Home' Convenience and Impulse Retailing : June July 2014 Contents June / July 2014 | C&I | www.c-store.com.au
Retailers welcome competition review
According to Australian National Retailers
Association (ANRA) CEO Margy Osmond
it is critical that the Federal Government’s
Competition Policy Review recognises that
competition policy should not be a vehicle
for protecting competitors and suppliers.
ANRA welcomed the release of the final terms
of reference and announcement of the panel
members for the Review in late March.
Ms Osmond said: "Competition law should be
about promoting efficiency and delivering the
best allocation of resources across the economy.
Additional red tape or regulation that limits
competitive forces risks leading to increased prices.
"Major international supermarket brands like
Costco and Aldi would not be opening stores in
Australia if there wasn’t scope for competition.
" T he retail sector, and supermarkets in particular, has
been the subject of many reviews. Competition is
about offering the best deal for consumers, and this
is at the core of supermarket retailing in Australia.
" In 2008 the supermarket industry was
found to be competitive in a comprehensive
ACCC review. The review found that food
and grocery prices were 17 per cent lower in
areas where major supermarkets operate.
" Since then competition has only intensified.
" T he supermarkets have worked hard to
create fair and transparent relationships with
suppliers and have agreed on the terms of
a Food and Grocer y Code of Conduct.
" Increased competition over the last six years has
driven low prices and the real winners have been
consumers who continue to face increased cost
of living pressures. Those same consumers will
continue to benefit as competition increases.
"A NR A and its members will work closely
with Government to ensure the review
takes full account of the interests of our
members’ many millions of customers."
Modern grocery shoppers look for personal touch
The modern grocery buyer is changing.
With spending power of $60 billion, Aussie
shoppers are demanding a more personalised
experience both on and off-line.
Revealing new ways that Australian consumers are
shopping for food, Mi9’s recently released research
report ‘The Modern Grocery Buyer’ highlights the
need for brands to change the way they target grocery
buyers – with significant opportunities to increase
sales available to those who tailor their approach
to meet individual wants and needs of shoppers.
Previously, grocer y buyers were identified in a
broad, stereotypical demographic grouping: women
25-54. However Mi9’s research shows that richer
profile, psychographic and behavioural factors
have a significantly greater impact on shopping
behaviour and product selection. “ We’ve reached
a turning point in grocery shopping, consumers are
more demanding and there is no longer a one-size
fits all approach. Smart FMCGs and supermarkets who
are ready and willing to take action will provide more
rewarding and enriching experiences for shoppers
by targeting them with products and unique offers
based on their individual needs and preferences,” said
Gabbi Stubbs, Mi9’s Head of Research & Insights.
The research identified three emerging
segments of Australian grocery buyers:
i. the ‘meal-to-meal shoppers’ who visit grocery
stores daily and purchase items to eat that day,
ii. those that ‘love in-store shopping experiences’ and
iii. the ‘passionately digital ’ – those that shop or
search online to help them plan what to buy.
The Modern Grocery Buyer (MGB) is hyper-connected
and their spending power is high. The total weekly grocer y
spend of MGBs with smartphones exceeds $790 million
a week, compared to those without a smartphone who
spend $356 million. That is, MGB smartphone owners
spend $434 million week, or $22 billion more a year on
groceries than non-smartphone owners.
“ T he line between the physical and digital retail
environment continues to blur. Australian grocery
buyers with mobile devices want more personalisation
– it’s no longer just about rock bottom prices, but about
providing consumers with an experience that’s right for
them – such as deals targeted to their grocery buying
habits, bespoke reminders for habitual purchases and
more personalised and relevant product promotions to
encourage loyalty,” continues Stubbs.
Who is Australia’s Modern Grocery Buyer?
Today’s MGB is hyper-connected, digitally savv y
and ‘always on’. Half have a tablet and 75% own a
smartphone. They spend on average 20 hours a week
online for personal use and 25 hours watching TV.
56% of shoppers are women aged 25 years or over and
around half (49%) have children at home. 73% are also
the sole grocery buyer and increased pressures of work
and lifestyle means shoppers are busier than in the past.
The report also identifies how brands
can drive sales and influence purchasing
decisions based on three key insights:
Insight 1 – a new mindset: A household’s main
grocery buyer is shopping more often and has higher
expectations from the brands they purchase - a
balanced blend of price, value, variety and service are
all important. 48% shop more frequently with ‘top up
shops’ becoming more commonplace, over half (52%)
are spending more than in the past and 62% do a large
weekly shop. One in three (31%) grocery buyers are also
impulse shoppers, meaning that by targeting offers and
promotions in the right way brands can boost sales.
Insight 2 – path to purchase: The modern grocery buyer’s
trip is planned, with 68% having a fixed routine around
their grocery shopping. A quarter (25%) shop on Saturday
and over half (56%) make habitual purchases driven by
‘need’ and a third (32%) by ‘want’. 57% of consumers on
routine shops say they would like greater personalisation
of their shopping experience, indicating there’s plenty of
room for advertisers to influence purchases.
Insight 3 – the future of Australian grocery shopping:
Online grocery shopping is not the norm - only 11%
shop for groceries online. When looking at the factors
holding online shoppers back, 64% want to choose
their own fresh products while 42% enjoy shopping
in-store – meaning supermarkets have a huge potential
to engage shoppers with personalised experiences.
“ What this research shows us is that retailers and brands
can combat price wars with value add-services and digital
experiences that drive differentiation. Leveraging digital
both in-home and in-store by capturing consumer habits
and preferences online will bring more personalisation
to each step of the grocery buying journey and into
the shopping experience – this is the key to unlocking
product, store preference and ultimately loyalty,”
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