IGD’s chief executive has called on the big four retailers to offer a more exciting experience to their customers as they compete to win back market share from the discounters.
Speaking at the gloabal food and grocery expert’s Big Debate on 18 October, Joanne Denney-Finch said that, among the mainstream retailers, “the ones that really take back any market share they have lost will be the ones that create the best experience for their shoppers.”
This, rather than price, is what will set them apart from their competitors.
Denney-Finch, who has spearheaded IGD research into the emotions of shopping, spoke of a “chasm” between two types of buying, with “the products you know, love and trust” on the one hand and those that are “a little more exciting” on the other.
It is by triggering consumers’ emotions and enhancing their shopping experience – either in-store or online – that Denney-Finch sees the greatest opportunities for growth. This is perhaps even more important than other factors, such as price, choice, convenience and service according to IGD’s research.
“Price is a ticket to play but it isn’t going to be the differentiator because everybody is watching everybody else and nobody can afford to be out of line,” she said.
“Retailing is a response to culture and I think that what people may have underestimated is the extent to which culture and social behaviour has fundamentally changed.”
Based on feedback from shoppers, the grocery charity recommended that supermarkets offer their customers more in-store tastings; more staff with detailed product knowledge; a special zone for new products; recommendations to try products related to their preferences; and more excitement in food-to-go, for example by preparing food in full-view of customers and with recipes linked to the local area.
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