Irish cross-border shopping-traffic increase..

According to the BBC, the same well-known brand of whiskey is 27 euros on shelves in the Republic of Ireland - but in Northern Ireland it is £15 - the equivalent of 16 euros, a reduction of 40.7%...

Think about the potential distortion of trade caused by uncoordinated price-hikes in the ROI:

Where at: The real issue here is the distortion to trade caused by cross-border (ROI/NI) reaction to shelf-price differentials North and South of the border, with individual shoppers but the tip of the iceberg… i.e. think third-party bulk purchases transported across a 310 mile long – i.e. unmanageable – border with the Irish Republic. There is already a 15% currency-based price differential arising from recent falls in sterling…

Where headed: Any disproportionate supplier price increases for NI and ROI will simply add to the appeal of a shopping journey North…

Effect on you: UK brand suppliers will suffer loss in brand equity in Ireland if savvy consumers perceive there to be differences that are not transparent and defensible. Paradoxically, ROI consumption of UK brands may also increase via NI, while sales are dropping in the South…

Action: UK suppliers need to think through where their brands are currently (in ROI), where they want them to be, and plan for price increases that maintain the status quo in UK and Ireland, if possible…

Still want to push through that price increase in the South, regardless?

Aldi & Lidl as problem solvers?

Unlike the redundant-space, 80/20 issues of the mults, Aldi & Lidl see online as a way of reducing car-park congestion and queueing instore.

In an interesting twist on accepted wisdom that discounters are simply trying to imitate the mults, Simon Johnstone of Kantar Retail gives details how discounters innovate to solve the problem of 'custom-bunching' resulting from Aldi's Special Buys on Thursdays and Sundays.

Developing online focused on lifestyle helped Aldi spread the traffic...

A number of other examples are given in the article, all examples of discounter-specific creativity.

Given that much discounter growth is at the expense of brands, branded NAMs that can find ways of working proactively with Aldi & Lidl have to gain an advantage over the competition.

In other words, the combination of NAM creativity and discounters' apparent willingness to innovate in terms of - their - problem solution suggests ways forward for NAMs that are prepared to put the fire-fighting on hold and trigger a brainstorming session with Aldi or Lidl...

When even £1 is too much in a pound-shop...

An article in today’s Daily Mail gives 15 examples where well-known brands priced at £1 in a pound-shop retail at approximately 85p elsewhere (worth a look to see if you are included).

Obviously we may all be moving to a position where shelf prices are the responsibility of the retailer, and any damage to brand credibility will be at the expense of the name above the shop-door…

However, even the savvy consumer may not be expert in such subtleties of pricing/branding dynamics and will simply feel conned by the brand-owner, thereby triggering the tell-10-friends reflex…

Better perhaps to reduce the retail margin on the £1 SKU in regular – i.e. non pound-shop distribution – to a level that discourages reductions in price below a pound.

Risking a de-listing?
Question is whether you really want/need mainstream listings of your £1 SKUs?

UK Budget 2016 – how it works in household English

'Back in 10 minutes', a study in communication....

Following my walk to a local convenience store for the Sunday papers, I was confronted by a locked door and a notice: 'Back in ten minutes'

This phrase followed all the guidelines of clear simple communication, bar the key element that mattered...  As a result, I was left pondering whether we were at the end, middle or start of the 10-minute waiting period'. Given all the freedom of a deadline-free Sabbath, I was able to further ponder if time could be taken literally in such cases.

In other words, in our working lives we are often confronted by millisecond put-offs such as 'With you in a second' from a shop assistant busy finishing a text... Or even closer to home, 'Dave, got a minute to OK our response to the Marmite price-hike?'

Anyway, by that time, Ahmed the shop owner arrived, reopened the door and following a brief discussion re the problem of simple communication being the most difficult, handed me my change with an invitation to 'Get a life, Brian' and returned to his Sabbath-free deadlines.....

Post-Marmite Negotiation 2016?

In an Amazonian world, Just-in-time is no longer adequate...

Walmart chase Amazon, catch up not guaranteed...

News that Walmart are accelerating their roll-out of warehouses, robotising logistics, randomising warehouse shelf- placement, speeding up delivery and devouring a host of e-startups all points to the fact that they have simply applied to enter a race with the advantaged innovator...

However, satisfied users of Amazon's service already take for granted infinite choice, 1-click ordering, 100% availability, 1-day (Prime-free delivery) and no-quibble returns.....

In other words, Amazon's entry requirements need to be met before Walmart can start running...

However, they will add interest to the race, and provide suppliers with a little more choice in what was beginning to seem like a 1-horse contest.

Suppliers that want to optimise online, also need to start with these Amazonian entry-standards, or move back to the sidelines...

How has Asda responded to Morrisons’ ‘Price Crunch’ campaign?

Asda's round of price cuts of the 9th September suggests the following implications:

Where at: From a supplier’s point of view, the issue centres on the 609 products (73% on branded items) that Asda reduced in terms of shelf-prices on 8th September, by up to 34%

Where headed: Key will be the extent to which other retailers price-cut on these SKUs, if seen to drive incremental traffic into Asda

Effect on you: Suppliers of these SKUs will be impacted by consumer perception of ongoing perceived value, whilst suppliers of competitive SKUs will need to consider their options…

Action: Either way, worth digging into the Brandview analysis and exploring its potential impact on your mults business

A Retailing No-brainer: Give the people what they want...

Waitrose Hove, Sunday 02-10-2016, 1130