The drive, the price war, the valorisation of market areas, smartshopping, hard discount, at the end of its era? Globalisation of trade, the Amazon Fresh phenomenon. A preview interpretation and analysis of the 7 major retail trends which are shaping the food trade today. In its new 2014 edition, Sial presents World Tour: 28 journalists from around the world, co-ordinated by teams from Sial, share their views and analyses of the markets in 28 global countries. Their aim is to reveal and explain the major retail and consumption trends which are shaping the different world markets. From Australia to Canada, from Brazil to Russia, the United States, India and even China.
World Tour is a window to the world of retail and consumption trends on a global level that brings this together on an exhibition area of over 500m2, with in-store photographs and even outlooks available to visitors in the supporting document in order to ensure a better understanding of these findings.
1. The drive: an e-commerce version of food
The first drive was held in 2004 in France at Marcq-en-Baroeul, close to Lille. Nowadays the concept is developing quickly, there are almost 3,000 drives in France which generated in the region of 5 billion euros in turnover in 2014. For consumers the interest is two-fold: the prices are the same as those in-store and you no longer have to physically go to the shops to do your shopping. Other countries have seen this trend and the drives are starting to happen here too. In the United States, Walmart launched an experiment at the beginning of the year with 11 sites in Denver, which has since caught on in 30 shops. In France, the brand Leclerc is the leader of this market with 500 sites and 1.5 billion euros in turnover in 2013.
2. Price war: the competition between brands is intensifying
The level of competition in the large world retail markets is currently at its highest under the twin effect of the stagnation of consumption and the constant opening of new commercial spaces. The consequence: in order to attract increasingly “price-sensitive” customers, brands are competing strongly against each other; i.e. price comparisons. In France, all of the brands currently have their methods. In England, Tesco, for example, promises its customers an automatic refund of the price difference. While in the United States and Canada, price comparison in shops is also becoming common currency.
3. The valorisation of market areas
With the increasing importance of drives and e-commerce, brands are beginning to re-assess the in-store shopping experience. Their aim is to, once again, encourage consumers to visit shops. The market area (fruit & vegetables, bakery, butcher’s etc.) is the route most often chosen. New presentation techniques and new human skills are favoured and the products are carefully selected. In Toronto, the brand Longos, a local, independent chain, over-values the in-store market area.
4. ‘Smartshopping’
The smartphone has become an indispensable item for consumers. It can search for the information (including offers), receive it, interact with the brand and even substitute the self-checkout terminals. As part of World Tour, Carrefour and Walmart are going to try out new experiments relating to this, with on-site photography. Using his mobile phone and NFC technology, the client can receive the full description of the in-store product.
5. Hard-discount: at the end of its era?
The competitive situation of the hard discount varies depending on the country. In France, for example, the hard-discount has been declining for 4 years. And so, in the spring Spain’s Dia network was put up for sale. Lidl has changed its design to the point where the hard-discount, in the historical sense, is nothing but a distant memory: National brands in the product range, bread baked on-site, theatrical staging of the perfume displays, wine cellars, etc. In Germany, pioneering country of the hard-discount, in the wake of Lidl, Aldi is following the hard-discount activity in an increasingly ‘soft’ manner. Shops are more appealing, with a greater selection, brands… By contrast, in some countries, the hard-discount is still trying to make a breakthrough, especially in England and in Ireland.
6.The globalisation of trade
Retail is more global than ever. All of the major brands are operating on several continents. Walmart, Tesco, Carrefour, Auchan and Casino are present in America, Europe and Asia. Next target: Africa. Walmart has understood and is already a key player in South Africa, ready to boost the continent. One of the most globalised retailers: Auchan. The group makes 60% of its turnover outside its home market, France.
7.Amazon Fresh: the new giant of the food trade?
In its strategy to conquer the world, Amazon could not turn a blind eye to the food trade. To date the American group is carrying out three trials in Seattle, San Francisco and Los Angeles. Amazon sets itself apart by combining seemingly unlikely offers (before delivering to the customer): groceries and industrial fresh produce on the one hand, but also locally produced or specialised produce from restaurants, top of the range artisans or wine merchants. World Tour will present “Amazon Fresh” machine.