How the financial crisis will change the grocery retail landscape forever

Tuesday, 14 October 2008

Today's IGD convention at the Royal Lancaster hotel in London threw a fascinating spotlight onto the way grocery retailers and their suppliers are approaching the challenges of the current financial turmoil and its likely affect on their customers.

Below are just a few of the insights served up by IGD chief executive Joanne Denney-Finch at the conference:

"Shoppers have been jolted out of their habits, and when they change and they like that outcome, they change their habits."

"Individual companies have been affected in some very contrasting ways. Their stories have sometimes been so contradictory; it's hard to make sense of it all."

"They are spending more time shopping and visiting more stores as they hunt down the best deals."

"More people are choosing discounters, especially for fresh food. But we need to keep this in proportion, it's only 6%"

"Location is critical, more critical than ever and more community shops are reaping the benefits as people choose not to drive, or pick up their shopping on the way home from work."

"There's a strong emphasis on meal planning and cooking with leftovers. Frozen foods are enjoying a renaissance."

"In times of great stress we sometimes revert to the comforting brands of our childhood. Heritage brands are doing well."

"Shopping online is not so good for scrutinising or bargain hunting."

"In this upside down world our old value sets will no longer remain good. The economy will recover, but shoppers will not go back to the same place."

"Longer term, the energy squeeze will really affect our business models and change our environment."

"As always, our biggest threats and our biggest opportunities will come from our consumers and our shoppers. Their aspirations are changing and companies will need absolute clarity as to how they meet this."

"The shopping spree is over and we've seen shoppers re-writing all the rules, with clusters of shoppers doing different things in different shops."

"The long-term winners will be those who can keep pace with shoppers and give extra value yet remain true to their principles."

"This year could see the biggest ever gain for own-label."

"Will brands and retailers see their interests diverging? Possibly, but I don't think it's likely. In an upside-down world I'm convinced we will need stronger not weaker relationships."