Skip to main content

Is your shopper a Waitrose shopper?

The definition of what makes a convenience store often depends on the outlook of the person asking the question. For a local retailer, stocking milk, bread and a few essential grocery items is often enough. For a major grocery supplier, 3,000 square feet of gleaming store, well planogrammed and merchandised is often a starting point.

I like Nigel Mills' definition. If most of your shoppers pick up a basket when they walk in, you have a convenience store, he says.

So news that Waitrose is to open hundreds of c-stores around the UK may be a concern if your shoppers are picking up baskets. It could be that your shoppers are the ones it is targeting.

However, this week's stock market update by Marks & Spencer chief executive Stuart Rose shows that he believes Waitrose is after his shoppers. M&S has unveiled advertisements showing that its wise buys are cheaper than Waitrose's essentials. If shoppers think M&S is more expensive, it is not true, says Sir Stuart. "We need to get our message across."

Returning to your business, think about how this battle might affect your shoppers. There is no reason to be afraid of taking on the big shops but you need to be aware of how they are framing the value equation in the minds of shoppers.

Sir Stuart says shoppers are "fed up with being fed up" and "fed up with eating cheap, not very exciting food". Hopefully, for his shareholders, this is backed up by shopper research, which tells you that shoppers are looking for something new. Do you have it?

It is worthwhile to pay close attention to the advertisements of the multiples, to what your shoppers ask for, and to what your suppliers are suggesting as product ideas. Loyal customers picking up a basket are worth pampering.

Comments

Popular posts from this blog

Busy street, empty shop, missed profits

True in part to my New Year resolution, I held a business meeting in an independent coffee shop today just next door to a Starbucks. The cafe was presented well and four staff were busy preparing for the lunchtime rush, at 11am. As my guests were late, I had a half hour overview of footfall on the street outside and in the restaurant. Six customers. Barely enough to form the queue in Starbucks or Pret-a-Manger just down the road. Plus one Italian girl who dropped off her CV. Some people stopped to look at the posters in the window and moved on. The owners seemed quite happy. When I left just after 1215, they were doing brisk trade. However, I have the impression that the business is not working hard enough. It could easily have managed 120 customers between 11 and 12, instead of 12. This is lost profit as the fixed overheads and staff costs are already in place. The owners are clearly busy - perhaps too busy to take time to look at the potential that their cafe has. What shou...

Three secrets of great merchandising

Look at the ceiling and top wall of this McDonalds restaurant. There is a picture of two good looking healthy people having fun and some bright primary colours. Ask yourself what is the purpose of this picture? In the latest issue of Retail Newsagent in a feature on merchandising, Andrew Knight of RI tells its independent readers that they need to think about using sharp pictures of non-packaged products linked to people consuming goods. Perhaps this has been taken to the next level by the fast food chain - that is selling the feeling of being happy and healthy rather than the products. A second, related tip from the same feature is made by most contributors - it is vital to keep windows clean and clear of clutter. "I believe that less is more," says Roli Ranger, a retailer from Ascot, Berkshire. He has posters for promotions in between the windows that are regularly updated and discreet signs in the windows. Third, a highly visible well-stocked promotion at the entranc...

Think before you delist your slowest seller

Retailers need to introduce new products to provide their shoppers with "good news" and to generate interest. But for each new product that you introduce you need to consider delisting an existing line. Easy, you might think. I will just print out the list of products in the category and take off the one with the lowest sales. However, if you do this research from the US suggest you might be wrong. What you need to consider is what sort of demand you have for each product, a white paper by Demand Tec, a US specialist software provider shows. It says that there are two kinds of sales: incremental sales, when products add to the total shopper spend and are not readily substituted by another item transferable sales, where shoppers find an alternative easily when it is not available. Using its software, it shows a category with 50 products from top seller to bottom seller. At the same time it also measures the incremental sales each product provides. The number 50 in ove...