Grocery Sales Fall, Inflation Returns, And Tesco, Sainsbury’s, And Discounters Gain Market Share

The latest take-home grocery figures from Kantar show sales fell by 4.0% year-on-year during the 12 weeks to 8 August as consumers continued to return to pre-pandemic shopping habits, making smaller but more frequent trips to the stores. However, in the last month, sales declined more slowly by 0.5% and the data shows that Covid is still having an impact on people’s spending as grocery sales remain 9.9% higher in the latest 12 weeks than in 2019.

NamNews Implications:

• A solid base of online loyals has emerged…
• ‘Ocado has retained 1.8% of total grocery sales, the same as last year, and sales are up by 44.4% compared with 2019, the fastest two-year growth in the market.’
• Says it all for Ocado.
• Meanwhile, with 11% of Amazon grocery in own-label…
• …they have plenty of O/L headspace vs mkt average 50%.
• ‘Aldi now holds 8.2% of the market and Lidl 6.1%’ illustrates the continuing discounter threat…

#GroceryMarketShares #PostLockdownRecovery #DiscounterThreat

Amazon To Add New Own-Label Food Range To Online Offering

The own-label food range developed for Amazon’s new grocery store format that launched in the UK earlier this year is set to be offered to its online customers.

The two ranges made their debut in March in the new ‘just walk out’ Amazon Fresh stores. Said to be sourced from UK suppliers, the ‘By Amazon’ label focused on everyday items such as milk and bread, whilst the ‘Our Selection’ offer covered more premium lines. They are sold alongside branded products and items that come from Morrisons and Booths.

NamNews Implications:

• The ultimate test of a retailer’s pulling power (and ego) is the extent to which they can monetise their retail brand via own-label.
• Key is the Generation they choose to position the offering (See our 1-page treatment of Four generations of own label)
• i.e. like Tesco Finest, deliberately positioned as Gen 4: better than national brand but the same price.
• Then branded suppliers have a real (and threatening) competitor…

#PrivateLabel #Amazon

Lockdown, what Lockdown? Some wishful thinking from the NamNews Team!

#Lockdown #Hospitality #PoliticalDilusion

Two Wrongs won't make it a Right Question, from the NamNews Team!

 (Best focus on how to rebuild a business from Lockdown?) 

#LockdownDamage #BackToBasics #RelativeCompetitiveAppeal

Asda’s CEO Steps Down Earlier Than Expected

Trevor Strain, Morrisons’ Chief Operating Officer, Steve Murrells, the boss of the Co-op, Jason Tarry, CEO of Tesco UK & Ireland, Stuart Machin, head of Food at M&S, Ronny Gottschlich, a former boss of Lidl, and Anthony Hemmerdinger, Asda’s COO, have been named by industry watchers as potential candidates to take over from Burnley.

NamNews Implications:

• With six potential candidates, NAMs will need further clarity…
• …in order to muse re impact of a replacement on Asda policy.
• Meanwhile, anticipate more influence from the owners…

#Succession #AsdaFuture

The Hut Group Makes Another Acquisition

E-commerce giant The Hut Group (THG) has continued its acquisition spree by buying online retailer Cult Beauty for £275m.

Launched in 2008, London-headquartered Cult Beauty sells around 300 brands across skincare, haircare and cosmetics, including Charlotte Tilbury, Drunk Elephant, and Huda Beauty.

NamNews Implications:

• In the infinite space of online…
• …this is a no-brainer addition to THG will add scale benefits inc cost efficiencies, minimum.
• And at growth rates of 38% and 41%…
• …you have to have a good reason for not being on board.

#

OnlineCosmetics #beauty #skincare

Doritos Unveils Latest On-Pack Promotion

PepsiCo’s Doritos brand is launching a new on-pack promotion that offers shoppers the chance to win a grand prize of £20,000. There is also an additional opportunity for consumers to win £200 every day.

NamNews Implications:

• A versatile brand…
• …combined with creative consumer engagement…
• …and potential financial reward.
• A no-brainer…

#ConsumerEngagement #Promotions

PepsiCo Selling Juice Brands To Private Equity Firm

PepsiCo has entered into an agreement with PAI Partners (PAI) to sell a 61% majority stake at $3.3bn in its Tropicana, Naked and other select juice brands across North America, and an irrevocable option for certain juice businesses in Europe.

NamNews Implications:

• Rivals should anticipate two changes resulting from this move…
• A different focus on the selling of the juice brands to release potential
• A more intensive focus on PepsiCo’s current portfolio of diverse offerings
• Including growing their portfolio of healthier snacks, zero-calorie beverages, and products like SodaStream.
• Watch these places…