Non Food Item Sales At UK Supermarkets Forecast To Grow 40 Per Cent
A new report by the institute of Grocery Distribution (IGD) suggests that Supermarket chains in the United Kingdom will increase the sales of no grocery items by over 50 years in the coming five years.
The report forecasts that supermarkets will come to rely less on traditional food items for their sales and will focus instead on non food items, whose sales will rise from £11.6 billion to £16.2 billion by the year 2014. The change will add further pressure to traditional high street and fashion retailers such as WH Smith and PC World.
The report also suggests that the British grocery market will have an estimated value of £175.9 billion by 2014 representing an increase of 20 per cent from today’s value of £146.3 billion.
IGD chief executive Joanne Denney-Finch said: “The food and grocery industry has demonstrated resilience during a period of economic uncertainty.”
“Food and grocery retailers have been steadily investing in non-food, both in-store and online and will increasingly reap the rewards, prospering in a value-conscious and convenience-driven marketplace.”
Gavin Rothwell, IGD senior business analyst, added: “While retailers continue to strengthen their core food and grocery business, many are also broadening their non-food ranges beyond toys, DVDs and clothing with items as diverse as fitness equipment, dishwashers and bathroom suites .”
“Others are expanding the services they offer such as banking, eye care and travel services – helping drive further growth.
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George at Asda has a remarkable sale on at the moment, slashing the price of knitwear to just £4. School-wear starts from the ridiculously low price of just £2, whilst work-wear is on offer for a bargain of 2 items for just £10.
The George Baby event start on February 6th, so you can pick up items on the cheap for your little ones, with items on sale for as little as £ 4.50 and there are Valentines Day gifts available for £12.
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UK Supermarkets Improve Their Customer Satisfaction Rankings
According to a new survey of customer service, UK supermarkets provide a higher level compared with their non-food retailing peers.
In the most recent UK Customer Service Index, the UK’s supermarket chains received an average score of 80 out of 100 for their customer service in a study which polled some 26,000 shoppers.
The top retailer which provided consumer satisfaction in the index was Waitrose who scored an average of 86, and was closely followed by Marks And Spencer who scored 85 points.
Asda came in third in the rankings, scoring 81 points, and was followed by Sainsbury’s and Iceland. The UK’s largest retailer Tesco scored 79 out of 100.
Bottom of the supermarket customer service list was the Co-op with a score of 75.
The top non-food retailer in the UK John Lewis was John Lewis and as a category non food retailers managed an average score of 79 points.
The results of the survey show that the retail sector in general has managed an improvement of four points during the last two years, and now top the industry consumer satisfaction rankings ahead of tourism and consumer services.
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Asda To Trial Re-Useable Packaging
UK retailing giant Asda has begun a trial of reusable packaging for fabric conditioner as it seeks to reduce further the amount of packaging it uses for its products.
The trial, which is being conducted at the retailers Barnsley store will see fabric conditioner being dispensed from a 1000 litre container, which is placed at the back of the store, that will pipe the conditioner to points located in the retail aisle.
The fabric conditioner will then be sold in reusable pouches that can be used as many as ten times, and will save shoppers 40 pence compared to traditional plastic bottles, as well as reducing the amount of packaging that is wasted.
Julian Walker-Palin, Asda’s head of corporate policy for sustainability and ethics, said: “Asda already leads the retail sector in packaging reduction and has reduced packaging on Asda products by 28 per cent since 2007. Our mantra at Asda is to make sustainability affordable for all and this project directly engages our customers on this by offering them a great product which not only has a lower packaging footprint but also has a lower price tag due to its reduced environmental footprint.”
Dr Richard Swannell, director of retail at the Waste &Resources Action Programme (WRAP), which is funding the trial, added: “Reusable packaging offers us an opportunity to fundamentally rethink the retail experience.”
“We have already seen positive responses from consumers in relation to carrier bag reuse and if this trial enjoys similar success, it could mark the start of a reusable revolution.”
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Asda Says Burns Night Essentials Sales Rocket
UK retailer Asda says sales of Burns Night products have experienced a huge increase after the supermarket rolled back prices on products and shoppers opted to celebrate at home this month.
Scottish Kestrel potatoes sales rocketed by 700 per cent, whilst there was a 200 per cent leap in Haggis sales, and Scottish Whiskey purchases rose by 40 per cent.
The strong sales come on the back of a roll-back on Burns Night prices with offers such as £1 on Halls 454g Haggis.
Asda says the increase in sales reflects the fact that shoppers this year prefer to entertain at home.
In an effort to help customers of its Scottish store prepare for a Burns Night indoors this year, the retailer at its Hamilton store held a Haggis workshop and is offering shoppers the chance to win their own Burns Night meal at home, through a special online poetry competition.
Paul Dover, Customer Planning Manager for Local in Scotland, said: “This is our most ambitious Burns Night project yet and we think it’s the perfect way to get our customers and colleagues engaged with the true spirit of Burns Night. With sales already showing the popularity of our Scottish products price Rollback, I’m sure this is going to be a Burns Night to remember for our customers”.
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Tesco To Trial Buy One Get One Free Later Program
As part of its drive to become more environmentally friendly, and cut down on food wastage Tesco is launching a two week trial of a “Buy One Get One Free Later” program.
The deal is applicable for four fruit and vegetable items including lettuce, salad, pineapple and melon.
Customers will now have the option of either collecting their second free item, on the same day of purchase or the following week, using a voucher will be issued during the checkout process.
The new program is part of a wider initiative by the retailer to offer its customers a large variety of low carbon choices, and convert the company into a zero carbon business by 2050.
Lucy Neville-Rolfe, Tesco’s executive director, said: “Customers really like our BOGOF deals but feedback shows smaller households sometimes can’t use the free product before its use by date.”
“Now we’re giving customers the flexibility to take advantage of the great value offer by claiming their free product the following week instead.”
“As well as giving our customers a flexible new offer, we’re helping them to cut food waste.”
“Last year, Tesco pledged not to send any waste to landfill and customers tell us they want to do their bit too.”
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Tesco Chief Predicts UK Consumer Recovery During 2010
Tesco chief Terry Leahy is extremely optimistic about the UK economy and predicts a recovery in consumer spending in Britain during the next year.
Mr. Leahy made his comments whilst addressing a retail conference in Belgium and said the significance of taxes on spending and economic recovery had been over estimated.
Speaking to Reuters, Mr. Leahy said: ‘It’s a careful balance you have to strike in terms of maintaining the stimulus and then paying down the costs of that stimulus. But I think the consumer recovery has taken hold in the UK and there’s still more of the stimulus package around the world to be spent in 2010 … so I would be confident (of an economic recovery).’
Despite having been usurped from its traditional position of third largest retailer in the world, and slipping to fourth behind German retail giant Metro, Tesco enjoyed an extremely robust or even record Christmas trading period.
Other retail chiefs have echoed Mr. Leahy’s optimism, including Lars Olofsson, Carrefour’s CEO. A rise in house prices and a rally in the stock market have given retailers cause for hope in recent weeks.
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Asda Direct Offering Fabulous Discounts
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Asda Transparency Effort Empowers Its Customers
Asda, the UK’s second largest retailer opened a “transparent” supermarket in South West Wales last year.
The store which opened about a year ago, has glass walls instead of the usual brick, and shoppers will be able to see areas of the supermarket that are normally not in view.
The idea behind the transparent store is to differentiate the Asda shopping experience from that of its rivals, and build customer loyalty.
Andy Bond, Asda’s chief has embarked on a strategy of trying to gain increased customer loyalty by giving Asda customers more say in how its stores are run.
The company through its Your Asda campaign gives customers the ability to comment, compare, complain and even choose the products the store carries as well as help in its product development though things like packaging.
Mr. Bond says transparent store represents the Asda ethos and he wants to “lift the lid on how we do things, and enable our customers to help make decisions that have an impact on what we sell and how we sell it.”
So whilst Asda rivals are trying to win customer loyalty, through loyalty card and voucher programs, Asda has taken another route, one of empowering its customers.
The retailer has even introduced a brightest idea competition, where customers can suggest ideas that will save both the company and ultimately Asda customer’s money. Winners could receive as much as five percent of the savings if their ideas are implements.
Mr. Bond explains: “It’s about entering a new partnership, working with customers rather than simply working on behalf of them.”
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