By Paul Wootton
Digital innovation, shopper engagement and long-term growth were the key messages from Damien Page, LMG’s General Manager – Merchandise & Marketing, during his presentation at the LMG Members Conference in Prague.
Page credited nine years of consecutive growth at LMG to placing shoppers at the centre of every decision and investing early in digital.
“We developed an app before we needed it,” he said. “We developed e-commerce before we needed it. Covid hit and we were ready before everyone else. As we stand here today, I think we have the best loyalty platform of any independent group.”
Digital as the “shopfront”
Page highlighted the importance of a strong digital presence for independent liquor retailers.
“Failure to invest in your digital future is the path to failure,” he said. “We must be the best at this. Shoppers have changed, their behaviour has changed. Alcohol is highly researched today – 60 per cent of people shopping in-store are doing some form of looking online beforehand. They’re looking for value, they’re looking for new news, and sometimes they’re just checking you’ve got stock. We have to be visible digitally. It’s your shopfront.”
LMG has seen a million more unique visitors to its digital platform in the past 12 months, a 32 per cent increase. Those visits are equivalent to around 7,000 customers per store.
“If you’re not displaying the way you should, you’re missing out,” he warned.
Loyalty as a game-changer
Page described loyalty as LMG’s most powerful differentiator.
“The Achilles’ heel of independents has always been connection,” he said. “Loyalty solves that. It’s not just about driving recruitment; it has to be valued by the shopper. Shoppers have to be integrated with our platform and using it. That’s the difference between us and the chains.”
LMG is also attracting younger shoppers at a higher rate than competitors. Page explained catalogues, digital and radio marketing, and strong brands were all combining to fuel this success.
New products driving growth
Innovation is another major growth lever for LMG. Page said that eight per cent of all sales now come from products that didn’t exist three years ago, but those same products are delivering around 40 per cent of the group’s growth.
“People are looking for new news, whether that’s 10-packs of beer, premium spirits or other formats,” he said. “Our programs are designed to bring those innovations to shoppers, and they’re working. If you’re not executing them in-store, you’re missing out on growth.”
Sustained investment
LMG will double its pricing investment this year, with Page stressing it is not only about competitiveness but also profitability.
“Yes, we have to drive traffic to your stores, but we also have to invest in the bottom line. Everything we invest in has to be long-term and sustainable. Short-term programs don’t last. Our goal is to give you the tools and insights to compete, and to grow sales and profitability for our members.”
Page concluded by reinforcing LMG’s philosophy of continual improvement: “We just want to make sure we are better than yesterday. Get one more shopper, one more visit, one more sale. That’s how we grow.”