Trading with leading global retailers – your questions answered

Earlier this month, we hosted our webinar “Unlocking Growth with Leading Global Retailers” to share insight from our latest Leading Retailers series of reports, covering Europe, North America, and Asia and their predicted growth to 2029. Following a session packed with insights and global examples, we had time for our audience to put their questions to our speakers.

We had some great interaction in the session answering important questions about key trends in the region, technology, the convenience channel, and more.

Below is a recap of some of the top questions we were asked:

What is the common trade trend amongst all the 3 regions? And how should suppliers react to leverage it?

Value continues to be a priority across all regions, with shoppers in many markets feeling the pinch of inflation and economic instability. Suppliers should continue to identify ways to cut costs, and pass these on to retailers whenever possible. You can find out more about how retailers and suppliers around the world are innovating to provide shoppers with value in our quarterly series of reports.

The growth of online is also a key trend that we are seeing across all three regions. The online channel is projected to deliver strong growth around the world to 2029, with $164 bn in additional sales. Suppliers should continue to work with retailers to develop this channel, leveraging retail media opportunities, supporting fulfilment and quick commerce growth, and using technology to help bring more profitability to the channel.

Working in a global function, is it best to engage multi-market retailers market-by-market or through a more co-ordinated Global HQ engagement?

It depends on the retailer. For example, Lidl’s markets operate fairly autonomously from its central function, so each market has more control over assortment. Aldi Süd has established a central purchasing centre to procure on behalf of all markets of operation. In Europe, there are also retail alliances to factor in, which can offer opportunities with multiple retailers across markets.

Which markets show a real bias towards convenience retail? And if I wanted to pilot a global convenience study, which retailers should I consider partnering with?

Taiwan, Japan, Russia, Poland, Thailand, Switzerland, South Korea, UK and Ireland are expected to have above 20% market share by 2029. These are markets that show a real bias towards convenience retail.

7-Eleven has a strong global presence and is a recognised and trusted banner. It is ranks far above other convenience retailers in terms of sales and global representation. It will be best to consider other local players on a market-by-market basis.

Where can we find out more about Seven & i's use of AI tech and solutions? This could be interesting to understand and apply in other regions.

The global convenience trends report highlights several initiatives being adopted by Seven & i. In Japan, the company is partnering with Sony to boost the effectiveness of its in-store digital screens. Trial stores are using AI-powered cameras to capture the frequency and duration of time shoppers spend looking at the screens, with the goal of improving the targeting of product advertising.

Meanwhile, 7-Eleven Hong Kong has launched a new app to enhance its omnichannel shopping experience, which includes gamification features offering prizes and a collectible programme for digital stamps, alongside a standard click-and-collect service. More examples can also be found on IGD’s Innovation Tracker, and our dedicated Seven & i page.

From my own experience in Japan I see convenience is huge compared to UK and seems the main shop type, do you think this is due to customer habits and lifestyle or how well convenience is done there?

Japanese shoppers treat convenience stores as an extension of their homes, it is where they buy meals, snacks, pay bills and pick up parcels. It is linked to the urban density, small homes, long work hours and dependence on public transport. 7-Eleven, FamilyMart, and Lawson set the pace with constant innovation in ready meals, fresh coffee, and services. In the UK, retailers focus on proximity, value and essentials for top-up shopping and food-to-go. Check out our latest store of the month winner for an example of a great convenience store in Japan.

What is your opinion on doing short term tactical loyalty campaigns right in Asia where the spend is overall lower?

This is a great idea, and some retailers are already doing it. Retailers use points collection systems for short term promotions to redeem items like kitchenware, utensils and tableware. Some of these are in collaboration with Disney or chefs to drive further engagement.

What findings and thoughts have you got around value vs sustainability? With shoppers making choices due to continued increased cost of living how has this impacted the importance of decisions based on sustainability issues?

Our latest ShopperVista category benchmarks highlight that sustainability has slightly decreased in importance for GB shoppers, with factors like environmentally friendly packaging and ethical production not being as important as they were in 2023. However, 57% of British shoppers think food and drink manufacturers have a responsibility to limit their environmental impact, and are therefore placing the onus on brands and retailers to do the right thing. Sustainability will continue to be high in importance for retailers and shoppers alike, and will go hand in hand with value.

Which retailer has the strongest housebrand strategy and what are their key tactics?

Europe leads the global market in private label share, largely driven by discounters such as Mercadona which has a significant 75% private label share. Major supermarkets are competing with discounters by strategically improving their own-brand quality and innovation.

Examples include Sonae MC's use of a Co-Lab centre for customers to blind-test new products, and Albert Heijn's move to encourage sustainable choices by pricing hybrid plant-based items at or below traditional versions.

In the UK, the focus is on premium private label, with Tesco demonstrating agility by quickly launching products such as Tesco Finest pistachio gelato to capitalise on rapid consumer trends. You can read more about these examples and others in our global private label trends report.