Stewart Samuel, Program Director, IGD Canada

Transcription

1 Stewart Samuel, Program Director, IGD Canada

2 Who are IGD? We are food and grocery industry experts Not for profit research and training organisation 800 members globally from the consumer goods industry IGD is inclusive and works across the whole supply chain Support companies with: 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

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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?

15 Décor changes at Whole Foods Market, Whole Foods Market

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?

17 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

18 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

19 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

20 2. Integrating online into the store

21 Grocery ecommerce gaining momentum Auchan, Roissy Aeroville, France Asda, Grantham, UK

22 Click Loblaw & Collect set to be the dominant model here

23 Tests, pilots and roll outs

24 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

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 Action points 1 The smartphone has become the remote control of consumption; basic requirement is to enable shoppers to connect

40 Free Wi Fi is becoming standard

41 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.

42 Start small, but add value

43 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

44 For retailers and suppliers, Field Agent

45 4. Step change with foodservice and HMR

46 Tesco made acquisitions to gain expertise Source: IGD Store Visits Casual dining Coffee shop concept

47 From this...

48 to this at Morrisons

49 Showcase credentials early in the shopper journey

50 Do something different to your competitors

51 Grab & Go will meet busy shoppers needs

52 Action points 1 Which meal occasions will be the primary targets and how will you use your assets outside of these?

53 Breakfast is a growing opportunity, Operators

54 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

55 Speed of service is important, Whole Foods Market

56 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

57 NPD to meet missions Source: BWG

58 5. Health and wellness destinations

59 Natural foods have made it to the front of the store

60 Shifting product mix to meet new shopper needs

61 Opportunity to integrate food and pharmacy Opportunity to integrate food and pharmacy

62 Using digital to assist and educate Mannings, Hong Kong Lloyds Pharmacy, UK Coles, Australia

63 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

64 New retailers are emerging to take share Mrs Green s Natural Market Fresh Thyme Farmers Market, Retailers

65 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

66 A shift away from processed

67 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

68 Gaining space in centre store

69 6. Making value communication more effective

70 The promotional blizzard is confusing for shoppers

71 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

72 Next stop real time price comparisons in store?

73 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

74 Move towards clearer statements of price

75 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

76 Price matching at the point of purchase, Sainsbury s

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 3 Think about how you can add value beyond price

78 Bus in your shoppers!, Aldi

79 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

80 Looking for global best practice in key channels? IGD s team of analysts visit over 100 new concept grocery stores globally each year, tracking in store innovation, and category execution Contact Stewart to see if your company already has access to Retail Analysis, or for a copy of one of our latest complementary store visit reports at stewart.samuel@igd.com Supermarket retailing Grocery ecommerce Follow us Food to go Discount retailing