Grocery stores, like consumers' food budgets, are shrinking. This month Wal-Mart Stores Inc. opened four pilot Marketplace stores in Arizona that are half the size of a traditional supermarket.

Supervalu-owned Jewel-Osco is testing its own small-format store in Chicago known as Urban Fresh. Safeway trialed its version in Southern California. And Whole Foods has said it is scaling down the size of its new stores.

Washington, March 3, 2009 - This St. Patrick’s Day, Americans are more likely to stash any "pot o’ gold" they find rather than spend it.  According to NRF’s St. Patrick’s Day Consumer Intentions and Actions Survey, conducted by BIGresearch, people celebrating the Irish holiday will spend an average of $32.80 on decorations, food and beverage and festive attire, compared to an average of $35.04 in 2008. Total spending is expected to reach $3.29 billion.*

Even though 22% of consumers admit they are self-conscious when it comes to redeeming coupons at the grocery store, many are shrugging off the uncomfortable feeling to save money.

• 57% of those who admitted that clipping coupons was awkward now say they don't care as long as they save money.
• 26% of consumers under age 35 said the economic downturn has reduced their inhibitions about coupon usage.
• Nearly 23% who suffer financially have become less self-conscious about redeeming coupons.
• About 40% of people ages 35 to 54 said they used more coupons in the last six months, compared to 36% of consumers ages 55 to 64, and 25% of those ages 65 and older.

Source: ICOM Information & Communications, March 2009

In Trial at Supermarket, Cellphones Will Be the Medium for Discount Offers

Seeking to marry a ubiquitous device with a time-tested marketing technique in a sour economy, Unilever plans to begin a trial run Sunday of a new technology that lets consumers redeem digital coupons by having a supermarket cashier scan their cellphones.

The test, being conducted at a ShopRite store in Hillsborough, N.J., will include discount offers for some of the Anglo-Dutch packaged-goods company's most popular brands, including Breyers ice cream, Dove soap, Hellmann's mayonnaise and Lipton tea. Samplesaint, a Chicago mobile-technology firm, developed the system.

BRADFORD, England -- The global recession is spoiling the summer for a lot of industries, but not the U.K.'s supermarkets. They're loving it. With an estimated five million Britons staying home this summer instead of traveling, the country's leading grocers are slugging it out for shoppers' time and money. They're slashing prices, launching new budget brands and taunting the price claims of rivals in advertising.

Client: Diageo and Ralphs/Kroger Co.

Project Summary: When Diageo (the world's largest provider of spirits, wine and beer) partnered with Ralphs (part of the Kroger grocery stores empire with over $70 billion in sales) to create a spirits retail solution they chose LSC. To provide a complete, "Below The Line" program, LSC relied on their detailed development process, designer talent, pencil sketches, Adobe software - and Strata 3D tools.

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