Retail Futures Article

Some interesting trend information here from Mike Watkins, Manager, Retailer Services UK, ACNielsen about what's happening in European retail. While the article was actually written in 2002, it still shows some excellent trend forecasting for things that are happening today.

Consumer Trends

Across Europe, consumers are being exposed to a proliferation of new brands and retail offers, driven by retailer and manufacturer innovation. There is more interest now in food than there has ever been. The future in consumer terms is about increasingly informed choices but also increasingly planned store patronage where convenience and accessibility will remain the critical factor for the majority. People are shopping in more and more different types of store than ever before, reinforced by changes in working practices and lifestyle. The planned top-up secondary or tertiary shop is a particularly Northern European trend, for example. The bigger grocery retailers are moving to position new store formats to cater for this top-up activity, wherever the need occurs – at railway stations, the high street or petrol stations. Secondly, amongst the out-of-town grocers- even the mid-sized chains - an increasing part of the primary shop is now non-food – for electricals, DIY and clothing. UK multiple grocers in the 52 weeks to the end of 2001 witnessed between 5-8% growth in food sales – but a 16% growth in non-foods. The retail store brand pulls this experience together for the consumer across channels and across shopping occasions, and will serve as an increasingly familiar source of reference in an environment characterised by a proliferation of choice. Thirdly, whilst it is still hard to think about shopping through technology, we have to recognise that this channel is not yet remotely mature. A fully informed channel choice in the future has to involve eCommerce, just as it has to involve a range of different physical locations for the store offer – as companies like Tesco are already starting to show. Finally, we can see food service offering a route to retail growth for grocers – in much the same way as non-foods have done. Food service, or ‘away from home consumption’, is already an established channel outside of grocers, and is growing independently and at a faster rate of between 8% and 10% in the UK.

Link: Retail Futures: Choice, consolidation and partnerships.