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Woolworths is using range and marketing innovation to tap into this trend, with new stores all having a section dedicated to ‘healthy living’ ranges. It has also launched a new ‘Healthier Options’ solution across 3000 products on its website, recommending “heathier alternatives”. Coles wants to become a destination for health and will continue to invest in new range innovation. It has also signed a five-year deal to be the official sponsor of the AFL and AFLW, and has launched a new ‘Health Hub’ on its website. ALDI continues to give health ranges prominence in-store, claiming strong growth from brands such as Just Organic and Has No. It has also launched an app (‘Healthy Picks’) that allows customers to see the nutritional value of ALDI products, as well as recommending “healthier alternatives”. Woolworths aims to have the “healthiest” private label portfolio by 2025. Initiatives include product reformulation, transparent labelling of products, limiting to “healthier products” its use of images and promotions that appeal to children, and expanding its range of plant proteins. Battle for convenience Convenience has attracted growing attention over the past few years. Retailers are investing more in the channel to raise the standard of convenience retailing and are realising the untapped growth opportunity. This is coming in the form of both new forecourt and standalone store concepts, as well as the development of stronger convenience ranges and foodservice solutions. We expect this trend to accelerate further throughout 2021. One element will be retailers opening more smaller-format stores, as competition increases. Woolworths had 65 Metro stores trading at the end of Q1 and plans to open 15-30 new stores a year. It ended 2020 with six Metro stores on Ampol forecourts. With the retailer having previously announced a plan to open 250 stores on Ampol sites, we can expect further developments in 2021. David Jones expanded its partnership with BP to 30 sites across Sydney and Melbourne by the end of 2020. The first site opened in November 2019 and brings an exciting new concept to Australian forecourt retail, with strong food for now and food for later. Coles continued to develop the Coles Local format in 2020, with six stores trading by the end of the year and the first stores opening in NSW (Rose Bay, Chatswood and Manly in Sydney). The urban supermarket format is tailored to each location, with local ranges and ready-to-eat solutions. Woolworths and Coles have invested in PFD Food Services and Jewel Fine Foods, respectively. This will help them expand the range, quality, and value of their food-to-go and food- for-later propositions, as well as their foodservice offers. Responsible retailing For the past few years, retailers have been increasing their focus on ensuring that their businesses have a positive impact beyond their core operations. This trend has been more prominent over the past year due to the pandemic, with retailers supporting the communities they serve, their customers, teams and their business partners as a top priority. As a key part of retailer strategies, we expect this trend to grow in importance over the next 12 months and beyond, with partnerships becoming a key element in helping retailers bring initiatives to life. Coles has partnered with the Stephanie Alexander Kitchen Garden Foundation (SAKGF) to deliver food education to children around Australia. Over four weeks in January and February this year, to help fund the activity, five cents from every punnet of Perino Tomatoes 200g sold at Coles was earmarked to be donated to SAKGF. ALDI has committed to powering 100 per cent of its operations by renewable energy by the end of 2021. Solar and wind power will supply electricity for all its 550-plus stores and eight distribution centres around the country. Woolworths has launched some ambitious targets as part of its new Sustainability Plan 2025. These include 100 per cent green electricity and zero food waste to landfill by 2025, plus 100 per cent of private label to be sourced and packaged sustainably. Metcash continues to focus on social and environmental initiatives that support local communities. Its Locals Matter Community Program is promoted as a great source of information on health, community, product sourcing, food waste and the environment. INDUSTRY INSIGHT About Nick Miles Nick Miles leads the APAC insight team at IGD. He has more than a decade of experience in researching retail across the region, regularly delivering solutions and presentations for retailers and suppliers. He previously worked for Tesco for seven years. About IGD IGD provides unrivalled insight and foresight that connects the food and consumer goods industry. For more information, visit igd.com. IGD is a not-for- profit research and training organisation. It has a trading subsidiary that provides commercial insight services for the consumer goods industry. The profits from these commercial services fund its not-for-profit activities. Follow IGD’s communications team on Twitter for all the latest retail insights: @Comms_IGD. MAY, 2021 RETAIL WORLD 21