UK grocery is all about price matching. What about quality?

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Asda price match

Value in any market is defined as “what you get” divided by “what you pay”. In our industry, over the last decade, the focus has been primarily on what consumers pay, as a reaction to the huge share gains taken by Aldi and Lidl, which threw many other retailers into volume decline.

M&S has brought a more balanced philosophy in recent years and is seeing the benefits in its sales performance. It reassures on value through price investments, the Remarksable value range and dine-in deals.

But it has also doubled down on “what you get” – via the excellent new store environments but also via product, such as the Our Best Ever range. The stated philosophy “if in doubt, engineer in more quality” feels different. It’s a bit sad that we’ve got to a place where that mindset seems unusual, but it does.

Maybe we are heading towards an era where there is a more balanced focus on quality and price? If so, here’s one thing to think about. There has been a steady rhythm of price matching, including a scramble to match Tesco’s programme of Clubcard Prices. But how about product matching?

Shouldn’t retailers and their suppliers put equal emphasis on understanding what products are being offered out there, and thinking about matching or ideally bettering them? Here are some examples of things you might want to match or better.

Costco’s product offering is centred on generous sizing. Everything is bigger – not just the pack size, but the portion size. The meals are an example: 1.5kg penne carbonara, 2kg quesadilla. The cuts of meat and fish are dramatically huge. This is clearly working, and not just for B2B customers. Big families or those who are hosting friends are buying. Should you be matching, or even beating, Costco in fresh?

Elsewhere, Lidl’s bakery is cleaning up. Outstanding quality and freshness for the price. Pulling in footfall. Should you be matching, or beating, Lidl bakery?

Retailers in southern Europe, such as Mercadona and Conad, are offering brilliant counters even in small stores, and driving a much more engaging store environment. Do we think our leading two retailers will continue to shun fresh counters, and see them as costs, or might that change?

Less controversially, what could be learned from the frozen food ranges in southern Europe? For example, the range of croquettes? Should you be matching, or beating, these European stores?

To product match, your people need to get away from their screens. They need to face down the doubters who think they are out on a jolly. It isn’t a jolly. Getting out there with a product matching/beating mindset will pay dividends, and help return focus to “what you get” as well as “what you pay”.