Are WW & Coles Sly Agents of Aldi?

WW & Coles are chic, sophisticated efficient retailers – no argument… right?
They analyse return on store real estate, supplier efficiency, optimisation of promotions and deep dive into category workshops so they know more than national advertisers and international manufacturers about key categories.

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Focussed on two variables

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• Maximised return on shareholders funds, and

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• Shopper satisfaction

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WW and Coles may be reaching retailer nirvana…
Or are they building a road to disaster?
WW & Coles claim to be aiming for 30{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} of product to be house brands, own brands, or generics. In reality independent competitors believe up to 70{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} of Coles and WW shelves are no longer independent brands.
Their argument is that shoppers don’t mind… they just want ‘value’.
Fly Buys, Everyday rewards and “professional research findings’ are delivering the message that shoppers no longer demonstrate “loyalty’ to branded products.
OK, far too many weak, under-skilled FMCG companies have let brand equity dissipate, and deserve the resulting loss of audience loyalty and diminishing market share.  Leigh Cowan – Read more…