house special draught beer bottled beer cider - Roti Place · draught beer bottled beer ...
Economy, Retail & Beer - Arena International
Transcript of Economy, Retail & Beer - Arena International
Economy Retail amp Beer
By Matthias Queck Research Director
Copenhagen 29 May 2012
How the economy shapes retail channel development and product ranges
A Service
2
Contents
1 Economic Development
2 Retail Evolution
3 Big Plans for Small Stores
4 Smaller Plans for Bigger Stores
5 Polarisation Discounting amp Private Label
6 Summary
3
About Planet Retail
4
1 Economic Development
2 Retail Evolution
5
Europe continues to be divided economically
Positive outlook for countries benefiting from emerging markets growth and featuring stable domestic economy
Difficult outlook for countries struck by public and household debt crises (UK Ireland Spain Greece Portugal) with most problems coming from the inside Several countries will lose a full decade
Consumer confidence is key in countries with high dependence on domestic consumption (UK Portugal)
Structural adaptations in retail will be accordingly deep amp fast there
But not all structural change in retail is economy-led Further drivers are demographic trends and channel development
X Key Trends ndash Economic Development 1
6
GDP Real Growth 2005-2015 ()
Source IMF
-6
-4
-2
0
2
4
6
8
10
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Advanced economies Emerging and developing economies
World economy powered by emerging markets growth
X Key Trends ndash Economic Development 1
7
GDP Real Growth 2005-2015 ()
Source IMF
-5
-3
-1
1
3
5
7
9
11
13
15
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
China India Brazil United States Euro area
World economy powered by emerging markets growth
X Key Trends ndash Economic Development 1
8
Consumer Spending Real Growth 2000-2015 ()
Source IMF Planet Retail
-70
-20
30
80
130
180
230
280
2000 2002 2004 2006 2008 2010 2012 2014
Finland
Germany
Greece
UK
X Key Trends ndash Economic Development 1
The Olympic Games 2012 shouldnrsquot they have gone to Greece this year again
9
800
900
1000
1100
2007 2008 2009 2010 2011 2012 2013 2014 2015
Greece
UK
Portugal
Germany
GDP Real Growth Index 2007-2015 (2007 = 100)
Source IMF Planet Retail
Real growth index shows how deep the Euro crisis really is
X Key Trends ndash Economic Development 1
10
79
7
46
3
60
6
39
3
46
1
36
6
36
8
36
2
29
8
26
5
74
6
69
9
65
0
48
3
46
6
45
2
43
6
42
1
38
7
29
9
77
5
98
8
80
9
64
8
48
4
49
6
50
2
52
2
49
3
34
1
0
20
40
60
80
100
120
Carrefour Schwarz Group Tesco Auchan Metro Group Edeka Aldi Rewe Group Leclerc ITM(Intermarcheacute)
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
EUROPE Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
1 Carrefour and 2 Schwarz Group (Lidl amp Kaufland) are swapping their places this year not least due to the divestment of discounter Dia
X Key Trends ndash Retail Evolution 2
11
29
05
97
7
68
9
46
3
51
7
50
7
43
5
45
1
41
4
48
7
34
83
10
70
80
5
69
9
69
0
62
6
58
1
57
2
51
8
51
1
49
42
12
98
10
87
98
8
83
7
89
0
86
1
71
4
67
7
59
2
0
50
100
150
200
250
300
350
400
450
500
Walmart Carrefour Tesco Schwarz Group Seven amp I Costco Auchan Aldi Casino Metro Group
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
WORLD Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
Globally Walmart continues to lead the pack followed by mostly European grocers
X Key Trends ndash Retail Evolution 2
12
0
10
20
30
40
50
60
70
80
90
100
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
Sale
s (
)
Global Top 10 Grocery Retailers by Channel 2006-2016 ()
The global lsquobig 3rsquo are seeing hypermarkets amp superstores declining as a contributor to total sales
Source Planet Retail
Walmart Carrefour Schwarz Group
Tesco Kroger Aldi AEON Ahold Walgreens Seven amp I
Other
Drugstores Pharmacies amp Perfumeries
Cash amp Carries and Wholesale Clubs
Convenience amp Forecourt Stores
Discount Stores
Supermarkets amp Neighbourhood Stores
Hypermarkets amp Superstores
X Key Trends ndash Retail Evolution 2
13
Small formats are on the rise as shoppers favour proximity convenience and smaller average basket sizes
1615
273 330
743
282 300
1729
294 356
826
321 335
1819
311 377
875
337 359
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Hypermarkets Cash amp Carry Drugstores Supermarkets Convenience Discounters
Reta
iler
Sale
s b
y C
hannel (U
SD
bn)
Global Sales by Channel 2010-2012 (USD bn)
2010
2011
2012
Source Planet Retail
X Key Trends ndash Retail Evolution 2
14
15
Ireland
United Kingdom
Portugal
Belgium
Switzerland
Denmark
Norway
Finland
Hungary
Small stores Convenience The lsquoSplendid Isolationrsquo ndash Convenience as a British-Irish phenomenon
1154
980
256
428
342
322
Greece 188
192
265
274
Note includes Western Central and Eastern Europe excludes markets with less than 1mn inhabitants
Source Planet Retail
Top 10 markets by total grocery market share of sales convenience amp forecourt stores in Europe 2011
X Big plans for small stores 3
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
2
Contents
1 Economic Development
2 Retail Evolution
3 Big Plans for Small Stores
4 Smaller Plans for Bigger Stores
5 Polarisation Discounting amp Private Label
6 Summary
3
About Planet Retail
4
1 Economic Development
2 Retail Evolution
5
Europe continues to be divided economically
Positive outlook for countries benefiting from emerging markets growth and featuring stable domestic economy
Difficult outlook for countries struck by public and household debt crises (UK Ireland Spain Greece Portugal) with most problems coming from the inside Several countries will lose a full decade
Consumer confidence is key in countries with high dependence on domestic consumption (UK Portugal)
Structural adaptations in retail will be accordingly deep amp fast there
But not all structural change in retail is economy-led Further drivers are demographic trends and channel development
X Key Trends ndash Economic Development 1
6
GDP Real Growth 2005-2015 ()
Source IMF
-6
-4
-2
0
2
4
6
8
10
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Advanced economies Emerging and developing economies
World economy powered by emerging markets growth
X Key Trends ndash Economic Development 1
7
GDP Real Growth 2005-2015 ()
Source IMF
-5
-3
-1
1
3
5
7
9
11
13
15
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
China India Brazil United States Euro area
World economy powered by emerging markets growth
X Key Trends ndash Economic Development 1
8
Consumer Spending Real Growth 2000-2015 ()
Source IMF Planet Retail
-70
-20
30
80
130
180
230
280
2000 2002 2004 2006 2008 2010 2012 2014
Finland
Germany
Greece
UK
X Key Trends ndash Economic Development 1
The Olympic Games 2012 shouldnrsquot they have gone to Greece this year again
9
800
900
1000
1100
2007 2008 2009 2010 2011 2012 2013 2014 2015
Greece
UK
Portugal
Germany
GDP Real Growth Index 2007-2015 (2007 = 100)
Source IMF Planet Retail
Real growth index shows how deep the Euro crisis really is
X Key Trends ndash Economic Development 1
10
79
7
46
3
60
6
39
3
46
1
36
6
36
8
36
2
29
8
26
5
74
6
69
9
65
0
48
3
46
6
45
2
43
6
42
1
38
7
29
9
77
5
98
8
80
9
64
8
48
4
49
6
50
2
52
2
49
3
34
1
0
20
40
60
80
100
120
Carrefour Schwarz Group Tesco Auchan Metro Group Edeka Aldi Rewe Group Leclerc ITM(Intermarcheacute)
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
EUROPE Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
1 Carrefour and 2 Schwarz Group (Lidl amp Kaufland) are swapping their places this year not least due to the divestment of discounter Dia
X Key Trends ndash Retail Evolution 2
11
29
05
97
7
68
9
46
3
51
7
50
7
43
5
45
1
41
4
48
7
34
83
10
70
80
5
69
9
69
0
62
6
58
1
57
2
51
8
51
1
49
42
12
98
10
87
98
8
83
7
89
0
86
1
71
4
67
7
59
2
0
50
100
150
200
250
300
350
400
450
500
Walmart Carrefour Tesco Schwarz Group Seven amp I Costco Auchan Aldi Casino Metro Group
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
WORLD Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
Globally Walmart continues to lead the pack followed by mostly European grocers
X Key Trends ndash Retail Evolution 2
12
0
10
20
30
40
50
60
70
80
90
100
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
Sale
s (
)
Global Top 10 Grocery Retailers by Channel 2006-2016 ()
The global lsquobig 3rsquo are seeing hypermarkets amp superstores declining as a contributor to total sales
Source Planet Retail
Walmart Carrefour Schwarz Group
Tesco Kroger Aldi AEON Ahold Walgreens Seven amp I
Other
Drugstores Pharmacies amp Perfumeries
Cash amp Carries and Wholesale Clubs
Convenience amp Forecourt Stores
Discount Stores
Supermarkets amp Neighbourhood Stores
Hypermarkets amp Superstores
X Key Trends ndash Retail Evolution 2
13
Small formats are on the rise as shoppers favour proximity convenience and smaller average basket sizes
1615
273 330
743
282 300
1729
294 356
826
321 335
1819
311 377
875
337 359
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Hypermarkets Cash amp Carry Drugstores Supermarkets Convenience Discounters
Reta
iler
Sale
s b
y C
hannel (U
SD
bn)
Global Sales by Channel 2010-2012 (USD bn)
2010
2011
2012
Source Planet Retail
X Key Trends ndash Retail Evolution 2
14
15
Ireland
United Kingdom
Portugal
Belgium
Switzerland
Denmark
Norway
Finland
Hungary
Small stores Convenience The lsquoSplendid Isolationrsquo ndash Convenience as a British-Irish phenomenon
1154
980
256
428
342
322
Greece 188
192
265
274
Note includes Western Central and Eastern Europe excludes markets with less than 1mn inhabitants
Source Planet Retail
Top 10 markets by total grocery market share of sales convenience amp forecourt stores in Europe 2011
X Big plans for small stores 3
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
3
About Planet Retail
4
1 Economic Development
2 Retail Evolution
5
Europe continues to be divided economically
Positive outlook for countries benefiting from emerging markets growth and featuring stable domestic economy
Difficult outlook for countries struck by public and household debt crises (UK Ireland Spain Greece Portugal) with most problems coming from the inside Several countries will lose a full decade
Consumer confidence is key in countries with high dependence on domestic consumption (UK Portugal)
Structural adaptations in retail will be accordingly deep amp fast there
But not all structural change in retail is economy-led Further drivers are demographic trends and channel development
X Key Trends ndash Economic Development 1
6
GDP Real Growth 2005-2015 ()
Source IMF
-6
-4
-2
0
2
4
6
8
10
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Advanced economies Emerging and developing economies
World economy powered by emerging markets growth
X Key Trends ndash Economic Development 1
7
GDP Real Growth 2005-2015 ()
Source IMF
-5
-3
-1
1
3
5
7
9
11
13
15
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
China India Brazil United States Euro area
World economy powered by emerging markets growth
X Key Trends ndash Economic Development 1
8
Consumer Spending Real Growth 2000-2015 ()
Source IMF Planet Retail
-70
-20
30
80
130
180
230
280
2000 2002 2004 2006 2008 2010 2012 2014
Finland
Germany
Greece
UK
X Key Trends ndash Economic Development 1
The Olympic Games 2012 shouldnrsquot they have gone to Greece this year again
9
800
900
1000
1100
2007 2008 2009 2010 2011 2012 2013 2014 2015
Greece
UK
Portugal
Germany
GDP Real Growth Index 2007-2015 (2007 = 100)
Source IMF Planet Retail
Real growth index shows how deep the Euro crisis really is
X Key Trends ndash Economic Development 1
10
79
7
46
3
60
6
39
3
46
1
36
6
36
8
36
2
29
8
26
5
74
6
69
9
65
0
48
3
46
6
45
2
43
6
42
1
38
7
29
9
77
5
98
8
80
9
64
8
48
4
49
6
50
2
52
2
49
3
34
1
0
20
40
60
80
100
120
Carrefour Schwarz Group Tesco Auchan Metro Group Edeka Aldi Rewe Group Leclerc ITM(Intermarcheacute)
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
EUROPE Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
1 Carrefour and 2 Schwarz Group (Lidl amp Kaufland) are swapping their places this year not least due to the divestment of discounter Dia
X Key Trends ndash Retail Evolution 2
11
29
05
97
7
68
9
46
3
51
7
50
7
43
5
45
1
41
4
48
7
34
83
10
70
80
5
69
9
69
0
62
6
58
1
57
2
51
8
51
1
49
42
12
98
10
87
98
8
83
7
89
0
86
1
71
4
67
7
59
2
0
50
100
150
200
250
300
350
400
450
500
Walmart Carrefour Tesco Schwarz Group Seven amp I Costco Auchan Aldi Casino Metro Group
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
WORLD Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
Globally Walmart continues to lead the pack followed by mostly European grocers
X Key Trends ndash Retail Evolution 2
12
0
10
20
30
40
50
60
70
80
90
100
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
Sale
s (
)
Global Top 10 Grocery Retailers by Channel 2006-2016 ()
The global lsquobig 3rsquo are seeing hypermarkets amp superstores declining as a contributor to total sales
Source Planet Retail
Walmart Carrefour Schwarz Group
Tesco Kroger Aldi AEON Ahold Walgreens Seven amp I
Other
Drugstores Pharmacies amp Perfumeries
Cash amp Carries and Wholesale Clubs
Convenience amp Forecourt Stores
Discount Stores
Supermarkets amp Neighbourhood Stores
Hypermarkets amp Superstores
X Key Trends ndash Retail Evolution 2
13
Small formats are on the rise as shoppers favour proximity convenience and smaller average basket sizes
1615
273 330
743
282 300
1729
294 356
826
321 335
1819
311 377
875
337 359
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Hypermarkets Cash amp Carry Drugstores Supermarkets Convenience Discounters
Reta
iler
Sale
s b
y C
hannel (U
SD
bn)
Global Sales by Channel 2010-2012 (USD bn)
2010
2011
2012
Source Planet Retail
X Key Trends ndash Retail Evolution 2
14
15
Ireland
United Kingdom
Portugal
Belgium
Switzerland
Denmark
Norway
Finland
Hungary
Small stores Convenience The lsquoSplendid Isolationrsquo ndash Convenience as a British-Irish phenomenon
1154
980
256
428
342
322
Greece 188
192
265
274
Note includes Western Central and Eastern Europe excludes markets with less than 1mn inhabitants
Source Planet Retail
Top 10 markets by total grocery market share of sales convenience amp forecourt stores in Europe 2011
X Big plans for small stores 3
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
4
1 Economic Development
2 Retail Evolution
5
Europe continues to be divided economically
Positive outlook for countries benefiting from emerging markets growth and featuring stable domestic economy
Difficult outlook for countries struck by public and household debt crises (UK Ireland Spain Greece Portugal) with most problems coming from the inside Several countries will lose a full decade
Consumer confidence is key in countries with high dependence on domestic consumption (UK Portugal)
Structural adaptations in retail will be accordingly deep amp fast there
But not all structural change in retail is economy-led Further drivers are demographic trends and channel development
X Key Trends ndash Economic Development 1
6
GDP Real Growth 2005-2015 ()
Source IMF
-6
-4
-2
0
2
4
6
8
10
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Advanced economies Emerging and developing economies
World economy powered by emerging markets growth
X Key Trends ndash Economic Development 1
7
GDP Real Growth 2005-2015 ()
Source IMF
-5
-3
-1
1
3
5
7
9
11
13
15
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
China India Brazil United States Euro area
World economy powered by emerging markets growth
X Key Trends ndash Economic Development 1
8
Consumer Spending Real Growth 2000-2015 ()
Source IMF Planet Retail
-70
-20
30
80
130
180
230
280
2000 2002 2004 2006 2008 2010 2012 2014
Finland
Germany
Greece
UK
X Key Trends ndash Economic Development 1
The Olympic Games 2012 shouldnrsquot they have gone to Greece this year again
9
800
900
1000
1100
2007 2008 2009 2010 2011 2012 2013 2014 2015
Greece
UK
Portugal
Germany
GDP Real Growth Index 2007-2015 (2007 = 100)
Source IMF Planet Retail
Real growth index shows how deep the Euro crisis really is
X Key Trends ndash Economic Development 1
10
79
7
46
3
60
6
39
3
46
1
36
6
36
8
36
2
29
8
26
5
74
6
69
9
65
0
48
3
46
6
45
2
43
6
42
1
38
7
29
9
77
5
98
8
80
9
64
8
48
4
49
6
50
2
52
2
49
3
34
1
0
20
40
60
80
100
120
Carrefour Schwarz Group Tesco Auchan Metro Group Edeka Aldi Rewe Group Leclerc ITM(Intermarcheacute)
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
EUROPE Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
1 Carrefour and 2 Schwarz Group (Lidl amp Kaufland) are swapping their places this year not least due to the divestment of discounter Dia
X Key Trends ndash Retail Evolution 2
11
29
05
97
7
68
9
46
3
51
7
50
7
43
5
45
1
41
4
48
7
34
83
10
70
80
5
69
9
69
0
62
6
58
1
57
2
51
8
51
1
49
42
12
98
10
87
98
8
83
7
89
0
86
1
71
4
67
7
59
2
0
50
100
150
200
250
300
350
400
450
500
Walmart Carrefour Tesco Schwarz Group Seven amp I Costco Auchan Aldi Casino Metro Group
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
WORLD Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
Globally Walmart continues to lead the pack followed by mostly European grocers
X Key Trends ndash Retail Evolution 2
12
0
10
20
30
40
50
60
70
80
90
100
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
Sale
s (
)
Global Top 10 Grocery Retailers by Channel 2006-2016 ()
The global lsquobig 3rsquo are seeing hypermarkets amp superstores declining as a contributor to total sales
Source Planet Retail
Walmart Carrefour Schwarz Group
Tesco Kroger Aldi AEON Ahold Walgreens Seven amp I
Other
Drugstores Pharmacies amp Perfumeries
Cash amp Carries and Wholesale Clubs
Convenience amp Forecourt Stores
Discount Stores
Supermarkets amp Neighbourhood Stores
Hypermarkets amp Superstores
X Key Trends ndash Retail Evolution 2
13
Small formats are on the rise as shoppers favour proximity convenience and smaller average basket sizes
1615
273 330
743
282 300
1729
294 356
826
321 335
1819
311 377
875
337 359
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Hypermarkets Cash amp Carry Drugstores Supermarkets Convenience Discounters
Reta
iler
Sale
s b
y C
hannel (U
SD
bn)
Global Sales by Channel 2010-2012 (USD bn)
2010
2011
2012
Source Planet Retail
X Key Trends ndash Retail Evolution 2
14
15
Ireland
United Kingdom
Portugal
Belgium
Switzerland
Denmark
Norway
Finland
Hungary
Small stores Convenience The lsquoSplendid Isolationrsquo ndash Convenience as a British-Irish phenomenon
1154
980
256
428
342
322
Greece 188
192
265
274
Note includes Western Central and Eastern Europe excludes markets with less than 1mn inhabitants
Source Planet Retail
Top 10 markets by total grocery market share of sales convenience amp forecourt stores in Europe 2011
X Big plans for small stores 3
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
5
Europe continues to be divided economically
Positive outlook for countries benefiting from emerging markets growth and featuring stable domestic economy
Difficult outlook for countries struck by public and household debt crises (UK Ireland Spain Greece Portugal) with most problems coming from the inside Several countries will lose a full decade
Consumer confidence is key in countries with high dependence on domestic consumption (UK Portugal)
Structural adaptations in retail will be accordingly deep amp fast there
But not all structural change in retail is economy-led Further drivers are demographic trends and channel development
X Key Trends ndash Economic Development 1
6
GDP Real Growth 2005-2015 ()
Source IMF
-6
-4
-2
0
2
4
6
8
10
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Advanced economies Emerging and developing economies
World economy powered by emerging markets growth
X Key Trends ndash Economic Development 1
7
GDP Real Growth 2005-2015 ()
Source IMF
-5
-3
-1
1
3
5
7
9
11
13
15
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
China India Brazil United States Euro area
World economy powered by emerging markets growth
X Key Trends ndash Economic Development 1
8
Consumer Spending Real Growth 2000-2015 ()
Source IMF Planet Retail
-70
-20
30
80
130
180
230
280
2000 2002 2004 2006 2008 2010 2012 2014
Finland
Germany
Greece
UK
X Key Trends ndash Economic Development 1
The Olympic Games 2012 shouldnrsquot they have gone to Greece this year again
9
800
900
1000
1100
2007 2008 2009 2010 2011 2012 2013 2014 2015
Greece
UK
Portugal
Germany
GDP Real Growth Index 2007-2015 (2007 = 100)
Source IMF Planet Retail
Real growth index shows how deep the Euro crisis really is
X Key Trends ndash Economic Development 1
10
79
7
46
3
60
6
39
3
46
1
36
6
36
8
36
2
29
8
26
5
74
6
69
9
65
0
48
3
46
6
45
2
43
6
42
1
38
7
29
9
77
5
98
8
80
9
64
8
48
4
49
6
50
2
52
2
49
3
34
1
0
20
40
60
80
100
120
Carrefour Schwarz Group Tesco Auchan Metro Group Edeka Aldi Rewe Group Leclerc ITM(Intermarcheacute)
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
EUROPE Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
1 Carrefour and 2 Schwarz Group (Lidl amp Kaufland) are swapping their places this year not least due to the divestment of discounter Dia
X Key Trends ndash Retail Evolution 2
11
29
05
97
7
68
9
46
3
51
7
50
7
43
5
45
1
41
4
48
7
34
83
10
70
80
5
69
9
69
0
62
6
58
1
57
2
51
8
51
1
49
42
12
98
10
87
98
8
83
7
89
0
86
1
71
4
67
7
59
2
0
50
100
150
200
250
300
350
400
450
500
Walmart Carrefour Tesco Schwarz Group Seven amp I Costco Auchan Aldi Casino Metro Group
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
WORLD Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
Globally Walmart continues to lead the pack followed by mostly European grocers
X Key Trends ndash Retail Evolution 2
12
0
10
20
30
40
50
60
70
80
90
100
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
Sale
s (
)
Global Top 10 Grocery Retailers by Channel 2006-2016 ()
The global lsquobig 3rsquo are seeing hypermarkets amp superstores declining as a contributor to total sales
Source Planet Retail
Walmart Carrefour Schwarz Group
Tesco Kroger Aldi AEON Ahold Walgreens Seven amp I
Other
Drugstores Pharmacies amp Perfumeries
Cash amp Carries and Wholesale Clubs
Convenience amp Forecourt Stores
Discount Stores
Supermarkets amp Neighbourhood Stores
Hypermarkets amp Superstores
X Key Trends ndash Retail Evolution 2
13
Small formats are on the rise as shoppers favour proximity convenience and smaller average basket sizes
1615
273 330
743
282 300
1729
294 356
826
321 335
1819
311 377
875
337 359
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Hypermarkets Cash amp Carry Drugstores Supermarkets Convenience Discounters
Reta
iler
Sale
s b
y C
hannel (U
SD
bn)
Global Sales by Channel 2010-2012 (USD bn)
2010
2011
2012
Source Planet Retail
X Key Trends ndash Retail Evolution 2
14
15
Ireland
United Kingdom
Portugal
Belgium
Switzerland
Denmark
Norway
Finland
Hungary
Small stores Convenience The lsquoSplendid Isolationrsquo ndash Convenience as a British-Irish phenomenon
1154
980
256
428
342
322
Greece 188
192
265
274
Note includes Western Central and Eastern Europe excludes markets with less than 1mn inhabitants
Source Planet Retail
Top 10 markets by total grocery market share of sales convenience amp forecourt stores in Europe 2011
X Big plans for small stores 3
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
6
GDP Real Growth 2005-2015 ()
Source IMF
-6
-4
-2
0
2
4
6
8
10
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Advanced economies Emerging and developing economies
World economy powered by emerging markets growth
X Key Trends ndash Economic Development 1
7
GDP Real Growth 2005-2015 ()
Source IMF
-5
-3
-1
1
3
5
7
9
11
13
15
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
China India Brazil United States Euro area
World economy powered by emerging markets growth
X Key Trends ndash Economic Development 1
8
Consumer Spending Real Growth 2000-2015 ()
Source IMF Planet Retail
-70
-20
30
80
130
180
230
280
2000 2002 2004 2006 2008 2010 2012 2014
Finland
Germany
Greece
UK
X Key Trends ndash Economic Development 1
The Olympic Games 2012 shouldnrsquot they have gone to Greece this year again
9
800
900
1000
1100
2007 2008 2009 2010 2011 2012 2013 2014 2015
Greece
UK
Portugal
Germany
GDP Real Growth Index 2007-2015 (2007 = 100)
Source IMF Planet Retail
Real growth index shows how deep the Euro crisis really is
X Key Trends ndash Economic Development 1
10
79
7
46
3
60
6
39
3
46
1
36
6
36
8
36
2
29
8
26
5
74
6
69
9
65
0
48
3
46
6
45
2
43
6
42
1
38
7
29
9
77
5
98
8
80
9
64
8
48
4
49
6
50
2
52
2
49
3
34
1
0
20
40
60
80
100
120
Carrefour Schwarz Group Tesco Auchan Metro Group Edeka Aldi Rewe Group Leclerc ITM(Intermarcheacute)
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
EUROPE Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
1 Carrefour and 2 Schwarz Group (Lidl amp Kaufland) are swapping their places this year not least due to the divestment of discounter Dia
X Key Trends ndash Retail Evolution 2
11
29
05
97
7
68
9
46
3
51
7
50
7
43
5
45
1
41
4
48
7
34
83
10
70
80
5
69
9
69
0
62
6
58
1
57
2
51
8
51
1
49
42
12
98
10
87
98
8
83
7
89
0
86
1
71
4
67
7
59
2
0
50
100
150
200
250
300
350
400
450
500
Walmart Carrefour Tesco Schwarz Group Seven amp I Costco Auchan Aldi Casino Metro Group
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
WORLD Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
Globally Walmart continues to lead the pack followed by mostly European grocers
X Key Trends ndash Retail Evolution 2
12
0
10
20
30
40
50
60
70
80
90
100
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
Sale
s (
)
Global Top 10 Grocery Retailers by Channel 2006-2016 ()
The global lsquobig 3rsquo are seeing hypermarkets amp superstores declining as a contributor to total sales
Source Planet Retail
Walmart Carrefour Schwarz Group
Tesco Kroger Aldi AEON Ahold Walgreens Seven amp I
Other
Drugstores Pharmacies amp Perfumeries
Cash amp Carries and Wholesale Clubs
Convenience amp Forecourt Stores
Discount Stores
Supermarkets amp Neighbourhood Stores
Hypermarkets amp Superstores
X Key Trends ndash Retail Evolution 2
13
Small formats are on the rise as shoppers favour proximity convenience and smaller average basket sizes
1615
273 330
743
282 300
1729
294 356
826
321 335
1819
311 377
875
337 359
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Hypermarkets Cash amp Carry Drugstores Supermarkets Convenience Discounters
Reta
iler
Sale
s b
y C
hannel (U
SD
bn)
Global Sales by Channel 2010-2012 (USD bn)
2010
2011
2012
Source Planet Retail
X Key Trends ndash Retail Evolution 2
14
15
Ireland
United Kingdom
Portugal
Belgium
Switzerland
Denmark
Norway
Finland
Hungary
Small stores Convenience The lsquoSplendid Isolationrsquo ndash Convenience as a British-Irish phenomenon
1154
980
256
428
342
322
Greece 188
192
265
274
Note includes Western Central and Eastern Europe excludes markets with less than 1mn inhabitants
Source Planet Retail
Top 10 markets by total grocery market share of sales convenience amp forecourt stores in Europe 2011
X Big plans for small stores 3
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
7
GDP Real Growth 2005-2015 ()
Source IMF
-5
-3
-1
1
3
5
7
9
11
13
15
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
China India Brazil United States Euro area
World economy powered by emerging markets growth
X Key Trends ndash Economic Development 1
8
Consumer Spending Real Growth 2000-2015 ()
Source IMF Planet Retail
-70
-20
30
80
130
180
230
280
2000 2002 2004 2006 2008 2010 2012 2014
Finland
Germany
Greece
UK
X Key Trends ndash Economic Development 1
The Olympic Games 2012 shouldnrsquot they have gone to Greece this year again
9
800
900
1000
1100
2007 2008 2009 2010 2011 2012 2013 2014 2015
Greece
UK
Portugal
Germany
GDP Real Growth Index 2007-2015 (2007 = 100)
Source IMF Planet Retail
Real growth index shows how deep the Euro crisis really is
X Key Trends ndash Economic Development 1
10
79
7
46
3
60
6
39
3
46
1
36
6
36
8
36
2
29
8
26
5
74
6
69
9
65
0
48
3
46
6
45
2
43
6
42
1
38
7
29
9
77
5
98
8
80
9
64
8
48
4
49
6
50
2
52
2
49
3
34
1
0
20
40
60
80
100
120
Carrefour Schwarz Group Tesco Auchan Metro Group Edeka Aldi Rewe Group Leclerc ITM(Intermarcheacute)
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
EUROPE Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
1 Carrefour and 2 Schwarz Group (Lidl amp Kaufland) are swapping their places this year not least due to the divestment of discounter Dia
X Key Trends ndash Retail Evolution 2
11
29
05
97
7
68
9
46
3
51
7
50
7
43
5
45
1
41
4
48
7
34
83
10
70
80
5
69
9
69
0
62
6
58
1
57
2
51
8
51
1
49
42
12
98
10
87
98
8
83
7
89
0
86
1
71
4
67
7
59
2
0
50
100
150
200
250
300
350
400
450
500
Walmart Carrefour Tesco Schwarz Group Seven amp I Costco Auchan Aldi Casino Metro Group
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
WORLD Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
Globally Walmart continues to lead the pack followed by mostly European grocers
X Key Trends ndash Retail Evolution 2
12
0
10
20
30
40
50
60
70
80
90
100
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
Sale
s (
)
Global Top 10 Grocery Retailers by Channel 2006-2016 ()
The global lsquobig 3rsquo are seeing hypermarkets amp superstores declining as a contributor to total sales
Source Planet Retail
Walmart Carrefour Schwarz Group
Tesco Kroger Aldi AEON Ahold Walgreens Seven amp I
Other
Drugstores Pharmacies amp Perfumeries
Cash amp Carries and Wholesale Clubs
Convenience amp Forecourt Stores
Discount Stores
Supermarkets amp Neighbourhood Stores
Hypermarkets amp Superstores
X Key Trends ndash Retail Evolution 2
13
Small formats are on the rise as shoppers favour proximity convenience and smaller average basket sizes
1615
273 330
743
282 300
1729
294 356
826
321 335
1819
311 377
875
337 359
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Hypermarkets Cash amp Carry Drugstores Supermarkets Convenience Discounters
Reta
iler
Sale
s b
y C
hannel (U
SD
bn)
Global Sales by Channel 2010-2012 (USD bn)
2010
2011
2012
Source Planet Retail
X Key Trends ndash Retail Evolution 2
14
15
Ireland
United Kingdom
Portugal
Belgium
Switzerland
Denmark
Norway
Finland
Hungary
Small stores Convenience The lsquoSplendid Isolationrsquo ndash Convenience as a British-Irish phenomenon
1154
980
256
428
342
322
Greece 188
192
265
274
Note includes Western Central and Eastern Europe excludes markets with less than 1mn inhabitants
Source Planet Retail
Top 10 markets by total grocery market share of sales convenience amp forecourt stores in Europe 2011
X Big plans for small stores 3
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
8
Consumer Spending Real Growth 2000-2015 ()
Source IMF Planet Retail
-70
-20
30
80
130
180
230
280
2000 2002 2004 2006 2008 2010 2012 2014
Finland
Germany
Greece
UK
X Key Trends ndash Economic Development 1
The Olympic Games 2012 shouldnrsquot they have gone to Greece this year again
9
800
900
1000
1100
2007 2008 2009 2010 2011 2012 2013 2014 2015
Greece
UK
Portugal
Germany
GDP Real Growth Index 2007-2015 (2007 = 100)
Source IMF Planet Retail
Real growth index shows how deep the Euro crisis really is
X Key Trends ndash Economic Development 1
10
79
7
46
3
60
6
39
3
46
1
36
6
36
8
36
2
29
8
26
5
74
6
69
9
65
0
48
3
46
6
45
2
43
6
42
1
38
7
29
9
77
5
98
8
80
9
64
8
48
4
49
6
50
2
52
2
49
3
34
1
0
20
40
60
80
100
120
Carrefour Schwarz Group Tesco Auchan Metro Group Edeka Aldi Rewe Group Leclerc ITM(Intermarcheacute)
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
EUROPE Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
1 Carrefour and 2 Schwarz Group (Lidl amp Kaufland) are swapping their places this year not least due to the divestment of discounter Dia
X Key Trends ndash Retail Evolution 2
11
29
05
97
7
68
9
46
3
51
7
50
7
43
5
45
1
41
4
48
7
34
83
10
70
80
5
69
9
69
0
62
6
58
1
57
2
51
8
51
1
49
42
12
98
10
87
98
8
83
7
89
0
86
1
71
4
67
7
59
2
0
50
100
150
200
250
300
350
400
450
500
Walmart Carrefour Tesco Schwarz Group Seven amp I Costco Auchan Aldi Casino Metro Group
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
WORLD Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
Globally Walmart continues to lead the pack followed by mostly European grocers
X Key Trends ndash Retail Evolution 2
12
0
10
20
30
40
50
60
70
80
90
100
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
Sale
s (
)
Global Top 10 Grocery Retailers by Channel 2006-2016 ()
The global lsquobig 3rsquo are seeing hypermarkets amp superstores declining as a contributor to total sales
Source Planet Retail
Walmart Carrefour Schwarz Group
Tesco Kroger Aldi AEON Ahold Walgreens Seven amp I
Other
Drugstores Pharmacies amp Perfumeries
Cash amp Carries and Wholesale Clubs
Convenience amp Forecourt Stores
Discount Stores
Supermarkets amp Neighbourhood Stores
Hypermarkets amp Superstores
X Key Trends ndash Retail Evolution 2
13
Small formats are on the rise as shoppers favour proximity convenience and smaller average basket sizes
1615
273 330
743
282 300
1729
294 356
826
321 335
1819
311 377
875
337 359
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Hypermarkets Cash amp Carry Drugstores Supermarkets Convenience Discounters
Reta
iler
Sale
s b
y C
hannel (U
SD
bn)
Global Sales by Channel 2010-2012 (USD bn)
2010
2011
2012
Source Planet Retail
X Key Trends ndash Retail Evolution 2
14
15
Ireland
United Kingdom
Portugal
Belgium
Switzerland
Denmark
Norway
Finland
Hungary
Small stores Convenience The lsquoSplendid Isolationrsquo ndash Convenience as a British-Irish phenomenon
1154
980
256
428
342
322
Greece 188
192
265
274
Note includes Western Central and Eastern Europe excludes markets with less than 1mn inhabitants
Source Planet Retail
Top 10 markets by total grocery market share of sales convenience amp forecourt stores in Europe 2011
X Big plans for small stores 3
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
9
800
900
1000
1100
2007 2008 2009 2010 2011 2012 2013 2014 2015
Greece
UK
Portugal
Germany
GDP Real Growth Index 2007-2015 (2007 = 100)
Source IMF Planet Retail
Real growth index shows how deep the Euro crisis really is
X Key Trends ndash Economic Development 1
10
79
7
46
3
60
6
39
3
46
1
36
6
36
8
36
2
29
8
26
5
74
6
69
9
65
0
48
3
46
6
45
2
43
6
42
1
38
7
29
9
77
5
98
8
80
9
64
8
48
4
49
6
50
2
52
2
49
3
34
1
0
20
40
60
80
100
120
Carrefour Schwarz Group Tesco Auchan Metro Group Edeka Aldi Rewe Group Leclerc ITM(Intermarcheacute)
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
EUROPE Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
1 Carrefour and 2 Schwarz Group (Lidl amp Kaufland) are swapping their places this year not least due to the divestment of discounter Dia
X Key Trends ndash Retail Evolution 2
11
29
05
97
7
68
9
46
3
51
7
50
7
43
5
45
1
41
4
48
7
34
83
10
70
80
5
69
9
69
0
62
6
58
1
57
2
51
8
51
1
49
42
12
98
10
87
98
8
83
7
89
0
86
1
71
4
67
7
59
2
0
50
100
150
200
250
300
350
400
450
500
Walmart Carrefour Tesco Schwarz Group Seven amp I Costco Auchan Aldi Casino Metro Group
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
WORLD Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
Globally Walmart continues to lead the pack followed by mostly European grocers
X Key Trends ndash Retail Evolution 2
12
0
10
20
30
40
50
60
70
80
90
100
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
Sale
s (
)
Global Top 10 Grocery Retailers by Channel 2006-2016 ()
The global lsquobig 3rsquo are seeing hypermarkets amp superstores declining as a contributor to total sales
Source Planet Retail
Walmart Carrefour Schwarz Group
Tesco Kroger Aldi AEON Ahold Walgreens Seven amp I
Other
Drugstores Pharmacies amp Perfumeries
Cash amp Carries and Wholesale Clubs
Convenience amp Forecourt Stores
Discount Stores
Supermarkets amp Neighbourhood Stores
Hypermarkets amp Superstores
X Key Trends ndash Retail Evolution 2
13
Small formats are on the rise as shoppers favour proximity convenience and smaller average basket sizes
1615
273 330
743
282 300
1729
294 356
826
321 335
1819
311 377
875
337 359
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Hypermarkets Cash amp Carry Drugstores Supermarkets Convenience Discounters
Reta
iler
Sale
s b
y C
hannel (U
SD
bn)
Global Sales by Channel 2010-2012 (USD bn)
2010
2011
2012
Source Planet Retail
X Key Trends ndash Retail Evolution 2
14
15
Ireland
United Kingdom
Portugal
Belgium
Switzerland
Denmark
Norway
Finland
Hungary
Small stores Convenience The lsquoSplendid Isolationrsquo ndash Convenience as a British-Irish phenomenon
1154
980
256
428
342
322
Greece 188
192
265
274
Note includes Western Central and Eastern Europe excludes markets with less than 1mn inhabitants
Source Planet Retail
Top 10 markets by total grocery market share of sales convenience amp forecourt stores in Europe 2011
X Big plans for small stores 3
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
10
79
7
46
3
60
6
39
3
46
1
36
6
36
8
36
2
29
8
26
5
74
6
69
9
65
0
48
3
46
6
45
2
43
6
42
1
38
7
29
9
77
5
98
8
80
9
64
8
48
4
49
6
50
2
52
2
49
3
34
1
0
20
40
60
80
100
120
Carrefour Schwarz Group Tesco Auchan Metro Group Edeka Aldi Rewe Group Leclerc ITM(Intermarcheacute)
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
EUROPE Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
1 Carrefour and 2 Schwarz Group (Lidl amp Kaufland) are swapping their places this year not least due to the divestment of discounter Dia
X Key Trends ndash Retail Evolution 2
11
29
05
97
7
68
9
46
3
51
7
50
7
43
5
45
1
41
4
48
7
34
83
10
70
80
5
69
9
69
0
62
6
58
1
57
2
51
8
51
1
49
42
12
98
10
87
98
8
83
7
89
0
86
1
71
4
67
7
59
2
0
50
100
150
200
250
300
350
400
450
500
Walmart Carrefour Tesco Schwarz Group Seven amp I Costco Auchan Aldi Casino Metro Group
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
WORLD Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
Globally Walmart continues to lead the pack followed by mostly European grocers
X Key Trends ndash Retail Evolution 2
12
0
10
20
30
40
50
60
70
80
90
100
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
Sale
s (
)
Global Top 10 Grocery Retailers by Channel 2006-2016 ()
The global lsquobig 3rsquo are seeing hypermarkets amp superstores declining as a contributor to total sales
Source Planet Retail
Walmart Carrefour Schwarz Group
Tesco Kroger Aldi AEON Ahold Walgreens Seven amp I
Other
Drugstores Pharmacies amp Perfumeries
Cash amp Carries and Wholesale Clubs
Convenience amp Forecourt Stores
Discount Stores
Supermarkets amp Neighbourhood Stores
Hypermarkets amp Superstores
X Key Trends ndash Retail Evolution 2
13
Small formats are on the rise as shoppers favour proximity convenience and smaller average basket sizes
1615
273 330
743
282 300
1729
294 356
826
321 335
1819
311 377
875
337 359
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Hypermarkets Cash amp Carry Drugstores Supermarkets Convenience Discounters
Reta
iler
Sale
s b
y C
hannel (U
SD
bn)
Global Sales by Channel 2010-2012 (USD bn)
2010
2011
2012
Source Planet Retail
X Key Trends ndash Retail Evolution 2
14
15
Ireland
United Kingdom
Portugal
Belgium
Switzerland
Denmark
Norway
Finland
Hungary
Small stores Convenience The lsquoSplendid Isolationrsquo ndash Convenience as a British-Irish phenomenon
1154
980
256
428
342
322
Greece 188
192
265
274
Note includes Western Central and Eastern Europe excludes markets with less than 1mn inhabitants
Source Planet Retail
Top 10 markets by total grocery market share of sales convenience amp forecourt stores in Europe 2011
X Big plans for small stores 3
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
11
29
05
97
7
68
9
46
3
51
7
50
7
43
5
45
1
41
4
48
7
34
83
10
70
80
5
69
9
69
0
62
6
58
1
57
2
51
8
51
1
49
42
12
98
10
87
98
8
83
7
89
0
86
1
71
4
67
7
59
2
0
50
100
150
200
250
300
350
400
450
500
Walmart Carrefour Tesco Schwarz Group Seven amp I Costco Auchan Aldi Casino Metro Group
Ban
ner
Sal
es (
EUR
bn
)
2006
2011
2016
Note f - forecast sorted by 2011 ranking Source Planet Retail
WORLD Top 10 Grocers by Banner Sales 2006-2016f (EUR bn)
Globally Walmart continues to lead the pack followed by mostly European grocers
X Key Trends ndash Retail Evolution 2
12
0
10
20
30
40
50
60
70
80
90
100
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
Sale
s (
)
Global Top 10 Grocery Retailers by Channel 2006-2016 ()
The global lsquobig 3rsquo are seeing hypermarkets amp superstores declining as a contributor to total sales
Source Planet Retail
Walmart Carrefour Schwarz Group
Tesco Kroger Aldi AEON Ahold Walgreens Seven amp I
Other
Drugstores Pharmacies amp Perfumeries
Cash amp Carries and Wholesale Clubs
Convenience amp Forecourt Stores
Discount Stores
Supermarkets amp Neighbourhood Stores
Hypermarkets amp Superstores
X Key Trends ndash Retail Evolution 2
13
Small formats are on the rise as shoppers favour proximity convenience and smaller average basket sizes
1615
273 330
743
282 300
1729
294 356
826
321 335
1819
311 377
875
337 359
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Hypermarkets Cash amp Carry Drugstores Supermarkets Convenience Discounters
Reta
iler
Sale
s b
y C
hannel (U
SD
bn)
Global Sales by Channel 2010-2012 (USD bn)
2010
2011
2012
Source Planet Retail
X Key Trends ndash Retail Evolution 2
14
15
Ireland
United Kingdom
Portugal
Belgium
Switzerland
Denmark
Norway
Finland
Hungary
Small stores Convenience The lsquoSplendid Isolationrsquo ndash Convenience as a British-Irish phenomenon
1154
980
256
428
342
322
Greece 188
192
265
274
Note includes Western Central and Eastern Europe excludes markets with less than 1mn inhabitants
Source Planet Retail
Top 10 markets by total grocery market share of sales convenience amp forecourt stores in Europe 2011
X Big plans for small stores 3
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
12
0
10
20
30
40
50
60
70
80
90
100
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
2006
2011
2016
Sale
s (
)
Global Top 10 Grocery Retailers by Channel 2006-2016 ()
The global lsquobig 3rsquo are seeing hypermarkets amp superstores declining as a contributor to total sales
Source Planet Retail
Walmart Carrefour Schwarz Group
Tesco Kroger Aldi AEON Ahold Walgreens Seven amp I
Other
Drugstores Pharmacies amp Perfumeries
Cash amp Carries and Wholesale Clubs
Convenience amp Forecourt Stores
Discount Stores
Supermarkets amp Neighbourhood Stores
Hypermarkets amp Superstores
X Key Trends ndash Retail Evolution 2
13
Small formats are on the rise as shoppers favour proximity convenience and smaller average basket sizes
1615
273 330
743
282 300
1729
294 356
826
321 335
1819
311 377
875
337 359
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Hypermarkets Cash amp Carry Drugstores Supermarkets Convenience Discounters
Reta
iler
Sale
s b
y C
hannel (U
SD
bn)
Global Sales by Channel 2010-2012 (USD bn)
2010
2011
2012
Source Planet Retail
X Key Trends ndash Retail Evolution 2
14
15
Ireland
United Kingdom
Portugal
Belgium
Switzerland
Denmark
Norway
Finland
Hungary
Small stores Convenience The lsquoSplendid Isolationrsquo ndash Convenience as a British-Irish phenomenon
1154
980
256
428
342
322
Greece 188
192
265
274
Note includes Western Central and Eastern Europe excludes markets with less than 1mn inhabitants
Source Planet Retail
Top 10 markets by total grocery market share of sales convenience amp forecourt stores in Europe 2011
X Big plans for small stores 3
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
13
Small formats are on the rise as shoppers favour proximity convenience and smaller average basket sizes
1615
273 330
743
282 300
1729
294 356
826
321 335
1819
311 377
875
337 359
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Hypermarkets Cash amp Carry Drugstores Supermarkets Convenience Discounters
Reta
iler
Sale
s b
y C
hannel (U
SD
bn)
Global Sales by Channel 2010-2012 (USD bn)
2010
2011
2012
Source Planet Retail
X Key Trends ndash Retail Evolution 2
14
15
Ireland
United Kingdom
Portugal
Belgium
Switzerland
Denmark
Norway
Finland
Hungary
Small stores Convenience The lsquoSplendid Isolationrsquo ndash Convenience as a British-Irish phenomenon
1154
980
256
428
342
322
Greece 188
192
265
274
Note includes Western Central and Eastern Europe excludes markets with less than 1mn inhabitants
Source Planet Retail
Top 10 markets by total grocery market share of sales convenience amp forecourt stores in Europe 2011
X Big plans for small stores 3
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
14
15
Ireland
United Kingdom
Portugal
Belgium
Switzerland
Denmark
Norway
Finland
Hungary
Small stores Convenience The lsquoSplendid Isolationrsquo ndash Convenience as a British-Irish phenomenon
1154
980
256
428
342
322
Greece 188
192
265
274
Note includes Western Central and Eastern Europe excludes markets with less than 1mn inhabitants
Source Planet Retail
Top 10 markets by total grocery market share of sales convenience amp forecourt stores in Europe 2011
X Big plans for small stores 3
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
15
Ireland
United Kingdom
Portugal
Belgium
Switzerland
Denmark
Norway
Finland
Hungary
Small stores Convenience The lsquoSplendid Isolationrsquo ndash Convenience as a British-Irish phenomenon
1154
980
256
428
342
322
Greece 188
192
265
274
Note includes Western Central and Eastern Europe excludes markets with less than 1mn inhabitants
Source Planet Retail
Top 10 markets by total grocery market share of sales convenience amp forecourt stores in Europe 2011
X Big plans for small stores 3
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
16
European retailers focus on small store roll-outs Proximity shopping is the current battleground at the expense of the traditional trade channel
X Big plans for small stores 3
Ahold looking to ramp up small stores in Sweden and enter Germany
REWE testing small stores in Austria and Germany
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
17
Legislation
High street
vacancy
Infrastructure supplier base
Urbanisation
amp socio-demographics
Competition
especially discounters
Concept
expertise
Saturation
Continental Europe The picture is mixedhellip
X Big plans for small stores 3
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
18
French Casinorsquos Daily Monoprsquo is one of the convenience store chains pretty close to the foodservice sector
50-100 square metres
Approximately 400 products only
gt50 Daily Monoprsquo private labels
EUR7-8 for meal amp drink
The Paris Orly airport store provides 100 seats
X Big plans for small stores 3
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
19
Casinorsquos halal convenience store Halrsquoshop targets Muslims
X Big plans for small stores 3
Delhaize Grouprsquos Delta Maxi in Serbia
Niche conceptshellip hellipwithout beer
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
20
Discounters and convenience
Customers have learned private label quality does not have to be expensive
Small city-centre locations make shopping convenient
Limited assortment means pre-selection
X Big plans for small stores 3
ldquoSnacks to gordquo at German Edekarsquos Netto discount store
Convenience products from discounter Aldi Germany
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
21
Is there a future for hypermarkets
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
22
-40
-30
-20
-10
00
10
20
30
40
50
60
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3
Walmart US
Metro Group Real
Sonae MC
Hypermarket Operators Like-for-like Growth 2008 ndash 2011 ()
Source Planet Retail
Is there a future for hypermarkets 4
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
23
Structural as well as socio-demographic changes tend to weaken the popularity of the traditional hypermarket format
Why drive 20 minutes to a hypermarket when shoppers can find a neighbourhood store next door Rising petrol prices benefit convenience
stores such as Casinorsquos Petit Casino
Expansion of both discount and convenience stores
Expansion of specialist stores
Rising costs of car ownership
Ageing population increasing number of single-person households
Government restrictions on new store openings
More of the weekly shop migrates online ()
Low-income households tend to shop for small quantities especially in developing markets
Is there a future for hypermarkets 4
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
24
Going small Compact stores offer numerous benefits for the retailer as well as for the shopper
Higher flexibility smaller catchment areas
Is there a future for hypermarkets 4
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
25
Polarisation Trading up ndash or trading down
Self-discount
department with loose
goods at Auchan in
France
hellipand at Auchanrsquos
Jumbo hypermarkets in
Portugal
Carrefour Planet
in France
Is there a future for hypermarkets 4
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
26
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
27
gtgtThe lsquotwo nationsrsquo phenomenon is also seen in the alcohol market with premium brands increasing in popularity The
UKs top five lsquoworld beerrsquo brands ndash San Miguel Peroni Tuborg Cobra and Tiger ndash have seen sales rise by 201 in the past year 2011 despite total lager volume sales falling
by 7ltlt
UK The Grocer
Polarisation in store formats
Polarisation in shopping behaviour
Polarisation in brands
Polarisation in private labels
Polarisation ndash Discounting ndash Private Label 5
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
28
Increasing importance of promotional pricing for branded beers
Polarisation ndash Discounting ndash Private Label 5
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
29
Discounters Lidl continues to promote the lowest price segment
Polarisation ndash Discounting ndash Private Label 5
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
30
hellipand competitor Netto (Edeka) goes even lower
Polarisation ndash Discounting ndash Private Label 5
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
31
hellipwhile Aldi seems undecided whether to give up on the category (Aldi Suumld) allow brands (Aldi Nord) exclusive brand agreements (USA) or develop premium private labels (UK) ldquoDiscounter Aldi Suumld in the UK has appointed Clarion Communications to handle its consumer public relations to promote its range of beers wines and spirits The agency has reportedly been tasked with conveying the quality and value for money proposition and plans to use endorsements awards and creative news generation to achieve this goalrdquo
Polarisation ndash Discounting ndash Private Label 5
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
32
Source Planet Retail Ltd - wwwplanetretailnet
Polarisation in Private Label Modern tiered strategy better serves the increasingly cherry-picking consumer
Value PL
Standard PL
Premium PL
Pri
ce
Quality
Value 20 PL
Standard PL
Premium PL
Super premium
Old value PL
Pri
ce
Quality
Polarisation ndash Discounting ndash Private Label 5
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
33
The global ranking of the Top 20 grocery retailers shows a diverse picture as private label shares rank from 15 to 93 in 2011
0 50 100 150 200 250 300
Safeway (USA)
ITM (Intermarcheacute)
Woolworths (AUS)
Metro Group
Costco
Rewe Group
Casino
CVS
Ahold
Edeka
Auchan
Seven amp I
Walgreens
AEON
Aldi
Kroger
Schwarz Group
Tesco
Carrefour
Walmart
Food Sales 2011e (USD bn)
Global Top 20 Grocery Retailers Food Sales 2011e (USD bn)
PL Food Sales
Non-PL Food Sales
e estimate Source Planet Retail
Schwarz Group
Aldi
Polarisation ndash Discounting ndash Private Label 5
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
34
Increasing importance of private label even in brand-driven categories
+++ January 2011
US-based drugstore
operator Walgreens
launches lsquoFlats
1901rsquo+++
+++ February 2011
US grocery operator
SuperValu launches
Buck Range Light
beer line +++
+++ June 2011
Delhaize Group
introduces limited-
edition premium
private label beer
lsquoSingle Hoprsquo in
Belgium +++
+++ Autumn 2011
US grocer Harris
Teeter introduces
Barrel Trolley
range +++
+++ August 2011
Japanese retailer
AEON introduces
Topvalu Barreal
Lager Beer +++
Polarisation ndash Discounting ndash Private Label 5
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
35
Zielpunktrsquos Mundl Beer in Austria ndash Tegutrsquos Josefs Kellerbier in Germany
Polarisation ndash Discounting ndash Private Label 5
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
36
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
37
Polarisation ndash Discounting ndash Private Label 5
Aldirsquos Trader Joersquos
Tongue-in-cheek approach in the USA Plznr
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
38
Provenance amp Transparency Regional is the new sustainable Regionality gives brands a face
Polarisation ndash Discounting ndash Private Label 5
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
39
Shopper democracy amp customer engagement Private label allows retailers to directly liaise with shoppers ndash not only in-store but also online via social media
Polarisation ndash Discounting ndash Private Label 5
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
40
Even for economy lines ethical credentials are becoming a common feature
With its own factory Lidl has certified its best-selling economy product with the UTZ Fairtrade label ndash to sell it without a price premium
Competitors have followed suit within months
Polarisation ndash Discounting ndash Private Label 5
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
41
Vertical integration Retailers are investing in production facilities to gain independence of increasingly volatile commodity markets
Migros Coop CH Morrisons Lidl etc
Cutting out the middleman
Access to commodity markets
Expertise for annual range reviews
Control from farm to fork
Long-term planning
But Creates dependence
Polarisation ndash Discounting ndash Private Label 5
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
42
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
43
Europe continues to be divided economically
Small stores will continue to outperform larger stores globally not least due to polarisation
Polarisation store formats shopping behaviour (cherry-picking) brands private labels
Hypermarkets are on the rocky path from providing lsquoeverything for everyonersquo to becoming the lsquospecialist for everyonersquo
Rising fuel prices high flexibility of small formats the expansion of specialists a trend towards smaller families more single households and an ageing population and changing shopping habits benefit small stores online and necessitate compact hypermarkets
Summary 6
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
44
Shopper engagement and transparency will instil trust and loyalty among brand and private label shoppers alike But thanks to their general distribution function retailers are closer to consumers than manufacturers ndash not only in-store but also via social media
There are opportunities for additional investment in premium and niche private label ranges ndash even at discounters
Summary 6
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
twittercomPlanetRetail
facebookcomPlanetRetail
tinyurlcomPR-linkedin
Researched and published by Planet Retail Limited
Company No 3994702 (England amp Wales) - Registered Office 66 Wigmore Street London W1U 2SB
Terms of use and copyright conditions
This document is copyrighted All rights reserved and no part of this publication may be reproduced stored in a retrieval system or transmitted in any
form without the prior permission of the publishers We have taken every precaution to ensure that details provided in this document are accurate
The publishers are not liable for any omissions errors or incorrect insertions nor for any interpretations made from the document
A Service
Thank you
United Kingdom
Greater London House
Hampstead Road
London
NW1 7EJ
United Kingdom
T +44 (0)207 728 5600
F +44 (0)207 728 4999
Germany
Dreieichstrasse 59
D-60594 Frankfurt am Main
Germany
T +49 (0) 69 96 21 75-6
F +49 (0) 69 96 21 75-70
Japan
co INSIGHT INC
Atami Plaza 1401
Kasuga-cho 16-45 Atami-shi
Shizuoka 413-0005
Japan
T +81 (0) 557 35 9102
F +81 (0) 557 35 9103
China
10-1-202
88 Tongxing Road
Qingdao 266034
China
T +86 (0)532 85981272
F +86 (0)532 85989372
USA
1450 American Lane
Suite 1400
Schaumburg
IL 60173
USA
Tel + (1) 224 698 2601
Fax + (1) 224 698 9230
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