Growth in a stagnant market demands a sharp focus on differentiation to drive demand and take share.
The second chapter of our Unlocking volume growth report – produced in partnership with World Retail Congress – explores three routes: winning customers from rivals, creating unique product innovation to ensure relevance, and leveraging creative channel differentiation.
Differentiate to drive demand
How can retailers take share in a fiercely competitive landscape? In this video, we look at the three priority areas from the second chapter of our Unlocking volume growth report: actively winning customers, driving brilliant innovation, and leveraging creative channel differentiation.
Key themes
Winning the customer battle
Growth comes from actively winning customers from rivals. Retailers must reduce switching friction by removing the financial, emotional, and cognitive barriers that prevent customers from switching. Use next-generation loyalty schemes and personalised retail media to make loyalty irresistible and target high value audiences with precision.
Unique product and category innovation
Sustainable growth relies on products and experiences that customers cannot find elsewhere. Treat private brands and exclusives as strategic growth platforms. Build for clockspeed to drive continuous "newness", monetise existing capabilities (like media reach or logistics), and actively manage complexity to protect your core ranges.
Channel differentation and integration
Retailers are redefining omnichannel engagement. Genuine channel innovation demands rethinking operating models and focusing relentlessly on customer value. Build omnichannel strategies around unified data and inventory so that any stock can serveany order. Scale social and live commerce, and shift from measuring profitability by channel to focusing on customer lifetime value.
Explore our Unlocking volume growth report:
Chapter 1
Brilliant basics: Fix the fundamentals
This chapter explores three levers for resetting the foundation: reinvigorating core trading, building the productivity flywheel to fund growth, and updating legacy technology and data to enable speed.
Chapter 2
Differentiate to drive demand
This chapter explores three routes: winning customers from rivals, creating unique product innovation to ensure relevance, and leveraging creative channel differentiation.
Chapter 3
Big bets: Pursue inorganic growth
This chapter explores three pathways to redefine market position and realise new value: transformational M&A, creative growth accelerators, and restructuring tools and special situations.
Unlocking volume growth
For retail executives, one stark reality overshadows all others: the pursuit of like-for-like volume growth has become a matter of survival.
This report provides a practical guide for retail executives, featuring actionable strategies, multiple case studies, and insights from leaders who have succeeded in rebuilding their fundamentals, driving clear differentiation, and pursuing bold inorganic opportunities to win.
