As the supermarkets battle to stake their claim as the cheapest option for customers, the question is whether they are missing the bigger picture by focusing on price over value. In my opinion, the answer to giving customers what they really want lies in placing more value on produce and the overall customer experience, rather than constantly battling to win the price war.

Working with major retailers such as Tesco and Marks & Spencer, I believe the best way to create customer loyalty is to protect and promote the overall shopping experience, shaping the value customers place on produce. By investing in point-of-sale and retail displays, large supermarkets and smaller independents can create a shopping experience based on the customers’ needs and preferences, as well as on what drives the biggest margins and sales.

Retailers need to identify how customers locate and choose the products they want and develop their retail displays accordingly. Creating strategically placed ‘mini-market’ experiences, including a fishmonger, butcher and specialist greengrocer all under one roof, is just one example.

Retailers should also invest in their own point-of-sale materials. Displays funded by suppliers may sound tempting as a free option; however, this allows them to dictate product presentation and positioning. Retailers that use their own freestanding display units gain control over where and how they display high-margin products. This choice is something that is priceless in today’s retail sector.

Product variety and the regular introduction of exciting new products is a major factor in driving sales. Signing away space to brands that provide displays on a contractual basis limits the opportunity to offer choice and puts smaller brands at a disadvantage. And, when you consider that smaller or new brands often offer more favourable margins, broadening in-store location and variety could benefit the bottom line in more ways than one.

Retailers can develop their own generic point of sale for each product category to make finding items easier for shoppers. This can also increase customer loyalty, as retailers are able to build their own brand in-store without being overshadowed by supplier brands.

Finally, producers have greater flexibility to offer better margins and price promotions to attract and retain customers if they do not have to invest in point of sale themselves.

While there may be upfront costs when taking control of in-store point of sale, over time this cost is negated. By taking control of floor space, retailers can stake their claim for a bigger slice of the market, while acting as a guardian of the shopping experience. —