PHOENIX -- A newly released five-year Center Store study found that lost trips accounted for $23 billion of “lost opportunity” in the grocery channel.
The study, unveiled at the Food Marketing Institute Midwinter Executive Conference here, said the industry needs to focus on shopper demand, as opposed to just category management, and leverage the total store, as opposed to just a single department or category.
“We must put shopper demand at the front of the process,” said John Lewis, president and chief executive officer, Nielsen Consumer, North America. “And it can’t just be about Center Store, but rather about the total store.”
According to the report, Center Store generates 73% of total store sales and 77% of profit, but Center Store growth is lower than for the perimeter. The study also cited lost opportunities and profits in other retail channels besides grocery.