Food firms must keep up with changing retail
products if they are to succeed in the changing retail landscape,
according to a new report.
Presented by market researcher AC Nielsen, the study provides some insight into what food manufacturers should focus on in order to get in store and stay in store.
Convenience, health and quality continue to be the underlying factors that influence consumer choice, and these now influence where and how people shop as well as what they buy, said senior vice president of AC Nielsen's Consumer Insights Todd Hale.
"Today's hectic lifestyles have changed the way people shop. What used to be a rather leisurely activity has turned into a rushed, stressful nuisance for some shoppers. Retailers that acknowledge this stay one step ahead of the game," said Hale, speaking at the recent Consumer 360 Conference that targeted the consumers packaged goods industry.
Retailers today are looking for ways to keep customers, and one way of achieving this is to "keep them happy by selling them unique products, getting them in and out of stores quickly, smothering them with good service, and/or saving them money," he said.
According to Hale, a number of factors have contributed to the changing retail environment- which is here to stay. These include higher gas prices and tightened purse strings.
Retailers need to keep their customers satisfied by altering business practices to focus on personalization, value and convenience, he said.
In order to succeed in the retail environment of 2010, he suggested the industry should leverage manufacturer expertise to stay ahead of consumer trends, and be quick to take on new products, but also not hesitate to discontinue these if they do not perform well.
Retailers should also develop premium, exclusive brands, he said. "Private label doesn't always have to be a low-price alternative."
According to AC Nielsen, private label will reach a 20 percent dollar share by 2010, and grocers will "go big, go value, go niche… or go away."
Wal-Mart sales are also due to hit the half trillion dollar mark as the store becomes a leading source for immediate healthcare, said Hale.
He added that RFID will become commonplace as an in-store tracking method, while high gas costs will continue to reduce shoppers' disposable incomes and will cause channel evolution.
