Program Director, IGD Canada - CFIG · shop floor Shopper focused ... Source: IGD Research Casual...

© IGD 2015

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

Source: IGD Research

Future Proofing & Innovation

Retail & Channel Strategies

Commercial & Category Excellence

Efficient & Sustainable Supply Chains

© IGD 2015

Aims of today

• To demonstrate that the supermarket is the lifeblood of the grocery sector but is need of reinvention

• To generate discussion around the impact of new retailing models

• To provide inspiration for some new ideas that you can take back into your business


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© IGD 2015

Where is the growth globally?


© IGD 2015

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

© IGD 2015

1. Store design to delight and inspire

© IGD 2015

Investing in the environment


GREAT Food hall, Hong Kong

Spar, BudapestLa Grande Epicerie de Paris

© IGD 2015Source: Kochhaus, Germany

Providing shoppers with inspiration

© IGD 2015

Putting fresh at the heart of the offer

© IGD 2015

Opportunity to be innovative

© IGD 2015

Showcasing fresh credentials


Specialist counters with adjoining seating

Greater production on the shop floor

Shopper focused layout

Locally focused, premium quality ranges

Helping shoppers buy with the season

Boosting personality and localness

© IGD 2015

Canadian retailers have been on the front‐footCanadian retailers have been on the front foot

© IGD 2015

Action points

• 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?

• Don’t neglect the centre store – how can you apply learnings from fresh foods to make key categories destinations in their own right?


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Confectionery champions: RT Mart, China

• Source: IGD Research


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

© IGD 2015

Action points

• 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?

• Don’t neglect the centre store – how can you apply learnings from fresh foods to make key categories destinations in their own right?

• Tailor store layouts to maximise convenience and time‐saving for shoppers; pull them through the store with excitement rather than out of necessity


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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

© IGD 2015

2. Integrating online into the store

© IGD 2015

Grocery ecommerce gaining momentum

Auchan, Roissy Aeroville, FranceAsda, Grantham, UK

© IGD 2015

Loblaw


Click & Collect set to be the dominant model here

© IGD 2015

There is no “one size fits all” model


Order online, collect at store

Order in‐store, delivered to home

Order online, collect at service point

Order online, delivered to home

Picked at dark store

Picked at dedicated DC

Separate picking‐ integrated in‐ store

Pickedin‐store

For shoppers

For retailers

Order on the go, collect anywhere

Direct delivered by manufacturer (marketplace)

© IGD 2015

Tests, pilots and roll‐outs


© IGD 2015

Shoppers want flexibility for store pick‐up

1. Supermarket carparks 46%

2. Work places / business parks 35%

3. C‐store lockers 34%

10. More/better evening meal deal offers

32%

5. Out‐of‐town retail parks 32%

6. Park and ride locations

23%

7. Railway stations 22%

8. Gas stations 22%4. Holiday locations

Source: ShopperVista Online Channel Focus, past month online grocery shoppers, Nov‐Jan’15

© IGD 2015

What’s coming next


© IGD 2015

The value of multi‐channel

Source: Ahold

© IGD 2015

Action points

• Convenience is the primary drive for online grocery shopping; any solution has to save time


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© IGD 2015Source: IGD ShopperVista, Jan 2015

Convenience is the main reason for shopping online

85%

61%

45%

19%

11%

19%

62%

11%

13%

4%

2%

7%

Main reason All reasons

1It’s easier or more

convenient

2 It’s quicker

3 It helps me save money

4 It’s more enjoyable

5It’s better for the

environment

6 Other

For food and groceries

“Avoids carrying heavybags”

“If the weather is bad”

“Don’t have access to a car”

“Avoids going to the store”

“Checkout is quicker”

© IGD 2015

Action points


• Online grocery shopping drives price transparency making it easier for shoppers to make comparisons


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Saving money is also important

“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

45%

% who say SAVING MONEY is one of the main reasons they shop

online

© IGD 2015

Action points


• Online grocery shopping drives price transparency making it easier for shoppers to make comparisons

• 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


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Learn from the Leaders

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

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© IGD 2015

Embedding digital into the shopper journey

© IGD 2015

Mobile technology is a key enabler


Carrefour Villeneuve‐la‐Garenne, France

ICA Maxi Haninge, SwedenWalgreens, USA

© IGD 2015

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

Order a juice for when you arrive in the store

Get assistance from staff with your smartphone

© IGD 2015

Gamification adds element of fun

© IGD 2015

Technology can speed up the shopper journey

© IGD 2015

Make the journey faster for your shoppers


Tesco Extra, Lincoln, UK

Pingo Doce, Lisbon, Portugal

© IGD 2015

Alternative payment points


Albert Heijn to Go, Amsterdam.Tesco Express, Philpot Lane, London

© IGD 2015

Mobile is key enabler


© IGD 2015

Action points

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


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© IGD 2015

Free Wi‐Fi is becoming standard


© IGD 2015

Action points


• Digital engagement does not have to be a significant investment project with apps, virtual reality etc.


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© IGD 2015

Start small, but add value


© IGD 2015

Action points


• Digital engagement does not have to be a significant investment project with apps, virtual reality etc.

• Don’t forget the back‐end; new technologies also offer the potential to improve productivity in‐store


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© IGD 2015

For retailers and suppliers

Source: IGD Research, Field Agent

© IGD 2015

4. Step change with foodservice and HMR

© IGD 2015

Tesco made acquisitions to gain expertise

• Source: IGD Store Visits


Casual dining Coffee shop concept

© IGD 2015

From this...

© IGD 2015

…to this at Morrisons

© IGD 2015

Showcase credentials early in the shopper journey

© IGD 2015

Do something different to your competitors

© IGD 2015

Grab & Go will meet busy shoppers’ needs

© IGD 2015

Action points

• Which meal occasions will be the primary targets and how will you user your assets outside of these?


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© IGD 2015

Breakfast is a growing opportunity

Source: IGD Research, Operators

© IGD 2015

Action points


• Quick service is also key; shoppers are still looking for convenience


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© IGD 2015

Speed of service is important


© IGD 2015

Action points


• Quick service is also key; shoppers are still looking for convenience; how can you ensure smooth flow for store only customers?

• Challenging to keep on‐trend; food tastes change quickly in food‐to‐go and concepts can become out‐dated quickly


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© IGD 2015

NPD to meet missions

Source: BWG

© IGD 2015

Action points

• 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


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© IGD 2015

New retailers are emerging to take share

Source: IGD Research, Retailers

Mrs Green’s Natural Market Fresh Thyme Farmers Market

© IGD 2015

Action points


• Similar trends can be seen in foodservice/food‐to‐go; it’s important to ensure alignment with the broader proposition


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© IGD 2015

Action points


• Similar trends can be seen in foodservice/food‐to‐go; it’s important to ensure alignment with the broader proposition

• Packaged goods are seeing a similar transition; better‐for‐you products are gaining shelf‐space


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© IGD 2015

Retailers will need to deliver better prices

Source: IGD Reserach

Lower and consistently low

pricing

Fewer but BIGGER promotions

Price matching as standard

Flexible and agile pricing models

© IGD 2015

Action points

• How can you get cut‐through; consider using simpler and fewer price points to get the credit from shoppers on your price investments


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© IGD 2015

Action points

• Use simpler and fewer price points to get the credit from shoppers on your price investments

• Consider the impact of new technologies on price transparency; shoppers are the new custodians of data


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© IGD 2015

Action points

• Use simpler and fewer price points to get the credit from shoppers on your price investments

• Consider the impact of new technologies on price transparency; shoppers are the new custodians of data

• Think about how you can add value beyond price


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© IGD 2015

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

Program Director, IGD Canada - CFIG · shop floor Shopper focused ... Source: IGD Research Casual...

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Transcript of Program Director, IGD Canada - CFIG · shop floor Shopper focused ... Source: IGD Research Casual...