Kantar Retail to highlight key findings of the 2016 China Digital Power Study at a webinar on 21st December

London, 2016-Dec-19 — /EPR Retail News/ — The Chinese eCommerce market has continued to show spectacular growth. From 2014 to 2015, the market grew more than 30%, with a similar growth rate expected in 2016. It now far outstrips the U.S. eCommerce market by sales value (almost USD600 billion in China versus USD350 billion in the U.S.). It is not just the sheer size of the market that matters, but also its complexity. B2C and C2C channels are clearly defined. B2C remains the bulk of the market with 59% of the value traded. Online B2B has resulted in major value growth and new opportunities. This model allows major manufacturers to penetrate lower-tier cities and markets without setting up costly and often inefficient supply networks.

Kantar Retail will host an exclusive webinar on Wednesday 21st December in English and Chinese to highlight the key findings of the 2016 China Digital Power Study. The Webinar will be divided into two parts:

FMCG online performance review: This part will focus on the following key takeaways:

  • Overall FMCG category online landscape
  • Size of the category and segment
  • Best practices and key success factors
  • Category brand ranking
  • Online channel category’s distribution

Categories include personal care, household essentials, baby products, food and beverage, and alcohol.

Best eTailers ranked by manufacturers: This part will reveal the best eTailers as determined by manufacturers in each business area. This section will:

  • Review results from over 200 manufacturers on their China eTailer partners.
  • Summarize the factors that make high-performing Chinese eTailers successful.
  • Evaluate eTailers from five unique lenses: commercial strength, strategic strength, operational strength, marketing strength, and organization and capability.

Media Enquiries:
Victoria Bradshaw
Global Communications Manager
victoria.bradshaw@kantarretail.com
T: +44 (0) 1372 825 391

Source: Kantar Retail

Kantar Retail to partner with Peopleway to create high impact learning organisations

London, 2016-Nov-25 — /EPR Retail News/ — Kantar Retail, WPP’s global retail and shopper specialist today ( 24th November 2016) announced that it will partner with Peopleway, an award-winning learning impact management specialist.

The partnership aims to create high impact learning organisations by combining Kantar Retail’s Capabilities Development expertise with Peopleway’s Impact Management tools and analytics in a single learning and development offer.

This joint solution will enable clients to better align their people development with business objectives by linking training and development programmes with a suite of cloud-based tools to measure and continuously improve the business impact of learning interventions.

Kantar Retail will deliver customised training and development programmes and Peopleway will ensure that these programmes are hardwired to commercial objectives, and monitor their impact. This will enable clients to track and improve ROI from their investment in training and development.

“Organisations are seeking to engage and develop their people while also having visibility of the business impact of their capability investment. This partnership aims to meet this need in a pragmatic, commercial and engaging way. We are delighted to be partnering with such a specialist as Peopleway,” stated Phil Smiley, CEO of Kantar Retail.

“Typically two-thirds of training investment has no measurable impact. We are passionate about supporting clients in maximising the impact of their training to drive business results. Kantar Retail’s global reach and learning academy credentials will enable us to do this with greater scale,” stated Lars Julin, CEO of Peopleway.

Notes to Editors:

About Kantar Retail
We are the retail and shopper specialists. We are a leading retail and shopper insight, consulting and analytics and technology business, part of Kantar, the data investment management division of WPP. We work with leading brand manufacturers and retailers to help them sell more effectively and profitably. At Kantar Retail we track and forecast over 1,200 retailers globally and have purchase data on over 200 million shoppers. Amongst our market leading reports are the annual PoweRanking survey and the Digital Power Study. Kantar Retail works with over 400 clients and has 26 offices in 15 markets around the globe.

For further information, please visit www.kantarretail.com, or find us on Twitter and LinkedIn.

About Peopleway

Peopleway is an award-winning learning impact management specialist. We work with market leading enterprises across a wide range of industries to help them measure and continuously improve the business impact of people development. We offer a suite of cloud-based impact management tools – designed to drive business performance by ensuring the link between corporate strategy and capability building programs. 30 years of research, 10 years of SaaS development, a history of more than 25 million impact measurements and a solutions suite that supports 21 languages – Peopleway is a people analytics market leader within L&D.

For further information, please visit www.peopleway.net, or find us on LinkedIn.

Contact for Kantar Retail:

Victoria Bradshaw
Global Communications Manager
Office: +44 (0) 1372 825 391
E-mail: victoria.bradshaw@kantarretail.com

Contact for Peopleway:

Maria Højholdt Jensen
PR & Marketing Consultant
Office: +45 31 68 69 03
E-mail: maria@peopleway.net

Source: Kantar Retail

Kantar Retail releases its 2016 annual U.S. PoweRanking® survey results

Norwalk, CT, 2016-Nov-03 — /EPR Retail News/ — PepsiCo and Coca-Cola have topped the rankings of best-in-class manufacturers in the 2016 annual U.S. PoweRanking® survey released by Kantar Retail today (Nov. 2, 2016). Competition also intensified in the retailer rankings, with Walmart and Kroger finishing in a virtual tie for the No. 1 position.

The first- and second-place finishes for PepsiCo and Coca-Cola represent their highest historical rankings ever in the annual benchmarking study, which Kantar Retail has now conducted for 20 consecutive years.

PepsiCo showed broad improvement across many of the strategic and operational metrics measured in the study. The company was particularly praised for providing top-class capabilities in the area of data analytics. One major retailer noted: “PepsiCo has embraced the data and has brought new insights and analytics. They have really transformed the conversation [between our companies].”

Coca-Cola received the top ranking for innovative marketing, receiving plaudits from retail partners for creative campaigns, such as “Share a Coke.” One retailer commented: “Coke is building the interest of consumers with their new ‘Share a Coke’ campaign. The customers are excited to look for their names or favorite songs on the bottles.”

Competition among retailers for the top spot was closer than ever before with Walmart and Kroger finishing in a virtual tie.

While Walmart’s long-standing dominance among U.S. retailers now has a formidable challenger, the supercenter chain continues to outrank all other retailers in the areas of clear strategy and supply-chain management. One manufacturer noted: “Walmart has consistent, clear, widespread strategies.”

A major factor in Kroger’s performance this year has been its ability to innovate and maximize the shopper experience by applying insights derived from both suppliers and its own 84.51 shopper insights firm. Manufacturers voted Kroger No. 1 in the categories of “best retailer to do business with,” “best buying teams,” “most innovative merchandising,” and “best practice category leadership.” One manufacturer summarized: “Kroger has developed strong collaboration and partnership with manufacturers, and they continue to deliver strong business results.”

Daniel Raynak, Kantar Retail’s Executive Vice President, Strategy and Development, comments on this year’s results: “Perhaps the quote that best summarized 2015 was, ‘Never before has so much change produced so little value for the industry.’ As we entered the 2016 calendar year, many of the same trends of 2015 continued, all of which reinforce the idea that we are in an era of permanent transition and change. However, those organizations that have embraced the change in 2016 and took swift actions against big, relevant opportunities are beginning to see the return on the changes they have implemented.”

The purpose of Kantar Retail’s annual PoweRanking® study is to identify the manufacturers and retailers viewed as best in class by their major trading partners and to provide insight into what distinguishes them across key areas of the manufacturer-retailer business relationship.

To download the U.S. PoweRanking® Executive Summary, click here

NOTES TO EDITORS

About Kantar Retail
We are the Retail and Shopper Specialists. We are a leading retail and shopper insight, consulting and analytics, and technology business and part of Kantar, the data investment management division of WPP. We work with leading brand manufacturers and retailers to help them sell more effectively and profitably. At Kantar Retail, we track and forecast over 1,300 retailers globally and have purchase data on over 200 million shoppers. Among our market-leading reports are the annual PoweRanking® survey and the Digital Power Study. Kantar Retail works with over 400 clients and has 26 offices in 15 markets around the globe.

For further information, please visit www.kantarretail.com, or find us on Twitter and LinkedIn.

Contact for Kantar Retail media inquiries:
Andrew Stockwell
Chief Product Strategy and Marketing Officer
Kantar Retail
Boston, MA
+1 (617) 912 2867
andrew.stockwell@kantarretail.com

Source: Kantar Retail

Canadian ShopperSpective: Kantar Retail launches insights solution to provide perspective into shopper behavior and preferences

Toronto, 2016-Sep-28 — /EPR Retail News/ — Kantar Retail, the global Retail and Shopper Specialists, in partnership with Kantar TNS, has introduced Canadian ShopperSpective, an insights solution created to provide perspective into shopper behavior and preferences in the Canadian retail market.

The platform will enable retailers and suppliers to better navigate a rapidly changing Canadian retail environment that has seen recent dramatic changes ranging from Target’s abrupt closure to the growing role of eCommerce.

Canadian ShopperSpective draws from a survey panel of 6,500 household grocery and consumables shoppers to deliver actionable insights and analysis.

Subscribers to the Canadian ShopperSpective package receive four in-depth reports authored by Kantar Retail subject-matter experts. These are complemented by nine interactive data dashboards that detail how shoppers behave, who they are, and why they prefer one retailer to another. Covering all leading Canadian grocery and consumables retailers, along with more than 30 category groups, this product provides a comprehensive view of the retail and shopper landscape.

Examples of the type of insights Canadian ShopperSpective can provide include:

  • Dollarama asserts competitive reach in grocery. 57% of No Frills shoppers also shop at Dollarama for groceries and consumables, making this dollar chain the discounter’s top cross-shopped competitor. Given Dollarama’s efforts to improve store productivity, add national brands, and expand to higher price points, it will go after (even) bigger baskets and more routine trips. As a result, No Frills will increasingly need to articulate its center-store price points and pack sizes versus this unconventional rival.
  • Walmart.ca is poised to grab more consumables. Over the past three months, 31% of Walmart.ca consumables shoppers visited the website at least weekly, reinforcing the extent to which the website is part of many visitors’ routines. This connection is also translating to a shift in shopping preference for certain departments. For instance, 13% of all past three-month Walmart.ca consumables shoppers already buy more nonfood household products through the website than anywhere else.
  • Save-On-Foods’ main appeal is not actually shelf price. In fact, its top performance area is convenient aisle navigation followed by its loyalty rewards, in-and-out trip convenience, private label food and beverage, and in-stocks. When proposing shopper programs, suppliers have a particular opportunity to emphasize the value of saving time through quick-trip solutions.

With the Canadian ShopperSpective dashboard tool, data can be customized to meet the needs of retailers and suppliers, whether they are targeting what drives shoppers to shop at a certain store or determining the behavior of a specific demographic. Additionally, the platform uses current and historical data to analyze shopper behavior over time while providing access to industry-leading perspectives.

For more information and to request a demonstration, visit http://bit.ly/2bYpJ5Y.

Notes to editors:

About Kantar Retail
We are the Retail and Shopper Specialists. We are a leading retail and shopper insight, consulting and analytics and technology business and part of Kantar, the data investment management division of WPP. We work with leading brand manufacturers and retailers to help them sell more effectively and profitably. At Kantar Retail, we track and forecast over 1,200 retailers globally and have purchase data on over 200 million shoppers. Among our market- leading reports are the annual PoweRanking® survey and the Digital Power Study. Kantar Retail works with over 400 clients and has 26 offices in 15 markets around the globe.

For further information, please visit www.kantarretail.com or find us on Twitter and LinkedIn.

Contact for Kantar Retail media queries in the U.S. and Canada:

Bill Daddi
Daddi Brand Communications
Office: +1 (646) 370 1341
Email: Bill@DaddiBrand.com

Contact for Kantar Retail media queries in Europe:

Victoria Bradshaw
Global Communications Manager
Office: +44 (0) 1372 825 391
Email: victoria.bradshaw@kantarretail.com

Source: Kantar Retail

Kantar Retail to hold its annual eCommerce & Digital Strategy Forum on Oct. 5-6 in New York City

Boston, Mass., 2016-Sep-21 — /EPR Retail News/ — Kantar Retail, the global Retail and Shopper Specialists, announced today (Sept. 19, 2016) that it will hold its annual eCommerce & Digital Strategy Forum Oct. 5-6 in New York City.

The theme of this year’s event is how to bridge the two parallel areas of focus in today’s eCommerce space — engaging people digitally and driving ROI and profitability from digital marketing and commercial relationships.

The two-day session will provide insight into the underlying shifts in the disruptive nature of digital shopping, engagement, and connection; identify key trends in today’s digital landscape; and showcase best practices for better linking consumer engagement with commercial reality as a means of driving profitability and growth.

Keynote speakers for the eCommerce & Digital Strategy Forum will include:

  • Reid Greenberg, SVP of Digital and eCommerce at Kantar Retail
  • Gary Vaynerchuck, CEO/Founder of VaynerMedia
  • Bryan Gildenberg, Chief Knowledge Officer at Kantar Retail
  • Sri Rajagopalan, VP of eCommerce at Johnson & Johnson

Kantar Retail and industry thought leaders will provide attendees with valuable strategic insights into:

  • The underlying shifts in the disruptive nature of digital shopping, engagement, and connection
  • Key trends in the digital landscape today, with an emphasis on partnering strategies to sell through Amazon, Walmart.com, and other pure-play or brick-and-click retailers
  • Current practices to better link digital engagement with commercial reality to drive profitable growth and sell more cases

Attendees can expect to learn:

  • How to leverage the evolving online grocery landscape
  • How to shape digital teams, build digital and eCommerce muscle, and lay a solid groundwork to win in digital retail
  • How to build on the next level of the omnichannel commerce experience

Notes to editors:

About Kantar Retail

We are the Retail and Shopper Specialists. We are a leading retail and shopper insight, consulting and analytics and technology business and part of Kantar, the data investment management division of WPP. We work with leading brand manufacturers and retailers to help them sell more effectively and profitably. At Kantar Retail, we track and forecast over 1,200 retailers globally and have purchase data on over 200 million shoppers. Among our market- leading reports are the annual PoweRanking® survey and the Digital Power Study. Kantar Retail works with over 400 clients and has 26 offices in 15 markets around the globe.

For further information, please visit www.kantarretail.com or find us on Twitter and LinkedIn.

Contact for Kantar Retail media queries in the U.S. and Canada:

Bill Daddi
Daddi Brand Communications
Office: +1 (646) 370 1341
Email: Bill@DaddiBrand.com

Contact for Kantar Retail media queries in Europe:

Victoria Bradshaw
Global Communications Manager
Office: +44 (0) 1372 825 391
Email: victoria.bradshaw@kantarretail.com

Source: Kantar Retail

Kantar Retail and SMI to present eye tracking virtual shopping experience at Path to Purchase Expo in Chicago, September 20-22

Boston, MA and Teltrow, Germany, 2016-Sep-16 — /EPR Retail News/ — Kantar Retail, the global retail and shopper specialist, has teamed up with innovators in eye tracking SensoMotoric Instruments (SMI), to create a virtual shopping experience that provides precise shopper data in a fully controlled environment.

The technology, which utilizes the top-selling Samsung Gear VR head-mounted display (HMD) modified with SMI’s eye tracking platform to give real-time information about a shopper’s visual attention in a virtual store, will be introduced at the Kantar Retail booth, #601, during the Path to Purchase Expo in Chicago, September 20th through the 22nd.

Immersive Eye Tracking reveals new insights as to how consumers react to signage, displays, products and packaging. This behavioural information can be used to optimize marketing campaigns, product launches, category reviews or merchandising solutions.

From the eye-tracking for market research perspective, VR adds a new dimension to shopper studies – total 360° immersion. Such immersive environments are easily manipulated and can be perfectly replicated anywhere in the world. Earlier in 2016 in London, SMI and Kantar trialed the eye tracking HMD using a virtual fast food environment with encouraging results.

Kantar Retail will showcase the technology’s capability through live demos at their booth. Participants will be moved through the virtual store with instructions to find a target product on the shelf display.

At the end of P2PX 2016, SMI will aggregate and process the data accumulated during the event with Kantar Retail analyzing and interpreting the research for publication.

About Kantar Retail
We are the retail and shopper specialists. We are a leading retail and shopper insight, consulting and analytics and technology business and part of Kantar, the data investment management division of WPP. We work with leading brand manufacturers and retailers to help them sell more effectively and profitably. At Kantar Retail, we track and forecast over 1,000 retailers, globally and have purchase data on over 200 million shoppers. Amongst our market leading reports are the annual PoweRanking survey and the Digital Power Study. Kantar Retail works with over 400 clients and has 26 offices in 15 markets around the globe.

For further information, please visit www.kantarretail.com, or find us on Twitter and LinkedIn.

About SMI
SensoMotoric Instruments (SMI) has been a world leader in eye tracking technology for 25 years, developing and marketing eye & gaze tracking systems for scientists and professionals, as well as OEM and medical solutions for a wide range of applications. Find out more at www.smivision.com. Follow @SMIeyetracking on Facebook, Flickr, YouTube and Twitter.

Contact for Kantar Retail media queries in the U.S.:
William Daddi
Daddi Brand Communications
Office: 1-646-370-1341
E-mail: Bill@DaddiBrand.com

Contact for Kantar Retail media queries in Europe:
Victoria Bradshaw
Global Communications Manager
Office: +44 (0) 1372 825 391
E-mail: victoria.bradshaw@kantarretail.com

Contact for SMI:
SensoMotoric Instruments GmbH (SMI)
Tim Stott
+49 (0) 162 271 61 66
tim.stott@smi.de

Source: Kantar Retail

Kantar Retail to hold its annual Insights Forum in Atlanta on December 7th and 8th

Boston, MA, 2016-Sep-07 — /EPR Retail News/ — Kantar Retail, the global retail and shopper specialists, will be holding its annual Insights Forum in Atlanta on December 7th and 8th.

With a theme of “Achieving Your Future Retail Strategy,” Kantar Retail’s signature industry event will feature industry leading experts exploring a compelling framework for profitable growth in response to new sales levers, retailers, and media reshaping the industry.

The Insights Forum, formerly known as the Year End Forum, has been redesigned to reflect the challenges to growth facing the market today and in recognition of the impact that online sales has had on retail as both a disrupter and source of common opportunity.

Kantar Retail’s cross-channel knowledge experts will provide over two dozen podium speeches and breakout sessions to drive both immediate execution and future growth plans, focusing on the critical issues impacting retail such as eCommerce, health and wellness, and format re-invention.

Leveraging insights for action, guest speakers will deliver strategic recommendations for how retailers and suppliers can uncover new sources of growth in less traditional channels and media. Additionally, attendees will receive specific insights to build an action plan that reallocates resources–people, brands, analytics, media spend, and supply chain–for future growth in an increasingly fractured landscape.

The Insights Forum will be held at the JW Marriott Buckhead in Atlanta. Registration is now open. For more details on registration, please email Janine.mccarl@kantarretail.com.

Notes to editors:

About Kantar Retail
We are the retail and shopper specialists. We are a leading retail and shopper insight, consulting and analytics and technology business and part of Kantar, the data investment management division of WPP. We work with leading brand manufacturers and retailers to help them sell more effectively and profitably. At Kantar Retail we track and forecast over 1000 retailers globally and have purchase data on over 200 million shoppers. Amongst our market leading reports are the annual PoweRanking survey and the Digital Power Study. Kantar Retail works with over 400 clients and has 26 offices in 15 markets around the globe.

For further information, please visit www.kantarretail.com, or find us on Twitter and LinkedIn.

Contact for Kantar Retail media queries in the U.S.:

William Daddi
Daddi Brand Communications
Office: 1-646-370-1341
E-mail: Bill@DaddiBrand.com

Contact for Kantar Retail media queries in Europe:

Victoria Bradshaw
Global Communications Manager
Office: +44 (0) 1372 825 391
E-mail: victoria.bradshaw@kantarretail.com

Source:  Kantar Retail

Costco offered the best online prices according to comprehensive SKU count and pricing study conducted by Kantar Retail

Boston, 2016-Aug-15 — /EPR Retail News/ — For clubs like Costco, Sam’s Club and BJ’s Wholesale, ecommerce presents both a threat and an opportunity. Though their membership model helps insulate clubs from some online erosion, club shoppers are also more likely than average to cross-shop online. At what point does online cross-shopping eat into club trips? With this question looming large, clubs are increasingly mindful of strategies that capture their shoppers’ online dollars.

To better understand how each club is positioning itself online, Kantar Retail conducted a comprehensive SKU count and pricing study of Costco.com, SamsClub.com, and BJs.com using data retrieved from Content Analytics. Across the board, Costco offered the best online prices. Between clubs, Sam’s Club and BJ’s had the most online SKUs in common, though comparable items between Costco and Sam’s were the most competitively priced.

• Comparing across all clubs, Costco was the most competitively priced online followed by Sam’s and BJ’s, respectively. Costco charges the highest membership fee ($55) of the clubs and this may help enable Costco’s low prices. The three clubs had only nine items in common. More comparable items were available between pairs of clubs, revealing that each club pursued a relatively distinct merchandising strategy.

• Costco and Sam’s shared 39 comparable online items with Costco priced lower on average. While Sam’s barely underpriced Costco on the majority of items, Costco won by a larger margin on select SKUs. Including discounts, Costco was even more competitively priced. Though this set had the fewest comparable SKUs, it was also the most competitive with smaller price differences.

• Costco and BJ’s shared 47 comparable online items, with Costco priced significantly lower than BJ’s. The difference was slightly less once discounts were included.

• Sam’s Club and BJ’s shared 353 comparable items and Sam’s was significantly cheaper than BJ’s. The price differential was smaller when discounts were included.

• By a wide margin, the largest category represented online included business or office-related supplies. This affirms that the clubs are also approaching online as a key platform for business members.

Minimal SKU overlap among the clubs suggests they are pursuing relatively differentiated online merchandising and pricing strategies to appeal to shoppers. For the shopper willing to pay five dollars more for the membership fee, the online pricing at Costco will be hard to beat. Though Costco boasts low prices, attracting shoppers including small businesses will increasingly require online merchandising that encompasses more than just price.

According to Tim Campbell, analyst at Kantar Retail, “For clubs to compete online effectively and boost their share of online shopping, item quality, convenience, delivery, services, and the user interface must be visible differentiators. This is one of several e-commerce analyses we’re undertaking at Kantar Retail that explore how online merchandising is evolving specifically in club and what this means for club members, the club retailers and their suppliers.”

“The right combination of assortment, price, quality of content and availability is key to winning in ecommerce, as evidenced by this latest Kantar Retail study. At Content Analytics we make ecommerce insights available to the world’s leading brands and retailers and help them sell more online with our market leading ecommerce Product Optimization Platform.”

About the Study
Using data retrieved from Content Analytics in May, Kantar Retail compared prices of like-for-like items with identical model numbers across all three clubs online and separately for each pair of clubs online (e.g., Costco and Sam’s, Costco and BJ’s, and Sam’s and BJ’s). All available SKUs with pricing information were analyzed, including 11,161 SKUs at Costco, 9,553 SKUs at Sam’s, and 16,945 SKUs at BJ’s. To eliminate regional pricing differences, the data was retrieved for a hypothetical online club shopper in the Sarasota, Fla., area.

Notes to editors:

About Kantar Retail
We are the retail and shopper specialists. We are a leading retail and shopper insight, consulting and analytics and technology business and part of Kantar, the data investment management division of WPP. We work with leading brand manufacturers and retailers to help them sell more effectively and profitably. At Kantar Retail we track and forecast over 1200 retailers globally and have purchase data on over 200 million shoppers. Amongst our market leading reports are the annual PoweRanking survey and the Digital Power Study. Kantar Retail works with over 400 clients and has 26 offices in 15 markets around the globe.

For further information, please visit www.kantarretail.com, or find us on Twitter and LinkedIn.

About Content Analytics
Content Analytics is the leading eCommerce Product Optimization Platform. Our end-to-end solution enables brands to store and catalog product content, syndicate content to multiple retailers and optimize sales through integrated analytics. With Content Analytics, brands gain deep insight into competitive pricing, on-site search rankings, content quality, product assortment and product availability. Once opportunities are identified, it’s easy to take action to improve.

For further information, please visit www.contentanalyticsinc.com.

Contact for Kantar Retail media queries:

Victoria Bradshaw
Global Communications Manager
Office: +44 (0) 1372 825 391
E-mail: victoria.bradshaw@kantarretail.com

Source: Kantar Retail

Kantar Retail: British FMCG suppliers and the Brexit

Boston, MA, 2016-Jun-27 — /EPR Retail News/ — Shock has arrived on the back of the UK’s historic vote to leave the European Union and Prime Minister David Cameron’s decision to resign.  This shock has resulted in a “Black Friday” effect in financial markets with the price of British Pounds Sterling plummeting and stock markets searching for direction.

Kantar Retail’s analyst team has gathered to give our initial views on both short-term and long-term exposure to the effects of Brexit on a retailer by retailer basis.

Our Analytical Framework

In order to help clients understand the effects of Brexit on each retailer in the FMCG landscape, we have chosen to focus on a few key topics.  These topics revolve around European Union principles.  Namely, the principles related to the free movement of services, free movement of goods, and free movement of people.  It is our belief that the shock of Brexit will impact movement of services most profoundly in the short-term, followed by movement of goods in the medium term, and finally movement of people in the longer-term.

brexit

Using this framework, we asked each of our retail analysts to write down the biggest factors that each retailer will need to consider when developing a post-Brexit game plan.

Post-Brexit Game Plans

One of the easiest ways to think about Britain’s FMCG retailer landscape is in three groups:

  1. Retailers with their headquarters in Britain
  2. Retailers with their headquarters in the European Union (excluding Britain)
  3. Retailers with their headquarters outside the European Union & Britain

We have created a chart to help you visualize this landscape.

Brexit_t2Retailer by Retailer Considerations

British Retailers

Retailers with headquarters inside Britain will primarily be concerned in the early stages about the financial market effects.  In the short-term their ability to import goods from the European Union will be adversely effected by a weaker Pound:Euro exchange rate. Nearly all retailers will look inward to source locally and we at Kantar Retail feel that the retailers that have done the best job of cultivating good relations with British farms and fisheries will do better than their peers in the immediate term.

Sourcing

The mid-term effect of goods sourcing is likely to be the largest factor of consideration for British retailers. The prices of fresh produce will definitely go up as much of this is sourced from the EU. In the case of Tesco, for example, almost 50% of butter and cheese consumed in the UK comes from milk sourced from EU markets. Inflationary pressures will further boost the call for locally-sourced/manufactured products as the retailers’ ability to source from the EU suppliers offering better trade terms is adversely impacted. Higher commodity prices and tariffs will also impact production of traditional FMCG products, even though a significant proportion of good are produced locally. Supply chain costs are likely to go up due to higher trade tariffs.

Human Resources

While labor costs aren’t likely to be significantly impacted considering the introduction of minimum wages; the availability of talent – from senior leaders to store staff – will be impacted.

Individual Retailer-by-Retailer Considerations

Tesco has strong interests in Central Europe (Poland, Czech Republic, Slovakia and Hungary) and Brexit will impact cash inflows and outflows, as well as the company’s ability to invest.  Sainsbury’s may reconsider its current Netto business in partnership with Dansk Supermarket. Morrisons is well-situated as its processing plants are based locally in the UK.  However, it will be more exposed to commodity price fluctuations due to its membership in the European buying group AMS. Marks & Spencer sources most of its products locally, but its French supermarkets will be exposed to the Brexit changes.

European Union Retailers

Europe’s largest traditional retailers have not found strong success in Britain over the years.  Carrefour attempted to trade in the UK but gave up on that after poor results in the mid-1980s.  Few others have even attempted to trade in the UK.  However, Europe’s discounters, Aldi & Lidl, have not only attempted to trade in the UK but they have reshaped the trade in recent years.

There are several factors which will help discounters Aldi and Lidl absorb the rise in food prices and inflation – namely its limited range, having the leanest supply chains in retail and most importantly their economies of scale.

Crucially, in their attempts to position themselves as genuine weekly shopping destinations, both Aldi and Lidl have drastically increased and improved their fresh offer, with sales from fruit and vegetable, meat, poultry and bread now accounting for 50% of sales. In this time, they have been the most proactive in driving provenance and localism, with Aldi implementing a 100% British fresh meat policy. This heightened relationship with British farmers means they are in a stronger position than their rivals in the immediate term.

Lidl alone will Invest GBP1.5 Billion over the next three years in building new stores, refurbishing existing ones and developing new product lines.  These investment plans are likely to remain unchanged and with the value of the pound dropping, the Billions of Euros set aside at their HQs in Germany are now set to go a lot further. As a result, Aldi and Lidl are certainly primed to be the least affected retailers. Indeed they may be the ones to benefit in the short and medium term.

Non-European, Non-British Retailers

America’s largest retailers have had the most profound effect on British FMCG retailing. Walmart, the world’s largest retailer by sales of directly controlled products, purchased ASDA in the 1990s and has dominated the weekend stock-up shopping trip in many of Britain’s towns and communities ever since. Costco, the world number 3 retailer, has had a more difficult time in Britain with rules constraining the types of members to whom it can sell its services.  Amazon has had a much bigger impact in recent years than any of the other non-European retailers with services like Amazon Prime, Amazon Prime Now, and most recently Amazon Prime Fresh changing the nature of retailing and falling high on the list of topics consumers, analysts, and retailers discuss when thinking about how shopping may change in the future.  Walgreens, the world’s largest drugstore retailer, has also helped Boots after acquiring the chain a few years ago. The biggest assistance Walgreens has provided is giving Boots better access to global commodities and capital markets.

One other retailer stands out as having a strong impact on the UK – Hong Kong’s AS Watson group, a leader in health & beauty retailing.  AS Watson owns the Super drug and Savers drug chains which tend to trade well with non-British European citizens.  As a result, this company will be more focused on the longer term impact on its shopper base.

All of the non-British, non-EU retailers will benefit from a weaker pound in terms of being able to have their investments go further but will likely be hedging their exposure to lower profits and revenues coming from the UK.  This will be good for Walmart as ASDA has performed extremely poorly in the last six months.  For Amazon and Costco the size of the UK business is still small enough to be of lower concern.

The eCommerce Impact

Amazon UK

Amazon should be able to quickly capitalize on the current situation given their position as a “search when you are in a panic” status.

As a case study, this is what was happening this morning across Europe:brexit tweet 1brexit tweet 2Brexit tweet 3

 

Amazon is also incredibly creative when it comes to working across borders so we expect Amazon to do very well in the short-term.

Ocado on the other hand is handicapped.  Imports will be strongly reduced and Ocado will be leaning towards a higher reliance in local suppliers in the short term.

Ocado operates three warehouses in London, accounting for most of its employees. The cost of acquiring talent for its technology centres will be higher, but their couriers and warehouse operators will not be impacted in the short term. The main implication in terms of labour will be a higher collaboration with local suppliers, creating a more intricate logistics around the fresh product sourcing.

 

Overall Summary:  Next Steps for Retailers

Retailers will need to go to work.  Beyond the obvious work around Procurement, HR, and Investor Relations, retailers will need to develop new long-term connections.  Regulations are going to change.  Retailers will need to keep up on these changes and make a different set of plans to manage these changes.  We see three big areas requiring a large amount of focus for retailers in the UK.  These are:

  • Data.   The European Union has spent extraordinary amounts of time setting rules on personal data privacy, corporate data security, policing of data and other issues related to cloud computing, data sharing and survey work.  The types of data that retailers have access to, how they gain access to it, and how they protect it will change.
  • Food Labeling and Food Packaging.  The European Union has had a powerful effect on how retailers label and package goods.  These rules will change and UK retailers will need to take advantage of or react to these changes.
  • Social and Environmental.  Up to now, the environmental rules and social rules governing retail in the UK have largely been shaped by European Union rules that have a future deadline well in advance of the present.  As these change, retailers will likely be able to argue for different regulations and will have to deal with a different group of legislators.

 

Overall Summary:  Implications for FMCG Suppliers

FMCG suppliers will need to understand the impact, and more importantly, the reaction, of different retailers in both the short and medium term.  With a devalued British Pound and a UK economy facing recessionary fears, suppliers will need to double-down on unlocking value from the supply chain.  This should be done in the context of understanding shopper changes first. Shoppers, facing uncertainty, are likely to cut back on spending and delay large purchase decisions.

FMCG suppliers should remember that FMCG retailers operating in the UK will be rocked by three waves of change.  The first wave will be related to banking, currency, and financial market changes.  This will affect how retailers think about their investments and debts.  Many of the retailers would have already taken steps to reduce exposure to these problems so this should not be the main priority for FMCG suppliers looking to build new strategies with retailers.  In the near term they are likely to reduce or delay capital spending and other large projects.

The second wave of change is the most important consideration for FMCG suppliers. In the second wave we will see large changes in the flow of goods in and out of Britain. We see the most difficult step for retailers related to changing sources for fresh produce to accommodate the higher cost of purchasing items sourced in Euros.  In the short-term, consumers will likely see higher prices and in the longer term all retailers will be looking to source from new directions.

While the second wave will be related to what retailers sell, the third wave will be related to people. On one side, retailers will need to readjust their plans around hiring and staffing.  On the other side, retailers will also need to adjust their plans around consumers that shop their stores.  This will take some time to get a clear picture and will only emerge after negotiations take place.

 

Call to Action

We at Kantar Retail encourage FMCG suppliers to take the following steps:

  1. Update BREXIT risk analysis to include customer by customer assessments on both the profit and loss impact (cost of goods and operating costs) as well as balance sheet (cost of debt, ability to borrow, capital spending, and working capital costs)
  2. Develop ways to unlock value from the supply chain
  3. Stay close in touch with changing shopper values, particularly those that are exposed to Brexit concerns related to their finances and investments
  4. Build top-to-top plans focused on helping leading retailers make a smooth transition and schedule the meetings as soon as the opportunity is right
  5. Align trade terms length with retailers in the UK to the Brexit timetable(s)
  6. Manage the transition away from European sourcing supply chains and integrated pricing platform planning platforms
  7. Prepare a transition team to help manage and coordinate the transition

As always, Kantar Retail’s teams are prepared to advise, consult, and answer your questions.

 

Press Contact:

All press and media enquiries to:

Victoria Bradshaw,
Global Communications Manager
victoria.bradshaw@kantarretail.com
T: +44 (0) 1372 825 391

Source:Kantar Retail

Kantar Retail released the first of two Breakthrough Insights reports to be distributed in 2016

Bi-annual look at trends re-shaping the global retail industry analyzes evolving environment and changing nature of retailer and supplier work

Boston, MA, 2016-Jun-14 — /EPR Retail News/ — Kantar Retail, the global retail and shopper specialist, today released the first of two Breakthrough Insights reports to be distributed in 2016.

“Changing What Matters,” a compilation of recent analysis produced by Kantar Retail, looks to expand on the two major changes that the retail consultancy had identified earlier in the year as being most important to the retail ecosystem.

The first major direction, focusing on an evolving environment and termed “the smaller, harder world,” centers on the reality that while there are still many platforms for retail growth globally, these opportunities tend to be smaller in scale and more difficult to access.

“Changing What Matters” examines the trend from a macro perspective, providing a look at the recent disappointing holiday sales season and a “state of the union” analysis of Walmart’s international competitive position. From a retailer perspective, the report examines the expansion of discounters worldwide into fresh foods, while from a shopper perspective, it looks at the demand for “stress-free’ shopping, how Home Depot has approached this demand and provides a perspective on Costco’s global operation.

The second major change analyzed– that of how retailer and supplier work is changing – is examined in three parts, “Winning With Retailers,” “Winning With Shoppers” and “Winning Plans.”

“Winning With Retailers” focuses on key aspects of a winning retailer strategy, such as discounting appropriately, highlighted through an analysis of Asda’s decision not to repeat its Black Friday promotions in 2016, and a by looking at the major challenges facing U.S supermarket suppliers today.

“Winning With Shoppers” focuses on granular competition with an analysis of the challenge in differentiating two massive retailers – Walmart and Sam’s – owned by the same company and an overview of the subscription box business in the apparel industry. “Winning Plans” examines the competitive disruption brought to U.S. eCommerce by Jet and the faster than expected expansion of Amazon’s Prime Now two-hour delivery capability.

We are seeing a global retail environment where opportunity certainly exists, but that requires competitors to look at the ecosystem holistically and perhaps very differently than what they have been accustomed to,” said Bryan Gildenberg, Chief Knowledge Officer of Kantar Retail. “From the importance of the functional and emotional components of reducing friction in the shopping trip to new business models that require plans that are broader and more transparent than ever before, the 2016 retail landscape has been all about change so far. This first half analysis highlights the themes that we believe are driving that change and that we feel are most important to those trying to sell more effectively and profitably in retail today.”

For more information on Breakthrough Insights, “Changing What Matters,” and to obtain a copy, please visithttp://www.kantarretail.com/kantar-retail-breakthrough-insights-h1-2016/

– Ends –

Notes to editors:

About Kantar Retail
We are the retail and shopper specialists. We are a leading retail and shopper insight, consulting and analytics and technology business and part of Kantar, the data investment management division of WPP. We work with leading brand manufacturers and retailers to help them sell more effectively and profitably. At Kantar Retail we track and forecast over 1000 retailers globally and have purchase data on over 200 million shoppers. Amongst our market leading reports are the annual PoweRanking survey and the Digital Power Study. Kantar Retail works with over 400 clients and has 26 offices in 15 markets around the globe.

For further information, please visit www.kantarretail.com, or find us on Twitter and LinkedIn.

 

Contact for Kantar Retail media queries in the U.S.:

Donna Tobin
Office: 1 617 912 2816
E-mail: donna.tobin@kantarretail.com

Contact for Kantar Retail media queries in Europe:

Victoria Bradshaw
Global Communications Manager
Office: +44 (0) 1372 825 391
E-mail: victoria.bradshaw@kantarretail.com