RSA RETAIL RESEARCH PAPER2 WEB HR.pdf

PAPER 2:
THE POWER OF
THE CONSUMER

RSA: THE RETAIL SERIES –
THE POWER OF THE CONSUMER
We have spent time over the last 18 months developing our
understanding of what Retailers want and the issues they face. We
know the Retail market is forever changing and we are committed
to working with our Retail customers and brokers to continuously
understand their changing needs.
This paper is the second in a series of short papers dedicated to
what we believe are some of the most important challenges and
opportunities facing Retailers.
We hope that you will fi nd it useful and that it will provoke ideas
for your business.
This paper focuses on the Power of the Consumer and has
been produced by RSA Global Europe in conjunction with Retail
customers, brokers, experts and researchers in the fi elds covered.
Look out for the next Retail Research Papers on:
• Sustainability Challenges for Retailers
• The Future of Retailing
• RSA and Retail Insurance
We hope you will fi nd this series of papers interesting and, as ever,
we would welcome any feedback you have or suggestions for
topics you would like covered in the future.
If you would like to contact us about these Retail Research
papers then please email: smc.europe@uk.rsagroup.com.
CHRIS SMITH
Written with the support of Liz Machtynger of Customer Essential.

THE POWER
OF THE CONSUMER
UNDERSTANDING THE CONSUMER IS AN
ONGOING JOURNEY FOR US ALL.
Many external factors lead to changes in consumer behaviour,
meaning research papers and journals from a year ago rarely
scratch the surface of the Retailing challenges of today. This paper
is drawn from a number of recent sources and papers particularly
focused on the European marketplace.
The paper is split into the following fi ve themes:
1. The world is getting smaller
2. The changing face of our consumer population
3. Economic challenges and the impact on consumers
4. Do consumers really care where they buy?
5. Which Retailers are consumers voting for?
A SNAPSHOT OF THE CHANGING CONSUMER
There have been some major changes over the past fi ve years that
have led to a different set of consuming habits worldwide:
• The population has seen a shift in the shape of family units
and a move to more urban living.
• People are living much longer than before, in particular
in Europe.
• Females are playing a much more important role and have
more fi nancial control than ever before.
• The fi nancial situation is volatile worldwide and across Europe.
These pressures are having a direct impact on the way that
consumers are spending on basic necessities and is reducing any
discretionary spend they may have.
• Consumers choose to buy from Retailers based upon their own
priorities. Their priorities are more strongly focused than ever
before on ‘value for money’ and ‘quality’ of their purchases.
• Retailers wishing to hold on to their consumer base need to
work hard to build trust and deliver consistently across the
channels they operate in.
• Consumers are more demanding in both product selection and
service delivery. It is of paramount importance, therefore, that
Retailers stay connected with their consumers to keep on top
of their priorities.
The power of the consumer to change the way they spend and
the way they communicate with others about their purchases has
never been clearer.
“Today the consumer has power like never before. Facilitated
by technology, the humble shopper can reach an audience of
thousands – or even millions – to praise, complain or merely
muse about the service or products they get from Retailers.
For the Retailer this makes brand reputation a challenge.
Indeed, such is the power of consumers that a Retail brand
is no longer what a Retailer says it is, it’s defi ned by what
consumers feel and say about it. Naturally, all of this means
speed of response, appropriateness of response and visibility
of response are now critical.
Across most of the Western world Retail is a mature business,
and like most mature businesses that means it is competitive.
This ultimately gives the consumer choice. In recent years,
thanks to the Internet, this choice has been expanded beyond
national boundaries and shoppers can use Retailers from
around the world. With choice comes power. It is easier than
ever to punish Retailers that get it wrong by simply taking
custom elsewhere. The result is that all have had to up their
game, become more nimble and reinvent their organisations
to be truly customer centric.”
Neil Saunders
Managing Director of Conlumino Retail experts

THE WORLD IS GETTING SMALLER –
WHO IS OUR CONSUMER?
AN INTERESTING QUESTION...
The world’s population has reached more than 7 billion, meaning
we are increasingly getting closer in distance, and as consumers,
technology and travel are making change move even faster.
Ref. Google – World Population
The number of households is growing, in some countries more
rapidly than others, mainly due to emigration and changes in the
typical size of family units (outlined later).
NUMBER OF HOUSEHOLDS IN WESTERN EUROPE IN 000S.
UK
Turkey
Switzerland
Sweden
Spain
Portugal
Norway
Netherlands
Italy
Ireland
Greece
Germany
France
Finland
Denmark
Belgium
Austria
0 10000 20000 30000 40000 50000 60000 70000
1990
2010
Ref. European marketing statistics Euromonitor.
Typical habits and consuming trends are becoming more global
as we see Retailers growing their presence in multiple countries
and the media opens up the world to sharing. We know, however
that there are still some substantial differences in the way that
consumers behave between continents and countries, and even
regions within countries. History and culture play a role in driving
some of these differences through religion, beliefs and language.
For the consumer, a trip to another country usually still offers
a different experience or set of products, even though the
differences are much less pronounced than they were 10 years ago
or more.
Local stores have maintained more of this difference than those in
the high streets or main streets across Europe, where international
brands have become the norm.
Consumers across Europe often buy online, particularly in the UK,
Germany and France in Western Europe, and growing in Eastern
Europe, specifi cally Russia, Poland and the Czech Republic. These
purchases are often from international Retailers.
2010 INTERNET SALES $US BILLION
UK
Turkey
Switzerland
Sweden
Spain
Portugal
Norway
Netherlands
Luxembourg
Italy
Ireland
Greece
Germany
France
Finland
Denmark
Belgium
Austria
TO SUMMARISE…
0 10 20 30 40
$US BILLION
Ref. European marketing statistics Euromonitor.
• Global consumers are becoming more alike with a big increase
in buying via the Internet.
• Niche and local businesses are retaining some cultural and
personalised strengths that consumers welcome.

THE CHANGING FACE
OF OUR POPULATION
There have been some signifi cant changes in our world population
over the past 5 – 10 years – too many to talk about in detail. There
are some highlights that have already had a real affect on the
consumer and the way in which Retail operates today.
A ‘FAMILY’ IS NOT WHAT IT USED TO BE
• On average approx. 30% or more of households in Europe have
only one person living in them.
• Almost 8% of households in the UK and France, 5% in Germany
are single parent.
• 41% of households in the UK have a female head.
• 43% of households are headed by someone who is 60 years of
age or more.
• In Turkey 20% of heads of household are less than 29 years
of age.
Ref. Euromonitor 2012
WE ARE LIVING IN CITIES MORE
There are clear differences across Europe in the balance between
city and rural dwellings, but the trends are moving towards
urban living.
URBAN RURAL SPLIT EXAMPLES:
UK:
90.1%
9.9%
URBAN
RURAL
FRANCE:
79.3%
URBAN
20.7%
RURAL
Ref. Euromonitor 2012
This shift is making the urban Retail arena more interesting, and
Retailers are investing in stores in the more urban locations. Retail
real estate in prime locations is in demand.

CULTURES ARE MIXED UP
There has been a surge in migration activity in the past 10 years,
with the ability to travel and work across the EU. This has meant
that many countries have changed in cultural mix. This has brought
many opportunities and challenges for countries across Europe.
CITIES WITH 100,000 OR MORE FOREIGN-BORN RESIDENTS
Ref. MPI

‘LIFELONG’ IS FOR LONGER
Improvements in healthcare mean that people are living longer,
which also means that they are consuming for longer. People are
also more dependent on their pensions and public sector support
later in life.
There is a marked age difference with some other parts of
the world:
The median age in Europe is 40+
The median age in Africa is 20+
EUROPE IS MORE FEMALE
Most countries in Europe have more women than men by one
or two percentage points. Turkey, Cyprus, Iceland, Albania, and
Macedonia have a slightly higher percentage of males.
And women have a higher life expectancy than men overall.
TO SUMMARISE…
• Families are now all different shapes and sizes with the
extended family unit often broken up.
• People are living more in urban environments and moving
across country borders.
• People are living longer across Europe, much longer than Africa
or South America.
• Europe is more female.
Ref. Google

ECONOMIC CHALLENGES AND
CONSUMER CONFIDENCE
CONSUMERS HAVE HAD TO RETHINK THEIR FINANCES
The economic stresses of this century, so far, have changed the
world forever and have had a massive impact on consuming
habits. Consumers have experienced a credit crunch, recession
and practical collapse of the fi nancial system. The Euro has come
under great pressure as a result and there may still be more
economic turmoil across Europe. Some countries such as Greece
and Spain are struggling to turnaround major defi cits. This has had
a major impact on the day to day lives of the inhabitants of those
countries. Consumers have seen rising bills, rising taxation, rising
unemployment and reductions in public services.
For many of the countries across Europe, Retail prices have either
been reducing or going up only steadily. In the UK and Germany,
prices have begun to go up on core products.
For Retailers across Europe, there have been visible changes to
sales volumes with, on the whole, steady declines.
RETAIL SALES 2009 – 2010
% Growth PA
10%
5%
0%
-5%
-10%
-15%
-20%
Russia
Luxembourg
Poland
Sweden
Turkey
Austria
France
UK
Switzerland
Norway
Finland
Belgium
Italy
Eurozone
Germany
Portugal
Czech Republic
Denmark
Netherlands
Hungary
Ireland
Spain
Slovenia
Slovakia
Bulgaria
Romania
Greece
Estonia
Lithuania
Latvia
Ref. Cushman & Wakefi eld, Oxford Economics
According to the statistics, previous recessions have seen food
category sales least affected; this time round this category has also
seen an impact, showing how tough things have been
for consumers.
Consumers once trusted fi nancial institutions almost above all
others. This trust has vanished and there is widespread distrust of
fi nancial institutions in general. There is also now less willingness
or ability to invest for the future. There are major concerns as we
write this for further recession and for further impacts of defi cit
in the Euro.
POVERTY IS A GROWING ISSUE WORLDWIDE
Nearly half of the world (48%) lives in poverty.
Poverty is pronounced deprivation in well-being, and comprises
many dimensions. It includes low incomes and the inability to
acquire the basic goods and services necessary for survival
with dignity. Poverty also encompasses low levels of health and
education, poor access to clean water and sanitation, inadequate
physical security, lack of voice, and insuffi cient capacity and
opportunity to better one’s life.
World Bank[5]
The poorest countries are growing at the quickest rate. This makes
a large shift away from poverty very diffi cult.
POPULATION CLOCK 2011
World
More Developed
Countries
Less Developed
Countries
Population 6,986,951,000 1,241,580,000 5,745,371,000
Births per Year 139,558,000 14,070,000 125,488,000
Day 382,351 38,548 343,803
Minute 266 27 239
Deaths per Year 56,611,000 12,201,000 44,410,000
Day 155,099 33,427 121,671
Minute 108 23 84
Natural increase
Natural increase
Year 82,947,000 1,869,000 81,078,000
(births-deaths)per Day 227,252 5,121 222,132
Minute 158 4 154
Infant deaths per Year 6,078,000 77,000 6,001,000
Day 16,652 211 16,441
Minute 12 0.1 11
Ref. Population reference bureau
Some areas within Europe are also poor and getting poorer as the
economic situation worsens.
SPENDING POWER HAS BECOME MORE FEMALE
Spending power for females has increased, although in many cases
there is still a difference in earnings with male counterparts.
Some examples within Europe:
• In Switzerland 61% of females are economically active vs
74% of males.
• In comparison, in Iraq only 14% of females are economically
active vs 19% of males.

YOUNG PEOPLE ARE STRUGGLING TO GET
ON THE LADDER
Younger people are struggling to get their feet on the work ladder
and this is having an impact on debt levels for this age group.
COUNTRIES WITH THE YOUNGEST AND OLDEST
POPULATIONS 2011
YOUNGEST % AGES

DO CONSUMERS REALLY
CARE WHERE THEY BUY?
WE TALK ABOUT ‘THE CONSUMER’, HOWEVER,
IT IS MUCH MORE COMPLEX THAN THAT.
Consumers have varying needs and wants at different times and
depending on how and why they are purchasing. However, there
are some trends that can be clearly seen from various research
papers and individual Retailer successes or failures. These are
forming invaluable reference points for the development of the
Retail proposition.
WILL THEY DELIVER VALUE FOR MONEY?
Consumers have always ranked value for their money pretty highly
in research surveys for Retailers, now it is a clear winner for many.
All indications are that consumers with disposable income are
making much more serious decisions about where they spend
it. ‘The basics’ are coming fi rst for product purchases, and many
‘value’ brands are going from strength to strength as a result. Those
endeavouring to show that they have ‘best prices’ or ‘best packages’
or ‘added value’ are picking up more regular consumers.
But it is not all about having the cheapest price.
A survey of 2,210 UK consumers conducted by Retail Eyes has
found that less than one in fi ve people (17 per cent) intend to
make purchasing decisions based on the lowest possible price.
Tim Ogle, CEO of Retail Eyes, says that rock bottom pricing is
not necessarily the best way to attract, and retain, customers.
“Our research has shown that 83% of shoppers are looking for
added value for their money. Obviously with their margins being
squeezed by rising costs, Retailers need to fi nd cost effective
ways to add value – one of which is through exceptional
customer service”.
Ref. Retail Eyes Jan 2011
Dealing and negotiating are absolutely on the agenda for the
consumer today. With increasing price comparison possibilities
through the use of the web, and encouragement from the media
and social media, consumers are becoming more courageous. In
some countries, consumers now see the face-to-face Retail store
as a way of bringing out their bargaining power. Some Retail brands
are encouraging this further with ‘money back guarantees’ where
lower prices can be found.
The categories customers are spending on are changing too,
refl ecting the more diffi cult fi nancial situations that consumers fi nd
themselves in. Consumers are spending much more on things they
need rather than things they want.
CAN I JUSTIFY THIS PURCHASE?
For a number of years there has been growing spending on ‘luxury’
items, or things that consumers want e.g. the new iPhone or iPad,
the expensive car or the designer handbag.
The implications of the fi nancial crisis and economic impacts have
meant a change in these patterns. This has not stopped consumers
buying luxury items, but it has, in many cases, resulted in a more
serious and discerning consumer selecting carefully their purchases
based on the perceived value and timeless nature of the item
they buy.
Consumers are thinking more carefully about their spending
on different categories and where they would prioritise their
own budgets.
ALLOCATION OF MONTHLY BUDGET
EXPAND
(10% INCREASE IN BUDGET)
Travel/Vacation 29%
Savings/Investments 25%
Recreation/Entertainment 20%
Dining Out 15%
Electronics & Appliances 14%
Apparel 11%
Medical 10%
Education 9%
Transportation 6%
Communication Services 5%
Food & Beverage 5%
Housing 1%
-2% Medical
-3% Housing
-6% Education
-7% Transportation
-8% Food & Beverage
-10% Communication Services
-10% Savings/Investments
-12% Recreation/Entertainment
-12% Travel/Vacation
-14% Electronics & Appliances
-18% Dining Out
-21% Apparel
CONTRACT
(10% DECREASE IN BUDGET)
Ref. Neilsen Global Online Consumer Confi dence Survey, Q3 2011
This research by Neilsen shows where, if consumers had a
contraction in their budget by 10% or an expansion of about 10%,
they would spend or reduce their budget.

WILL THEY HAVE THE RIGHT PRODUCTS/PACKAGE FOR ME?
The pressures of time and fi nances mean that the fundamental
need to fi nd products quickly and get them delivered or picked up
as soon as possible remain crucial to the success of a Retailer.
The benchmarks set by some
global Retailers such as Amazon
(in product range and delivery)
have set expectations for
the consumer. There is no doubt that Retailers combining their
understanding of their consumer with their mechandising and
logistics and warehousing strategies are currently winning through.
ARE THEY A RETAILER I CAN TRUST?
Who consumers trust to deliver the right thing for the right price
and in the right way is a major challenge. If we look at the research
available on ‘trust’, Retailers have made some headway.
Financial Services
Banking
Insurance
Media
Brewing & Spirits
OTC pers Healthcare
Consumer packaged goods
Energy
Pharmaceuticals
Entertainment
Retail
Biotechnology
Food and Beverage
Telecommunications
Automotive
Technology
50%
51%
52%
54%
57%
57%
59%
62%
63%
63%
65%
65%
66%
68%
69%
81%
0% 20% 40% 60% 80% 100%
Ref. Edelman.com research 2011
Major investments are being made by Retailers worldwide to build
brand visibility and trust. Retailers are investing in putting their
brands at the forefront of the consumer’s mind when they come
to making their purchasing decision. The elements that build trust
for a consumer are often, however, about getting the basics right:
• Doing what you promise
• Consistently
• With no major errors
• And a turnaround strategy if you do things wrong.
Also, the removal of any major risks for the customer are also
key tools in building trust with your brand in the consumers’ eyes,
e.g. taking care of their data, dealing with payments securely etc.
Managing PR and negative stories relating to the Retailer are of
paramount importance in ensuring that trust is not eroded.
The importance of trust is becoming ever more important for
consumers where they are physically removed from the Retailer
and buying from them on the web or through mobile. Will they
buy from an E-Retailer they do not know fi rst time?
The network of people and communities that consumers place
their trust in are becoming more important in this context. Family
or friends’ experience of previous purchases in the fi rst line, then
communities they have joined and trust to provide guidance on
specifi c purchase decisions. Social media and the Internet are
making these communities broader (sometimes international) and
more responsive than before.
This research shows the level of trust that consumers stated they
had with specifi c industries.
This could be, in part, due to the higher profi le comparisons being
made with other industries and the way that they have treated
their markets and customers e.g. banks.

DOES THIS RETAILER SUPPORT SOMETHING
I CARE ABOUT?
It is becoming increasingly important to identify Retailers that
stand out in a busy market environment. Some customers will
differentiate and make their choices based on the Retailer’s ethics
and approach to doing business.
There are some key areas where consumers would like to feel
that they too are contributing to the right cause in spending
their money:
IKEA Named as One of the ‘World’s
Most Ethical Companies’ for Fourth
Consecutive Year in 2010
“IKEA’s promotion of a sound ethical environment shines within
its industry and shows a clear understanding that operating
under the highest standards for business behaviour goes beyond
goodwill and ‘lip-service’ and is intimately linked to performance
and profi tability,” said Alex Brigham, Executive Director of the
Ethisphere Institute.
Environmental Impact
Sustainability and a ‘greener’ product set or way of working is an
area we will cover in a later paper in this series. For consumers,
it is almost the beginning of the journey. Many are keen to make
a difference in this area, however, fewer are making purchasing
decisions driven by this issue. There are some Retailers beginning
to make green consumer choices easier for the consumer. Marks
& Spencer is one European Retailer that has been working on
its own sustainability agenda for the past 7 years and has been
applauded by the consumer for driving sustainable market
behaviours such as reducing plastic bags and cutting delivery miles.
DO THEY OFFER A GOOD SHOPPING EXPERIENCE?
There has been much written about the customer experience
and the need for Retailers to produce an improved approach
to ‘in-store experience’ in order to retain customers. Many
consumers have switched their shopping habits to an online
environment, and usually due to:
• Convenience
• Price
• Choice (perceived in some cases)
• Information
• Increased confi dence in security
The in-store experience can offer some amazing additional
benefi ts, for example:
“We’re doing this because it’s what you want us to do. It’s also the
right thing to do. We’re calling it Plan A because we believe it’s now
the only way to do business.
There is no Plan B.”
CORPORATE RESPONSIBILITY
Retailers with ethical or charitable causes are also respected for
their work with local communities and beyond. IKEA Sweden is
one such Retailer, having received recognition as a high-ranking
ethical company from Ethisphere a research based international
think tank.
• Engaging interaction – a consumer can touch/feel/try
the product
• Informative – a consumer can be guided to things you had
not previously considered
• Surprising – a consumer can be taken into an experience
or trial situation
• Human – they can interact with another person.
Online, mobile and even in-store processes must form part of
an overarching multi-channel strategy to ensure that all channels
are coherent with the brand in question and that they provide a
consistently high quality experience, allowing customers to easily
purchase what they want, when they want and through whatever
method they want.
Ref. Webcredible report on retail customer experience, Nov 2011.
www.webcredible.co.uk

WILL THEY OFFER ME A BENEFIT FOR BUYING
THERE BEFORE?
Some consumers will look for those Retailers where they will be
offered a benefi t as a returning customer.
Most Retailers offer programs to drive more retention and loyalty
to their customer base e.g.:
• Tesco’s loyalty card, a points-based system offering vouchers and
rewards based on points collected through purchases in store
and online.
• Voucher systems offered to customers buying up to
certain thresholds.
• Body Shop sales events for customers, and reminder system.
• Starbucks targeted location offers for customers holding a card.
• The Sainsbury’s Nectar card – a loyalty points-based system
shared by multiple companies including Retailers.
There are also consumers who are loyal to a brand. They return to
buy at the same Retailer on a regular basis because they see it as
‘their supermarket’ or ‘their clothes brand’. For these consumers,
the social media context has added an additional way to become
connected to their Retailer of choice, as well as other consumers
who feel the same way.
“The number of customers in the DIY sector
continues to grow despite the diffi cult economic
conditions. However, the average shopping basket
has decreased over the last couple of years with the exception of
customers who own loyalty cards. Customers with a loyalty card
can represent up to 50% of some of our branches’ turnover.”
Elise Boudet, Insurance Manager – Adeo Services
DO THEY HAVE THE LATEST OR NEW IDEAS?
New ideas and products attract some consumers. They will look
for Retailers consistently searching for and offering new items or
services. They will search these Retailers out.
Expert prediction.
“The next few years will see consumers much more focused on
value, in the home and out of it. After years of travelling all over the
world, many consumers will retreat to enjoying themselves more
at home and in their own country, helped by the Internet not
just to obtain better value, but also to entertain themselves more
cheaply – and their children will do the same, as the smartphoneaccessed
Internet provides them with hours of endless fun and
bans boredom, as well as providing the key to successful shopping
for themselves and their parents, through mobile applications.
Worries about the environment may have receded a little, though
they will return, with the relentless rise in oil and raw material
prices reminding consumers that the human race does have to
worry about resources. Nonetheless, the outlook for Retailers may
not be gloomy, as many consumers spend at home rather than
going abroad”.
Prof. Merlin Stone,
Universities of Demontfort, Oxford Brookes and Portsmouth,
Research Director The Customer Framework.
TO SUMMARISE….
• The consumer selects a Retailer based upon their
own priorities.
• Value for money and ensuring that the consumer feels they
have made a correct decision are more important than
ever before.
• Finding the right product selection remains important for
the consumer.
• Retailers must consider the key ways to build trust with their
consumer base through consistency of delivery in the key
elements of their proposition.
• The customer experience enables the Retailer to stand out
for the customer, it is crucial to deliver it well across all channels.
• Consumers are more aware of sustainability and community
needs and are noticing the Retailers that are investing in
these areas.

ENGAGING RETAIL BRANDS –
VOTED BY CONSUMERS
DOES ALL OF THIS MATTER?
There is no clear measure of consumer feedback across all
markets, although there are some messages in the research papers
available showing that consumers are less happy with Retailers.
The reasons for this could be many e.g. the fi nancial crisis making
consumers more aware of pricing, the in-store experience not
standing out in ways consumers would expect.
Similarly we cannot rely on Retailers’ performance reports as
an indicator of consumer preference, as there are so many
diffi cult external factors that will have an impact on market share,
profi tability etc.
“ORC International, announced in January 2011, research fi ndings
that showed that half of UK consumers are likely to encounter
poor customer service in an average month. The worst culprit
for poor service was the Retail sector, with 17% of respondents
unimpressed with their experiences. Closely following were
broadband suppliers and banks, with 16% and 15% respectively.”
Ref. Prof Merlin Stone – The Death Of Customer Service In Retail
TOP RETAIL BRANDS
# Brand Brand Value
$M
Brand
Contribution
Brand
Momentum
Brand Value
Change
1 Walmart 39,421 2 8 -4%
2 Amazon 27,459 4 9 29%
3 Tesco 25,741 5 4 12%
4 Carrefour 14,980 5 7 0%
5 Target 12,148 4 7 -1%
6 eBay 9,328 3 7 -28%
7 Home Depot 8,971 2 3 -3%
8 ALDI 8,747 1 6 1%
9 Auchan 7,848 4 7 NA
10 Lowe’s 7,008 2 5 10%
11 Best Buy 5,807 3 8 18%
12 IKEA 5,710 3 8 -15%
13 Marks & Spencer 5,699 5 3 -5%
14 Asda 4,922 3 7 -9%
15 Kohl’s 4,371 4 5 12%
16 Lidl 4,102 1 5 -1%
17 Costco 3,875 1 4 -26%
18 Sam’s Club 3,255 1 6 -7%
19 Safeway 3,173 2 4 -8%
20 Sainsbury’s 2,728 5 4 -4%
Consumers will vote with their money. The fi nancial crisis has
clearly impacted consumer spending with a slight increase or
remaining the same across Europe. Those Retailers showing clearly
improved fi nancial performance are ‘value’ brands and those having
‘own brand’ goods such as Walmart, and some high-end luxury
brands such as Mulberry Group.
The brand ranking research database BrandZ, places Walmart,
Carrefour, Aldi and Tesco in their top 20 brands globally.
TO SUMMARISE...
Ref. Millward Brown Optimer including data from BrandZ,
Datamonitor and Bloomberg
Understanding consumer preference and priorities and adapting
to the pressures in the market at present are crucial for the
survival of Retailers.
Consumers are fi nancially pressured and voting for value. They
are looking for ways that are meaningful to them to differentiate
between Retailers, and moving seamlessly between channels
to do so.
Retailers are working with a rapidly changing set of consumers but
must remember to keep their focus on the basics of product range
and service across the channels they operate.

APPENDIX
List of Useful Sources
• Euromonitor European Marketing Data and Statistics 2012
• Symphony IRI Group Topline report H1 2011
• Edelman Trustbarometer 2011
• The Death of Personal Service in Retail –
Prof Merlin Stone, March 2011.
http://blog.thecustomerframework.com/Portals/48635/docs/thedeath-of-customer-service-in%20retail_v1.4.pdf
• Satmetrix NPS report 2011 Europe. http://www.satmetrix.com
• BrandZ 100 2011
• RIS store systems study 2011 (Holman & Buzek)
• Interbrand best retail brands 2011
• Cushman & Wakefi eld European Retail Report Q4 2011
• Population Reference Bureau 2011 World Population
Data Sheet
• OECD report: Working paper 285.The Emerging Middle Class
in Developing Countries:
http://www.oecd.org/dataoecd/12/52/44457738.pdf
• Google Public data
• The Guardian Datablog:
http://www.guardian.co.uk/news/datablog
• Nielsen Global Online Confi dence Concerns and Spending
Intentions Q3 2011
• Mulitchannel Retail Customer Experience Report 2011
• Journal of Retailing Vol 68 Number 4 1992
• Retail Eyes customer intelligence, Marketforce blog. Nov 2011
http://www.retaileyes.co.uk
• Ethisphere: http://ethisphere.com
• ASCI Index: http://www.theacsi.org
• Polulation Reference Bureau: http://www.prb.org
• Wikipedia: http://en.wikipedia.org
• Interviews with Prof. Merlin Stone
• Interview with Neil Saunders, Conlumino Retail Experts.