The Power of Nonfoods at Retail 2023

By: Tom Duffy, Senior Advisor, Industry Relations, FMI

Boasting an impressive $3 trillion generated from sales, nonfoods represent a lucrative opportunity for food retailers. Spanning across multiple categories, including paper products, over-the-counter pain relief, cold and allergy medicines, the nonfoods departments fill daily necessities for the consumer. Yet, despite making up 25% of sales generated at food retailers, only $250 billion (or less than 8%) of total nonfoods sales come from grocery stores. The Power of Nonfoods at Retail 2023 explores perceptions, attitudes and behaviors to answer the critical question — Why not the grocery store?

When it comes to U.S. shoppers, perception and habits have defined the presence of nonfoods in grocery sales. For many, nonfoods do not fit into their expectations for a primary grocery store, with one shopper explaining, "my grocery store is for food." With only food on their minds, an established shopping routine is developed and some are sidestepping aisles with nonedible products altogether. In addition, some shoppers perceive nonfoods products to be more expensive or less varied at grocery stores, with a lower value than other channels such as club stores and mass merchandisers. Despite these barriers, grocers can change perceptions and draw attention to the role of nonfoods in food retail.

One Stop Shop of Convenience

Download The Power of Nonfoods at Retail 2023 to discover how to enhance a grocery store experience to a "one stop shop" of convenience. This report provides a comprehensive understanding of the state of nonfoods and opportunities for food retailers to reinvigorate shoppers by creating a value-centered in-store experience. Some of the strategies explored in the report include taking advantage of seasonal general merchandise sales, utilizing tactics to increase impulse purchases and publicizing loyalty programs.

In conjunction with surveying for shopper insights, FMI published a nonfoods blog series. The series identified a range of specific departments commonly sold at most retail channels that provide necessities on a day-to-day basis. The full report is a comprehensive look at how shopper insights fuel industry opportunities and ways to shape a store's value.

Download The Power of Nonfoods at Retail 2023     Nonfoods Resources