Driving Retailer Revenue

Driving Retailer Revenue

May 20, 2015

By RDBA Executive Director Annette Maggi, MS, RDN, LD, FAND

In a recent article, Tara Oberg from Seurat Group, provided 10 strategies retailers can use to increase revenue in the next year. The chart below provides ideas for retail dietitians to put a health and wellness spin on five of these strategies with the same result -- increased benefit and profit for your retailer.

Oberg Retailer Strategy

Retail Dietitian Spin

Create loyalty through trust. Shoppers want to trust the quality and safety of foods they purchase, and retailers today offer a variety of programs to prove shoppers can trust them.

In each and every engagement with the shopper, focus on the relationship first. Show the consumer that you understand the challenges they face in living a healthier lifestyle. For example, you know what it's like to raise picky kids or to get dinner on the table at 6:00 every night day after day after day. This establishes trust with your shopper and shows you really care. Once you have this level of trust, you can move into behavior change guidance.

Do more to understand your shopper. The goal is to value high-volume shoppers and to understand the moment and message to trigger a purchase.

During a recent RDBA webinar, 41% of attendees acknowledged they don't believe their programs are meeting the Millennial shoppers’ needs. Whether it's this generation or any other top shopper in your stores, partner with Shopper Insights and Marketing to learn as much as possible about the your shoppers at your retailer, in your key markets and at your various stores. Target programs and messages to these audiences, and direct the messages through vehicles each target audience prefers to use.

Be part of a shoppers dinner consideration set. Dinner is still a significant share of wallet, and retailers are experimenting with prepared food programs that compete with restaurants.

RDs at retailers like Village Supermarket ShopRite and Skogen's Festival Foods are partnering with merchandising on meal solution centers which include all the ingredients and recipe for a healthful meal. Another example is a current Jewel Osco deli promotion that combine fresh cut fruit, prepared vegetable salads, whole grain bread and rotisserie turkey for a Healthy Plate Solution®.

Offer shoppers price and value instead of just the lowest price.

"Nutrient density" is an emerging trend and communication point, and is a great way to sell a shopper on highly nutritious products that may cost a bit more than less nutritious counter points. In your messaging, focus on the multitude of benefits from a product or help the shopper understand all the value a product brings to them individually. Work with merchants to find the sweet spot of high nutrient dense foods that also have a high profit margin for your store.

Leverage private label to win.

Private label often provides higher profit margin to the retailer than branded products. Promoting healthier options within your company's owned brands shows that you understand the overall corporate goals and share in driving profit. It's also important to ensure private label products and brands are aligned with current nutrition recommendations and trends. Conduct annual nutrition reviews with the private label team or pitch a new brand concept that aligns with today's nutrition scene.