Supermarket strategy
Supermarket strategy likely to shakeup food businesses.
This strategy applies to all Grocery and Supermarket operations. In instances where
strategies potentially impact on other industry sectors the Grocery and Supermarket
Strategy Group will endeavour to utilise those groups to deliver this documents
objectives.
In one of the most significant changes in the manufacturer/retailer relationship in many years national retail chains are rationalising brands and asking manufacturers to pay huge sums to have their products in stores or risk being delisted from the shelves.
2002 – 2012 Grocery and Supermarket Strategy
Strategy 1 Promote excellence in health and safety practice in the Grocery
and Supermarket Industry
Method
Objectives Create an industry owned body that is unilaterally recognised as
being tasked with leading health and safety improvement
- Identify scope of industry
- Identify key industry members, representative
groups and other stakeholders
- Form Industry Safety Group
- Communicate groups role
- Establish profile within industry
Recognise excellent health and safety performance within the
industry
- Review overseas and other industry approaches
to recognition
- Shortlist possible means of recognising industry
performance
- Agree approaches and implement
Seek ways to publicly reward effort and achievement in health
and safety by industry members
- Review overseas and other industry approaches
to reward
- Shortlist possible means of rewarding industry
performance
- Agree approaches and implement
Coles supermarkets is leading the charge and is believed to be contacting suppliers for reviews of their products that will see the supermarket chain only stock the top two products in most categories. Coles is looking to implement the Three Tier Strategy - Good (house brand), Better (leading brand by sales/profit), and Best (market leading brand) strategy.
The new reviews are being conducted outside the normal category reviews with the deliberate move by Coles to focus on private labels. Coles aims to lift house brands from its current 10 percent of sales to 30 percent of sales by 2007, and the shelf space required for house brands will come through rationalisation of existing brands.
Woolworths is believed to be following a similar direction to Coles. National retailers are calling the rationalisation of brands "range architecture".
The rationalisation strategies employed by the retailers have huge implications for all food manufacturers, and have the potential to change the retail landscape in Australia.
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