As shopping behaviors adopted during the pandemic persist in 2021, retailers have an opportunity to capture higher rings by promoting larger pack sizes, particularly in beverage categories.
Although the product hoarding and panic-buying that occurred last spring and summer has long subsided, many shoppers continue to make fewer trips to retail stores in order to minimize their potential exposure to the coronavirus, and as a result buy more on each trip. Shelf-stable items such as canned and bottled beverages are prime targets for these stock-up trips.
Data from Skupos™shows that although the trend toward larger pack sizes declined during the latter half of last year, demand remained elevated in the fourth quarter, relative to pre-pandemic levels.
The research found that transactions that included bulk packages fell to an average of 5.9 per store per day in October, and remained around that level through the fourth quarter. That marked a decline from around 7.7 per day in June, but still represented a significant increase from an average of 4.3 bulk packages per day last January.
The research also showed that in the third quarter of last year, sales of future-consumption packaged-beverage items were up 14.3%, based on average weekly sales in 2020 relative to 2019. Purchases of seven- to 12-unit and 13-plus unit pack sizes increased by 28% and 18%, respectively, in Q3 2020 compared to Q3 2019. Meanwhile, purchases of two- to six-unit pack sizes declined slightly—by about 1%—during that same time period.
With a focus on independent stores and small chains, which make up nearly 80% of the market, the Skupos platform enables both retailers and brands to compete through better understanding and serving their customers.
And as the ongoing consumer trend towards fewer shopping trips and larger basket sizes persists, Skupos can help CPG brands establish programs with retailers that promote the types of products that consumers want - in this case, bulk items.
Many smaller retailers might not have had access to promotional programs like these before, as they’ve traditionally been limited to larger nationwide chains. Skupos helps these retailers unlock new revenue through enabling them to run exclusive brand-funded promotions in many categories, all through one easy-to-use platform.
When shoppers see promotions, they’ll fill their baskets even more, helping retailers to empty shelves. At checkout, shoppers save while retailers make more sales. Brands gain prominence in a market that’s traditionally been hard to access. It’s a win-win for everyone.
Founded in 2016, a growing network of 14,000-plus customers across all 50 states rely on Skupos to boost sales volume and increase their customer base. Visit Skupos to learn more about how the technology platform is redefining how brands and retailers drive revenue.
This post is sponsored by Skupos