To: Mr. Theodor Von Hessen
Chief Executive Officer, Ladi Discount
From: John Faggit
Business analyst, Ladi Discount
Date: October 23, 2015
Subject: The development of consumer behaviour and the industry of discount stores and supermarkets in Denmark.
As you requested on October 19, this briefing provides information about the current situation at the Danish market within the industry of discount stores and supermarkets as well as consumer behaviour. I here present a summary of the most important elements from my research.
The past 10 years we have ...view middle of the document...
However, those remaining will become bigger (an average increase in area by 2-3 per cent the latest years). On that behalf, the location of shops and supermarkets is becoming even more important. In malls, and other places where there tend to be more people during the day, will become an attractive place to be located.
How to attract customers will be vital in the future where clean concepts and interior design in shops will be essential to retain customers and attract new.
The turnover of discount shops and supermarkets is increasing because people care more about price and quality than brands. Brand loyalty is declining and therefore we will experience an increase in sales of private labels. On this basis, shops and supermarkets have to put more focus in communication and innovative marketing that must create turnover in the future, as brands no longer will generate the revenue.
As mentioned earlier, statistics show that online shopping by consumers is steadily increasing. E-commerce platforms such as the online Danish grocery delivery service “Nemlig.com” is gaining territory. Sales from “offline” stores will be allocated online, and groceries will be delivered straight to your doorstep which suits people as they will have more spare time to spend with friends and family.
Please do not hesitate to contact me if you need further information or an elaboration of the findings provided in this briefing.
John Faggit, Ladi Discount