Carl West’s Post

Retail is detail... How did the grocery and convenience sector fare from a #business perspective during its traditional busy period? We apparently made around 488m trips to the supermarket during the 4 weeks to December 24th, the largest number since pre pandemic times. Around £13.7bn rang through the tills of grocery retailers in the same period, with Lidl claiming to have grown their market share by the most, though this is likely due only to new store openings. Sainsbury's grew at around 16% in the final quarter of 2023 alongside strong performances from Tesco, local convenience store operators, and the community and urban style brands. The rise in sales across the board (7%) is fairly comparable to the grocery price inflation number (6.7%) down from (9.1%) so in real terms volume of sales only actually increased by around 2%. Parsnip sales were up 12%, Sprouts 8%, and Potatoes 6%, as consumers went 'all out' traditional. Having said that, Mince Pies were down 4% and Xmas Pudding 7%, and the average household spend was around £477 on groceries and convenience (food, drink, and associated items) during the Christmas period, up from £433 for Xmas 2022. Aldi said yesterday that their total sales for the period came in at £1.5bn, this again is largely due to new store openings so the actual 'like for like' sales are more likely down when you disrobe the headline numbers. The real winners look to be Tesco, Lidl, and Sainsbury's including thier in-store #coffeeshops concession partner Starbucks. Richard Payne #conveniencestores #retail #businesssales #businessadvisory #businessowners

🚀 Tesco Achieves Largest Market Share Since 2017! 🚀 It's an exciting time for Tesco as it has reclaimed its highest market share since 2017, now standing strong at 28% 📈. This growth from last year's 27.4% is a testament to Tesco's strategic moves and commitment to its customers. Last week, Tesco also raised its profit expectations, with half-year profits up by a staggering 10% and sales increasing by 4%. Sainsbury's is also making strides with sales rising by 5.1%, lifting its market share to 15.2%. However, it's a different story for Asda as its market share has slipped to 12.6%, down from 13.7% last year. Meanwhile, Ocado continues to shine as the fastest-growing grocer for the eighth consecutive month, with its sales soaring by 10%! In this competitive landscape, every percentage point counts. These shifts indicate that consumer preferences are evolving, and the market remains dynamic. The news isn't just about the numbers; it's about the hard work and strategic foresight that these companies continue to display. As we gear up for Halloween 🎃, retailers are seeing a surge in seasonal product sales. Pumpkins are nearly doubling last September's figures, approaching £1m, and confectionery sales are up by 9%. It's clear that these festive offerings are a hit with shoppers! #RetailGrowth #SupermarketInsights #UKGrocers

There has been growing concern about the pricing strategies of major Australian supermarkets, particularly Woolworths and Coles. As shoppers seek ways to stretch their budgets, it appears these retailers may be manipulating discounts, raising questions about transparency and consumer trust. Promotional pricing is intended to benefit both shoppers and supermarkets: consumers enjoy temporary discounts while retailers increase sales. However, a closer examination by the Australian Competition and Consumer Commission (ACCC) indicates that some supermarkets may be inflating prices before promotions, creating a misleading sense of savings. For instance, Woolworths increased the price of the Oreo Family Pack Original 370g from $3.50 to $5.00 in late 2022. Shortly after, they launched a “Prices Dropped” campaign, offering the cookies for $4.50. While this may appear to be a discount, it actually represents a 29% increase from the original price. What was once an affordable treat now seems like misleading consumers about the actual savings. Coles has similar examples. In October 2022, they raised the price of Strepsils Throat Lozenges Honey & Lemon 16-pack from $5.50 to $7.00. Soon thereafter, the lozenges were featured in a “Down Down” promotion priced at $6.00. This price is still 9% higher than the original amount shoppers had come to expect. It illustrates how retailers can create the illusion of a deal while effectively increasing costs. As the ACCC investigates these pricing practices, it is essential for supermarkets to reconsider their strategies. Transparency should be central to their pricing methods, allowing consumers to make informed choices without falling prey to deceptive marketing tactics. #pricingnews #taylorwellspricing #supermarketpricing Sources: https://lnkd.in/gVmDbaVV https://lnkd.in/gwED2QzM Blogs: https://lnkd.in/gcw9tsQG

There has been growing concern about the pricing strategies of major Australian supermarkets, particularly Woolworths and Coles. As shoppers seek ways to stretch their budgets, it appears these retailers may be manipulating discounts, raising questions about transparency and consumer trust. Promotional pricing is intended to benefit both shoppers and supermarkets: consumers enjoy temporary discounts while retailers increase sales. However, a closer examination by the Australian Competition and Consumer Commission (ACCC) indicates that some supermarkets may be inflating prices before promotions, creating a misleading sense of savings. For instance, Woolworths increased the price of the Oreo Family Pack Original 370g from $3.50 to $5.00 in late 2022. Shortly after, they launched a “Prices Dropped” campaign, offering the cookies for $4.50. While this may appear to be a discount, it actually represents a 29% increase from the original price. What was once an affordable treat now seems like misleading consumers about the actual savings. Coles has similar examples. In October 2022, they raised the price of Strepsils Throat Lozenges Honey & Lemon 16-pack from $5.50 to $7.00. Soon thereafter, the lozenges were featured in a “Down Down” promotion priced at $6.00. This price is still 9% higher than the original amount shoppers had come to expect. It illustrates how retailers can create the illusion of a deal while effectively increasing costs. As the ACCC investigates these pricing practices, it is essential for supermarkets to reconsider their strategies. Transparency should be central to their pricing methods, allowing consumers to make informed choices without falling prey to deceptive marketing tactics. 

𝑹𝑬𝑴𝑶𝑽𝑰𝑵𝑮 𝑩𝑨𝑹𝑹𝑰𝑬𝑹𝑺 𝑻𝑯𝑨𝑻 𝑳𝑶𝒀𝑨𝑳𝑻𝒀 𝑷𝑹𝑰𝑪𝑰𝑵𝑮 𝑪𝑨𝑵 𝑪𝑹𝑬𝑨𝑻𝑬 𝑶𝑵𝑳𝑰𝑵𝑬 As of this morning, Tesco has updated its website to show the price per unit of measure (e.g. ppkg / ppl) for #clubcard prices, and not just for the base price. This is a HUGE change that will have the following effects: ⬆ Premium items on high-low appear more competitive. ⬆ Brands showcase promo competitiveness vs #ownlabel. ⬆ Closes the #VOD gap online vs offline and drive volume. ⬆ Encourage trade-up for bigger baskets. ⬆ Bigger baskets drives efficiencies for Tesco. ⬆ More efficiencies can help close the online retailer profitability gap. Asda auto-adjusts price per unit/serving on promotions which is more transparent. Sainsbury's does sometimes show promotional ppg/ppl on #nectar prices, but really only for event pages. With more #pricematching and #pricewars currently unfolding, will this become a bigger call-out for retailers? Especially during a cost of living crisis... It should be! This could also be a way to alleviate the pressure from the Competition and Markets Authority who said in January this year it would consider "whether any aspects of loyalty pricing could mislead shoppers". See example below for the Dairy category with Arla Foods' #Lurpak now looking far more compelling an offer on deal. #pricing #promotions #ecommerce #online #brickandmortar

In an era where every penny counts, consumers are turning to discount grocery stores like Aldi and Lidl to stretch their budgets further. A recent report from Placer.ai highlights while traditional supermarkets grapple with rising prices, Aldi and Lidl are experiencing remarkable foot traffic growth. With year-over-year visits consistently on the rise, it's evident that affordability is a key driver influencing shoppers. The allure of high-quality products at unbeatable prices has positioned Aldi and Lidl as go-to destinations for value-conscious consumers. As households face economic headwinds and seek ways to make their dollars go further, these discount grocers offer a compelling solution. Moreover, their strategic expansion plans and ability to cater to diverse consumer segments underscore their resilience and adaptability in a competitive market. #aldi #lidl #discountgrocery #knowyourcustomer

🌟 Sainsbury's Reports Strong Grocery Volume Growth 🌟 Exciting news! Sainsbury's has just published its interim results for the 28 weeks ending 14th September 2024, and the figures are impressive. With sales up 4.6% and grocery sales specifically soaring by 5%, Sainsbury's is making notable gains in the grocery market share. These results highlight a retail underlying operating profit of £503 million, demonstrating growth across the board. Simon Roberts, Sainsbury's CEO, attributes this success to more customers recognising the unbeatable combination of value, quality, and service that Sainsbury's offers. Notably, their premium Taste the Difference range saw sales increase by an outstanding 18% 💥. This surge in customer preference reflects Sainsbury's leading quality and the perception of value that's fostering stronger customer loyalty and market performance. Looking ahead, Sainsbury's remains confident in delivering strong profit growth for the full year, buoyed by continued grocery volume growth and strategic investments in new store locations. As they gear up for the festive season, the focus is on maintaining this positive momentum and delivering an exceptional Christmas for their customers 🎄. Kudos to the brilliant colleagues and suppliers driving this success! #RetailGrowth #GroceryMarket #SainsburysSuccess

Retail Today / Retail Renaissance: What’s driving Aldi’s decision to expand in the U.S.? #aldi They see opportunity in the trillion dollar grocery sector. Which is dominated by Walmart at almost 25%. #groceryindustry #walmart You add Sam’s Club to that figure, it’s even larger! #samsclub So what makes Aldi so strong and competitive? Start with #lowprices, #privatelabel and smaller convenient stores. I have also attached a competitive shop of all the major grocery chains vs Aldi. #walmart #costco #albertsons #publix This sector of retail works on thin margins, forcing great operators. Merchandising 101: You better understand the difference between “Coconuts vs Bananas”. #margins #operationalexcellence #retail #retailindustry #retailtrends #retailstrategy #shoppingexperience #stores #brandexperience #brickandmortar #groceryindustry #TopRetailExperts

Coles and Woolworths have significantly grown their private-label product lines, aligning with global trends and bolstering competitiveness, especially against Aldi. Coles has set an ambitious target to have private-label products comprise 40% of its offerings within the next five years. This will include various product tiers, which Coles is expected to source globally to manage costs and introduce new options across quality levels. Woolworths, similarly, is expanding its private-label lines to capture more of the market, though its private-label sales are currently around 25% of its total sales Info Retail World Magazine & Inside Retail Australia These strategies support both retailers' efforts to control costs and improve profit margins, as private-label products tend to offer higher returns than branded goods. However, the increase in private labels may reduce shelf space for well-known Australian brands, impacting suppliers who compete directly with retailer-owned brands. Love to hear your view point on this topic which will effect the future of food retail for small brand operators. #retail#price#negotiating#margin

#ConsumerNZ warns supermarket shoppers: Beware of loyalty lure We're warning New Zealanders to be wary of supermarket loyalty schemes, with recent research showing yet again they don’t always offer the most competitive price. We compared products marked with loyalty discounts at Woolworths and New World stores with prices for the same products at Pak’nSave (which does not require customers to be members to get cheaper prices). We found some products marked as loyalty “specials” could be purchased for a cheaper price elsewhere..... https://bit.ly/499m2XO #NewZealand #Business #Retail #Supermarket #LoyaltySchemes Via www.consumer.org.nz