retail news in context, analysis with attitude

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.
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.