We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published bySophia Cannon
Modified over 2 years ago
Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVI Management Ventures, Inc. Keeping pace with the rapidly changing European retail market Presented by Ethan S. Sinick MVI November 2008
2 Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVI European retail growth is slowing Current MVI forecasts, excluding the effect of currency changes, indicate that the European* retail** market will see growth decline from 5.9% in 2008 to 4.1% in 2009 Excluding Russia, MVI projects the European retail market to slow from 4.7% growth in 2008 to 2.8% growth in 2009 MVI expects the first half of 2009 to see market contraction with some recovery in the second half on the back of weak comparative numbers *Geographic Europe including all of Russia ** Excluding automobiles Source: MVI analysis
3 Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVI Discounters will grow to 17% of MVI measured grocery sales 7.2% 7.4% 6.6% 4.9% 4.8% 4.6% Sales in Constant EUR Billion Square Metres Million Number of Stores
4 Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVI Quick service restaurants are performing well by offering an accessible premium McDonalds year to date life for like sales are up 10.7% across Europe Dominos in the UK and Eire has seen like-for-like sales for through September 2008 up 10.5% YUM brands has recorded year-to-date growth of 12% in Europe
5 Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVI Tesco is trying to change the perception of its brand by attacking the discounters New Strap Line Expanded price matching to discounters Private label instead of own label to match discounters Source: MVI photos
6 Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVI Healthy brands are improving their value to try and regain momentum « L'innovation Danone continuera d'animer le marché. Nous réfléchissons aussi à la façon de couvrir le spectre entier du pouvoir d'achat, sur tous nos pays, y compris les plus matures comme la France ou l'Allemagne. » « The innovation of Danon continues to change the arket. We also consider the need to cover the entire spectrum of purchasing power in all countries incrlind the very mature markets like France and Germany » Franck Riboud, PDG Danone Danone ECO Pack launched July 2008 GBP 2.88 with nearly constant promotion in Tesco for the past few months Oranges are cheaper than mangoes, passionfruits and blueberries…Were going to make the average price cheaper over the next year or two on our core smoothies so we can get them into peoples weekly shopping trolley. Innocent Drinks Co-Founder Richard Reed GBP 1.89 with nearly constant promotion in Tesco for the past few months Sources for quotes: Le Figaro and the Financial Times
7 Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVI The current environment gives retailers a chance to attack 75% to 80% of their costs Source: MVI research
8 Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVI However, the market is changing We are moving from record levels of inflation to potentially record levels of deflation Deflation in the retail market will come from two areas: 1. Fundamental changes in commodity and transportation costs 2. Pricing actions designed to attract shoppers back into retail outlets
9 Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVI The deflationary cycle will be as sharp as the recent inflationary spikes The rise in prices was driven by a steady growth in demand from emerging markets which was largely reflected in prices through the end of 2006 Speculative investments in 2007 and 2008 took prices well above the rates of normal demand growth We now have the double impact of a collapse in speculation and a slowdown in demand The markets should correct over the next 12 months
10 Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVI Deflation will allow retailers to begin profitable price reductions
11 Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVIConclusions The economic crisis is changing shape Retailer and manufacturer strategies will follow Consumer opinion changes more slowly than the fundamentals We are still dealing with inflation although fundamentals have already begun to change Build a strategy that breaks 2009 into quarters as the consumer begins to see the changing nature of the economic crisis
12 Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVIConclusions There are some obvious growth strategies for retailers in the meantime Aggressively correct your value proposition if it is out of line with the marketplace If you have a good price position, emphasize quality of life Focus on building sales through traffic and frequency at the expense of weight of purchase until the consumer again feels purchasing power returning to their pockets Reduce costs and reduce the range to free up cash flows as credit lines tighten
13 Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVIConclusions There are some obvious growth strategies for manufacturers in the meantime Follow the discounter channel growth Shift distribution into retailers who have a strong price image with consumers irrespective of their channel (discount supermarkets) Adapt your trade marketing programmes to promotions that reduce the emphasis on basket building and look more for increasing frequency and capturing more shoppers Find profitable ways to close the price gap with own label
Thank You!... A Partner in Your Success Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVI Ethan Sinick Managing Director, EMEA MVI EMEA Headquarters 6 More London Place Tooley Street London SE1 2QY
Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVI Management Ventures, Inc. The evolving meaning of value in the current environment.
Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.eu © 2008 MVI Management Ventures, Inc. Understanding the implications of an economic slowdown.
Ashley Campion Stephanie Lanter Wes Kincaid Michael Riggen John Hutchens Nathan Frost Claudia Martinez.
The IDEAGORA – an emerging innovation trend Presenting three leading examples June 2008.
Management Ventures, Inc. Corp. Site: MVI-Worldwide.com, Licensed site: MVI-Insights.com © 2008 MVI Where We Are Now… Presented by: Bryan Gildenberg November.
ICOLACE 2012 SINGAPORE. Impact of recession on buying behavior of Indian Consumers.
David Roth CEO The Store WPP, EMEA and Asia
The Economic Outlook October 2011 Oliver Mangan Economic Research Unit AIB Global Treasury.
1 Growth review: Mid-sized businesses evidence base 29 November 2011.
UK House Prices, Consumption and GDP in a Global Context Andrew Farlow University of Oxford Department of Economics, and Oriel College John D Wood & Co.,
Chapter 28 Promotion and Place Name 12 SAM. The use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship and public.
1 Burger King Global Performance and Strategy Review Prepared for Nestlé Professional Centre of Excellence Louise Howarth Senior Analyst Robert Gregory.
Client Name Market Analysis / First Quarter 2009.
Presenter - Brian Nash Director/Authorised Representative Merlea Investments Pty Ltd Australian Financial Services Licensee No “The Rebuilding.
Management Ventures, Inc. Corporate: MVI-Worldwide.com, Licensed: MVI-Insights.com © 2009 MVI Presented by: Brendan Langan Director of Retail Insight April.
Retail: Electrical Goods Trends May 2011 Adam Goodman Vertical Insight Manager.
In the name of god Valuing Bonds Lecturer : DR. Ramzani By : Nikoo Ahmad fallahi 1 tasmimgiri dar masael mali.
Learning Unit 3. Discuss the steps that may be followed to analyse the industry Identify and discuss the elements of an industry analysis Identify and.
Simple Steps to Financial Success in the Current Climate Tuesday 1 st December 2008 Scott Francis & Scott Keefer.
0 European M&A Market Trends Outlook for the UK, France, Germany and Italy May 11th, 2011.
What is Trade Promotions? Created August 5, 2004.
© Michel Roggo / WWF-Canon Response to the European Commission public consultation on a 2030 climate and energy package 2 nd July 2012 WWF European Policy.
Business Plan Brief summary of Executive Summary and Business Plan.
Seminar Series: Introduction to Investment Management Created by Harry Radburn Investment Banking and Investment Management Coordinator University of Hertfordshire.
Financial Executives International When the taps run dry: getting things done during a credit crunch November 24, 2008.
Instructor: Michael Cooke Address : Office: IC room 817 Class hours:Tuesday 09:00-12:00 Class Location: IC room.
1 E-Strategy, Internet Communities, and Global EC.
Turning Adversity into Opportunity Growing Your Business Summit Series Seoul, 13 April 2012 Daniel Evans, Chief Economist and Co-Founder.
Forecasting Future Skill Needs in NI Overview of Final Report Graeme Harrison, Head All-Island Consultancy Karen Barklie, Economist Lunchtime Seminar 3.
1 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Title of Presentation Copyright © 2012 The Nielsen Company. Confidential and proprietary.
© 2016 SlidePlayer.com Inc. All rights reserved.