Consumer passions

Issue 20 | Spring/Summer 2007

The potential takeover of the Coles Group by Wesfarmers has created fresh debate around future retail trends, writes Jeff Rogut.

Many consumers see supermarket shopping as an unpleasant necessity that is neither interesting nor rewarding.

The value aspect is one which a customer is very aware of, with value being far more than just the price of a product. Was the transaction handled efficiently? Did I find all I wanted in the store or do I have to complete my shopping elsewhere? How was the interaction with store staff -- pleasant or indifferent?

Retailers should be also aware of issues such as sustainability, ethical sourcing and, increasingly, food safety. It is up to the supermarket operators and store owners to take care of their customers at all times, as they have chosen to be in the business of retail.

Customers expect a good offer, competitive prices, great staff, efficient service and a memorable experience in a pleasant environment, yet in many cases they are denied some of these factors.

So looking forward, what are some of the trends that consumers and retailers could expect to see in the retail landscape of the future?

Perhaps more frequent top-up and replenishment shopping.
Prudent spending -- where consumers are seeking value and tending to research their planned purchases before they spend to ensure that they have more control over the shopping process.
Multi-channel shopping -- whether retailers are multi-channel or not is almost irrelevant because their customers certainly are. They want the choice of ordering online, having it delivered or collecting at the store.
A greater focus on male shoppers - with more females working they have less time to shop. Men shop in a very different way; they are results driven and store layouts need to reflect the 'get in, get it and get out' task. There needs to be clear signs and staff that know where the products are located if asked.

For retailers there are certainly ranging opportunities - have the right brands and products to reduce choice so that customers are not overwhelmed, but don't ignore those products that best match their customers' needs.

The boredom factor: everything looks the same. Consumers are looking for the shopping experience to be stimulating and entertaining, and are looking for inspiration and discovery. Customers are looking for an experience that offers stimulation and represents value, not always just the cheapest price.
Store brands will keep growing: think pharmacy, office supplies, hardware, clothing and department stores to name just a few.
Unconventional shopping is making a comeback: customers are going back to op shops and markets to have the experience of discovery and to some degree, nostalgia.
Sustainability is another growing issue. There is much discussion on 'going green' and having a healthy lifestyle.

In going back to where we started and looking ahead to the Wesfarmers and Coles possibilities, there are a number of areas of focus for any retailer.

Obvious aspects include supply chain efficiency, a passion for service, product innovation, correct shelf stocking, engaging and developing staff interested in retail as their career, or dealing with baby boomers that are seeking employment.

Other areas are technology in store to aid shopping - high-tech trolleys, hand-held scanners for shoppers, Radio Frequency Identification and true customer relationship management rather than just automatically swiping a loyalty card at the point of sale.

Consumers, that is, all of us, are generally astute, are looking for more and will go where they can find it ... sooner or later.

Jeff Rogut is the Executive Director for the Australian Centre for Retail Studies at Monash University.