If supermarkets fail to deliver what consumers want, shoppers will be forced to vote with their feet. That was the stark warning from IGD chief executive Joanne Denney-Finch, who kicked off the retail analyst’s convention - entitled ‘Which Way Now?’ - in London on Tuesday. “Only 14 per cent of people love supermarkets, according to BBC Radio 4’s Today programme. We are just not wowing enough people,” she told delegates.
Recent research has shown that high up on the average consumer’s priorities was the need to contribute to a sustainable and ethical future through their food purchases, Denney-Finch continued. “We are in exceptional times, and we are going to face some momentous decisions. We need to be more proactive and address consumer issues. Supporting local producers has become the top issue for the consumer.”
Leaders from the food and grocery industry gathered at the convention, hosted by Michael Buerk, at the Royal Lancaster Hotel, which saw more than 13 speakers and a panel session outline issues facing the industry today and in the future, with an emphasis on climate change and on sustainability.
Ken McMeikan, retail director at Sainsbury’s, took to the floor to talk about the rise of the ethical consumer. “I believe that change is good, and as an industry we are the most innovative,” he said. “We all need to lead the way in giving choice, but with that comes responsibility. We need to offer an informed choice, but we need to do it together.”
Morrisons is placing a large emphasis on provenance, chief executive Marc Bolland told delegates, as the chain aims to make its individual stores local to their area. “Our product catalogue was the same from Wimbledon to Scotland,” he said. “But now, our new store in Erskine sources 500 Scottish items from 100 different local suppliers.”
But Darren Blackhurst, executive board director for food at Asda, reminded everyone that low-cost food is still an ongoing concern for many consumers. “With five interest rate rises this year alone and debt at a higher level than it has ever been in this country, it will get tougher,” he warned. “As an industry, we are heading towards a perfect storm. Customers want, and many will need, lower prices.”
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