Retail analyst IGD looks at the top five European grocery retailers – Carrefour, Tesco, Schwartz, Auchan and Aldi – and the key strategies they are employing to drive growth and stay ahead of the competition. The findings reveal that the number one strategy for grocery retailers to get close to shoppers is to focus on price.
IGD reveals that whilst Europe’s leading retailers operate across a range of channels and markets, their short-term strategies are seeing them focus on shoppers in order to help differentiate themselves from rivals.
Here IGD outlines the winning strategies Europe’s top grocers are employing to drive growth and stay ahead of the competition:
- Focus on price: Discounter grocers such as Aldi and Lidl are benefiting from price sensitive shoppers seeking the best value, thereby encouraging other retailers to focus even more on price. IGD references Auchan with its discount price policy and Carrefour with its focus on constant low prices across a range of branded products. The analyst reveals that the biggest price-focused initiative from the top five European grocers is Tesco’s ‘Price Promise’, which covers both branded and private label products.
- Boost convenience stores: As shoppers increasingly look to buy their groceries more frequently, Europe’s five largest grocers have placed a greater emphasis on the convenience store format. IGD cites Aldi, which has begun trialing convenience retailing in the UK, catering for convenience shoppers who want discounted prices.
- Grow multichannel expertise: All five grocers are placing more emphasis on ensuring their offers are similar across all channels, as shoppers increasingly expect consistency in both pricing and product assortment. Tesco’s belief in multichannel has become central to its strategy, as it looks to combine its store assets with its online channel to create a seamless experience for its shoppers.
IGD states that competition will remain fierce as Europe’s second tier retailers chase ever harder, and predicts that those at the top will have to maintain their levels of innovation in order to stay ahead of the game.
Monitoring the competition for grocery retailers is becomingly increasingly vital – both to understand competitor prices and promotions, as well as to get insights into a competitor’s product assortment. Find out how three out of the top five UK supermarkets with an e-commerce presence are working with Profitero to ensure they are attracting shoppers with the best value prices and thereby driving sales. Contact us at email@example.com.
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Pricing intelligence company Profitero provides retailers with actionable price intelligence data, monitoring over 50 million products across 4,000 eCommerce retailers every day, observing pricing, promotions and stock availability. We work with the world’s leading retailers, enabling them to acquire new customers and grow profit margins by monitoring and responding to changes in competitor pricing and promotional activity as they happen. For more information on Profitero price intelligence and competitor monitoring, visit www.profitero.com or email firstname.lastname@example.org