This document discusses how digital technology is influencing 50% of retail sales in the US and how retailers can adapt. It notes that 80% of online orders come from 'favorites' lists, and that click-and-collect has grown popular with 7-9% of consumers. To engage customers, the document recommends that retailers improve queueing, reinvent aisles for better navigation, and feature snack zones. The overall message is that retailers need seamless online and in-store experiences that make shopping convenient.
22. 7%-9%
OF THE
POPULATION
USES C-N-C,
MAKING IT
NEARLY THE
SIZE OF
THE DRUG
CHANNEL*
60%OF C-N-C
SHOPPERS
GO INTO THE
STORE WHEN
PICKING UP*
25%OF SHOPPERS
HAVE CUT BACK
ON SNACK
PURCHASES
SINCE USING
C-N-C, DUE TO
NOT SEEING
THEM AT
CHECKOUT*
“Shopper trips — and essentially all their
missions —revolve around convenience.
Delivering easy snack access, be it through
online subscriptions or in-store services like
click-and-collect is critical for retailers.”
RISE OF
CLICK &
COLLECT
25. NEW AISLE
DESIGN
INCREASES
AISLE TRAFFIC
AND DRIVES CONVERSION
ALLOWING
50%
DECREASE IN
PRODUCT
SEARCH TIME*
+4PTS
IN-AISLE
REINVENTION
“Consumers are still shopping physical retailers, but they are gravitating
to retailers that offer an experience. Our aisle reinvention brings fun to
an aisle that has too long been difficult to navigate and uninspiring.”
26. 20%SALES LIFT BY
MOVING
SNACKS TO
FRONT OF
STORE*
81%OF SHOPPERS
SAY THE SNACK
ZONE CREATED A
POSITIVE IMPRESSION
OF THE RETAILER*
SNACK ZONE
28. SUMMARY
Like any retail encounter, shoppers want experiences that are
seamless, holistic and rewarding. They want retail that
complements their lives. Delivering what they want, in ways that
work for them, is the foundation of loyalty. Exploring solutions
today will inform strategies tomorrow.
Notes de l'éditeur
In a world in which “The Internet of Things” is increasingly defining all aspect life, including the ways in which we shop, physical retail hasn’t kept up.
It’s the case that physical retail hasn’t yet delivered a compelling response to the value proposition posed by online shopping.
Does this mean stores are falling by the wayside? One could reasonably think so. But it sure doesn’t need to be so. Stores can remain relevant to a consumer weened on the Internet, yet demanding of great experiences, IF they change. They must become highly personalized, deeply memorable destinations. They have to deliver something that online shopping doesn’t, something special and visceral. And they have to adapt and refashion themselves around the kinds of experiences today’s shoppers are hungry for.
The key to protecting store trips and building loyalty for the grocer lies not in trying to figure out the right store design. It lies in figuring out the right experience design, so every aspect of the shopping trip can be elevated, and then delivered to the consumer in exactly they ways they want them.
What are the realities impaction the solutions retailers are now designing?
Digital commerce and same-day delivery have combined to create a unique and powerful new dynamic in grocery shopping.
Auto-replenishment has removed thought and action from household re-supply.
Improvements in networks and transactional technologies have made digital shopping a norm across all demographics
In effect, the last barriers to mandatory on-site food shopping have disappeared. And consumers who no longer want to go to the grocery store? They simply don’t have to. But there’s another dynamic at play, one which is more than a little encouraging for the bricks and mortar grocer.
The Concept Store:
Medley is such and ecosystem, marrying the physical and the virtual into a system of satisfying the needs of the modern grocery shopper. More than the “chain of the future,” we envision Medley as a wants-based entity equipped to provide optimized experiences, no matter where you live or work, or how you want to shop.
Where you shop for ideas, Not just Ingredients.
As we’ve previously mentioned, the need to visit a physical grocery store has evaporated. Meal Exploration takes a different tack: turning the trip into a social destination people want to explore.
Walking aisles and filling baskets have made way for back-of-store fulfillment and high-touch meal-prep consultations. This experience goes beyond routine shopping for ingredients; it’s about the adventure of gathering fresh and fun ideas.
Format Focus: Discovery. Education. Social.
Conceptual Rendering
Conceptual Rendering
Conceptual Rendering
Conceptual Rendering
Conceptual Rendering
Conceptual Rendering
As eCommerce gains share in grocery, brick-and-mortar stores are switching focus from mundane ingredient gathering to rich experiences built around meal preparation. Ideas like back-of-store fulfillment and in-store consultation will free new generations of shoppers to engage in food they way they’d rather: with creativity, socialization, and education.