Our retail Guidance for 2013 paper focuses
on the most significant changes taking place among shoppers today. It
identifies six key shopper trends, examines insights they reveal, and offers
guidance for retailers on how to respond in the short and long term. “Responding to shoppers is the
most crucial component of successful retail strategies, and these six trends
point the way,” says Bill Bishop, Chief Architect of Brick Meets Click.
The paper addresses shopper changes
involving promotions, value capture, peer influence, stores, reliance on
digital feedback, and online ordering confidence.
Retailers typically try to achieve hyper-localization by altering the assortment in specific stores, so Starbucks’ novel approach to localization caught our eye. They’re designing the exterior of a new wave of stores to reflect the materials, attitudes, and styles of the area where the store is located. This Fast Co article explains the program. The new stores are smaller, modular, factory-built and assembled on-site, but their exteriors vary. The façade of a Colorado store is clad in Wyoming snow fencing, for example.
On the go and want to order a deli sandwich, no waiting?
Publix is making that easy with an online ordering system
that adds another digital touchpoint for thier shoppers. Simply access the internet via a mobile device
or computer to select a sub, toppings, and even how thinly the
meat should be sliced; then specify a pickup time. The store emails a confirming order number.
All shoppers have to do is show up, collect the order, and pay. No waiting to order,
no waiting for prep, and shorter transaction times.
A recent National Association of Convenience Stores/Coca-Cola Retailing Research Council report
focuses on identifying growth opportunities for convenience retailers,
learnings have implications for others as well. The project began with a
“What can our shoppers tell us that would encourage them to spend more
stores?” For answers, the Council, known as NACS/CCRRC, turned to some innovative shopper
research. The findings revealed valuable insights into how shoppers
think about convenience occasions, and these led to development of five new potential growth platforms. Here are two points that retailers of
all stripes can use in their search for growth opportunities with
Digital fronts – in place of glass fronts – may soon make vending
machine purchasing feel more like regular shopping. We came across this WDM Group
interview with Dr. Michael L. Kasavana at FoodDigital. He’s a
NAMA-endowed professor at Michigan State University’s School of
Hospitality Business, and he highlights changes being tested by the
industry. We like how many are aimed at creating interaction with
shoppers - not just servicing a transaction.
The growth manifesto for the slow economy
we offered last week was a wide-angle framework retailers could use to
prioritize their search for growth in the “new normal” economy. Here’s
what some retailers are doing within that framework, as well as some
independent support and guidance on other aspects of the manifesto from
I’ve been in retail a long time, and I believe its time to accept that
for the foreseeable future the economy will grow more slowly than it
used to – and also that it’s time to adopt a new mindset towards growing
retail. So here’s a growth manifesto for a slow economy. It involves
finding better ways to create value for shoppers. This isn’t easy, but
it can be done. In fact, it’s being done now by retailers who are
growing comparable sales at a significantly faster rate than inflation.
Examples include Amazon and many other online retailers, as well as
brick and mortar retailers as diverse as Whole Foods and Dollar General.
The recent Facebook IPO raised expectations and initial
market reaction has tempered them. Where
is the real value to retail? The recent BMC original paper Making
Facebook Work for Retail looks at three practical ways Facebook can create value for
retailers beyond being an advertising vehicle. The concepts of attracting, engaging and
involving are not new; however, the reason to focus on them now is that only a
few have put them into action. Many are missing this opportunity. The paper shows how taking action to attract, engage and involve can yield
“new found money.” Who would walk away from that?
Facebook's IPO has generated another round of speculation about it's
value as a business – and whether or not it has value for retailers who
are trying to use the platform to connect with customers. In this paper, David
Bishop looks at several of the things retailers are doing right as they
work to attract, engage, and involve customer-fans.
Jon Steel delivered a talk at The Store Conference in Sydney on March 9, 2012, titled "Basic Instinct: The Human Truth About Retailing in a Digital World." In it, he takes a trip in the retail and customer feedback time machine to illustrate that commonalities and human tendencies do not change, even though technology gives us different and perhaps bigger walls to post our opinions on. He uses humor and his dry British wit to deliver some calm, cool advice . . .
From BMC Black Belt Dan Seliger: “Check out kiip.me - this is really a
next-level look at mobile advertising. Basically it delivers in-game
rewards (i.e. a coupon) as the user climbs levels. Instead of Pepsi
placing a banner (ineffective, interruption), they reward the gamer for
completing a level with a discount. Add location to the mix, and you
could have something very interesting. Could this be the next wave of
Segment Scope & Leadership
Convenience-driven shopping occasions across retail and foodservice channels.