, Woolworths is aiming to double the number of new products in its stores from five to about 10 per cent per year.Head of trade - produce, Scott Davidson says that's twice rate Woolworths introduced 650 new products to its 950 Australian stores last year.
He says new products are an important way to encourage consumers to spend.
He says Neilsen's market research shows consumer sentiment is at an all time low and customers are sceptical, restrained and 'tight'.
But Mr Davidson says the research also shows disposable income is generally high and savings are up, so it's critical to inspire customers to spend again.
"Consumers are worried," he said.
"They're concerned about value and I think we've got a job there to provide greater inspiration.
"It's hard, it's really hard.
"You've got to surprise them.
"You've got to delight them.
"You've got to do something they're not expecting.
"Some times you can do that quickly through offering incredible value and other times it can take a little bit longer by providing a service they haven't seen before.
"It might be a coffee shop inside a supermarket or it might be offering a sushi bar that they haven't seen; a different eating occasion.
"Own-brands do play an important role, there is no doubt about it.
"They do provide choice. In many cases it is a value choice they get to make.
"And in more recent times we're looking at some of the more inspirational products"
Mr Davidson says the supermarkets have been competing aggressively on price and in what could be a 'race to the bottom'.
He says Woolworths wants to be Australia's most trusted and chosen own-brand and that means being the best in design, sourcing, making and selling.
Mr Davidson says one of the strong trends is for new lines of pre-packed fruit and vegetables.
He says they are the fastest growing part of the Woolworths business, even though they often cost more per unit.
"It's quite simple. it is convenience," he said.
"Our customers are telling us they want to get in and out fast.
"They're looking for a clear understanding of what that product is, so if you talk about apples, is it a Jazz apple, is it a Red Delicious apple? "
"And through pre-pack you can do that really, really simply and it provides customers with that convenience and that confidence.
"In our business it is growing at around 30 per cent, which is almost four times the pace of the category itself.
"So if you look at our prepacked sale for the last 12 months, they're 30 per cent up on the year prior."
