Five supermarket trends for 2018 | RetailDetail

Five supermarket trends for 2018

Five supermarket trends for 2018

International supermarket research organisation IGD has identified the five food retail trends that will dominate the next twelve months.

Private labels go premium

Retailers have increasingly used their private labels to appeal to a broad range of consumer needs. That is also why they will invest in a premium private label range, offering high quality at affordable prices. IGD innovation analyst, Toby Pickard, has his own view on the matter: “Private label product ranges allow retailers to distinguish themselves in an increasingly complex and competitive retail market. Name brand manufacturers need to make sure their products are superior in order to justify the higher price."


Retailers will become extremely local

Consumers want to buy more local products and that is also why retailers have started selling products that have a limited stock, because they are season-bound and have smaller numbers. This creates a unique, yet temporary product range, which will entice shoppers. It gives consumers more variety, but also creates a complex supply chain, which requires efficiency, collaboration and communication. Shoppers approve the fact that retailers support SMEs.


More effective shipments

Consumers appreciate speed and convenience, which forces retailers to develop new solutions for orders, pick-ups and deliveries. Based on shopping data and artificial intelligence, supermarkets are now trying to anticipate what consumers want even before they know it themselves. Many of these new solutions will lead to a decreased level of interaction between retailers and brands. This in turn requires additional efforts to stand out and connect with consumers. “Retailers probably have to create more value than merely convenience in order to distinguish themselves from their competitors. At the same time, the delivery costs have to remain low”, Pickard said.


Focus on lifestyle

Health and wellness will remain important values for 2018. It is expected that retailers will enlarge their stores’ wellness areas and develop lifestyle-focused formats. They will also offer custom lifestyle choices online, allowing customers to rapidly and easily find the things that can help them to live a healthier lifestyle. Vegetarian, flexitarian, “better for you”, “does not include” and “clean label” are fast-growing segments. Mainstream retailers with an expanded lifestyle product range are also a challenge for the specialty chains: “Whoever is able to rapidly predict, create or react to upcoming lifestyle trends are the actual winners.”


Improved shopping experience

Physical stores have to work harder than ever to get shoppers to their front door. They have to meet the omnichannel shopper’s demands with a new shopping experience that combines online, offline and big data. Pickard predicts retailers to lift the shopping experience with new surprising new products and practical solutions for shoppers that engage with different channels. One such example is Alibaba’s Hema Fresh store network in China. Brands can help retailers to improve the shopping experience, but also have to be ready to meet the online fulfilment demands.

Questions or comments? Please feel free to contact the editors

Gerelateerde items

Nestlé has lost KitKat's four fingers


Chocolate bar KitKat’s four “fingers” are not distinctive enough to give Nestlé sole ownership. With its statement, the European Court has now ended a long-standing legal battle between KitKat and Leo.

EU votes for better organic label legislation


European Parliament adopted a bill to regulate the organic industry: things will be stricter, but also fairer and clearer. An organic label and importation legislation should help promote Europe’s local organic manufacturing companies.

Heineken and Bavaria seek fortune outside of Europe


Even though the European beer market continues to struggle, Dutch brewery groups Heineken and Bavaria have published growing turnovers. Bavaria set a record turnover, Heineken raised its turnover 4.3 % in the past quarter.

Danone boasts strongest like-for-like turnover increase in past five years


French food giant Danone’s first quarter was an impressive one: like-for-like turnover grew 4.9 %, its best performance in the past five years.

Weak dollar has negative impact on Unilever


Unilever has seen its first quarter turnover drop more than 5 % because of negative exchange rate fluctuations. Excluding that impact, the food and care product manufacturer’s turnover would have grown 3.4 %.

End in sight for price dispute between Nestlé and Colruyt, Edeka and Intermarché?


ColruytEdeka and Intermarché are approaching a deal in their price dispute with Nestlé. The Swiss food manufacturer will make concessions in a new proposal as the retailers’ supplies are dwindling.