First stop on the tour was independent retailer La Manna, who have the largest single independent retail store in Australia. The store is in Essendon Fields, Melbourne, the company started out trading bananas, then ventured into online sales. The store started out selling just fruit and vegetables, but now has a full range to match any of the top retailers.
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The fruit and veg on sale is top quality and all Australian grown, except for kiwis which come from New Zealand. The fruit and vegetable offer is of course seasonal, buyers go to the wholesale market each morning to by-in the produce. The store has a wide range of fresh-cut produce and ready meals, all of which are prepared and packed in-store. The company buys as much as possible from locals suppliers and sets itself apart from the major chain with customer service and quality.
After the recent food safety issues with frozen berries, La Manna now only sources berries from local growers and freezes them on the premises. All private label products are packaged in-store, this segment makes up 25% of their range.
Richard Bennett Technology Manager, PMA A-NZ gave a short talk on food safety. He explained how risk assessment was a big part of assuring food safety. Stores rarely promote their food safety standards and consumers take it for granted that the food they buy is safe, it is the No 1 priority for consumers. He went on too say that retailers need to be more aware of changing food trends such as eating raw vegetables. This heightens the risk of contamination as there is no way to kill any bacteria if you are not boiling the produce. He concluded by saying that regular checks to ensure temperatures are right throughout the chain and a healthy workforce is also essential.
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Next we went the New Epping Market due to open on 3rd of August, which will replace the current market in the city. Here we heard a presentation from Dan’l Mackey-Almy from DMA Solutions. She spoke about how small retailers can profit from mistakes made by major chains, referring to Tesco's situation in the UK. Tesco stopped listening to consumers and didn't move to follow changing shopping behaviour. Small retailers, according to Dan'l, need to know what people are interested in, such as food safety and waste. Keep up with macro trends and demographics. Look at their marketing techniques and resources and offer customers in-store experiences such as tastings. She stressed that it was also important to look outside the store, put good information on your website, such as health and nutritional info. and also to carry out regular shopper polls to see what the customer wants.
Dan'l was followed by Eduardo Fragapane from Rand Transport, who told the story of his logistics company and how they have had to change to survive in the modern market. The company has two brands, Rand Transport and Harris. The company has invested in lots of modern technology to enable good tracking of truck and produce, fuel saving and much more.
Next up was Peter Huskins, from Shopability who said it was important to remain competitive in this fast moving retail environment. He said small retailers need to ask, what would make consumers come to them instead of the big chains? Fruit and vegetables have always been a main attraction for consumers, good quality produce will attract customers to come back. The points he mentioned were: Authenticity, Rusticity, Convenience and Branding. He gave the examples of Borough Market in London and The Eately in New York where they do this exceptionally well.
Last up was Tristan Kitchener from Kitchener Partners, who highlighted the situation in the current UK market where the small independent retails are a thing of the past. Australian small retailers are facing the same situation if the current trend continues. He told of the growing hold which Woolworths, Coles and now ALDI have on the market.
To end the tour we were treated to sneak preview of the market, due for completion in August. The market has been custom built and has the latest technology to be more green. It is hoped that at the new site the logistics will be easier than current ones in the city. See photo report for more information.