In our story yesterday about the McKinsey study on value retailing that was presented at the FMI Midwinter Executive Conference, we accidentally misstated a statistic quoted in the presentation.
Essentially, it works like this…
Overall grocery expenditures by consumers are allocated across three different kinds of trips to the store: stock-up (28 percent of the time), routine (50 percent), and fill-in (22 percent).
McKinsey’s research showed that value grocers captured share in each type of occasion
as follows: stock-up (25 percent), routine (20 percent), and fill-in (10 percent).
These share numbers are independent of each other, and should not be added together.
Essentially, it works like this…
Overall grocery expenditures by consumers are allocated across three different kinds of trips to the store: stock-up (28 percent of the time), routine (50 percent), and fill-in (22 percent).
McKinsey’s research showed that value grocers captured share in each type of occasion
as follows: stock-up (25 percent), routine (20 percent), and fill-in (10 percent).
These share numbers are independent of each other, and should not be added together.
- KC's View:
- We apologize for the confusion…but repeat the basic premise. Value retailers are making inroads in every kind of shopping, including the kinds of trips (fill-in and routine) that many traditional grocers thought might be beyond them.
