"Food for thought"

"Our customers no longer find it acceptable to order something today and have them delivered in two or three days' time. Our world has to adapt to that very broad range of customer demands."
- Mike Coupe, Sainsbury's CEO

Tesco Father’s Day

"The supermarket must die"

"Thanks to the smartphone-addicted consumer, GPS, apps, and the Internet, a new breed of startup is building systems that make it easier for producers to know just how much to produce, for shoppers to order just what they want, and for food to get from one to the other faster and with fewer stops in between."

via Wired

"Clutter"

 

"Cluttered stores may seem more likely to hold bargains but they also appear cheaper in the minds of many consumers."

  via

"Twitter CRM"

Tesco "Love Every Mouthful"

"Food for thought"

"The future will see consumers move between anywhere convenience and only-here experiences." - Doug Stephens

"Handy shopping"

"Game-changing smartphone applications in the Consumer Goods and Retail industry are impacting the way consumers shop, communicate, access information, and plan their time. For retailers, at the end of the day, it’s about how and where the consumer decides to spend his money."

Arthur D. Little report

Tesco "Big Price Drop"

"Zero moment of truth"

The changing "path to purchase" ...







Via

"Tesco Homeplus"

"Burberry: Retail theatre"

Wal-(s)mart

"Technology will drive all sorts of changes, especially in our industry. We have to develop the right channels for customers to shop when they want, how they want and where they want. Think about giving everyone with a mobile device the platform and the information to buy the exact product they want at the absolute best price anywhere in the world."

-- Mike Duke, Wal-Mart's CEO

Recession, inovation and private labels

"Consumer goods were once believed to be as recession-proof as any industry can be. Shoppers might not be able to afford Rolex watches and champagne during a downturn, the theory ran, but everyone still needs staples such as soap and toilet paper. Yet sales have fallen in this downturn, thanks largely to growing competition from stores’ own brands, or “private labels”.

"P&G, which has one of the most high-end brand portfolios of any of the packaged-goods firms, has tried to attract customers by launching “basic” versions of its popular brands. It recently released Tide Basic, which costs around a fifth less than its more upmarket cousin. But taking an existing brand downmarket in this way can be dangerous, analysts say. Consumers are unlikely to revert to the more expensive version if they are offered a similar product for less."

"Another strategy would be to sidestep retailers completely and sell directly to consumers through the internet. P&G’s new boss, Bob McDonald, has alluded to this sort of plan. It could be exactly the type of “game-changer” his company desperately needs."

[Source: "The game has changed", Economist]

"The Hard Sell"

In a trading-down context, what strategies can retailers use instead of just cutting prices?

[BusinessWeek "The Hard Sell"]

"The Shopper"

Some general data about the consumer as a "shopper":
--- 70% of purchase decisions made in front of the shelf
--- 38% of purchase decisions unplanned
--- 5% of consumers loyal to one brand
--- 68% of consumers are permanent "switchers"

[Source: Point of Purchase Advertising Institute]

Retail landscape

Discount stores offering premium/good quality products and flirting with other top-supermarket chain stores'clients. Big food retail chains, once known for their premium quality offer, now getting discount/low priced products. So what's left?

How will food retail chain stores position and differentiate themselves from one another in the long-term? Through customer in-store experience? Through brand communication and advertising?