We have a story to tell
2011 Grocery SuperStudy™
Improving Total Store Performance
in the Grocery Channel
- Member Sponsor Report -
Revised: January 2012
SuperStudy Key Message
• The Core Profitability Elements for
Magazines are Very Strong.
– High Margin
– High Unit Profit
– Low Labor Costs
– Superior Bottom Line Contribution
– Superior Profit to Space Ratio
A Fresh Approach for Retail
• Worked with MPA to Develop a New Approach
– Leveraging industry expertise
– Targeting all levels of retail management
– Expanding the message to address broader concerns
– Look for new ways to communicate
– Lean on the strengths of the category
– A program with staying power & flexibility
The Power in Print Messages
• Great products that connect, engage and
resonate with consumers/readers
• That despite the digital hype print magazines
are valued by consumers and publishers
• Magazines is a significant & large category
• Magazines are very profitable
• There is opportunity to grow
• Magazines contribute beyond the sales
The Delivery
Ad 1
Ad 2
Beginning
May 14
IPDA
contracted
for a
series of ads
in major
trade
publications
Additional Communication Efforts
• In Development
–Direct mail to retail offices
–Power in Print campaign adapted for
retailer use
–PowerPoint to be used by the trade.
A Perfect Category at Retail
Unique & Respected
Educates, Informs, Entertains & Celebrates
Engages Consumers
Over 93% of Adults Read Magazines
Significant
Over $3.7 Billion in Single Copy Sales
Very Profitable
Excels in Top and Bottom line Profit
Power …. as a Trusted Resource
Power …. to Entertain & Celebrate
Power …. to Inform & Inspire
Power ….to Engage Readers
Reading a magazine is an intimate, involving experience,
which is one reason the average reader spends 41 minutes with each issue
*A.B.C., measured circulation
Power ….to Drive Profitability
 High Margin
 High Return on Inventory
 Low Store Labor Costs
 Low Risk
( Guaranteed Sale)
($7.31 AGMROII)
*
(.07 DL/unit)
*
 Delivering Superior Bottom Line Profits
Via ..Low overhead , low inventory investment , low fixture cost, low labor,& high margin!
* Willard Bishop 2011 Grocery Super Study
*
Power ….to Drive the Bottom Line
True Profit* Per Unit
Dairy
0.38
Frozen
0.50
Grocery
0.35
HBC
0.39
Gen Merch
0.21
56
Magazines
0.56
.
0.00
* Willard Bishop 2011 Grocery Super Study
0.10
0.20
0.30
0.40
*True Profit is profit after all expenses and overhead
0.50
0.60
Power ….that’s Efficient
Magazines Deliver
12%
of General Merchandise’s
True Profit
while using only
4%
of the space
* Willard Bishop 2011 Grocery Super Study
*True Profit is profit after all expenses and overhead
Power ….to Spare
Magazines do all this on under
1/2 % of store sales
For a category with 92% household penetration.
Imagine how much more we can do ….
Together!
Powered
with
Retail