Retail is not for the faint-hearted. It’s always been a dynamic industry and competition is intensifying. Changing shopper habits, decreasing customer loyalty and the rise of online shopping are just some of the issues facing retailers, writes ADRIAN FERNANDEZ.
From groceries to fashion, technology to homewares, shoppers are seeking greater value from favourite brands and alternatives.
This is especially true of the grocery sector.
Desperately Seeking Value
According to emma, 57 per cent of grocery shoppers bought a “home-brand” food or beverage product in the past month. Milk is the main home-brand product purchased (44%) followed by biscuits (19%) and confectionary (17%).
Jess Gill, Director of Customer Experience for Woolworths Supermarkets, points to the importance of value in driving footfall. “About 20 million people walk through our stores every day, so we have to make sure we have the right offers in the right places for these customers.”
The three most popular department stores visited by shoppers in the past month are Big W, K-Mart and Target (visited by 44%, 40% and 36% of shoppers respectively). Myer (16%) and David Jones (7%) lag behind their discounter rivals, according to emma data.
Value clothing stores Best & Less (10%), Rivers (7%) and Millers (5%) were the most visited clothing retailers.
Many established retailers are adopting value-driven strategies to stay relevant.
Some established retail brands are not readily associated with value and must change consumer opinion of their brand.
To do this, retailers can consider “reappraisal” advertising.
The aim of reappraisal advertising is to change consumer perceptions of a brand by presenting it in a new or different way.
Trust is the vital ingredient to successful reappraisal advertising, as consumers must believe change is more than an empty promise.
Newspapers are the most trusted paid medium in Australia, making it the perfect vehicle for reappraisal advertising.
According to the latest Nielsen Global Trust in Advertising and Brand Messages report, ads in newspapers are trusted by 58% of Australians (4% more than trust TV ads).
Once a retailer has won over the value-driven shopper, the next challenge is to hold on to them.