Some Important Keys to Growth in Today's Competitive Supermarket Enviroment
The contemporary supermarket operating environment is ever-changing. From the influx of foreign competitors, to changing consumer demands, no food retailer can afford to ignore these and other developments. Sustained growth is achievable if supermarket management concentrates on new operating paradigms and adopts initiatives to take advantage of these new trends all the time.
The following are some important keys to Growth in today’s competitive supermarkets:
Efficient Operating Models
Operational efficiency is very important to sustain constant growth for supermarkets. It is not just a one-off initiative, such as increased advertising expenditures to produce more sales. It is, and must continue to be, an ingrained way of operating for food stores.
The financial benefits of efficiency manifest itself in other areas of the business. Increased dollar savings because of stricter cost controls frees up money for more advertising and promotions. More funds available can allow for technology upgrades. More funds can also contribute to price-cutting on some "center of store" products to allow a food retailer to compete more so with discount food retailers.
Choosing a Sub-Niche to Target
Everyone shops at the supermarket. However, who is your supermarket shopper? Is your grocery store trying to be all things to all consumers? Unless you are as big as Pick n pay or Woolworths, you cannot be all things to all people. Consider your specific supermarket brand - who and what you are, what you specialize in, and how you want consumers to see you.
You need to market towards the ideal consumer that fits your brand. For example, your speciality may be your meat department with its 'local butcher shop' persona, or your artisan Old-Europe bakery department. It may be your commitment to locally sourced, organic produce and/or other locally manufactured food products. You may focus on regional dairy products in your store.
This certainly sets you apart from the more general offerings of mass retailers in your area. Therefore, you are going after a sub-niche of the overall consumer arena. Focus on developing sales within this niche and let the big retailers duke it out for more generic sales.
Private Label Offerings
Having products under your own label and name can be a way to grow sales. Your private brand is a way of always having your name in front of consumers. Typically, private-label items can be offered to your customers for less than nationally recognized brands.
Your store-branded products can compete with more well-known brands today. This is because consumers are more comfortable with private-label offerings - they look for them to compare with more traditional name brands. They often choose private-label brands when they can realize cost savings while still getting a quality product.
You can build loyalty to your store-branded products if you offer price/quality, and even unique products under the umbrella of your private label. Thus, customers satisfied with your brand have to come back to you.
Unique Shopping Experiences
This is often trumpeted to build sales for all types of retailers. Why? You must differentiate yourself in the marketplace. You must, in the contemporary ultra-competitive supermarket environment, make people want to shop at your establishment.
Brand experience is emphasizing your individuality as a food retailer. Define your brand via your conscientious customer service, have an inviting store atmosphere, distinctive products, a good store layout, display stands and well-trained employees. Combine these elements into presenting a first-rate store persona - one that makes customers see your supermarket operation as different, not a cookie-cutter version of the way a supermarket is often thought of.
Give C4 Display a call today on 011 705 3199 and our friendly staff will gladly be able to assist you.