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

Digital disruption in the UK wholesale space

“Twenty years ago I was driving boxes to the post office in my Chevy Blazer and dreaming of a forklift,” says Jeff Bezos in his most recent letter to shareholders. A blink later and he points out that the company has grown from 30,000 employees in 2010 to 230,000 now. But his ambition is the same. “We want to be a large company that’s also an invention machine. We want to combine the extraordinary customer-serving capabilities that are enabled by size with the speed of movement, nimbleness and risk-acceptance mentality that is normally associated with entrepreneurial start-ups.” Amazon is great at disruption because of its customers focus and the fact that the internet means it needs none (or very few) people between its warehouses and the shopper. The threat of Prime, its membership service, is the biggest challenge facing the UK retail market and the wholesale market by extension. It is both a direct threat and an indirect threat in that is inspiring countless numbers of othe...

New look: big copy small?

The owners of B&Q are talking up how they have cut the price of a store refit from £2.5m to £1m by using wood-effect vinyl instead of wood and painted MDF backboards for displays. Managers are learning to live with grey shelving instead of a warmer-looking cream. Shoppers notice the produce, not the fixtures, suggests one executive. Up to a point! Most local retailers will extract the maximum possible life from their fixtures, sometimes taking too long to change equipment that has become tired. As in all business, it is getting the balance right. Shops need to be refreshed and with a purpose.

What do shoppers see

I read a good post (http://www.newsagencyblog.com.au/2009/08/28/what-do-newsagents-charge-for-faxing.html) asking what price local shops charge for providing a fax service. The blogger had attached a photograph of his sign with his prices on it. What struck me was the message on the sign. "You drop, we fax," it said. "Pressed for time, drop your documents with us and we'll do it for you at no extra charge." That is a message that will persuade most shoppers that you want to give them good value, even if they stay to do the copying or faxing themselves.