Richard J. George, Ph.D.

FMI 2010: What the Industry Isn't SPEAKING About

May 12, 2010

FROM RETAILWIRE:
It didn't come as a surprise that a good portion of yesterday's FMI SPEAKS 2010 session on industry trends was focused on the "changing consumer" and their mission to find value (aka save money). Is it time for grocers to change from a business model that focuses on making money from manufacturer funds to a net pricing model?      [more...]

Getting retailers to change their dependency on manufacturers' promotional allowances is similar to asking a drug user to go "cold turkey." As long as the manufacturers play the game it will be difficult to become weaned off this retailer drug of choice. At the same time retailers need to focus on the front doors for growth and profits.

However, value is more than low prices. My definition of value is benefits received divided by burdens endured. We need to enhance the benefits and reduce the burdens that our customers endure if we expect to be successful in the long run. There are a myriad of non-price options to do this - limited only by one's imagination.