mediums will arise that reduce the overall cost of trading forbuyers and sellers.
Continued expansion of and
double-digit comps in Goodwill
and other "not for profit" retail operators.It is especially important to remember that the Latin American, CentralEuropean, and other developing markets rely on transfer payments as the2nd or 3rd largest source of income. As these continue to decline atdouble-digit rates (see figure below), consumers leave the local chain storeoperator and return to the markets...which is often good for vendor brandsbut not for modern retailers.Mexico's Change in Remittances vs. Prior Year, USD Millions(click here to enlarge)
Flat or Declining "Addressable Markets"
The "addressable market" of shoppers for most modern retail storesegments is flat or declining in both the developed and developing world.Flat population growth, slowing immigration and household formation anddeclining household ownership and discretionary income will shrink thenumber of relevant shoppers and households for most consumer goods.While most retailers have not adequately woken up to this, the mandate tore-position, market and merchandise chain stores has never been higher.
Shopping Trips Re-mix
Shopping trips to modern stores are re-mixing significantly within eachaddressable shopper segment. While a complete picture is difficult, thereare some general patterns emerging according to retailers RNG speakswith:
Consumers across the spectrum are behaving differently
-the number of trips, the stores they shop, the time in store, % of store shopped and # of items purchased.
Price and proximity matter
- consumers are altering long timeshopping patterns for price and availability. In the neighborhood,it pays to balance time and gas.Consumers at all socioeconomic levels are switching retail stores.This only happens 5-6 times in a shopper's lifetime--so when ithappens it's notable! By nature, people resist change and getcomfortable with their choices. This time they are giving up thefamiliar to find better value. Going to Aldi or Lidl for examplebefore they go to Tesco is a well understood pattern in the UK thatthe US, Canadian and Lat Am retailers are just beginning to
Sophisticated retail pricing hasemerged as a key driver of long-term growth andprofitability.
RNG's visit and perspecitve onWal-Mart's new small boxformat
RNG's forecast for total chainsales, winning (and losing)market segments, andretailers' playbooks for Q4 andbeyond
Why retailers' #1 ROI challengeis driving growth in theirexisting stores, and how theleaders win
Get a quick download of RNG'sthoughts after hearing andmeeting with leading retailers
Over the next two years,branded manufacturers andretailers will be challenged tofind new ways to prosper inthe fastest changing foodretail environment in ageneration
The new new thing in retail