Aussie retailers should get their Christmas wish this year

Consumer Sentiment fell by 4.8% in December, but despite the drop other indicators still point toward a robust Christmas period for retailers. Retail trade recorded its strongest result for three consecutive months to October, with Queensland and Western Australia leading the way. A closer inspection of ABS Retail figures indicate six consecutive months of positive results and this suggests consumer confidence has finally returned to the market. But it may not be a rosy outlook for all retail sectors. Overall we are spending more, but not where we once traditionally did.

Ready, steady, shop: shopping as sport

Do you approach shopping as if it is a competitive, sport-like activity? Or perhaps you attach social or emotional value in being recognised by your friends and peers as a great shopper, a proficient or efficient shopper? If so, you could be a “sport shopper”, according to an academic paper presented at an international conference earlier this year. This shopper can recount in detail where and when they purchased items - and most importantly, how much they saved. For this shopper, it is not about spending the least, but saving the most. This new “type” should not be confused with the economic shopper; constrained financially and forced to seek out low prices and generic products. And they are definitely not the recreational shopper, who enjoys shopping as a fun activity, engaging in the task to reduce stress and seek pleasure.

What does the future hold for our traditional department stores?

Years of buy-outs, takeovers, mergers and rebranding have whittled a once plentiful landscape of department store competitors down to two major players, Myer and David Jones. Now, despite David Jones confirming it refused a potential A$3 billion merger proposal approach from its arch-competitor in October 2013, we must face the distinct possibility of there only being room for one, full line, up-market department store in Australia.

Who is the South African retail giant behind the David Jones bid?

Yesterday morning came the news South African retailer Woolworths had offered $4 a share to acquire David Jones, a proposal that has the approval of the department store’s board. This offer, worth an estimated A$2.15 billion, represents a 25% premium over the current share price value. An earlier offer, from rival Myer, was rejected earlier this year. But who is Woolworths? Not to be confused with Australia’s largest supermarket, Woolworths SA is one of South Africa’s largest retailers.

A Lidl bit of grocery competition could cause a Coles rethink

Australian shoppers have inadvertently invited global discount grocers to our shores by demonstrating their readiness to adopt private labels. In 2001, German discounter Aldi opened its first store in Sydney. The impact this business format would have on the Australian grocery sector was underestimated.

How your shopping choices will help Coles and Woolworths take on the banks

The days when Coles and Woolworths only sold groceries are long gone. Both are now established players in a broad range of consumer markets, with interests in liquor and hotels, fuel and convenience, general merchandise and mobile phones. With a network of over 1,600 supermarkets, 1,100 service stations, 2,200 liquor stores and nearly 400 hotels, the supermarket duo are now getting ready for a war with Australia’s big four banks.

Predicting the last brand standing in the supermarket price wars

On January 26, 2011, grocery retailer Coles fired the first salvo in what would soon be dubbed the “supermarket price wars” by reducing the price of its own-brand milk to A$1 per litre. Woolworths immediately responded. In the three years since, grocery prices have been tumbling, with 85 cent bread being the latest “sacrificial lamb”. This period of intense competition has brought about not just lower grocery prices, but a senate enquiry, and increasing media and analyst interest.

Sorry Joe, consumer spending will disappoint Santa this Christmas

Treasurer Joe Hockey called on shoppers this week to “not let Santa down” and asked them to spend up big at the stores this Christmas. Unfortunately, the latest retail and consumer confidence data indicate his calls are falling on deaf ears. Westpac’s Consumer Confidence Index shows pessimists outnumber optimists. This has been the case for the last nine months. The index was up 1.9% in November, but still well below its level a year ago.

Taste over waste: Ugly food movement winning friends

Consumer driven food trends are nothing new. “Organics”, gluten-free, and more recently buying “local” have all captured consumers, encouraging supermarkets around the globe and in Australia to respond. But the next emerging European food trend that may have the biggest impact on what we buy each week is “ugly food”.

Is Aldi’s move to woo cashed-up shoppers a risk?

While Aldi’s launch of their new “trial” stores may seem to be an attempt to capture middle income shoppers, it may end in disaster. Aldi’s four new trial stores located in Queensland, NSW, ACT and Victoria, will offer improved lighting, larger layouts and an expanded offering of fresh food including extending produce ranges, in-house bakeries and premium brands. Employing Nielsen’s 2014 Homescan Report, Aldi have determined that only 30% of their customers were now considered “low-income shoppers”. Some 34.4% were from middle-income households and the remaining 35.6% now had household incomes greater than AUD$90,000 a year - a segment which has grown by 6.7% since 2011. So this probably the reason for Aldi’s foray into new stores and ranges. However, such a move is considered risky.

Move over Aldi, Lidl may be next for Australian market

If speculation that German discount supermarket, Lidl, is preparing to launch into the Australian market is correct, it will be the biggest shake up in the grocery sector since Aldi’s arrival in 2001. With potentially five viable combatants in the mix, the way we shop and how supermarkets and suppliers compete, will fundamentally change.

David Jones seeks to exploit top end gap in Australian grocery

While Australia’s supermarkets continue to battle on price, the South African owner of David Jones, Woolworths Holdings, has found a gap in the Australian grocery market and is preparing to exploit it. Reports that the group has appointed Pieter de Wet to overhaul the David Jones food business signals once again the ever-changing face of the Australian food and grocery landscape. A re-energised David Jones food offer will provide positive outcomes for both shoppers and suppliers, while potentially becoming another headache for Coles and Woolworths.

Down, down but not different: Australia’s supermarkets in a race to the bottom

For 25 years, Woolworths told shoppers they were “the fresh food people”. It was a very clear point of difference and delivered the group a sustainable competitive advantage. Any attempt by a competitor to replicate it would have been dismissed as lacking credence; a simple market-follower strategy.

Woolies' new loyalty program offers a glimpse into the future

Woolworths is set to launch its new loyalty program, Woolworths Rewards, claiming that the new scheme will enable shoppers to redeem cash discounts off their shopping basket, much faster than ever before. It is estimated shoppers will acquire the necessary points to save $10 automatically of their grocery bill within seven weeks. Resembling the model used by UK retailer Morrisons, the new Woolworths Rewards program is a smart move for the retailer hoping to claw back some market share and curtail operational costs. However, there is no such thing as a free lunch.

Five tricks retailers will use to make you shop this Christmas

Australian shoppers are predicted to spend nearly A$47 billion this Christmas. But retailers have to work harder and harder to get shoppers to pull out their wallets. Here are five strategies retailers will be using to get us to part with our hard earned coin.