Look Again at Shopping Trends, say UK Retail Leaders
The UK retail sector may be in dire straits at the moment, but the great and the good put on a brave face at this year's Retail Week Conference.
In his keynote, Sainsbury's chief executive Justin King insisted consumers are not purely gong for the cheapest option on the shelf and there is opportunity to sell premium products.
But one after another, retail leaders admitted consumer behaviour has changed, both in food and non-food and the smart players will take market share by adapting to these changes.
The fact that consumers have less disposable income than one or two years ago is an opportunity for King and other grocers to sell premium ingredients who are staying at home and cooking rather than eating out or buying ready-meals, he suggested.
King perhaps over-egged the pudding in celebrating the Sainsbury's heritage in own-brand products, but the point is valid. Own-brand ranges are going to be a very powerful selling strategy in offering consumers high quality products that are still in a competitive price range.
Again, the common message from a range of retailers was about staying true to core values if you want to retain customer loyalty. Debenhams chairman John Lovering stressed the importance of making sure every staff member echoed those values.
Key to this is getting the workforce to focus on what they can do to shape the future, rather than dwelling on the situation now. His challenge is all about keeping the feeling of fun and excitement in the business while being mindful of the harsh realities of the economic climate.
New Look executive chairman Phil Wrigley added that retailers will have to focus more than ever on consumer demand and must be able to predict accurately how trends will develop. Retailers that fail to act will find themselves going under, he warned, alluding to MFI and Woolworths.
Those that do will be able to grab market share from their less nimble rivals, he said, even in such a stark commercial landscape.
The three retail elder statesmen on the stage seem to be relishing the challenge. Given the maturity of the UK retailing market, it must be refreshing for talented business people to see the pot shaken up a bit.
Of course you'd expect them to talk things up to their peers. But all the same, it's good to see a little bit of enthusiasm and hope aired when there is so much gloom around.