What can suppliers learn from the rise of the discount retailer?

Although affluent areas are not necessarily the natural home of the discount retailer, success for cut-price stores in these areas has increased significantly. The continuing success of discount retailers offers insights for brands and suppliers which, if properly understood, could help in the development of effective shopper marketing strategies across all retail platforms.

As shoppers become more promiscuous their ability to influence the success of both retailers and suppliers has increased significantly. With many shoppers visiting different types of store and different store formats for different reasons, suppliers need to become more familiar with the whole range of different shopper missions. Why do shoppers behave in a certain way? What factors influence their decision to shop in certain retailers? Why do they choose to purchase certain products in certain places at certain times?

Understanding the determining factors behind the shopper mission means that suppliers can see where their products fit into each stage of the shopper mission, and can create strategies that suit shopper requirements. What products are shoppers looking for? And who are they shopping for e.g. a family, a single person household or an occasion? These questions could, for example, influence the size, quantity or quality of product bought, making it essential for suppliers to integrate insights gained from shopper behaviour when developing space, promotional and marketing strategies.

The rise in discount retailer in affluent areas is further evidence that shoppers are aware of their purchasing power, looking for the best deal. Unlike large retailers, discount retailers stock fewer products and carry less stock of perishable items such, as fruit and vegetables. Not only does this help retailer cut costs from waste it allows them to pass savings on to shoppers.

With shoppers looking for everyday, non-perishable, items from local convenience or discount stores which can be topped up by visits to the larger retailers, understanding trends in shopper behaviour gives brands and manufacturers the information they need to create an effective category strategy. By interrupting the shopper and influencing their buying decisions, brands and suppliers can safeguard and increase sales, in turn increasing the value of a product to the retailer.