Corporate responsibility and sustainability strategies can take many different forms depending on the individual retail sector, but one thing is clear: consumers are using their spending power to influence the change they want to see on environmental issues.
The online grocery sector in Australia has shown strong growth as the level of trust, ease and willingness to purchase increases among online shoppers. When looking at countries that have shown the biggest percentage increase in online shoppers for fresh groceries over the past year, Australia ranked fifth.
A recent Nielsen article found that New Zealand grocery shoppers are some of the most promotionally-driven in the developed world. Almost six in every ten dollars spent on groceries in the supermarket channel are sold on promotion. The estimated retail sales value of discounts applied to products that generate little incremental sales was almost half a billion dollars. For specialist liquor stores, this number is around $160 Million annually.
New Zealand grocery shoppers are the most promotion-driven in the world. Almost six in every ten dollars spent on groceries in 2017 were sold on promotion - well ahead of other developed markets around the globe.
Has the traditional planning process become obsolete? Many signs within the industry point to “yes.” So in order to succeed today, companies need to move to a new form of adaptive planning that is responsive to continuous market change.
Spend more than a few minutes in a conversation with someone in the CPG industry and you’ll almost inevitably find yourself discussing the spiraling cost of trade promotion. In Europe, decent returns on trade promotion spend are increasingly hard to generate. So how can we turn things around?