At a glance

Supermarkets account for more than two-thirds of all food consumption in Britain. But if brands and grocery retailers stand any chance of success in finding growth, they must embrace their blind spots and acknowledge them.

Why it matters

With wholesale changes to store design, supermarkets and brands need to take a step back and answer two questions to ensure continued success: How does this change the shopper missions in the store? What pack/promo strategies are needed to meet these missions?

Takeaways

  • Supermarkets and brands can make the first giant leap forward if they recognise that revenues and gross margins are not the main challenge facing British supermarkets today. Instead, efficiency and bottom-line profitability that are the main threat.
  • Having great store designs and then having amazing products anchoring each category is not enough to guarantee growth in supermarkets. A third pillar must come in to support efforts: clear and consistent communication with consumers and shoppers.
  • There are three general ways that brands can communicate with consumers. Firstly, they can attempt to reach the consumers outside of the supermarket through mailers, adverts, direct messages and so on. Secondly, they can attempt to communicate at the fixture. Lastly, they can communicate using great packaging.