Retail Competition Is About to Get a Lot More Interesting in This Country

May 3, 2016

May 2016 – European hard discounters are spreading across America.

That sentence should command the attention of just about every retailer and supplier reading this. It’s shorthand for “retail competition is about to get a lot more interesting in this country.” As these hard discounters begin to expand in the United States market, I suspect the retail game will change more widely and quickly than any of us suspect.

What is the secret sauce to these retailers’ success? A few of our smartest people at Daymon took a deep dive into what these European retailers are doing and I’m happy to share with you some of what they found.

  • Focus is maintained on extremely high quality even when their products are offered at shockingly low prices. From clever brand comparison ads to unique loyalty offerings, they are able to deliver on quality and price with a flair that delights customers.
  • They tick the box with globally-inspired flavors in a clever and efficient way, and they are smart about global sourcing.
  • A sense of adventure and treasure hunting is built into their sales. Consumers are enticed with limited quantity values on sale at steeply discounted prices. When an item sells out, it is not replenished. Think of Black Friday, but every week.
  • They pack a variety of brands and price points into their stores, from distinct OPP products to just enough trophy products to entice high-end shoppers looking for a bargain.
  • Consumers are inspired and immersed into their brands through curated collections and 360-degree campaigns that bring their products to life.

There is much more to say, but these headlines alone should prompt retailers and their suppliers to ask some hard questions about how to compete. How do you get better credit for the quality of your private brands? How do you create a sense of excitement and adventure in your stores? How do you make your offerings more relevant to brand-agnostic Millennials? How do you do all of this simultaneously, with effective global sourcing at the lowest possible cost?

There is no doubt that this is an exciting time to work in retail, nor that it is about to get even more compelling. As always, I am eager for dialogue with you about how we can all be more effective and successful in the marketplace. Drop me a note at