Consumer shopping and spending habits are changing because of continued uncertainty over the coronavirus pandemic, lingering unemployment and inflation in food costs. Shoppers continue to express interest in affordable, budget-friendly shopping options. Leveraging the Co+op Deals and Co+op Basics programs and other strategies will help create the best possible pricing perception for your co-op, so you can meet the shifting needs and price expectations of budget-conscious shoppers.

What does “budget-conscious” even mean?

“Budget-conscious,” while often mistakenly interpreted as interest in conventional offerings or private label brands from value retailers like Aldi, is actually more complicated and nuanced. Budget-conscious consumers may still seek premium brands and splurge on indulgences like snacks, prepared foods or sweets. Key to meeting the needs of budget-conscious shoppers is offering variety and allowing shoppers to choose for themselves when they choose a premium option or a budget-friendly one. Their choices may change over time — or even change week to week — as their circumstances change. Maximizing the value of NCG’s promotional programs to offer customers multiple price points with affordable options in every category is the key to retaining business from budget-conscious consumers.

Getting the most out of Co+op Basics

To maximize Co+op Basics, NCG’s everyday low price program, employ these strategies:

• Display Co+op Basics signage prominently; for maximum impact, combine pricing signs with round shelf violators. Regularly replace signs that are damaged or showing wear.
• Feature these items routinely on an endcap or off-shelf display (preferably near the store entrance), with a Co+op Basics endcap header.
• Highlight Co+op Basics products in social media, email marketing and other communications to shoppers. Create awareness that Co+op Basics includes products from some of the highest quality, best-known brands in natural foods such as Organic Valley, Equal Exchange and Thousand Hills Grass-fed Beef.
• Audit your Co+op Basics assortment to ensure you are taking full advantage of NCG’s current assortment and pricing. Source additional items to supplement the program and fill gaps in any category in which NCG does not offer a Co+op Basics option.
• Source additional items including local favorites to supplement the program and fill gaps in any category in which NCG does not offer a Co+op Basics option.

Getting the most out of Co+op Deals

Harness the Co+op Deals program to increase sales and improve competitive position:

• Plan your Co+op Deals in advance. Be sure your marketing/social media team are aware of the future flyer deals — the Co+op Deals flyers are available on NCG’s website about six weeks in advance of the sale. Use the Promo Playbook to make sure that you’re tying in promotions with your fresh departments and that you’re meeting customers’ seasonal and event needs.  
• Be sure to link to the Co+op Deals flyer in your email communications to members and feature the best deal prominently in your social media. Make sure the sales flyer is easily accessible on your website.
• Co+op Deals includes featured promotions, unadvertised promotions (TPRs), off-shelf promotions and coupons. Whenever possible, offer tear off coupons for items on the shelf where the items are displayed.
• Merchandise the best deals at the store entrance using floor stacks, endcaps or vestibule displays.
• Feature items from the front page of the Co+op Deals flyer, looking for opportunities to highlight the lowest prices first.
• Feature a large quantity of just a few complementary items in price promotion displays, rather than small quantities of many products on sale. The most impactful displays will be themed or provide a customer solution.
• Print sale signs in the largest size possible without obstructing customer access to or visibility of products. Hang signs on multiple sides of a display if shoppers may approach from various directions. If you haven’t already done so, order Co+op Deal posters and endcap headers from ncg.coop, so your customers can easily spot your best deals.

Utilizing a “Good, Better, Best” strategy

Another tool for meeting the needs of budget-conscious shoppers is a “Good, Better, Best” price and category management strategy. This approach allows co-ops to offer products with a range of attributes (e.g., local, organic, fair trade) and prices, so that all shoppers can find items that fit their lifestyle and budget, and they can choose when to trade up or down based on their own needs and circumstances.

As price-sensitivity increases it is even more essential that co-ops have a product mix that appeals to all types of consumers. While there is increased demand for affordable pantry staples, especially in the “good” category, retaining “better” options will speak to shoppers seeking great quality products that also meet their social values — and may encourage some shoppers to trade up. Co-op shoppers who are insulated from the effects of the recession will still expect premium items in the “best” category. Utilize product profiles and staff picks to tell the story of “best” options and why they are worth the higher price point.

Additional steps to improve price perception

Finally, here are a few additional tactics your co-op can use to appeal to budget-conscious shoppers:

• Ensure that endcaps and off-shelf areas feature pantry staples with broad appeal — like canned beans, cereal and grains — at competitive price points.
• Shoppers are gravitating toward multi-serve packs, as well as family- and value-sized options. Find ways to tie these items into endcaps and off-shelf areas.
• Less is more: Limit the number of different items on endcaps to no more than six.
• Feature complementary products (chips and salsa, cereal and milk) wherever possible to provide a customer solution and encourage larger basket sizes.
• Survey competitor pricing on key items to ensure the co-op is competitive.
• Utilize flash sales to generate excitement and drive purchases urgency among your budget shoppers. Create opportunities for budget shoppers to “stock up” with deep discounts on specific items for limited time offering. Find preferred practices and resources for Flash Sales here.

By maximizing these programs and adopting these strategies, your co-op will be better positioned to serve more customers in your community.