Blog: Retailers should not discount premium push
Dean Best | 30 July 2008
For all the talk of Aldi and Lidl's recent success in the UK and discount retailers in Europe faring well amid the credit crunch, consumers are still willing to buy premium – should brands get their positioning right.
News that Colruyt, the Belgian discount chain, is benefiting from local consumer concern over the economy and is seeing its cut-price strategy pay dividends, may only add fuel to the argument that food retailers must lower prices to stay competitive in these times of economic uncertainty.
Here in the UK, you can't watch the TV without seeing ads for Morrisons' “price crunch” or Asda's claims that thousands of its products are cheaper than at Tesco. A price war is well and truly on.
However, amid the doom and gloom on the business pages about tough times on the High Street, there are stories (Domino's is one; Thorntons is another) that show some food companies are having success as consumers tighten their belts.
For, amid the penny-pinching, consumers still want to buy quality and, while they may be cutting back on eating out, they are looking to eat better when eating in.
Retailers should beware of wide-ranging price cuts. Fear of losing share to the discounters is one thing but just as strategically important is continued investment in premium, upmarket ranges designed to catch the consumer now reluctant to eat out.
Blue Bell Creameries is trying to win back the trust of consumers after a fatal listeriosis outbreak last year was linked to its products - but in recent days the US ice cream maker has issued another...
The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....
Hershey made an unusual announcement today (20 September), sharing its own sales data for the last four weeks to assuage any possible investor concern over figures released by Nielsen....
As the UK starts to ponder what kind of a relationship it wants with the European Union post-Brexit, EU leaders have been lining up to warn that Britain will not be allowed to "cherry pick" deals and ...
- Interview: Mondelez eyes sweet success in China
- The benefits of engaging staff in sustainability
- How food companies involve staff in sustainability
- What next for Bernard Matthews? - comment
- Why Danone is withdrawing Dumex from Vietnam
- Fonterra says value-added strategy paying off
- Ireland unveils national plan to tackle obesity
- B&G Foods acquires ABF's US spice business
- General Mills profit falls as sales disappoint
- Bernard Matthews pensions scheme under review
- Global Chocolate Confectionery Overview: Challenges, Opportunities and Risks
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Global Foodservice Market 2016-2020
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review
- Global Food and Drinks Closures: Performance and Opportunities