In today’s challenging economic climate, it may seem counterintuitive, but brands actually hold a greater appeal for consumers when finances are tight. The reason behind this lies in consumer preferences to purchase products they can trust to deliver consistent results, rather than taking a risk on subpar alternatives.
An essential habit that has emerged as a result of the ongoing pandemic is the increased emphasis on cleanliness. In fact, a staggering 72% of UK consumers have reported cleaning more frequently than before. As people become more cautious about germs and infections, hygiene products have garnered significant attention. Convenience retailers must recognize this shift and ensure they cater to the growing demand.
Lucy Richardson, category director at Unilever UK, highlights the importance of addressing customer concerns: “The household category has gained over 694,000 new buyers since the start of the pandemic. Customers are now more cautious about germs and infections. Retailers should prioritize signage and promotion of antibacterial and multi-purpose ranges to capitalize on the increased demand for hygiene products.”
Choosing the right assortment of products presents a significant opportunity for retailers to drive sales, increase basket spend, and foster customer loyalty. Given the current cost-of-living crisis, it is more vital than ever to offer a range that incorporates both popular and affordable brands. DCS Group, a prominent supplier in the industry, emphasizes the growing importance of eco-friendly options.
Matt Stanton, Head of Insight at DCS Group, explains: “While consumers strive to be more cost-conscious, eco-friendly products that save both energy and money can meet their needs. For instance, laundry capsules and gels enable shoppers to wash clothes using shorter and colder cycles, ultimately reducing energy consumption and household bills.”
In the UK market as a whole, the laundry and household category has experienced a slight decline. However, within the independent convenience sector, it has managed to grow, with total sales reaching £3.16 billion (up 1%), and independents contributing £108.1 million (up 3.1%). Driving this growth are sales of laundry detergent and dishwashing products. Notably, there has been a shift from traditional powdered detergents to more convenient alternatives such as capsules, gels, and liquids.
While these products may come at a slightly higher price, consumers are motivated to lower their energy consumption and reduce household bills by running cooler wash cycles. Liquid formats fare better at these temperatures, whereas powders typically perform best at 40°C or higher.
The increased emphasis on home cooking, resulting from a decline in eating out, has played a pivotal role in boosting sales of dishwasher tablets and washing-up liquid. As a result, dishwashing has emerged as another key driver of growth in this segment.
According to DCS Group’s Stanton, “Sales in the household cleaning and specialist cleaning categories have declined from their peak during the pandemic but still remain 13% higher than pre-pandemic levels in 2019. Surface cleaners, in particular, have seen a 13% increase in sales compared to 2019 across the entire UK market.”
Another area that has witnessed growth within independent retailers is the air care category, with a 6% increase in sales over the past year. While some shoppers consider air care to be a non-essential category, many others regard it as a day-to-day necessity, especially when it comes to eliminating pet odors.
Air care products are often viewed as an affordable luxury, prompting customers to trade up for higher-quality options. As people spend more time at home, they seek affordable ways to enhance their living environment.
Given the array of innovative products flooding the household category over the years, retailers face the challenge of selecting the right products to stock and optimizing limited shelf space. It is paramount for retailers to regularly review their fixtures, ensuring they stock essential products and adopt merchandising techniques that maximize sales opportunities.