Predictions for the industry.

The holidays are traditionally a time for reflection on the year which has passed and to think about what the new year might have in store. NARGON has compiled six key trends to watch in 2012.

A continued focus on value

Since commerce began, shoppers have always loved getting a great deal. In these tight economic times we are seeing increasing numbers of “deal-driven consumers”. They want deals and discounts, have very high expectations and are prepared to shop around.

Industry commentators have noted a change in attitudes towards bargain-hunting. While it was once a sign that a shopper had financial issues, now it is accepted and often admired. It is more than just savings – it can make shoppers feel in control and smarter when they can make their money go further.

Increasing use of Smart Phones

National Retail Federation research from the United States showed that more than half of Smart Phone owners and 70% of tablet owners planned to use their devices to aid their holiday shopping.

This behaviour is expected to expand into the retail grocery sector with Smart Phones capable of providing more detailed nutritional information, telling the stories behind products, listing the details regarding origin and ingredients, enabling instant price comparisons, listing reviews and running competitions.

Many are picking that 2012 will be the breakthrough year for QR codes (the pixilated images appearing on a growing number of products and marketing materials). These were prominent during the World Cup and have tremendous potential to directly engage tech-savvy customers.

Social media is no longer optional

Supermarkets may not be able to avoid Facebook, Twitter and blogs for much longer. These tools are becoming increasingly important for many consumers who have different expectations to shoppers in the past.

Social media expert Rachel Goodchild has told business audiences that people will be talking about you online and it is best you have a presence there in order to control the situation and promote your store. Social media is another way to reach out to customers directly and make them feel exclusive.

Kiwis will decide about self-service checkouts

While self-service checkouts are popping up in New Zealand supermarkets, several chains in America and Britain are dropping them saying they can actually slow down the checkout process.

The main reasons cited for removing the self-service checkouts are customers struggling with bar codes, coupons and payment methods, as well as the possibility of shoppers accidentally or deliberately not paying for items. In the United States, 22% of supermarket purchases were done through self-service counters in 2008. This year, that figure was down to 16%.

It will be interesting to monitor how Kiwi shoppers react. They appear more adept with eftpos and scanners than their counterparts in the US and UK. Supermarkets are expected to continue to offer a choice by running both self service and staffed counters for the foreseeable future.

Environmentally and ethically aware shoppers

The ‘aware shopper’ is a new type of customer who wants convenience, value, quality, ethical production and environmental sustainability. They will often require more information about the origin of products and will place an emphasis on welfare standards and the environment.

While this list of demands may be difficult to cater for at times, these are generally high-value shoppers and there will be more of them in 2012.

More restrictions on sales and displays

Somewhat ironically for a centre-right Government, this next term of Parliament is likely to see increased restrictions on the sale and display of products such as tobacco and alcohol. A complete ban on tobacco displays comes into force in mid-July and supermarkets are unlikely to be exempted. There will also be increased enforcement measures.

While Parliament is yet to make final decisions on alcohol, it is likely that there will be a split purchase age (20 for off-licence), restrictions on liquor trading hours and potentially a requirement that alcohol be isolated to a corner of a shop. Supermarkets will need to be prepared for all these changes and ensure they comply at all times.