Shopper Marketing - January 2018 - 53

JANUARY 2018 SHOPPER MARKETING

TRENDS 2018 53

Retailers
Are the following retailers on the right track?

80
75.3%
Yes
No
60%

60

57.3%
48.8%

46.1%

40

38.2%
34.4%

31.5%

30.7%

23.6%
20
13.5%

0

22.5%

18.2%

Kroger

16.8%

14.6%

11.2%

Target

19.3%
13.5%
9.1%

Dollar General

Albertsons/
Safeway

Dollar Tree/
Family Dollar

Ahold Delhaize

Staples

Rite Aid

Office Depot

8%

Southeastern Grocers

INSTITUTE ANALYSIS:
This question opened our survey, and
some respondents questioned what
we meant by "on the right track."
We wanted, simply, a gut-check on
how they felt about the direction
each chain is headed. While one
respondent indicated that he/she
would not continue with the survey
due to our question, it generated the
most open-ended comments from
those who chose to continue. Among
their comments:

" Albertsons is still struggling with the acquisition after nearly two
years. They have got to go faster and beef up their e-commerce capability ASAP."

" Office Depot and Staples are dying. It's inconvenient. People will pick
up their school supplies at Target while they're grabbing groceries and
such."

" Almost all of these retailers seem to have little vision, if any, at expanding and growing their consumer base."

" Target is too focused on their profit centers (i.e., pay for programming) and not focused enough on if their programs work."

" Dollar General and Kroger are embracing digitalization. The others
talk the talk but don't really walk the walk."

" Ahold needs to open up better to ideas and vendor relationships."

" Target has seemingly lost its way. Traffic is down, they continue to go
to the old playbook without significant results. "
" Kroger's new 'precision marketing' is a game changer for them."
" Kroger ClickList is getting rave reviews in my community and seems
to be sparking more loyalty where many had started shifting to Trader
Joe's and Costco."

Which class of retailers is most threatened by the
growth of hard discounters such as Aldi, Lidl?

" The concept of Aldi, Lidl is similar to clubs, but it's more convenient."
" Discount retailers (including dollar) are where the growth is going to
be."

43.2%

" Dollar stores are also closeout/discounted, so they'll see a threat."
" I see national grocery being impacted the most by hard discounters
because the formats are most similar to national grocery."

31.8%

Multi-price-point variety chains
(Dollar General, Family Dollar)
Warehouse clubs
"One dollar" stores (Dollar Tree)

8%

" I feel that Aldi and Lidl are going to be a very slow build and have the
chance of being overwhelmed by Walmart, Target and chain grocery
stores."

8%

" I think the variety chains will be the most impacted as they are nearest
in similarity to stores like Aldi and Lidl in regards to pricing."
" If Lidl gets in the driver's seat on hard discount, I think the bigger
impact, once they are more broadly distributed, will be the alternate
fill-in type grocers like Trader Joe's, Fresh Thyme and Fresh Market."

1%

Other

8%
0

10

20

30

40

50

INSTITUTE ANALYSIS:
A few respondents named Walmart
as their "other" here. And like our
question about retailers being on the
right track, this one enticed a plethora
of comments, including:

" The dollar retailers are on trend with value-based shoppers. Kroger
is best in class in the grocery channel and always improves and meets
challenges."

" Both national and regional grocery chains will be most affected because Aldi and Lidl will drive prices down and take customers away."

Regional grocery chains
National supermarkets

" Kroger at this moment feels like they are in panic mode and are
restricting what can be done to reach shoppers."

" Aldi and Lidl are tough on prices, especially private-label foods. National
grocery and mass are strong enough to survive those low-price statements. Not every household sees value in low priced private brands."
" Aldi and Lidl can replace weekly grocery trips."
" Aldi will have a tough time, but Costco is more at risk than anything else."
" Big mass retailers have been able to leverage their scale to bring down
price at the costs of operations, quality and salaries. The Aldis and Lidls
of the world are able to bring the price down without such sacrifices."

" Interesting that your options do not include Mass, or more specifically Walmart. Walmart is the retailer most threatened by
the growth of Aldi and Lidl, but mainly because of wrongheaded
strategy of doubling down on private label and shying away from
national brands."
" National chains will be hurt by Lidl service and variety, and by Aldi
price point."
" Regionals seem to be the most vulnerable with regards to variety, pricing, value, environment/design, online, etc."
" Shopper experience is the name of the game. The retailers that have
increased in-store experiences, like Kroger Marketplace has, with full
service perimeter stores within stores will win."
" I expect DG and Family Dollar to continue to do well, so expect that it
will come from regional grocers."



Table of Contents for the Digital Edition of Shopper Marketing - January 2018

Contents
Shopper Marketing - January 2018 - 1
Shopper Marketing - January 2018 - 2
Shopper Marketing - January 2018 - Contents
Shopper Marketing - January 2018 - 4
Shopper Marketing - January 2018 - 5
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