loyalty and digital coupon platforms help our member retailers to use first-party data to track sales and behaviors, segment customers, offer targeted promotions, and market more effectively. AWG member retailers participating in our digital coupon programs offer shoppers more opportunities to save with a national digital coupon feed, AWG-curated content, and store brands coupons.
At AWG, we know our member retailers are best in class, and we’re here to help you showcase that to your customers every day.
Happy selling!
Tye Anthony
Chief Merchandising & Marketing Officer
