It's a fact. We are becoming savvier grocery shoppers and seeking value at every opportunity. Low-priced stores are winning the battle, with Asda showing 8.7% growth compared with the average of 5.1% [Nielsen 12w/e 1 November]. This, combined with explosive growth at the likes of Aldi and Lidl, demonstrates that store loyalty wavers when the price is right.
The competition is hotting up as we continue to 'crunch', and TNS figures suggest times are especially tough for independent retailers, declining at 1.5% annually.
Doom and gloom then?
Not exactly. An independent retailer is just that - independent! Often owner-managed, they have many key advantages over the bigger boys: total flexibility and the ability to adapt rapidly, and geographical proximity to customers, many of whom they know by name - complete with what their favourite sweets are and what paper they read. And in times of high fuel prices, more shoppers are walking to their local stores to top up. So I would describe the situation as an opportunity and not a dead loss.
A proactive independent retailer should develop a reputation as the community's 'local discounter', offering its customers great value in walking distance.
Cash & carries such as Hancocks can offer a raft of own-label and lesser-known confectionery brands that give the customer a better price and the retailer a higher margin.
As confectionery remains the perfect 'cheap treat', this is a real opportunity in the current climate. Businesses now also need to get savvy with their suppliers in order to compete. And just a point on quality - own label does not necessarily mean lower quality. Hancocks has many confectionery ranges that offer fantastic quality and value for money, simply offered without the marketing behind the brand name. We enthusiastically present these to our customers, who come back for more once they have successfully sold the stock to their customers.
And no, we are not saying ditch the brands! Brand awareness and marketing campaigns continue to draw shoppers toward their favourite brands (additionally, there are many branded confectionery products that 'fly under the supermarket radar' and Hancocks can help its customers profit from such items).
There also continue to be plenty of branded promotions that are a 'must stock' for independents.
However, once in the store, more and more people will be switched on by seeing some 'value' options as well - we are all trying to make each pound work harder. This is the thinking behind Hancocks' Dare to be Different campaign.
We believe there is a clear opportunity for indies to reach out to their local customers and capture their desire for value purchases. But don't just put it on the shelves and wait to see what happens - keep your range fresh and exciting and get out there and tell them! Posters in your window, leaflets for local streets (perhaps an incentive for a different street each week?) or flyers sent out with the newspaper deliveries.
The credit crunch is bad news in several ways, but as ever there are opportunities and quick-thinking independents will use their flexibility to provide exactly what their customers want right on their doorstep and make sure that they know all about it.
Jonathan Summerley is a senior buyer at Hancocks Cash & Carry.
The competition is hotting up as we continue to 'crunch', and TNS figures suggest times are especially tough for independent retailers, declining at 1.5% annually.
Doom and gloom then?
Not exactly. An independent retailer is just that - independent! Often owner-managed, they have many key advantages over the bigger boys: total flexibility and the ability to adapt rapidly, and geographical proximity to customers, many of whom they know by name - complete with what their favourite sweets are and what paper they read. And in times of high fuel prices, more shoppers are walking to their local stores to top up. So I would describe the situation as an opportunity and not a dead loss.
A proactive independent retailer should develop a reputation as the community's 'local discounter', offering its customers great value in walking distance.
Cash & carries such as Hancocks can offer a raft of own-label and lesser-known confectionery brands that give the customer a better price and the retailer a higher margin.
As confectionery remains the perfect 'cheap treat', this is a real opportunity in the current climate. Businesses now also need to get savvy with their suppliers in order to compete. And just a point on quality - own label does not necessarily mean lower quality. Hancocks has many confectionery ranges that offer fantastic quality and value for money, simply offered without the marketing behind the brand name. We enthusiastically present these to our customers, who come back for more once they have successfully sold the stock to their customers.
And no, we are not saying ditch the brands! Brand awareness and marketing campaigns continue to draw shoppers toward their favourite brands (additionally, there are many branded confectionery products that 'fly under the supermarket radar' and Hancocks can help its customers profit from such items).
There also continue to be plenty of branded promotions that are a 'must stock' for independents.
However, once in the store, more and more people will be switched on by seeing some 'value' options as well - we are all trying to make each pound work harder. This is the thinking behind Hancocks' Dare to be Different campaign.
We believe there is a clear opportunity for indies to reach out to their local customers and capture their desire for value purchases. But don't just put it on the shelves and wait to see what happens - keep your range fresh and exciting and get out there and tell them! Posters in your window, leaflets for local streets (perhaps an incentive for a different street each week?) or flyers sent out with the newspaper deliveries.
The credit crunch is bad news in several ways, but as ever there are opportunities and quick-thinking independents will use their flexibility to provide exactly what their customers want right on their doorstep and make sure that they know all about it.
Jonathan Summerley is a senior buyer at Hancocks Cash & Carry.
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