We have known for some time that retailers top-up as much as 15% of their purchases in the major retail chains, but the extent of this volume erosion is far more serious that originally thought.
In a recent survey of Stock Box members it was highlighted that 75% of members had used Coles as a source of supply and 77% of members had used Woolworths. These results are hardly surprising for most, and highlight a growing issue of limited product awareness, field force representation and supply chain efficiencies.
The survey also found that Coles and Woolworths are not the only retail banners that members are using to top-up shop, with IGA highlighted by 46% of the membership as a source of supply followed by Aldi at 25% and Costco also at 25%.
And it is not just products for their shelves that retailers are looking at. We also asked the members the same question in relation to the larger variety stores and found that when it comes to consumables for their business 34% of members were using Officeworks from time-to-time, as well as Big W 30% and K-Mart 23%.
With the introduction of new entrants like Lidl and the increased competition for share of the consumers wallet, existing supply channels to the greater independent trade will get caught up in the cross fire as retailers continue to use these banners as a source of supply. A major re-think is needed as traditional ways of servicing the market, and product introduction will continue to be challenged.
Stock Box is the first B2B program of its kind, working with the greater independent convenience and newsagent channels, putting your products in the hands of real decision makers, and we do it all for a fraction of the cost and time involved using traditional methods.
Over 70% of our registered members are experienced single site operators trading under their own banner, and with around 50% of these businesses located in regional areas, getting to these sites is difficult and costly for most suppliers.
The main benefits of our program are:
1. We talk directly to the business owners and decision makers
2. We get you leads that turn into product placement
3. We provide insights into the channel that no one else can
Of course every company has different business requirements and I would welcome the opportunity to discuss your specific needs or challenges, and tailor a program that is designed with you in mind.
To find out more about us go to our web site or contact me below.
Thanks for reading
Craig Matthews is the MD of Stock Box, with over 30 years industry experience in retail development, specialising in independent retail programs.