On Thursday 18 August 2022, Sarah Coleman, Director of Communications at TWC, presented at a Scottish Wholesale Association webinar which provided an update on the cost of living crisis within Scotland, based on TWC Trends Summer 2022 edition.
Some of the key take outs from the presentation for the retail sector were:
A focus on value is imperative, two-thirds of consumers are struggling, especially families. PMP’s are a key tactic to reassure on price but there must be enough shared margin for all along the supply chain.
Rather than a race to the bottom on price (which won’t be won vs. the discounters), convenience should focus on its uniqueness, especially local sourcing, food to go and a more personalised customer experience.
Retail can benefit from the greater in-home occasions e.g. in-home entertaining, lunchboxes, at-home treats
And for the foodservice sector:
The current eating out boom will fade as inflation continues to rise, expect a drop in footfall although higher prices will keep spend per occasion up.
Switching into in-home occasions can be expected. Lower ticket occasions (e.g. food to go, QSR’s) likely to be more resilient.
Eating out will be less frequent so expectations will be high and offering a point of difference/experiences that can’t be replicated at home will be key.