FMCG Weekly News Update - w/c 29th February 2016

Macroview Weekly News updateYour window on the latest trends in Packaged Groceries

Stephen Hall

Friday 4th March

Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 2

• Savvy online shoppers globetrotting in search of a bargain• Asda and Sainsbury’s agree deals to digitise store advertising• McColl's full year profits rise• Morrisons teams up with Amazon in food supply deal• Asda’s ‘Income Tracker’ shows growth in consumer spending power continuing to

slow• Shoppers still buying Fairtrade products despite intense price competition• P&G overtakes Unilever to top list of most effective global advertisers• UK shop prices fall for 34th consecutive month • Branded goods help offset fall in exports of UK food and drink• Greggs to close three bakery sites as part of move towards becoming a food-on-

the-go specialist• Co-operative steps up price cut campaign • Grocery prices fall to lowest level in more than a year• P&G sells some global hair care brands to Henkel• New partnership to launch single-price discounter • High street sales slip back after strong start to the year

Weekly News Summary –29th February 2016


Savvy Online Shoppers Globetrotting In Search Of A Bargain70% of UK consumers say they expect to buy goods from an ‘out-of-country’ online retailer in the next year in sign that people are becoming more sophisticated in their hunt for the best deals.

This is one of the finding of PwC’s Total Retail 2016 study which covers six continents, 25 territories and surveyed nearly 23,000 shoppers, including 1,000 UK consumers. In a densely populated and fiercely competitive industry, the Total Retail report identifies four key themes - simplicity, trust, innovation, and customer experience – which retailers must address to be successful in the retail revolution.

According to the study, 77% of UK consumers aged 18-35 use social media to help them decide what to buy. 71% of UK shoppers are more likely to make a purchase after a recommendation on social media.

However, 70% of UK consumers shop in store at least once a month, reflecting the value of a high street presence, but 28% of shoppers would like more self-service options and free Wi-Fi in store.

Shoppers are 80% more likely to share a bad experience on social media than a good one, and one in three will share that bad experience for six months or longer.

Although the retail sands are shifting, there are still interesting differences when the UK shopper is compared to consumers worldwide. 33% use their mobile phones to benchmark rival retailer prices while shopping, compared to 36% globally. Meanwhile, 22% of UK shoppers surveyed access online coupons through their smartphones in contrast to 31% on a global level.

Illustrating the levels of competition in other territories, only 8% of UK consumers have received an offer based on their proximity to a retail store versus 14% globally.

Madeleine Thomson, UK retail and consumer leader at PwC, said: “The survey identifies four key themes: simplicity, trust, innovation, and the customer experience. Getting these right will give a solid foundation for growth in a densely and intensely competitive industry.

“But it isn’t easy. Retailers have to keep up with emerging trends, anticipate consumer needs, and manage across a wide range of different channels.

“UK retailers must continue to tread the fine line between ‘clicks’ versus ‘bricks’, as advances in mobile phone technology, online sales and deliveries alongside shop and collect services mean the focus shifts away from the traditional trip to the high street.

“Digital technology means the barriers to entry are crumbling: 73% of the people surveyed rank Amazon in their top three retailers – a retailer that has no physical stores.”

For the first time as part of the survey PwC asked what would lead shoppers to purchase from an ‘out-of-country’ online retailer in the next 12 months. Tepid economic growth in the US and Europe over the past few years has resulted in an economic split of shoppers in these regions into ‘survivalists’ and ‘selectionists’, the survey found.

Selectionists maintain an appetite for brand and a distinctive store experience. For survivalists, affordability is at the core of future purchase decisions - discounts and deals are critical. Clothing and footwear, consumer electronics and computers, books, music, movies and video games, and health and beauty products are top of the list for these bargain hunters.

Ashley Unwin, UK Consulting leader at PwC, commented: “PwC’s Total Retail survey of nearly 23,000 shoppers in 25 countries reveals the changing behaviours that will drive the coming retail revolution. China in particular, and emerging markets in general, will continue to set the pace in terms of mobile and social shopping.

“But closer to home, our survey also reveals an increasing clarity on the part of consumers that retail employees and businesses need to up their games if they hope to successfully serve today’s knowledgeable, tech-savvy customers.”

Source: NamNews 29th February 2016


Asda And Sainsbury’s Agree Deals To Digitise Store AdvertisingAsda and Sainsbury’s have agreed separate deals to roll-out advanced digital advertising outside their stores.

Clear Channel UK has been awarded the advertising contract for Asda stores following a competitive tender. The contract, which Clear Channel will take over in July, will see the complete digitisation of Asda’s advertising across its store portfolio.

The upgrade will see the installation of hundreds of 70” portrait digital screens located at the entrance of Asda Superstores nationwide, with a smaller variant to be designed for Asda Supermarkets.

The upgraded screens will be powered by Clear Channel’s intelligent content management system, Play iQ, which offers advertisers live availabilities and campaign reporting. Clear Channel said it will also utilise Asda sales data and customer insight information to create “hyper-relevant, contextual advertising opportunities.”

Justin Cochrane, CEO, Clear Channel UK said: “We are delighted to have been awarded the Asda advertising contract, and are looking forward to working with Asda on the modernisation of their Out of Home estate. Converting hundreds of advertising panels to beautiful digital screens, underpinned by intelligent technology, will allow us to offer brands and customers advertising experiences that are relevant and right for them.”

Meanwhile, Clear Channel UK has also retained an advertising contract for Sainsbury’s stores following a competitive tender. It will continue to sell the advertising space outside Sainsbury’s stores nationwide and take responsibility for their cleaning and maintenance.

Clear Channel will also upgrade up to 350 screens outside Sainsbury’s store to digital, creating a nationwide network of 70” portrait screens located in the entrance of Sainsbury’s stores. Again, the screens will be powered by Clear Channel’s intelligent content management system, Play iQ.

Source: NamNews 29th February 2016


McColl's full year profits riseNewsagent and convenience chain McColl's has reported that its full year pre-tax profit rose to £21.1 million from £12.6 million in the previous year.

In the 52 weeks to 29 November, total revenue edged up 3.1% to £932.2 million. Like-for-like sales declined by 1.9% in the full year period although there was an improving trend in the final quarter.

James Lancaster, McColl’s chief executive, said: "I am pleased to announce financial results in line with expectations for 2015. In a challenging market we have grown sales and improved profits, at the same time we continue to deliver on our strategy of evolving our store portfolio.

“This year will see us reach 1,000 convenience stores, 50% more than we operated just four years ago.”Looking at current trading, total like-for-like sales fell by 1.8% in the 13 weeks to 28 February 2016 in line with the previous quarter. Within this, the retailer’s premium convenience and converted food and wine stores continued to show a stronger performance with sales down 1.1% compared to a decline of 3.1% in its newsagents and standard convenience stores.

Like-for-like sales in the retailer’s 2014/2015 conversions and acquisitions were ahead by 0.4%.

Total revenue for the period increased by 2.7%.

Source: Retail Bulletin 1st March 2016


Morrisons teams up with Amazon in food supply dealMorrisons has teamed up with online retail giant Amazon in a new supply agreement which will see hundreds of Morrisons grocery products available to Amazon Prime Now and Amazon Pantry customers.

The supermarket will provide a wholesale supply service to Amazon to allow Amazon customers access to a wide range of Morrisons ambient, fresh and frozen products.

In a statement, Morrisons said it was focusing on its six priorities to make its supermarkets "strong again" and that the partnership with Amazon would give it an opportunity to build a broader business.

David Potts, Morrisons chief executive, said: "Today's agreement is built on Morrisons unique strengths as a food maker. The combination of our fresh food expertise with Amazon's online and logistics capabilities is compelling.

"This is a low risk and capital light wholesale supply arrangement that demonstrates the opportunity we have to become a broader business. We look forward to working with Amazon to develop and grow this partnership over the coming months.“

In addition, Morrisons has been in discussions with Ocado to grow its online retail offer and has agreed in principle to take space in Ocado's new customer fulfilment centre in Erith.

Ocado will also deliver a store pick solution for Morrisons. When implemented, this will enable Morrisons.com, working with Ocado, to sell to customers all over the UK.

Morrisons added: “The amended agreement is subject to detailed terms being agreed and will only proceed if it enables Morrisons to achieve profitable growth online.”

Source: Retail Bulletin 1st March 2016


Asda’s Income Tracker Shows Growth In Consumer Spending Power Continuing To SlowFamilies across the UK enjoyed another double-digit increase in spending power in the first month of the year, according to Asda’s latest Income Tracker. As employment across the UK continued to rise, the average UK household discretionary income reached £197 a week in January 2016, up £12 (6.7% year-on-year) compared to the same time last year.

However, the latest findings also revealed that January marked the fourth consecutive month where the year-on-year rate of spending power growth has fallen, thanks to a slowdown in wage growth and a steady increase in inflation. While the economic outlook remains relatively positive, Asda’s latest Income Tracker suggests that a slowing rate of recovery is having a knock on effect on British purse strings, with disposable income set to continue to grow at a slower rate than those seen through much of 2015.

Andy Clarke, Asda President and CEO, said: "Another double-digit increase in disposable income in January gave a welcome financial boost at a tough time of year. In juxtaposition, annual growth in spending power fell year-on-year for the fourth consecutive month.

“The good news is that the outlook for 2016 is positive for UK households, with incomes increasing and employment buoyant. Whether families choose to save their extra income or boost spending on leisure, treats or everyday essentials remains to be seen. The good news for consumers is that the competitive retail environment is translating to lower prices across the board.”

Sam Alderson, Economist, Cebr, added: "Although growth in family spending power has declined in the latest data, the overall picture is positive. UK consumers have much more money to spend than a year ago.

“We expect continued falls in unemployment as well as rising earnings growth over the coming months. Combined with sustained low inflation, households should be in for a good time in 2016 as far as their finances are concerned. This comes despite broader concerns over the strength of the UK economy.”

Source: NamNews 1st March 2016


Shoppers Still Buying Fairtrade Products Despite Intense Price CompetitionDespite intense price competition between the supermarkets, consumers appear to be staying loyal to fairtrade products. Figures released by Fairtrade Foundation show there was positive volume growth in four out of the five main Fairtrade food categories last year – coffee (+12%), tea (+3%), bananas (+5%) and cocoa (+6%). There was also double digit growth in volumes of wine (+17%) and flowers (+14%) sold in 2015.

Launching Fairtrade Fortnight 2016 (Feb 29th- Mar 13th), CEO of the Fairtrade Foundation Michael Gidney, said: “These figures show that British shoppers remain committed to Fairtrade, despite the turbulence in the grocery market. That’s good news for those businesses offering Fairtrade products. We’re delighted to see increases in most of the categories for which Fairtrade is best known – this means more producers are getting a better deal for the food they grow for us”.

However, not all Fairtrade products fared as well in 2015. In particular, changes in EU market regulations on sugar were leading a collapse in sales of cane sugar said the Foundation. Volumes of Fairtrade sugar declined by 36% in 2015, compared to 2014, spelling real challenges for the many thousands of small-scale cane growers dependent on cane exports to the EU for their livelihood.

The Fairtrade Foundation’s initial estimates of the overall retail value of the UK Fairtrade market show a slight decline to around £1.6bn in 2015, compared to £1.7bn in 2014. However, it said that if the collapse in the price and market for cane sugar is removed from the equation, overall Fairtrade sales grew by an average 4% in volume, whilst the retail value remained steady with around 1% growth.

For 2016, the Fairtrade Foundation said it remains cautiously optimistic, with recent announcements by a range of businesses to extending their commitments to buying on Fairtrade terms. These include The Co-operative committing to stock Tate & Lyle’s Fairtrade sugars in addition to its own label Fairtrade sugar – becoming the first to make its entire sugar range Fairtrade.

2016 will also see the first full year of sales of Mars Bars sourced with Fairtrade cocoa, which first hit shop shelves only in the autumn of 2015.

The Foundation added that further business commitments are expected to be made during the Fairtrade Fortnight and later in the year.

Source: NamNews 1st March 2016


P&G overtakes Unilever to top list of most effective global advertisersProcter & Gamble has overtaken Unilever to take the title of the most effective global advertiser while “breakthrough brands” including Ikea, Heineken and Jaguar owner Tata Group climbed up the rankings.

The report, the Warc 100, found that P&G was the most effective advertiser with nine campaigns in the top 100. These include #LikeAGirl by Leo Burnett for its Always brand, ‘Touch the Pickle’ by BBDO for Whisper and Old Spice’s ‘Smellcome to manhood’, from Wieden+Kennedy. The Warc 100 is a ranking of the world’s best marketing campaigns and companies according to business impact.

While Unilever remains a “very effective advertiser”, it saw its position slip from first in 2015 to second this year with just three campaigns in the top 100. Warc says that while both companies have been driving efficiency through cuts to non-working media and a shift to digital, the results suggest this might be having a negative impact at Unilever.

“Procter & Gamble’s strong performance in the current Warc 100 reflects the company’s continuing ability to develop powerful advertising that gets people talking. While Unilever remains a very effective advertiser, the latest results raise questions about the potential impact of cost cuts on the development of breakthrough marketing ideas,” says the report

Breakthrough advertisers

Both Ikea and Heineken had “breakthrough years”, appearing in the top 10 for the first time. Warc credited their global scale and consistent success across international markets, as well as the broad brand portfolio at Heineken, for the strong performance.

David Lette, Heineken brand director, says the fact that Heineken has experienced double-digit growth in the UK since 2012 shows that its marketing focus on pushing its premium credentials is working.

“We want people to enjoy Heineken at every touchpoint. This might be buying a limited edition bottle at their local supermarket or enjoying a cold pint, served extra cold, in their favourite pub, or perhaps engaging with the brand by tweeting with a Heineken football legend while watching a gripping Champions League match,” he explains.

“2015 was a great year for the brand, with our sponsorship of the Rugby World Cup as a centre piece of the activities. We were also able to activate our long-term partnership with the Bond franchise, with the release of Spectre providing a successful close to the year.”India’s Tata Group was one of the biggest risers with its ranking going from 32nd in 2014 to ninth in the latest list. Its most successful campaign – Jaguar’s ‘British Villains’ from agency Spark44 – came 14th and showed that success outside a company’s home market is key to success.Source: Marketing Week 1st March 2016

https://www.marketingweek.com/2015/03/03/procter-gamble-confident-like-a-girl-campaign-has-legs/



http://www.marketingweek.com/2015/01/27/pg-presses-on-with-marketing-efficiency-drive-as-sales-projections-fall/

http://www.marketingweek.com/2015/08/04/heineken-to-push-50-of-marketing-budget-into-rugby-world-sponsorship/

http://www.marketingweek.com/2015/09/22/how-heinekens-james-bond-ad-reflects-the-shift-away-from-beers-lads-having-a-drink-image/

http://www.marketingweek.com/2014/02/14/jaguar-plans-edgy-campaign-to-broaden-appeal-beyond-older-people/


UK shop prices fall for 34th consecutive month Shop prices fell by 2% year-on-year in February, the 34th successive decline following January’s 1.8% fall. The continued deflation was reported by the British Retail Consortium and Nielsen in their monthly Shop Price Index.

Following a 0.1% rise in food prices in January, February reverted to a 0.4% fall. The BRC commented that the results suggest that the rise in food prices at the beginning of 2016 could be viewed as a blip.

The decline comes at a time where big four supermarket chains are continually cutting their prices to keep up with one another. Morrisons announced price cuts on 1,000 everyday products in February after Asda committed to investing an additional £500m on price cuts, on top of the £1bn in 2013.

“Getting a larger share of the wallet of shoppers continues to be a challenge for many food and non-food retailers and competition remains intense on the high street,” said Mike Watkins, Head of Retailer and Business Insight at Nielsen.“Food prices continue to fall as Supermarkets are working hard to stimulate sales with price cuts rather than multi-buy promotions, and this is leading to continued deflation in food. With uncertain market conditions, offers and discounts are likely to continue for the time being.”

Non-food prices continued to fall at 3% for the third month in a row. Clothing, footwear, electricals, DIY and books all saw the greatest reductions.

“With consumer confidence falling back and wage growth remaining subdued, retailers continue to support their customers with prices and promotions to maintain market share in the tough trading environment” said BRC Chief Executive Helen Dickinson.

“Against this backdrop we are asking government to work more collaboratively with us to address business rates and ensure the successful implementation of policy measures, such as the national living wage and the apprenticeships levy.”

Source: Retail Gazette 2nd March 2016


Branded Goods Help Offset Fall In Exports Of UK Food And DrinkExports of branded food and non-alcoholic drinks grew by 0.9% to £4.63bn in 2015, representing the 15th year of consecutive growth, against a backdrop of declining overall UK food and non-alcoholic drink exports, the Food and Drink Federation (FDF) said today.

Overall exports fell by £0.6bn to £12.3bn in 2015 as a result of a drop in oil prices and the strength of the pound against the depreciated Euro, which has made UK exports less competitive in key Eurozone markets.

Chocolate, salmon and cheese remain the top three export product categories, while exports of vegetables, both prepared and fresh, experienced the largest increase in overall growth, up £18m in 2015 to £36.3m.

Non-EU markets now buy 30.8% of the UK’s total branded food and non-alcoholic drink exports. The value of exports to non-EU markets was up 6.4% on 2014 figures, with double-digit growth seen in Saudi Arabia, Japan and Australia. Exports of branded food and non-alcoholic drinks to the EU fell by 1.3% in 2015.

Exports to China grew by 9%. This is the first time that the world’s most populated nation entered the UK’s list of top 10 overseas trade partners. In 2014, the UK was the EU’s number one exporter of tea to China, while exports of processed milk to China rose by £19.3m (+202%) in 2015.

Elsewhere, UK breakfast cereal exports to UAE grew by £8.9m (+45%) in 2015 and exports of crisps to France rose by £1.2m (+23%).

In terms of the biggest market growth, the UK saw exports to Thailand increase by £59.3m (+122%), with cereals making up £21.5m of that growth. Exports to Spain grew by £46m (+9%), with high temperatures and a lack of rain in 2015 resulting in Spain becoming more reliant on imports of UK wheat and barley.

Angela Coleshill, Director of Competitiveness at FDF, said: “Growing exports is a top priority for Britain’s makers, bakers and bottlers, who have set an ambition to increase branded exports by a third by 2020. For our industry to meet this stretching target, we need to make sure small and medium-sized food companies in particular are helped to compete in the fiercely competitive global marketplace.”

Source: NamNews 2nd March 2016


Greggs To Close Three Bakery Sites As Part Of Move Towards Becoming A Food-On-The-Go SpecialistAlong with its annual results yesterday, Greggs announced that will close three of its 12 bakeries in the UK as it continues its move away from being a traditional bakery business towards becoming a food-on-the-go specialist.

The closures are in Twickenham, Sleaford and Edinburgh, and are likely to lead to the loss of over 350 jobs. With Greggs moving away from baking bread and cakes towards selling food to go items such as sandwiches, sausage rolls and pastries, the group said the three sites were not suitable for long-term investment due to their location and size. Greggs plans to invest £100m to upgrade its remaining bakeries over the next five years as part of its shift in strategy.

Chief Executive Roger Whiteside said: "These are difficult changes that we believe are needed to support the long-term growth of the business."

The company’s year end results to 2 January showed that its total sales rose 5.2% to £835.7m, with pre-tax profits before exceptional items up 25.4% to £73m. Company-managed shop like-for-like sales rose 4.7%.

After opening 122 new shops and closing 74 sites, Greggs ended the year with 1,698 shops. It plans to expand to more than 2,000 stores.

The group said that the year had started well with like-for-like sales in the eight weeks to 27 February up by 4.2%, with total sales increasing 6.8%. It added that the consumer outlook remained positive with disposable incomes expected to grow further in 2016.

Source: NamNews 2nd March 2016


Co-operative steps up price cut campaign The Co-operative Group is set to invest £75m into over 200 of its private label lines. This will bring the annualised investment from the Manchester based retailer to over £200m by the end of the year.

Backing BritishThe average reduction of the price cuts is set to be around 10% with British sourced meat and poultry lines featuring within the targeted range. These 200 lines will push the investment total number of lines invested in as part of this campaign to over 1,000 which includes hundreds of fruit and vegetable lines. As the grocery price war continues the investment appears to be paying off as the sales momentum of the Co-operative is building.

The group’s Retail Chief Executive Steve Murrells said: “We are building momentum and attracting more shoppers into our stores and our price investment programme is ensuring our convenience offering remains highly competitive while restating our commitment to sourcing British products."

Source: IGD 3rd March 2016


Grocery Prices Fall To Lowest Level In More Than A YearAmid the continuing supermarket price war, the cost of everyday groceries has fallen again, dropping to their lowest level in more than a year, according to latest date from mySupermarket.co.uk. .

Research conducted by the grocery price comparison website found the cost of a basket of 35 popular products cost £84.83 in February, the lowest recorded price since its Groceries Tracker was launched in late 2014. It’s also the first time prices have dropped below the £85 mark, with some products dropping in price by almost 14% compared with the year before.

mySupermarket’s analysis showed the products that fell the most in price in February were onions and carrots (both down 6%) compared with the previous month. Mushrooms and broccoli also dropped more than 13% compared to the beginning of 2015, while onions, bananas and cucumbers have dropped more than 10%.

Products that rose in price included pasta (up 6% compared with February 2015), crisps (up 4%), and baked beans (up 3%).

When compared to a year ago, the same basket of goods in February 2016 was 4% lower, a saving of £3.76 per shop.

Kim Ludlow, MD of mySupermarket.co.uk said it was clear the supermarket price war was still having an impact and it was “great news” for shoppers. “We were delighted to see some items were down more than 10% compared to this time last year, equating to some impressive savings,” she said.

“However, as always, we warn shoppers to be vigilant. The increased competition means each retailer will pull out all the stops to get you into their store. Prices will change regularly and it’s important to compare your entire basket before you shop to ensure you are getting the absolute best price every time.”

Source: NamNews 3rd March 2016


P&G Sells Some Global Hair Care Brands To HenkelProcter & Gamble has announced a new divestment, saying it has agreed to sell some hair care brands to rival Henkel. No financial details of the deal were disclosed.

The brands in question generate sales of around $100m, and include Pert, Blendax, and Shamtu. The deal is subject to regulatory approval.

Henkel said: “These brands are a perfect fit for our Beauty Care business. This acquisition is part of our strategy to further strengthen our footprint in emerging markets and to invest in strong country category positions.”

Source: NamNews 4th March 2016


New partnership to launch single-price discounter The founders of 99p Stores are partnering with the owner of Poundstretcher to bring UK shoppers more variety to the discount channel with a new single-price point chain.

Meetings underway with suppliersJust six months after the Lalani family sold 99p Stores chain to Poundland, they have set up an office in Leicester at the head office of Crown Crest: Poundstretcher's owner. According to The Grocer, it understands that the partnership has begun to hold meetings with potential suppliers.

New discounter to sit alongside PoundstretcherWhile it is thought the discounter will be single-price, keeping the proposition simple for shoppers, it is unknown what this price point will be. If this new venture is looking to compete with the multi-price variety discounters such as B&M and Home Bargains, a price point over £1 would unlock greater potential to stock more products and categories that aren't available in the one pound players. The new venture will be lead by Poundstretcher's new managing director, Gerry Loughran.

Poundstretcher reports sales up 10.9%Poundstretcher's turnover increased by 10.9% in the year ending 31 March 2015 to £438.3m. The company has turned its store performance around, with like-for-like sales at 5.9%, compared with -2.9% in the previous year. Company profits have also increased down to restructures of debt and payment profiles.The three focus areas of the year for the discounter were the store estate, the product offer and the customer experience. Given the strong sales growth compared to the UK's struggling grocery retail landscape, it seems that these improvements have made a difference to shoppers who we are told enjoy the simplicity of the pound price model.

Source: IGD 4th March 2016

http://retailanalysis.igd.com/Hub.aspx?id=13&tid=1&rid=444&nid=14346

http://retailanalysis.igd.com/Hub.aspx?id=13&tid=1&rid=444&nid=14346


High Street Sales Slip Back After Strong Start To The YearBDO’s monthly High Street Sales Tracker (HSST) recorded a 1.7% fall in year-on-year sales for February – the first negative growth for the month of February since 2012 (when it was down 1.5%).

February has proved a tough month for fashion retailers in recent years, and 2016 was no exception. Like-for-like fashion sales recorded a year-on-year fall of 2.9% for the whole of February. Homewares sales fell slightly by 0.5%, yet the lifestyle sector increased sales by 0.8% in February. Non-store sales rose by 18.3% compared to the same period last year.

BDO said the fall for February reflected a downward trend that has been building since the middle of January. While the overall picture for January was positive (up 1.4%), sales dropped off as soon as the January discounting season ended and retailers started to bring in full-price Spring lines.

Sophie Michael, Head of Retail and Wholesale at BDO LLP, said: “Low consumer confidence, a weak pound and the forthcoming introduction of the National Living Wage means retailers are facing an even more challenging period.

“After a strong start to the year, primarily driven by the sales period, retailers have returned to negative like-for-like revenue growth. The canny consumer continues to shop for bargains. Retailers have to find ways of enticing the customer back into store during full price periods through a rich product mix and the right customer experience.”

“With traditional shopping periods of Easter, Mothers’ Day and the March Bank holiday falling earlier this year than in 2015, retailers have an opportunity to reverse the downward trend and build year-on-year sales in March,” she added.

Source: NamNews 4th March 2016

Macroview Weekly News updateYour window on the latest trends in Packaged Groceries

Stephen Hall

Friday 4th March