40% shopping with unemployed mindset

Centra, Parnell Street, Dublin 1: Retailer Noel Dunne has successfully competed with Aldi, Lidl, Dunnes and Tesco, all in close proximity to his store

TNS Magasin founder, Siemon Scamell-Katz advised retailers to stop wasting their money on ineffective communication, at this year's Insight/NACS conference

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Founder of TNS Magasin, Siemon Scamell-Katz told Insight/NACS Global Convenience Benchmarks Conference delegates that almost one in three consumers are in fear of losing their jobs, while almost 10% are unemployed.

Consequently 40% of consumers are now shopping differently, exhibiting heightened price-consciousness and different responses to in-store and outdoor communication.

Scamell-Katz said a survey of c-store shoppers in the UK revealed that nearly 70% did not look at any outside or outward-facing materials, some 30% did not see a single promotion advertised inside the store (despite their being over 120 in the surveyed store) and almost 30% did not know the name of the store they were standing in when asked.

The analyst said the alarming findings confirm, now more than ever, that many retailers need to re-evaluate the effectiveness of their promotional materials and store layout, and stop “spending thousands on things that do nothing for your business.” He named outdoor A-frames, window signs, hang-down signs, and ailse-ends that face the same direction as traffic as the least effective communication devices. Conversely, using in-category shelf-edge and eye-level signage, and leaving baskets at different points in the store have been proven to drive sales.

The Insight/NACS Global Convenience Benchmarks Conference took place in Dublin last month. Speakers included Londis marketing manager, Ruth Norton, Musgrave retail director, Ray Kelly, Topaz retail director, Frank Gleeson, Greg Hodge, senior analyst at Planet Retail, and Centra retailer Noel Dunne.

The need to drive innovation and give value were core themes at the conference, and the acknowledgement that Irish convenience retailers face a great challenge where price is concerned. Greg Hodge revealed that the convenience sector in Ireland has by far the greatest penetration in the overall grocery trade compared to other European countries.

Changing habits, spurred in part by the growth of discounters, offer opportunities for developing private ranges. Operational excellence, service and innovation in convenience will, meanwhile, retain customers in the sector.

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