While consumer habits will always evolve, the extraordinary events of this year have shown just how disruptive a sudden change in shopper behaviour can be. The huge increase in demand for groceries prompted by the pandemic saw retailers rally to feed the nation. The grocers are now taking stock, reassessing their priorities and looking to streamline operations. For brands and private label suppliers alike, that means a renewed opportunity to develop new products, exploit emerging gaps in the market and justify their place on the supermarket shelf.
An attractive offer is not enough – brands need to show retailers how choosing to stock their product will address consumers’ changing wants and needs and lead to a wider uplift in sales.
We know that retailers can see the potential new lines represent. We have seen levels of innovation decline across the board in 2020 but less dramatically in Aldi and Lidl. The discounters are already ahead of the game and widening the gap when it comes to the rate at which they refresh their range. The other grocers will be looking to catch up.
Given pressures on the UK economy and comparison with the record highs of this year, growth may prove harder to come by in 2021. Brands and suppliers must be able to show retailers how they can help to edge out the competition, with a compelling case for why they will be shoppers’ first choice, and how this in turn will drive up profit margins and help supermarkets gain market share from their rivals. Innovation is a central way to do that.
Percentage of retailer sales through new products
