New survey shows majority of U.S. retailers and manufacturers predict strong 2023 holiday season
November 15 2023 - 9:00AM
Advantage Solutions Inc. (NASDAQ: ADV) today unveiled the findings
from its Q3 Advantage Outlook, a quarterly survey fielded in
October 2023 that includes responses from senior-level executives
at more than 60 consumer goods manufacturers and more than 30
grocery retailers across the U.S.
According to the report, more than half of manufacturers and
retailers are anticipating growth in the 2023 holiday season.
Forty-eight percent of both retailers and manufacturers say they
expect 1–5% unit volume sales growth compared to last year, mostly
driven by consumer demand and product availability. A 1% increase
in unit volume translates to an incremental $2.5 billion in sales,
not taking into consideration the effect of pricing changes from
2022.
With another quarter marked by the continued impact of
inflation, the survey results also revealed that retailers are
increasing their focus on private brands, value-priced products,
and promotions as a strategy to address the ongoing challenges.
Manufacturers, meanwhile, are targeting the trend of in- and
at-home indulgence, which is fueled by shoppers opting to treat
themselves at home instead of spending on big-ticket items.
In addition to inflationary challenges, theft persists as a
growing challenge for retailers, with many continuing to search for
alternative methods to curb in-store theft.
“While inflation continues to be top of mind for shoppers, our
report found that retailers and manufacturers are still expecting a
busy holiday season,” said Jill Blanchard, president of enterprise
client solutions for Advantage Solutions. “However, while they are
expecting to be busy in the coming months, retailers are continuing
to search for new and innovative ways to combat other retail
challenges such as theft.”
Additional findings from the Q3 Advantage Outlook include:
- The rise of
private label: Fifty-three percent of retailers say
expanding private label products is their top strategy for growth
over the next 12 months, followed by promotions. To compete with
the growth of private brands, a majority of manufacturers surveyed
(60%) say they are planning to rely on marketing the quality of
their brand and introducing new innovations.
- The impact
of theft: With in-store theft continuing as an ongoing
challenge for retailers, many depend on locking products as a
method to curb and deter shoplifting. But, the survey shows, a
majority of shoppers say they will forego buying a locked product
or purchase the item elsewhere instead of asking a store associate
for assistance.
- Return of
student loan repayment: As consumers began to resume
repayments on their student loans, retailers have braced for
impact, with more than half of retailers expecting a negative
effect on their business. In anticipation of the impact, 39% of
retailers indicate their top strategy over the next six months will
be to expand private brands, while 33% say they will increase the
use of promotions.
About Advantage OutlookThe Q3 Advantage Outlook
is a quarterly survey of the world's largest consumer goods
manufacturers and retailers published by Advantage Solutions. The
survey, fielded in October 2023, included two surveys with more
than 60 respondents representing consumer goods manufacturers and
more than 30 grocery retailers.
To access the complete findings and methodology, please visit
advantagesolutions.net.
About Advantage SolutionsAdvantage Solutions is
a leading provider of outsourced sales and marketing solutions
uniquely positioned at the intersection of brands and retailers.
Our data- and technology-driven services — which include
headquarter sales, retail merchandising, in-store and online
sampling, digital commerce, omnichannel marketing, retail media and
others — help brands and retailers of all sizes get products into
the hands of consumers, wherever they shop. As a trusted partner
and problem solver, we help our clients sell more while spending
less. Headquartered in Irvine, Calif., Advantage has offices
throughout North America and strategic investments in select
markets throughout Africa, Asia, Australia, Latin America and
Europe through which the company serves the global needs of
multinational, regional and local manufacturers. For more
information, please visit advantagesolutions.net.
Peter Frostpress@advantagesolutions.net
Advantage Solutions (NASDAQ:ADV)
Historical Stock Chart
From Jun 2024 to Jul 2024
Advantage Solutions (NASDAQ:ADV)
Historical Stock Chart
From Jul 2023 to Jul 2024