NRF 2019: Retail's Big Show Carl Boutet, Retail Strategist, CloudRaker David Marcotte, SVP, Strategic Advisory Services, Kantar Consulting, WPP

1. What Grocery Retail Will Look Like in 2030
David Marcotte
Senior VP Market Insights
Kantar Consulting
Carl Boutet
Retail Strategist
Retail Rx

2. How will retailers manage grocery
stores in 2030?
New research from Kantar Consulting, in partnership with
the Coca-Cola Retailing Research Council, explores the
future of grocery retailing.
• How stores will meet the needs of a digitally-enabled
shopper
• How complex automation and the robot/employee
relationship will evolve
• What investments are most likely to drive profitability

3. Four variables that the future is already imposing on shoppers
Providing connections, enabling flow, creating experiences, and seeking simplicity…all at the same time
• Source: Kantar Consulting Futures
Against the pressure of
accelerating lifestyles,
consumers’ emerging needs
focus on the efficiency,
accessibility, and flexibility of the
products, services, and spaces
that they use.
Consumers’ desires now seek to
minimize the complexity of a
fast-paced, modern life, making
decisions less taxing and finding
solutions that can anticipate
their needs.
Consumers are changing their
priorities, and possessions are
taking a backseat to stimulating,
shareable experiences—the
“intangibles.”
Consumer needs increasingly
focus on nurturing relationships
and forging community
allegiances, working against the
isolating pressures of modern
life.
Connections Flow Experiences Simplicity

4. Today’s shopper is becoming ‘Epicurean’
Shoppers will shape the retail and shopper landscape over the next several years
• Source: Kantar Consulting
Experiences
Simplicity
Responsibility
Flow
The Four Key Drivers

5. Value Diffusion
As self-gratification motivates more
shopping decisions
“Value” becomes less
price-focused
and more nebulous
Epicureans will shape the future of shopping in three ways
Each is digitally enabled across all channels: omni-digital
• Source: Kantar Consulting
Routine Reconsideration
Shopping routines that are not
gratifying
Or do not simplify shoppers’ lives
Face a heightened risk of being
eliminated
Self-Reflective Shopping
How we shop
WHERE we shop
What we buy
Are all reflections of who we are
Values Rule Routines?
Who We
Are?

6. The smart home starts with ‘point and command’ but in the
future will become proactive
Directly connecting the home and retail greatly expands transactional relationships and longer term loyalty
drivers
• Source: Kantar Consulting, company websites
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2
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4
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7. Smart homes, smart retail integrate to smart cities for full
effectiveness
Integration provides benefits to all, but especially to the retailer in an omnichannel environment
• Source: Kantar Consulting. IBM.com, fieldtrack

8. Smart includes humans and robots
Robots are AI in motion and critical partners going forward
• Source: Kantar Consulting, Amazon, Schnuck’s

9. Smart buildings and stores are now
Online B2B expands to B2C engagement via eCommerce, digital signage, through malls and commercial
tenants.
• Source: Kantar Consulting, public releases

10. Shopping App Embedded in Taobao
HEMA supermarkets have successfully integrated digitally to
create a smart store
• Source: Kantar Consulting, Alizia
HEMA, the new retail format by Alibaba, integrates both offline store and digital advantage
-- and has proven to be a successful business model
3~5 km around HEMA Store
30-minute ~ 1-hour delivery
Free delivery for all orders
5,000 SKUs
250 million GMV
yearly per store
70% of orders from
online
80% fresh foods
Tmall Super
Shelf in Hema
Internet Hero SKUs
and Internet Brands’
landing offline via
Hema
Shopping zone
for Online
Hero SKUs

11. Interactive surfaces and store integrate AI are the next step
• Source: Kantar Consulting, AWM
Every part of the store is digital and accessible to the cloud ecosystem of the shopper, the retailer, and
potentially the vendor

12. Actionable Takeaways from this session:
• The New Shopper drivers for 2030 are set
• The smart home and the smart store will be
integrated
• The smart shopper and the smart employee
will be the key parts of your success