The growth of premium retailers on both sides of the Atlantic is a reminder that not everything in the retail industry revolves on price alone. “Mid-market retailers should plan for the growth of premium retailing,” warns IGD Chief Executive Joanne Denney-Finch during the closing plenary session of the 11th ECR Europe Conference held in Stockholm.(Inset Photo: Joanne Denney-Finch)

Denney-Finch cited Wholefoods (USA), Sainsbury and Booth (UK), Rewe (Germany, Migros (Turkey) and Isetan (Japan) as among the leading examples of premium retailing that have increasingly taken the lead in drawing customers despite the chronic price wars among supermarket operators. “The success lies in market-focused stores. Mid-market retailers need to respond in a bold and decisive way,” said Denney-Finch. According to IGD, like-for-like sales in Wholefoods have been on the rise in the last three years despite the focus of big rivals such as Wal-Mart on cut-price strategies.

In the UK, the EH Booth chain now operates in 26 locations with emphasis on offering organic foods and exclusive fresh products. Edwin Booth, chairman of Booth chain, said traditional supermarkets should regenerate themselves in order to maintain their hold on customers. Denny-Finch added that premium retailers would increasingly seek for exclusive products, filling in the gap often neglected by mainstream supermarkets.