ESA Retail’s Post

I've posted regularly about e-commerce and the impact of changing consumer habits over the past 5 years. Are we beginning to see a change in behaviour from customers and priorities for retailers? 🛒 Tesco continue to push their online capability and expertise. There's further promotion of their Whoosh offer - groceries delivered in less than 30 minutes. 🛵 Rapid delivery provider Getir are rumoured to soon be exiting most of their markets apart from the US and Turkey. Whilst on the face of it a negative move, it allows them to focus on becoming profitable. 📱 SHEIN and Temu continue to grow across Europe and the Americas even in the face of fast fashion and emissions concerns. But the market may be changing. Sainsbury's in the last few quarterly updates are actively pushing their physical store capability. 💷 At the start of the 'cost of living crisis', shoppers were back in store looking for promotions and value. 🛍 Customers continue to shop in store with 87% of sales happening in a physical store. It's an interesting presentation of the figure - it also means 13% was online. Whilst this is lower than Covid peaks of around 16%, it's consistent with the pre-Covid levels. 🥅 After the acquisition of Argos, Sainsburys inherited a team and stores who had strong omnichannel experience and 'fulfilment' from store capability. It makes perfect sense to drive shoppers to stores. It's significantly more profitable. Return in store for free vs paying for parcels, drives significant footfall and increases in sales. Have we reached peak e-commerce? #retail #online #ecommerce #qcommerce #supplychain #logistics https://lnkd.in/e_MKzFkr.

Have we reached peak e-commerce? Where will it continue to grow vs where will Instore experiences reverse consumer habits?.. A Really interesting question for future planning to consider 🤔👀 👇. Just another reason ensuring flexibility and agility in your supply chain partner .. has never been more critical #retail #online #ecommerce #qcommerce #supplychain #logistics

https://lnkd.in/gZETyMQZ Aldi, the German discount supermarket chain challenging Woolworths and Coles for market share, says it has abandoned plans to expand into online shopping because it is still making inroads without it. Aldi opened its first store in Australia in 2000 and has grown its share to around 10.5 per cent of the supermarket sector. It had been investigating moving into online sales – a space that Woolworths and Coles have aggressive expanded into. Online retail currently seen to weaken the margin economics of the Aldi offer. Unit volumes at supermarkets in the June quarter were up about 1.1 per cent, compared to a year ago, while Aldi’s volume grew over 7 per cent, outstripping the market. A survey of supermarket suppliers published by UBS earlier this week found that Aldi had gained most market share last quarter.

Retailers like ALDI are evolving to stay relevant… a rotating ‘treasure hunt’ gives people a reason to visit your store beyond ‘affordable prices.’ Boring retail stores will not survive. Of 500, 200-300 will close. The ones that survive will become destinations and entertainment centers. (Starbuck’s is the rare exception – they shut down their online store to focus on brick and mortar.) Smart retail stores will invest in #innovation and amplifying their stores as must-visit destinations. E-commerce then becomes the channel for boring transactions. 

Our monthly analysis comparing the prices of popular groceries at eight major supermarkets, now includes loyalty scheme prices. Ele Clark, Which? Retail Editor, said: 'As member-only pricing continues to grow, Which? believes the sector needs to be properly scrutinised and held to account so that all shoppers - including society’s most vulnerable - can benefit, and no one is misled into believing they’re getting a better deal than they really are. With food prices continuing to squeeze household budgets, it comes as no surprise that many people are choosing to shop with the discounters. Our analysis shows that Aldi and Lidl are still cheaper than the traditional supermarkets, even when you include loyalty pricing.' #CostOfLiving #ConsumerRights

Consumer group CHOICE has released its first quarterly, government-funded report on supermarket prices across Australia. The research reveals that ALDI has the cheapest groceries nationwide, with a comparable basket from the retailer about 25 per cent cheaper than at Coles or Woolworths. As part of the research, CHOICE sent mystery shoppers to 81 regional and metropolitan supermarkets across the country, including ALDI, Woolworths, and Coles, to record prices for 14 common grocery items. In addition to determining the retailer with the cheapest prices, the research also found where people live can make a difference when it comes to the cost of groceries. CHOICE https://lnkd.in/gBakiQZS

My comments on this #retailwire topic...it seems 'brick and mortar' is not only alive and well, but proving to be the growth engine (it always was) for grocery retail. And it seems Aldi USA has smartly found a niche in Grocery that mega US grocers (perhaps temporarily distracted from necessary investments in ecommerce lately) and watching Dollar store formats expanding like wildfire with success in rural America - by mostly expanding shelf stable food assortments - now, is the time for Aldi USA to capitalize on these trends. Aldi has been in the US for decades, has had plenty of time to study the market, learn, and has quietly been building up towards this moment – bringing something Amercian consumers are looking for – simple EDLP, no ‘loyalty’ cards required, a straightforward value/price proposition. - Smaller footprint (12k versus 40k US avg) + 90% private brand penetration (versus 25% US avg) = lower overhead costs, better consumer value, better company profits - Easy, nothing fancy, in/out grocery shopping = convenience - Focused solely on affordable / quality FOOD choices in both rural areas and urban food deserts = fresh choices and healthier options for both rural and urban America Yes – it does seem obvious now – the US needs more Aldi stores, because they have found a consumer need in both rural and urban areas, and are simply filling a void the competition has left wide open. https://lnkd.in/gfQXjqpj #grocery, #aldi, #brickandmortar #retailindustry

While shopping the specials at both Woolworths and Coles can save you money, the question remains: what is the real price of our groceries? Both retailers offer alternating weekly specials, making it beneficial to compare and shop accordingly. In the competitive landscape of Australian supermarkets, IGA has struggled due to a top-heavy business model and the cost of supporting poor operators. However, some independent stores have managed to compete effectively with Woolworths and Coles by excelling in product sourcing—buying right to sell right. Aldi, on the other hand, operates with low overheads, a limited range, and no-frills service, which allows them to offer lower prices. Unlike Woolworths and Coles, which are driven by shareholder returns, Aldi’s profits go back overseas, impacting the local economy. In summary, while the major players each have their strategies, independent operators who focus on smart buying can still compete successfully in this challenging market.

Customers clicking-off online grocery shopping? The crowds at my local Sainbury’s can attest to this. The weird substitutes and poor dates on food may have been funny memes on social media. But in a post-pandemic world, when you want to get the most for your money, you'll take a trip in-store. Even with WFH, we can't take random deliveries to the door during a meeting. We are tired of being told something is in stock to only find out it isn't, on the day of delivery. And if you are on the top floor of a building, good luck getting the deliveries to your floor. We are hunter-gatherers at our core. We enjoy seeking out bargains and discovering new tastes and flavours. So for anyone in retail, please tap into this. People revert to online when they are tired of not finding what they need on the high street. But when retailers listen to customers and offer a broad range of goods and services. Footfall will return. Sainsbury has been canny with integrations with Argos and clothing categories. Their Nectar program has a wide range of other retailers to earn points on. Something Tesco might consider. #retail #retailnews #ecomm #ecommerce #groceries #bricksandmortar #consumerbehaviour #shoppinghabits #food #grocerytrade #online #highstreet #consumertrends https://lnkd.in/eNDFMsWC

The ACCC has published its interim report for its inquiry into supermarkets, outlining what it has heard at the halfway point of the year-long inquiry. This follows the ACCC announcing last week that it would sue Coles and Woolworths for allegedly misleading consumers through discount pricing claims on hundreds of common supermarket products. The interim report includes detailed information gathered through stakeholder submissions, responses to the ACCC’s consumer survey, and feedback provided by suppliers at roundtable discussions held around rural and regional Australia. According to the ACCC, supermarket retailing in Australia is an oligopoly, with Woolworths and Coles accounting for 67% of supermarket retail sales nationally. ALDI accounts for 9% and Metcash supplied independent supermarkets 7%. https://lnkd.in/gXbFkUg9