A new report from food and grocery research group IGD has suggested that retailers which respond to sustainability issues, experiment with new formats and move into emerging markets are most likely to set themselves apart from the competition.
The report Global Retail Innovation: Ten to Watch 2007 includes a list of ten retailers around the world that IGD feels show strong growth prospects, best practice and innovation, marking out sustainability, innovative formats and emerging markets as the key factors to moving ahead in 2007.
“A company’s stance on sustainability is fast becoming a key factor in consumer buying decisions,” says Jonathan Gunz, the report’s author and senior business analyst at IGD. “Sustainability has to be backed up by substance and robust measures. It is not just about a branding exercise, although getting the brand communications spot-on and reflecting consumer concerns is crucially important. Consumers are increasingly savvy. They will see through sustainability half-measures that aren’t backed up by genuine action.”
IGD says retailers that address consumer concerns and are responding to market challenges feature strongly in this year’s rankings. “Flexibility and a willingness to take risks is a key requirement for those embarking on format experimentation, as is an understanding of consumer needs. Another pre-requisite is management vision and passion. These retailers have some exciting stories to tell,” Gunz adds.
Among the “ten to watch” are Cook in the UK, a producer and retailer of frozen ready meals that look and taste homemade and are sourced locally; Migros, Switzerland’s retail market leader, which has demonstrated a strong commitment to ethical sourcing and food safety; and Australia’s Macro Wholefoods Market, which IGD said is also capitalising on the green agenda in its home market, targeting the ethically aware consumer with a product range of more than 12,000 organic, natural and fairtrade products.
Meanwhile, Norwegian retailer Deli de Luca makes the Ten to Watch 2007 on the strength of its work in format innovation.
Striking out into emerging grocery markets is another key winning theme IGD has identified in compiling its Ten to Watch ranking, with online giant Amazon’s move into online grocery retail noted as a significant development for the retailer.
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