As big grocers continue to come under fire over ‘profiteering’ concerns, they clearly still have work to do to convince policymakers and the public that providing great value for money is absolutely front of mind.
The supermarkets are in an invidious and paradoxical position because, during the cost-of-living crisis, they have made Herculean efforts to ensure customers do not pay more than is necessary.
Only this week, Ocado slashed the prices of 100 everyday products – both own-brand and those of joint venture partner Marks & Spencer – following in the frequently trodden footsteps of peers including Asda, Morrisons, Sainsbury’s and Tesco.
However, also this week, MPs grilled representatives of the big grocers over prices. Some parliamentarians seemed more focused on garnering headlines for themselves by raising issues such as executive pay and questioning supermarkets’ profits – even though they are down, in part because of investment in price.
More importantly for retailers, shoppers seem to be an ungrateful lot. Over the years, grocers have democratised a cornucopia of products that would once have been the preserve of the few and, during the cost-of-living crisis, have ensured there is plenty of choice at the value end of their price architecture.
But a poll conducted for Retail Week found that 75% of consumers think grocers have been ‘profiteering’.
“Perhaps it’s time for the grocers to go on the offensive by positioning themselves more overtly as consumer champions, as they did successfully in the past”
That is understandable in some ways. Headline figures of hundreds of millions of pounds of price cuts wash into one and their resonance is diluted by the individual experience, predicated on buying decisions, of shoppers as they fill their baskets in stores.
Perhaps it’s time for the grocers to go on the offensive by positioning themselves more overtly as consumer champions, as they did successfully in the past. Then, not only did they provide value for money, but they also cemented their reputations for being on the shopper’s side with high-profile campaigns.
Tesco, for instance, fought a famous court case against Levi’s in an attempt to source the brand’s jeans more cheaply and pass on the savings to shoppers.
It was a committed campaign, driven by a determination to offer value and to fight what it perceived as unjustified pricing. It also generated great PR in the process, because it was an authentic and understandable stance.
There are similar opportunities today. In fact, now, as the back-to-school period nears, they can speak up on behalf of change for the good.
This week, The Children’s Society released findings that, on average, parents spend £287 on primary school uniforms and £422 for the secondary school equivalent. The often high cost is partly because some schools demand that parents buy branded items that are typically more expensive – despite rules designed to limit that and keep the cost of uniforms at a reasonable level.
“Why should it always be the policymakers that criticise retailers? Retailers can criticise policy or weak rules that are not in shoppers’ interests, positioning themselves firmly on the side of consumers on relevant issues”
This year, retailers are already battling it out on value. Marks & Spencer, for instance, has frozen the price of uniforms for the third year in a row in recognition of it being an essential purchase. Lidl, meanwhile, is selling uniform ‘bundles’ for £5.
But retailers can additionally be a strong voice on behalf of hard-pressed consumers and campaign against rules, such as on uniforms, that diminish people’s lives and financial wellbeing. They can be the champion of consumers in an authentic way that is entirely in tune with their own values such as great prices.
Why should it always be the policymakers that criticise retailers? Retailers can criticise policy or weak rules that are not in shoppers’ interests, positioning themselves firmly on the side of consumers on relevant issues, helping to dissipate ill-founded claims that they are profiteers.
Uniforms are just one example. Doubtless there are many more. Retail has always been on the side of the shopper. As grocers come under fire, isn’t it time to bring some policy and PR flair into play, as in the past? Don’t let the knockers have it all their own way.
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