Stewart Samuel, Program Director, IGD Canada
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1 Stewart Samuel, Program Director, IGD Canada
2 Who are IGD? We are food and grocery industry experts 800 members globally from the consumer goods industry IGD is inclusive and works across the whole supply chain Future Proofing & Innovation Retail & Channel Strategies Efficient & Sustainable Supply Chains Commercial & Category Excellence
3 Aims of today 1 To demonstrate that the supermarket is the lifeblood of the grocery sector but is need of reinvention 2 To generate discussion around the impact of new retailing models 3 To provide inspiration for some new ideas that you can take back into your business
4
5 Where is the growth globally?
6 The supermarket is being reinvented Store design to delight and inspire Integrating online into the store Embedding digital into the journey Step change with foodservice Health and wellness destinations Making value more effective
7 1. Store design to delight and inspire
8 Investing in the environment La Grande Epicerie de Paris Spar, Budapest GREAT Food hall, Hong Kong
9 Providing shoppers with inspiration Source: Kochhaus, Germany
10 Putting fresh at the heart of the offer
11 Opportunity to be innovative
12 Showcasing fresh credentials Locally focused, premium quality ranges Greater production on the shop floor Specialist counters with adjoining seating Helping shoppers buy with the season Boosting personality and localness Shopper focused layout
13 Canadian retailers have been on the front foot Canadian retailers have been on the front foot
14 Action points 1 Increasing frequency of store re models and refreshes is likely to be required to keep meeting shoppers expectations and maintaining loyalty. What programs do you have in place? 2 Don t neglect the centre store how can you apply learnings from fresh foods to make key categories destinations in their own right?
15 Confectionery champions: RT Mart, China Chocolate Town concept gives the category clear and characterful identity Flashing lights installed in the shelves help catch shoppers attention Floor to ceiling displays have high impact and great visibility throughout the store
16 Action points 1 Increasing frequency of store re models and refreshes is likely to be required to keep meeting shoppers expectations and maintaining loyalty. What programs do you have in place? 2 Don t neglect the centre store how can you apply learnings from fresh foods to make key categories destinations in their own right? 3 Tailor store layouts to maximise convenience and timesaving for shoppers; pull them through the store with excitement rather than out of necessity
17 Tesco: assisting shoppers with speedy shopping On the go is positioned by the entrance to ensure it is easy to locate and quick to buy Milk is a top distress purchase. Many of the stores have a milk fridge at the store entrance to facilitate this shopper mission Non food positioned towards the back of the store, ensuring food only shoppers do not have to navigate through it
18 2. Integrating online into the store
19 Grocery ecommerce gaining momentum Auchan, Roissy Aeroville, France Asda, Grantham, UK
20 Click Loblaw & Collect set to be the dominant model here
21 There is no one size fits all model For shoppers Order online, delivered to home Order online, collect at store Order in store, delivered to home Order online, collect at service point Order on the go, collect anywhere For retailers Picked in store Picked at dark store Picked at dedicated DC Separate picking integrated in store Direct delivered by manufacturer (marketplace)
22 Tests, pilots and roll outs
23 Shoppers want flexibility for store pick up 1. Supermarket 46% carparks 5. Out of town retail parks 32% 2. Work places / 35% business parks 6. Park and ride 23% locations 3. C store lockers 34% 7. Railway stations 22% 10. More/better 4. evening Holiday meal locations deal 32% offers 8. Gas stations 22% Source: ShopperVista Online Channel Focus, past month online grocery shoppers, Nov Jan 15
24 What s coming next
25 The value of multi channel Source: Ahold
26 Action points 1 Convenience is the primary drive for online grocery shopping; any solution has to save time
27 Convenience is the main reason for shopping online For food and groceries Main reason All reasons 1 It s easier or more convenient 62% Avoids carrying heavy 85% bags 2 It s quicker 11% 61% If the weather is bad 3 It helps me save money 13% 45% Don t have access to a car 4 It s more enjoyable 4% 19% 5 It s better for the environment 2% 11% Avoids going to the store 6 Other 7% 19% Checkout is quicker Source: IGD ShopperVista, Jan 2015
28 Action points 1 Convenience is the primary drive for online grocery shopping; any solution has to save time 2 Online grocery shopping drives price transparency making it easier for shoppers to make comparisons
29 Saving money is also important % who say SAVING MONEY is one of the main reasons they shop online 45% I buy less on impulse It s easier to stick to a set budget It s easier to compare prices IGD ShopperVista Channel Focus, past month online shoppers Feb Apr 2014
30 Action points 1 Convenience is the primary drive for online grocery shopping; any solution has to save time 2 Online grocery shopping drives price transparency making it easier for shoppers to make comparisons 3 As the channel starts to evolve and grow, suppliers need to consider resources and structure to support; it s a small part of the market but may need your best people on the account
31 Learn from the Leaders 1 Dedicated resource Channel strategy for online Understand online dynamics Drive inspiration initiatives Work jointly with retailers to improve / innovate Source: IGD Online Capability Survey 2014
32 Embedding digital into the shopper journey
33 Mobile technology is a key enabler Carrefour Villeneuve la Garenne, France Walgreens, USA ICA Maxi Haninge, Sweden
34 Towards a digital future: Waitrose, UK Welcome desks enabling online access ibeacons to direct customers around the aisles and notify them of offers based on shopping habits Get assistance from staff with your smartphone Order a juice for when you arrive in the store
35 Gamification adds element of fun
36 Technology can speed up the shopper journey
37 Make the journey faster for your shoppers Tesco Extra, Lincoln, UK Pingo Doce, Lisbon, Portugal
38 Alternative payment points Tesco Express, Philpot Lane, London Albert Heijn to Go, Amsterdam.
39 Mobile is key enabler
40 Action points 1 The smartphone has become the remote control of consumption; basic requirement is to enable shoppers to connect
41 Free Wi Fi is becoming standard
42 Action points 1 The smartphone has become the remote control of consumption; basic requirement is to enable shoppers to connect 2 Digital engagement does not have to be a significant investment project with apps, virtual reality etc.
43 Start small, but add value
44 Action points 1 The smartphone has become the remote control of consumption; basic requirement is to enable shoppers to connect 2 Digital engagement does not have to be a significant investment project with apps, virtual reality etc. 3 Don t forget the back end; new technologies also offer the potential to improve productivity in store
45 For retailers and suppliers, Field Agent
46 4. Step change with foodservice and HMR
47 Tesco made acquisitions to gain expertise Source: IGD Store Visits Casual dining Coffee shop concept
48 From this...
49 to this at Morrisons
50 Showcase credentials early in the shopper journey
51 Do something different to your competitors
52 Grab & Go will meet busy shoppers needs
53 Action points 1 Which meal occasions will be the primary targets and how will you user your assets outside of these?
54 Breakfast is a growing opportunity, Operators
55 Action points 1 Which meal occasions will be the primary targets and how will you user your assets outside of these? 2 Quick service is also key; shoppers are still looking for convenience
56 Speed of service is important
57 Action points 1 Which meal occasions will be the primary targets and how will you user your assets outside of these? 2 Quick service is also key; shoppers are still looking for convenience; how can you ensure smooth flow for store only customers? 3 Challenging to keep on trend; food tastes change quickly in food to go and concepts can become outdated quickly
58 NPD to meet missions Source: BWG
59 5. Health and wellness destinations
60 Natural foods have made it to the front of the store
61 Shifting product mix to meet new shopper needs
62 Opportunity to integrate food and pharmacy Opportunity to integrate food and pharmacy
63 Using digital to assist and educate Mannings, Hong Kong Lloyds Pharmacy, UK Coles, Australia
64 Action points 1 Mainstream retailers are investing in these categories while new operators are emerging to capitalise on the growth of this segment; smaller, niche retailers could see competitive pressures grow
65 New retailers are emerging to take share Mrs Green s Natural Market Fresh Thyme Farmers Market, Retailers
66 Action points 1 Mainstream retailers are investing in these categories while new operators are emerging to capitalise on the growth of this segment; smaller, niche retailers could see competitive pressures grow 2 Similar trends can be seen in foodservice/food to go; it s important to ensure alignment with the broader proposition
67 A shift away from processed
68 Action points 1 Mainstream retailers are investing in these categories while new operators are emerging to capitalise on the growth of this segment; smaller, niche retailers could see competitive pressures grow 2 Similar trends can be seen in foodservice/food to go; it s important to ensure alignment with the broader proposition 3 Packaged goods are seeing a similar transition; betterfor you products are gaining shelf space
69 Gaining space in centre store
70 6. Making value communication more effective
71 The promotional blizzard is confusing for shoppers
72 Retailers will need to deliver better prices Lower and consistently low pricing Fewer but BIGGER promotions Price matching as standard Flexible and agile pricing models Source: IGD Reserach
73 With relevant offers and pricing
74 Next stop real time price comparisons in store?
75 Action points 1 How can you get cut through; consider using simpler and fewer price points to get the credit from shoppers on your price investments
76 Move towards clearer statements of price
77 Action points 1 Use simpler and fewer price points to get the credit from shoppers on your price investments 2 Consider the impact of new technologies on price transparency; shoppers are the new custodians of data
78 Price matching at the point of purchase, Sainsbury s
79 Action points 1 Use simpler and fewer price points to get the credit from shoppers on your price investments 2 Consider the impact of new technologies on price transparency; shoppers are the new custodians of data 3 Think about how you can add value beyond price
80 Bus in your shoppers!, Aldi
81 Inspiration for innovation Store design to delight and inspire Integrating online into the store Embedding digital into the journey Step change with foodservice Health and wellness destinations Making value more effective
82
83 Some of the companies we work with:
84 Connect with us!
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