Top Story
Green Is Long-Term Branding Strategy
Today’s green initiatives will increase sales in the years to come, retailers say.
A new retailer report from Miami-based Retail Systems Research (RSR Research) says better-performing retailers ("retail winners") are "greening" their brands now in anticipation of future consumer demand.
The report -- "What can Green Do for You?" -- is based on a survey of retailers. Although many surveyed retailers indicated they do not yet see a big shift in consumer spending on green products and services, the retail winners predicted that today’s green initiatives would pay off later in the form of increased sales.
On the private label side, 86 percent of retail respondents pointed to packaging when asked to identify the greatest eco-friendly opportunities, said Steve Rowen, a partner at RSR Research and the report’s author.
"When a retailer is sourcing their own goods, all that shrink wrap and extraneous packaging is a place where they see a prime opportunity not only to cut costs, but also to produce less landfill waste," Rowen told eReport editors.
He added that 54 percent saw green opportunities in production, he said, while 49 percent selected transportation from the point of origin.
"What’s interesting is that not many saw much advantage to actual design of the products themselves to be greener," Rowen said. "That number came in at 37 percent. ¼ So it seems the packaging is the near-field opportunity."
RSR Research also examined green opportunities from a product category perspective, Rowen said. The greatest opportunities, according to survey respondents, are in packaged and shelf-stable fast-moving consumers goods (57 percent), health and beauty aids (51 percent) and electronics (47 percent).
"The winning retailers, the ones that are already doing better, are skeptical as to how much the customer is really demanding green products right now," Rowen added, "but they think that that time is coming. ¼ Thirty percent of winners expect full ROI from all of their green initiatives in two to three years."
As for the "lagging retailers," Rowen said a full 50 percent of them said they were unsure if green efforts represent any ROI opportunity at all.
The report is available for download from RSR Research’s Web site at www.retailsystemsresearch.com/_document/summary/518
Our Take: Although many consumers will require more time to shift to greener products and practices, that time is coming -- and soon. Retailers that green up their products and practices now will reap financial (and environmental) rewards in the years to come.
Industry Insider
Future Shop
A number of innovations have the potential to revolutionize the retail shopping experience, a new report says.
Holographic sales assistance, interactive dressing rooms and intelligent shopping carts could be part of the future retail shopping experience, says "New Future in Store," a new study from TNS Retail Forward, Columbus, Ohio. TNS surveyed consumers in the United States, Canada, Europe and Asia to get their views on shopping and rate the appeal of 12 innovations that have the potential to revolutionize the shopping experience.
Of potential interest to private label product developers and buyers is the fact that 79 percent of respondents believed collaborative product development -- in which product developers would encourage consumers to post ideas and answer surveys online about new products and how existing products could be improved – would be in widespread use by 2015. Other top-scoring innovations include social networking shopping Web sites (79 percent), group buying by consumers (77 percent), shopping by mobile device (76 percent), and interactive dressing room help (73 percent).
In contrast, only 42 percent of respondents predicted that holographic sales assistance would be in widespread use by 2015, TNS said.
"There’s no doubt that we’re in a time of transition in retailing -- and for consumers, the look and feel of a shopping experience has the potential to change dramatically," said Mary Brett Whitfield, TNS senior vice president and director of the Retail Forward Intelligence System. "In our increasingly hurried culture, shopping innovations which free up time are likely to rank highly. ¼ But despite the desire to save money and time, most shoppers aren’t going to be prepared to swap good traditional service for technology, as evidenced by the small share of shoppers ranking holographic sales assistants as their favorite innovation."
To read or download the report, visit www.retailforward.com
Our Take: Most consumers are social creatures. Although they like to save time and money, we won’t sacrifice good service -- and human interaction -- for the sake of innovation here. Savvy retailers will keep that reality in mind when evaluating new technologies in the years to come.
Economy Watch
Wal-Mart Launches Online Savings Resource
New Web site provides customers with ideas for stretching dollars during tough times.
Wal-Mart Stores, Bentonville, Ark., announced the launch of an online platform that provides solutions to help budget-conscious shoppers spend wisely and save money during economically challenging times.
The site, www.walmart.com/savemore, features tips and advice from Ellie Kay, "America’s Family Financial Expert" and a best-selling author.
In addition to money-saving tips, Wal-Mart said, the site includes an interactive quiz related to spending and saving, weekly columns, consumer insights and an idea-sharing spot. In addition, the site soon will host podcasts and an interactive chat option that allows customers to ask Ellie Kay questions.
During a recent visit to the site, eReport editors noted the following advice in relation to product purchase decisions:
"Buy brands but don’t be brand-specific every time. There are times when buying the generic or ‘private label’ brand will save more money than buying a major brand -- and the quality is still there. Make it a habit to compare regularly!"
Our Take: Although the advice on Wal-Mart’s new launch likely will be very helpful to budget-conscious shoppers, it’s unfortunate that the term "generic" is used on the retailer’s own site. Aren’t we well past private label’s generic days? When will store brands get the respect they deserve?
Bits and Pieces
What’s News in Private Label
Among the most notable retail and private label news:
- Food City, a chain operated by Abingdon, Va.-based K-VA-T Food Stores Inc., is bringing a regional favorite brand back to its stores in Kentucky, southwest Virginia and eastern Tennessee, according to a May 9 Knoxnews.com article. The chain, which already relaunched the Kay’s Ice Cream and Terry’s Snacks regional brands, is bringing back the Kern’s Bread brand. Food City will serve as the exclusive Kern’s outlet, selling a complete line of breads, buns, cakes and more, the article said.
- Meijer, Grand Rapids, Mich., said it partnered with Fusion Mobile of Austin, Texas, to offer its own brand of prepaid wireless phones and phone cards. Meijer is the first major retailer to offer its own branded prepaid cell phone service.
- Tesco’s Fresh & Easy Neighborhood Market, El Segundo, Calif., said it is expanding its private label range across the chain, adding 250 products ranging from freshly prepared ready meals to juices and soy and goat yogurt.
- Marsh Supermarkets, Indianapolis, said it celebrated the remodeling of four stores last month with ribbon-cutting ceremonies and meet-and-greet events. The stores, all located in Indianapolis, together boast almost $1.5 million in enhancements to the shopping experience, with added emphasis on the produce, meat, deli and bakery departments, Marsh said.
- Raley’s, West Sacramento, Calif., said its Raley’s, Bel Air and Nob Hill Foods stores now are offering an incentive for consumers to convert their economic stimulus checks into store gift cards. The company will add an extra 10 percent to such gift cards between May 9 and July 31.
