ShopLiftr’s Analysis of 2024 Grocery Trade Promotions
- Genevieve Castonguay
- Jan 8
- 3 min read
Updated: Mar 6
Key Insights from ShopLiftr's 2024 Grocery Trade Promotion Report
In 2024, the grocery industry saw significant shifts. ShopLiftr's in-depth analysis offers valuable insights into these changes and the strategies used by leading retailers.
Year-over-Year Growth
In 2024, the total number of trade promotions increased by 7.8% compared to 2023. This growth reflects a robust promotional strategy employed by retailers.
Quarterly Consistency
Every quarter in 2024 experienced an increase in promotions. Notably, Q3 had the highest surge, with an impressive 12.8% growth compared to Q3 2023.
Top Categories for Promotions
Beer/Wine/Spirits emerged as the leading category, making up 14.72% of total promotions. Trailing this were Snacks and Dairy, indicating a clear consumer preference for these items.
Retailer Strategies
Hy-Vee maintained its position as the leader in unique trade promotions. Albertsons and Safeway also exhibited significant promotional activity.
ShopLiftr 2024 Grocery Trade Promotion Data
ShopLiftr's comprehensive examination of trade promotions involved over 300 prominent grocery retailers across the United States. The total analyzed promotions reached 1,748,221. This meticulous data was sourced from retailers' digital flyers by dedicated data teams. They ensured accuracy through weekly updates and UPC normalization for relevant insights.
Quarterly Analysis
The distribution of promotions throughout 2024 showed a marked increase compared to 2023. Each quarter experienced growth:
Q1: 405,406 promotions (+30,463 from Q1 2023)
Q2: 431,783 promotions (+16,901 from Q2 2023)
Q3: 468,859 promotions (+53,160 from Q3 2023)
Q4: 442,173 promotions (+26,705 from Q4 2023)
Total: 1,748,221 promotions (+127,229 from 2023)
Stronger Trade Promotions in H2 of the Year
This promotional strategy suggests retailers are maintaining a steady flow of promotions. They avoid major seasonal fluctuations while observing a modest boost in the latter half of 2024.
Retailer Performance
The analysis identified the top five retailers with the most unique trade promotions: Hy-Vee, Albertsons, Safeway, Pick n Save, and ShopRite. These retailers have adopted aggressive promotional strategies, contributing significantly to their market competitiveness.
Hy-Vee stands out by offering a wide range of regional flyers. These highlight exclusive deals across various locations. ShopLiftr plays a crucial role in consolidating these hyper-local promotions, streamlining amplification, and simplifying the execution of complex campaigns through its dynamic advertising platform.
Top Categories
Consumer preferences and strategic focus shape the categories with the most promotions. The top ten categories in 2024 were:
Beer/Wine/Spirits: 257,394 promotions (14.72%)
Snacks: 117,163 promotions (6.70%)
Dairy: 116,523 promotions (6.67%)
Meat (Fresh): 96,857 promotions (5.54%)
Prepared Foods: 88,934 promotions (5.09%)
Fruit (Produce): 88,776 promotions (5.08%)
Soda: 81,048 promotions (4.64%)
Juice/Drinks: 67,084 promotions (3.84%)
Breakfast Foods: 65,553 promotions (3.75%)
Vegetables (Produce): 59,038 promotions (3.38%)
Insights for Brands and Retailers
Alcoholic Beverages: The dominance of Beer/Wine/Spirits in trade promotions highlights its importance for sales. Retailers should leverage promotions in this category to attract price-conscious consumers.
Snacks and Convenience Foods: The multitude of promotions in Snacks indicates a shift toward consumer convenience. Brands can benefit from offering bundled deals or limited-time promotions.
Staple Categories: Dairy, Meat, and Produce have significant promotional activity. Retailers should prioritize these staples to increase traffic and basket size as they attract consumers looking for deals on essentials.
Beverages: The high number of promotions in Soda and Juice/Drinks reflects strong consumer demand in these areas. Brands may enhance promotional strategies by introducing new flavors or seasonal offerings.
Health and Wellness: The presence of categories like Fruit and Vegetables indicates growing consumer interest in health. Retailers should highlight the benefits of these products through promotions aimed at encouraging healthier choices.
Impact of Inflation and Consumer Sentiment
The increase in trade promotions during 2024 can be tied to inflation and changing consumer sentiment. As prices rise, shoppers become more sensitive to costs, leading to a focus on promotions. Over 55% of US grocery shoppers have started shopping based on discounts and promotions in the last year. Retailers respond to this trend by increasing promotions to attract cost-conscious shoppers and maintain market share.
Conclusion
ShopLiftr's analysis of 2024 trade promotion data reveals a strategic focus on essential staple categories. Consumers are attracted by promotions on a variety of products, from luxury items to daily essentials. The consistent distribution of promotions through the year indicates that retailers aim to sustain a steady flow of customers, avoiding reliance on conventional seasonal sales.
These insights are vital for retailers and brands. They help understand consumer purchasing behavior and refine promotional strategies, allowing them to meet consumer demand while driving sales.
Are you ready to elevate your marketing strategy and achieve remarkable results?
Discover how ShopLiftr's exclusive database and innovative, dynamic digital advertising solutions can transform your trade promotions and effectively motivate consumers. Contact us for a demo today!
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