IRI has released research findings indicating that shoppers are spending less in-store despite embarking on more shopping trips, which is driving the slowing growth in the grocery market.
The slowing in Australian retail, and grocery in particular, reflects the impact of discounters growing their footprint and the increasing amount of price activity in the market, according to IRI.
The market-intelligence, data and analytics company says a core piece of this challenge is the seven per cent decline in average spend per shopping visit, despite these visits increasing in frequency by three per cent.
IRI says shoppers are becoming more ‘mission focused’, with 45 per cent of respondents saying they have made numerous spending cuts to save money, and the growth of discounters has encouraged these shoppers to shop around for the best offer, resulting in them splitting their efforts between retailers.
“Even though many shoppers will keep a close eye on their spending, there are still opportunities for retailers and manufacturers to drive value” IRI Senior Consultant Johnny Gorman said. “Finding these opportunities is all about investing to know their customers and understanding the dynamics underpinning their category.”