Toby Hoppy’s Post

Loads in the press recently regarding Asda. Not much of it is positive. However, there are some incredible people in my network that have joined, or remained in, the business - these people have incredible track records in driving and delivering exceptional technological, operational and people oriented change that is capable of propelling the business forwards. It’s worth noting that Asda have absolutely lost some incredible talent of late. Some really key people to the business… But they have also done some great work regarding talent acquisition and talent retention. What I think is KEY to Asda’s future success is the appointment of an inspirational, transformation and turnaround focussed leader, who can build cohesion between the executive leadership team(s), and an effective and consistent communication channel that inspires and informs the wider business - from top to bottom. As well as building a strategy that sees the customer being of paramount importance. The core, central strategic cog. A short-term leader is great, who can initiate change and foster motivation and a sense of togetherness internally. But a longer term leader who has successfully lead similar transformation and turnaround efforts is critical. A new strategic direction, and a clear roadmap is also essential! The technology transformation, that’s come off the back of the separation from Walmart, needs to be turned around and sped up - but the talent is absolutely there to deliver this, so long as there is a clear strategic vision and consistent, inspiring communication from top down, with open ears to ideas and current feelings from bottom up. Some modernisation is needed across areas like clothing, home and household - sure. But getting to grips with pricing, loyalty and promotions across the grocery business should help with driving footfall and traffic to the brand, across their various channels and store-types, to increase profits and revenues, closer to those of past times. This is a perfect case of transforming the business with the customer being the priority. Modernised technology solutions will help, but not for technologies sake. A strong strategy and direction needs to be devised, with internal customers buy-in being key. Technology will be a strong enabler to create the customer journey and experience, and to improve the experience of the internal customers, but people and processes are more important - especially in this case! Massively exciting to watch from the outside, and I really hope Asda can turn this around!

Even with the Summer Holidays coming at us quickly, there is still plenty going on to be aware of out there! See our round-up of what you need to be aware of this week: 1) ♻ Asda ends it's refillables trial - low sales intensity sited as the key reason 2) 📉 Morrisons rolls out WIGIG lines across the estate - what's the opportunity for your brand? 3) 🍵 Tea prices set to increase at record rates - commodity volatility continues 4) 💊 Holland and Barrett SEA revenues up 11% - Health and Wellness going from strength to strength 5) 🍲 Tesco targets home workers with a new "easy meals" ambient fixture - home working is changing consumer demand 6) 🥄 Biotiful partners with Aldi on "copycat" Kefir Yogurt - an interesting development! 7) 🛳 U.K. Exports continue to struggle - contracting by 0.6% year-on-year 8) Oh, and Carlsberg-Britvic looks to be on! Like this, share it!

Many of us have grown up with the 'Big 4' being permanent and unchallenged. Most people will now know that Morrisons has been knocked out of this traditional group, but to also see Lidl close to moving in to this previously unshakeable pack is also a further big change. Furthermore, could Asda be moved into 4th with it's ongoing decline or will the resurgence now start with Stuart Rose taking the helm? Could we soon see Tesco, Sainsburys, Aldi and Lidl as the new BIG 4?? I have to say...based on my own observations...Asda has completely lost its way and has a clear identity crisis- previously known as the cheapest, now known as what? Remember Asda clearly strategised for 2nd biggest grocer only a few years ago! The ongoing rise of Sainsburys is an interesting tale, considering it was traditionally known as the more expensive option...but gains market share in the middle of a cost of living crisis. What drives this? One final point...is the customer view of standards no longer important- is it all about price nowadays? Aldi & Lidl gain market share but don't have the traditional standards expected of a grocer...but do customers really care?? Will be interesting to see what happens over the next few years in terms of market share!! Let me know your thoughts!!

Interesting summary

Surely this proves that price isn't everything?! Tesco were voted Britain’s Favourite Supermarket for the 10th year in NIQ’s latest annual Homescan survey. They hold the top spot across 6 of the 10 attributes below, but they aren't in the top 2 for price. Aldi UK and Lidl GB are gaining share, but the grocers that are winning (Tesco and Sainsbury's) are the ones that aren't trying to compete on price alone (like Asda seemingly are). What do you think? Is there more to retail competitiveness than price? #fmcg #grocery #categorymanagment Image from The Grocer (https://lnkd.in/eu5YGfVC)

Brilliant news for Marks and Spencer who overtakes Waitrose & Partners as Middle England's top grocer. Data from Kantar showed M&S held a 4.03% share of the grocery market for the four weeks to 3 November, compared with 3.76% a year earlier. Meanwhile, Waitrose’s share slipped to 3.91% during the same period, down from 4.02% a year ago. M&S also recorded the highest sales increase among supermarkets during this period, with a year-on-year surge of 11%. Compared to growth rates of 6.9% at Lidl, 6.3% at Sainsbury’s, and 5.8% at Tesco. Meanwhile Waitrose saw a more modest 1% increase, only outpacing Asda and the Co-op. More info through the link below. Well done M&S ! #retail #grocery #innovation

"During an interesting chat over coffee this morning with my 'table of knowledge' buddies in Grafton, it was mentioned that Fresh and Save is set to take over the Coles store in our major shopping center. Coles currently has three stores in Grafton, and this particular location has been a bit of a white elephant for almost the entire ten years I've lived here. It makes me wonder if Coles is shifting focus, letting go of a store they've been propping up to keep their hold on the market. I’m not too familiar with Fresh and Save, but if they do set up in the shopping center alongside Woolworths, it could bring a significant change to the retail landscape here. From my perspective, this seems like a prime opportunity for Fresh and Save to expand beyond their Queensland base. Does anyone know who supplies most of their groceries? Grafton could be in for some interesting times with two Coles, two Woolworths, and Aldi competing." As for Fresh and Save, they are a growing grocery chain that’s been expanding primarily in Queensland. They focus on providing competitive prices, especially in fresh produce, similar to Aldi but without the same strong private label presence. Fresh and Save operates with a model that includes bulk buying and direct sourcing from suppliers to offer discounts to consumers. While they haven't yet expanded much beyond Queensland, this could be a strategic move to test other markets. It will indeed be interesting to see how the competition plays out in Grafton! #retail#competition#freshfoods#discounts#bulkbuys

Good Housekeeping recently rated the top mince pies in Britain. First place? Aldi - £2.29 a box. Second place? Fitzbillies (famous bakery in Cambridge). £8.50 a box. I've had my parents staying this week and they tend to not venture out far from my house. So on a quest to expand horizons we've been on a three-day mission - ostensibly to test the best mince pies in Britain, but really to see some things. First trip - local charity shops to drop off things, then to Aldi for the first taste test (£2.29). (Not the most exciting trip, granted, but got them started locally). Second trip - into Cambridge for the day, punting down the river, Fitzbillies for lunch, mince pie pick up whilst there (£8.50). Third trip: Stowe to see the WW2 exhibit. Where we also found National Trust mince pies - £6 a box. What has this got to do with brand strategy? Well, it's highlighted something to my parents that helps them understand my job a bit better. Strong brands can create higher ‘perceived value’; a belief that something is worth the price being asked for. Was there really a £6 difference in ingredients between Aldi and Fitzbillies? Of course not. But the brand and its positioning in the market can increase the perceived value, and hence increase the price. Secondly, if a brand is associated with a set of values, or an emotional higher-order benefit, it can stretch into multiple categories. If you were asked 'What does the National Trust do?' your answer wouldn't be 'mince pies.' But what they stand for in people's minds is much more than what they do. And it allows the brand to stretch into selling multiple things. Best mince pie? Difficult. Mincemeat best in Fitzbillies but pastry too short. Aldi strong all round but stingy on the mincemeat. National Trust's were average, but box by far the most attractive. Sainsbury's still leading in our house. What about in yours? (Yes yes - I know we've started early... But what's not to like about a mince pie?) #brandstrategy #value #branding #christmasiscoming

Adapting to stay relevant in the cost of living crisis. The humble chicken thigh. A weekly staple for many meat eating households across the county. Just like many staples, these have seen a significant price increase across all store types including the discounters Aldi UK and Lidl GB. In the last few months a new ‘cut of chicken’ has appeared on the shelves in Aldi UK, Asda, Iceland Foods and Tesco and they are significantly cheaper than the thigh fillets. Welcome to the chicken ‘drumstick fillets’. Not a typical cut seen in supermarkets until now. A piece of creative thinking is at work here - how can we give customers what we need, at a lower price by exploring other options. In this case, cheaper cuts of meat. Genius. I’m sold. Availability is important here, ensuring they are available in-store and online to access this value. I've only seen them in Aldi UK in-store, but i'd love to be able to get them in my weekly shop online too with Tesco. This begs the question, which other weekly staples could be slightly reworked or reimagined for a lower cost alternative that hits the same customer need? Any other great examples already out there? Share below. 👇 #fmcg #mrx #grocery #costoflivingcrisis #discounters #supermarkets

Thanks for the update The Australian Financial Review This is a massive wedge issue from Labor as they struggle on many fronts. The good doctor denies his spending is fuelling inflation, and shows a disdain towards the RBA and its independent Governor. All this while the PM was a one-legacy-issue candidate, and when that failed, after investing 1/2 a billion of our dollars, it was clear there was little else of substance. And bookend all that with the Minister for Energy, and his ideological policy, that has recently been exposed to cost more like 1/2 a Trillion dollars, or about 4x their budget estimate. All of this amplifies inflation, and adds to the cost of living pressure most of us are experiencing. We’re being gaslit by a government that destroyed any perceived mandate, and are now desperate ahead of a pending election. That said, when only 32.58% of Aussies vote for this crew we’re clearly getting the behaviour we walk past.