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NEWS ‘LOCALS MATTER’ TARGETS SHOPPER NEEDS IGA is promoting its new ‘Locals Matter’ community program as allowing shoppers to access exclusive offers and content, promotions and “inspiring” tips and tricks that “matter to the locals”. “IGA’s network of 1400 independent family-owned businesses have long sat at the heart of communities across Australia, supporting the locals wherever possible,” IGA said. “The Locals Matter community program has been designed to build on this support, providing a further commitment to support local communities as only IGA retailers know how.” The program has been developed with the help of a consumer study conducted by IGA as part of its ‘Aisle Chat’ research. This, says IGA, has identified that what “really matters” to shoppers includes the environment (for 71 per cent of respondents), thriving communities (66 per cent) and healthy living (63 per cent), which were the three most important social issues for IGA customers. Shoppers can sign up free to the Locals Matter program, enabling them to access healthy recipes, community initiatives, exclusive content, and promotions that “matter to locals”. “From no-nonsense healthy eating tips and tricks from IGA’s nutritionists Anna and Alex from @thebitingtruth, to tips on reducing waste and how to thrive in your local community, whether it be nominating local organisations to win a defibrillator, celebrating your neighbours, or finding easy ways to support local charities, there’s something for everyone,” IGA said. Metcash General Manager Marketing Tracy Wilson says Locals Matter is aimed at meeting the evolving needs and interests of local shoppers. “IGA retailers have and always will sit at the heart of their local communities, giving back and supporting local families, producers, suppliers and charities wherever possible,” she said. “The Locals Matter community program is an extension of this vital support and provides the wider IGA community one place to go for the information they need on what matters the most to them. We’re excited to continue to build on this throughout 2021 as we continue to support our local communities.” RETAIL BRIGHTNESS, BUT CHALLENGES REMAIN Despite the “deep recession” brought on by Covid-19 restrictions, retail spending has been one of the “bright spots” in an otherwise difficult year for the Australian economy, according to Deloitte. The professional services network says Australian consumer spending on retail grew over calendar year 2020, and while 2021 is shaping up as an “economic recovery year”, for those retailers that were ahead of the pack, a transition back to more normal spending behaviour could mean that 2020’s windfalls are temporary. Deloitte Access Economics’ latest quarterly Retail Forecasts subscriber report (Q1 2021) found: • Retail spending ended 2020 on a strong note, with volumes surging 6.4 per cent over the year to December quarter. • Retailers are likely to face challenges ahead, with spending slowing in the second half of calendar year 2021, to end 0.4 per cent lower in the year to December quarter 2021. • Those sectors that have benefited most through Covid-19 lockdown, such as household goods retailing and supermarket spending, are likely to face larger headwinds in 2021 as restrictions ease and borders open. Deloitte partner and Retail Forecasts principal author David Rumbens says the retail sector tackled the Covid-19 crisis and came out on top. “Retail spending recovered strongly in the second half of 2020, more than offsetting the slump in June, to end higher in the year to December 2020,” he said. “And this strong recovery was experienced across much of the sector, with nearly all segments of spend posting year- to gains in the December quarter. Though it was non-food spending that led the way, home-related consumption also remained elevated. “But as is so often the case with Australian retail, and this is the same for many other national economies too, there are still some challenges ahead. “A transition back to more normal spending behaviour could mean that 2020’s windfalls are temporary.” “Our fiscal stimulus tap has been turned down to a drip, meaning less money for households to spend. Luckily, they’re still more likely to feel like spending what there is, given the good news on vaccines and less and less restrictions across activities that drive retail spend.” Unfortunately for many retailers in 2021, says Mr Rumbens, the economic recovery and reopening of industries will more likely be a “headwind than a boon”. “This means more opportunities for non-retail spending, and an increasing shift back towards travel and hospitality over the year,” he said. “A return to ‘normal’ also poses a bigger risk to some retailers that have picked up their share of wallet over the past year. This includes household goods retailing, where the durability and one-off nature of the purchase increases the risk of a sharper pull-back in spending.” 10 RETAIL WORLD APR, 2021