News • 17.11.2017

Future success of food retail industry depends on transformation

Report: "Transformation: The future of successful food retail"

Photo: Future success of food retail industry depends on transformation...
Source: panthermedia.net/meteor

The European food retail industry is facing challenging times: Falling profits, disaffected customers, a looming health crisis, disengaged employees, ongoing economic concerns and ever increasing environmental threats are all changing the way people shop. Most in the industry know that to survive they must make fundamental changes to the way they do business. But most of them don’t know how or where to start, according to new research.

A study of over 500 industry organisations, including the majority of the top 100 European food retailers, carried out by Cosaris, showed most know they have to transform but the majority are either at the very start of that journey or haven’t even begun it.

Managing director Rene Schneider said: “We are living in disruptive times and the food industry is experiencing fundamental change. Discounters, online retailers and social media are just a few of the factors reshaping the way people shop.

“But many retailers and suppliers keep focussing on the same tired strategies such as cost and efficiency at the expense of more pressing matters.

“The trouble with that strategy is, that with similar, easily exchangeable products and services, there is always someone cheaper and faster.”

Mr Schneider revealed 83 percent of those asked said the biggest issue was shopper focus and engagement while 61 percent said they struggled with developing new business concepts. A further 54 percent said profitability was a challenge.

Mr Schneider said: “We conducted extensive research, interviews and store visits across 16 countries to discover the things retailers and their suppliers need to improve if they want to become successful once more.

“As a result of our research we identified a number of key areas they must focus on in the future. And they must put the shopper at the heart of this focus.”

Mr Schneider added food retailers needed to take a far more integrated approach, looking at all the key areas together rather than taking each one in isolation or merely focussing on price and efficiency.

He said: “If retailers insist on focussing just on price they are essentially in a race to the bottom. There is only so much they can put pressure on suppliers and only so much they can cut from the bottom line.

“What they should be doing is transforming their business models, putting the shopper at the centre of it and giving real value to their customers and society as a whole.

“We identified 10 key areas the industry must improve to again thrive in the future. It all starts with the customer, the shopper, his real needs, concerns and genuine wellbeing. All the other 9 must then be linked together and considered in combination: Real convenience, seamless online experiences, personalisation and localisation, social spaces to meet and work, empowered and knowledgeable employees, health, education and lasting experiences, social and environmental responsibility as well as the implementation of the right technologies and innovations to make it all possible.”

Source: Cosaris

related articles:

popular articles:

Thumbnail-Photo: City management fights vacant storefronts and supports retailers...
21.11.2018   #consulting #brick and mortar retail

City management fights vacant storefronts and supports retailers

Insights from city manager Nicole Halves-Volmer from Delmenhorst

Modern city management always includes cooperation with the retailers of a city. The charismatic city manager Nicole Halves-Volmer works with passion for the city of Delmenhorst and talks in the interview about campaigns with and for ...

Thumbnail-Photo: Tariffs remain a threat
30.08.2018   #sales promotion #associations

Tariffs remain a threat

National retail federation upgrades 2018 economic forecast

The National Retail Federation today increased its retail sales forecast for 2018, saying sales are expected to grow more than previously predicted thanks to tax reform and other positive economic inputs but warning that tariffs threaten to dampen ...

Thumbnail-Photo: Virtual commerce: shopping in a different reality...
14.09.2018   #digital marketing #virtual reality

Virtual commerce: shopping in a different reality

What we can expect from virtual reality in retail

Virtual fashion shows, mountaineering, and test drives: Virtual reality (VR) is creating a new paradigm for the customer experience – not only in brick-and-mortar stores but also in online shopping. "It's always remarkable and ...

Thumbnail-Photo: I see augmented reality leading the way in the store...
17.10.2018   #virtual reality #augmented reality

"I see augmented reality leading the way in the store"

Augmented and virtual reality shopping

Not only do augmented reality (AR) and virtual reality (VR) promise an exhilarating entertainment experience, they are also already practically applied in several industry sectors. What opportunities do they offer retailers and customers? What are ...

Thumbnail-Photo: Costly online out-of-stock problems for consumer goods...
13.08.2018   #online trading

Costly online out-of-stock problems for consumer goods

GMA report: Potential lost sales could reach 17 billion dollars

A new report shows that out-of-stock rates for online purchases of consumer products in the U.S. are nearly twice as high as in-store availability. The report, issued by the Grocery Manufacturers Association (GMA), shows potential online sales ...

Thumbnail-Photo: A beacon for a shopping mall
28.09.2018   #digital signage #led lighting

A beacon for a shopping mall

Digital signage: outdoor LED screen in Mexico

On the premises of a shopping center in Cuernavaca, near Mexico City, a digital signage project attracts attention. The elevated tank, rising high above the ground on a structure, serves as an eyecatcher. The shopping mall Forum hopes to attract ...

Thumbnail-Photo: Digital sporting goods retailers: Decathlon and Intersport push ahead...
31.08.2018   #retail #digitization

Digital sporting goods retailers: Decathlon and Intersport push ahead

Of virtual tents and 3D foot analysis

Customer loyalty and innovative store features are key factors in sports retail. Shopping becomes an experience, whether that’s thanks to an integration of online and offline activities or brand-new approaches and technologies. What can ...

Thumbnail-Photo: “Differentiation remains the key to growth”...
09.08.2018   #brick and mortar retail #marketing research

“Differentiation remains the key to growth”

Poundworld’s failure to differentiate from other discounters led to demise

Poundworld, which is set to disappear from the UK high street by early August 2018, must look to its own failures – and in particular its failure to stand out from other discounters – to explain its demise, says GlobalData, a data and ...

Thumbnail-Photo: Collaboration opportunities between retailers and suppliers...
10.08.2018   #retail #supply chain management (SCM)

Collaboration opportunities between retailers and suppliers

Retail Collaboration Survey results 2018 by Trace One

Trace One, the world’s largest collaborative retail business network for private label, released the results of its 2018 Retail Collaboration Survey. Surveying 385 grocery retailers and consumer goods suppliers across North America and Europe, ...

Thumbnail-Photo: Click & collect promotes cross selling
15.08.2018   #brick and mortar retail #Click & Collect

Click & collect promotes cross selling

Research: Many click & collect shoppers made additional in-store purchases

Research from OrderDynamics explores North American click and collect trends, including communications and timing preferences, return behaviors, and unplanned purchasing habits. OrderDynamic, announced its latest consumer study, “The Rise ...