Kantar Retail survey: Dollar General offers least expensive basket price
Cambridge, Mass. -- Dollar General is the overall basket price leader delivering a substantial savings to value shoppers, according to Kantar Retail’s second annual opening price point (OPP) survey. Walgreens, for the second year, had the most expensive total basket, driven by sharply higher edible and non-edible grocery baskets.
The Kantar survey measures how selected retailers are meeting the cross-category needs of the low-income shopper who is seeking the lowest prices to fulfill basket requirements. Kantar selected twenty categories across the edible grocery, non-edible grocery, and HBA segments. The study was expanded this year to include Dollar General along with the same six retailers surveyed in 2011, including Walmart, Stop & Shop, Family Dollar, Aldi, Target and Walgreens. Retailers included in the survey are located in the Northeast U.S.
Highlights of this study include:
- Dollar General offered an 18% overall basket savings driven by lower OPPs in its edible and non-edible baskets representing a substantial savings to the value shopper.
- Walmart offered the second cheapest overall basket, though 18% higher than the OPP basket at Dollar General.
“Dollar General’s basket price leadership at the OPP level is impressive,” said Leon Nicholas, Kantar Retail senior VP and contributor to the study. “Though Walmart had a less expensive HBA basket, the retailer’s assertion of overall basket price leadership to the value-focused shopper on an everyday basis was not established by our study.”
According to Nicholas, the results of the study suggest that temporary price cuts to create the perception of a price advantage, will not win the battle for the value shopper’s dollar. Instead, aggressive, everyday pricing across categories will be a requirement to overtake Dollar General’s advantage at the opening price point, he said.
To receive a copy of the Kantar Retail study, contact Katherine Clarke at firstname.lastname@example.org.