I think
that the objective of any UK
confectionery retailer is to maximise their sales and stand out against the
competition so that they have a point of difference. Nothing new there then.
It has
always been said that price is only ever a short term point of difference –
someone can always be cheaper. How true. But what about your product range?
A recent hot
topic is American confectionery. Considered a niche sector of the UK
confectionery market, American
sweets and chocolates have really taken the market
by storm in the last 12 to 24 months. More UK retailers and wholesalers have
sprung up, dedicated to this profitable and different confectionery category
whilst many confectionery retailers have been and continue to enjoy strong
sales of these different and fun treats.
But what
happens when the supermarkets get
wind of it? We are about to find out. Asda has already leapt headlong into
American confectionery, firstly with Hershey’s and Reese’s over a year ago and
now with American Confectionery bays in 100 stores. It was revealed in The
Grocer (4 August) that Tesco is to trial an American fixture in 10 of its
stores. The range will include Hershey’s chocolate.
So is this
the end of the advantage that smaller confectionery stores and retailers have
on American confectionery or can they still use the category as a point of
difference and benefit from the strong sales that exist? I guess that only time
can tell and it certainly demonstrates the importance of keeping a close eye on the quality and uniqueness of your product range. It doesn't all have to been remarkably different of course, but you will want to be assured of those sectors and ranges that are.
Maximising
the potential of any advantage that you have has never been so important. Smaller
retailers are certainly able to do this, given that they can really get to
understand their local shopper profile and what they want to buy from them. This
is where they can truly stand apart, carving out a local position for
themselves regardless of what the larger stores are up to. It never hurts to
understand what’s going on behind your back though.
