Kate Ancketill, CEO and Founder, GDR Creative Intelligence

1. Retail trend watch: Inspiration beyond
Amazon for transformation
Kate Ancketill, CEO and Founder, GDR Creative Intelligence

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GDR is a retail trend and strategy
consultancy, unlocking and
empowering innovation.
@gdruk kate@gdruk.com

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E Randall Park Mall
When the Randall Park Mall opened outside of Cleveland
Ohio in 1976 it was the largest mall in the world
Location: US

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E Randall Park Mall
Location: US By the mid 1990s the mall floundered and never recovered.
The mall closed in 2009 and the site was abandoned

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E Randall Park Mall
Location: US In 2017, Amazon acquired the site. They intend to demolish
what remains and build an 855,000 sq.ft. warehouse.

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E Dollar General
Location: US
Source: BoA
BoA’s index of 33 of the leading U.S retailers shows that 76%
of net store openings since 2008 were Dollar General Stores

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- Too many stores, and in the wrong places
- Post-recession changes in consumer behaviour
- Shift towards spending on experiences over
products
- Amazon and disruptive ecommerce

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Legacy American retail is a machine.
A machine built and finely tuned to
address a large, stable, homogenous
middle class.
Retail is at an inflection point:

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% of US adults living in each income tier
1971
% of U.S. aggregate household income
1970
16 9 61 1010 4 62 292910
Middle
Lower
Middle
Lowest Upper
Middle
Highest
Lower
Income
Middle Income
Upper
Income
The Hollowing Out of the US Middle Class
*Figures may not sum to 100% due to rounding
Location: US
Source: Pew
The Middle Class has declined precipitously in both relative
size and share of US aggregate income since the 1970s

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20 50 12 9 43 499
Lower
Middle
Lowest Upper
Middle
Lower
Income
Middle Income
Upper
Income
Highest
Middle
The Hollowing Out of the US Middle Class
*Figures may not sum to 100% due to rounding
9
Location: US
Source: Pew
The Middle Class has declined precipitously in both relative
size and share of US aggregate income since the 1970s
% of US adults living in each income tier
2015
% of U.S. aggregate household income
2014

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The retail machine is broken
It’s time for a new approach:
- that uses exciting new digital tools
- that recognises consumers want new ways to shop
- that preserves the best of legacy

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The GDR View:
The retailers best positioned for success
in future will be the ones that adopt a more
expansive definition of …
what retail actually is

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INTELLIGENCE IKEA Place AR App
Location: Global Swedish furniture giant unveils AR app which enables
customers to visualise the IKEA range inside the home

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E Moby by Wheelys
Location: China Autonomous convenience store concept drives to its
customers

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E KFC K-Pro & Alipay
Location: China Payments company Alipay trials ‘smile to pay’ at KFC’s
premium KPRO restaurant

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E FICO Eataly World
Location: Italy Pioneering experience-led Italian grocery chain opens 25-acre
culinary theme park in Bologna, Italy

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E Hema Market
Location: China Post-channel supermarket fuses allows shoppers to shop
on their own terms

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E Hema Market
Post-channel supermarket fuses allows shoppers to
shop, engage and consume on their own terms
Location: China
1.Order fresh food to cook at home

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E Hema Market
Post-channel supermarket fuses allows shoppers to
shop, engage and consume on their own terms
Location: China
1. Order fresh food to cook at home
2.Order food and have it prepared by
Hema chefs and delivered within 30
minutes

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E Hema Market
Post-channel supermarket fuses allows shoppers to
shop, engage and consume on their own terms
Location: China
1. Order fresh food to cook at home
2. Order food and have it prepared by Hema chefs and delivered within
30 minutes
3.Buy in-store and have food cooked for
carry-out

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E Hema Market
Post-channel supermarket fuses allows shoppers to
shop, engage and consume on their own terms
Location: China
1. Order fresh food to cook at home
2. Order food and have it prepared by Hema chefs and delivered within
30 minutes
3. Buy in-store and have food cooked for carry-out
4.Buy in-store and have food cooked
and delivered to nearby home or
office

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E Hema Market
Post-channel supermarket fuses allows shoppers to
shop, engage and consume on their own terms
Location: China
1. Order fresh food to cook at home
2. Order food and have it prepared by Hema chefs and
delivered within 30 minutes
3. Buy in-store and have food cooked for carry-out
4. Buy in-store and have food cooked and delivered to nearby home or
office
5.Buy in-store and eat it on the spot in
the store’s dining area

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E Hema Market
Post-channel supermarket fuses allows shoppers to
shop, engage and consume on their own terms
Location: China
1. Order fresh food to cook at home
2. Order food and have it prepared by Hema chefs and
delivered within 30 minutes
3. Buy in-store and have food cooked for carry-out
4. Buy in-store and have food cooked and delivered to nearby home or
office
5. Buy in-store and eat it on the spot in the store’s dining area
6.(Traditional Grocery)

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Platform Thinking
This is not buying a piece of
technology.

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Platform Thinking
Radical modularity that both
sweats assets and delights
consumers.

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Demand Supply
Retail is the space where supply and consumer demand meet

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Demand Supply

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Location: Global
Source: Walmart
Walmart changes it’s legal name, reflecting a shift in our
conception of what it means to be a retailer

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E Walmart x August smart locks
Location: US Supermarket brand trials direct-to-fridge delivery service in
partnership with smart lock brand

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E Walmart Pickup
Location: US Supermarket brand develops standalone automated click and
collect grocery pickup kiosks

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Platform Thinking: Strategies
1. Non-linear Journeys
2. Peripheral Vision
3. A Deeper Context
4. Participatory Retail

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1. Non-linear Journeys
Ways forward:
Retailers and brands break down
traditional customer journeys and
experiment with new moments and
locations.

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E Runner Camp
Location: China Sports store replaces stockrooms with a gym

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E GM Marketplace
Location: US Carmaker’s Marketplace app brings ordering and payment to
your dashboard

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E Lufthansa x REWE
Location: Germany German airline partners with with German supermarket chain
for a three-month in-flight grocery shopping trial

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E Lufthansa x REWE
Location: Germany German airline partners with with German supermarket chain
for a three-month in-flight grocery shopping trial

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2. Peripheral Vision
Ways forward:
Brands and retailers have the freedom to
move into activities normally considered
beyond their traditional competencies.

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E Castorama Magic Wallpaper
Location: US
Design: TBWA
Digitally interactive wallpaper tells children bedtime stories

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E Deliveroo Editions
Location: UK Deliveroo opens “dark kitchens” throughout the UK to expand
its offerings to underserved locations

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E Buzzfeed Tasty One Top
IoT hotplate brings Buzzfeed’s recipe database to life
for 107 million active users per month
Location: US
Design: Buzzfeed Product Labs

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E Buzzfeed Tasty One Top
IoT hotplate brings Buzzfeed’s recipe database to life
for 107 million active users per month
Location: US
Design: Buzzfeed Product Labs

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3. A Deeper Context
Ways forward:
By understanding the deeper significance
of a given product, service, or retail
experience in the customer’s life, platform
thinkers can transform their proposition

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E Cotopaxi
Location: North America Outdoors brand leverages social purpose and uses ticketed
adventure race to sell backpacks

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E Toyota Drive to Go
Location: Japan Toyota makes “car sharing as easy as ordering coffee”

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E John Lewis The Experience Desk
Location: UK UK department store’s new Experience Desk concierges plan
21 different experiences

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E John Lewis The Residence
Location: UK UK department store tests overnight shopping experience

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4. Participatory Retail
Ways forward:
Consumers want to be involved in the
experience, the creating, making and
supplying processes, and the brand itself.

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Location: US
Volition
Location: US Make-up brand predicates its entire offering on co-creation
and community

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E Clover Food Lab
Location: US Massachusetts restaurant chain invites it’s customers to
participate fully in the operations of the business

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E Millennials and Brand/Retailer Experiences
How interested are you in attending special events or experiences
hosted by a retailer or brand?
Millennials Gen X Baby Boomers
Very Interested
44%
Quite Interested
35%
Quite Interested
38%
Very Interested
27%
Quite Interested
29%
Very Interested
9%
(79% net) (65% net) (38% net)
Source: NRF Consumer View
Q4 2017
Millennials are more than twice as likely to be
interested in retailer/brand experiences than Boomers

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E Lip Lab
Location: Australia Australian lipstick brand invites customers to create their own
blends

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1. Embrace market fragmentation
2. Respond with platform thinking
3. Conceive of retail differently
Take outs:

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E Kaan’s Stream Store
Location: Netherlands Dutch cheese shop hosts a shoppable, interactive livestream
of daily life in its store

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See a summary of this
presentation on our blog:
www.gdruk.com/blog
kate@gdruk.com