Canadian Retailer - Summer 2016 - 20

E-COMMERCE

Checking out?

Value in convenience

One area where there is real room for digital improveOnline grocery shopping today-and indeed most onment is in check-out. 65 per cent of Nielsen respondents line retail-is tapping into that need for convenience.
are willing to use self-checkout scanners, and nearly
"Canadian shoppers are looking for value when shop70 per cent would use hand-held store scanners to pur- ping online-free shipping, easy returns, integration
chase products as they shop to avoid checkout lines. with their favorite loyalty programs-which can help
Time-starved consumers want to use technology to build loyalty and provide an experience that brings
make shopping faster, easier and more convenient.
them back," explains Steinberg.
However, incorporating new technologies and introHowever, she points out that in order for grocers to
ducing digital initiatives can be expensive propositions. capture growth online, they'll need to focus on the folDoes this mean that superstores and chains will push lowing areas:
aside smaller shops in the future? The data suggests that * Target Households: Young urbanites and families in
this is not the case, because while digital is revolutionsuburban communities.
izing the retail landscape it's only part of the equation. * Provide Value: Make shopping experience more conAs it has been since the earliest bazaars and markets,
venient and personalized.
shopping is an emotional experience driven as much by * Target Niches: Focus on underserved segments of the
our personal tastes as anything else.
industry (ie. healthy-foods, organic, artisanal products
A decade ago, supermarkets accounted for more than
in the grocery industry).
75 per cent of global food sales. Today, that number is
just 51 per cent. And the downward trend seems likely
Retail has always been, and will continue to be, about
to continue as convenience stores and drug stores are the consumer. Despite the plethora of technologies
growing at a faster annual rate (more than double, in available to retailers to enhance the shopping experifact) than supermarkets. The conclusions are clear: con- ence, Dodd points out that their integration will only
sumers are shifting towards smaller format stores to result in success if the consumer is kept at the heart of
meet their needs.
it all, while understanding and considering their pain"Companies are now scaling back stores in an attempt points along the shopping journey.
to focus on core customers. A store with tens of thousands
"While the majority will continue to shop for the bulk
of SKUS is not necessarily attractive to someone needing of their grocery purchases in-store, retailers need to enonly a handful of items," says Jacbos. "One of the rea- sure the experience is pleasant, efficient and relevant to
sons Door to Door Organics is successful is because
weamazing
keep shoppers
coming
back," saidPackaging"
Dodd. "Infusing
: "Got an
Product?
Get Awesome
Nottechhave less SKUS, but ones which are targeted directly at nology in the in-store experience will be an important
Get an Awesome Packaging.
our customer base. In addition, we personalize the experi- enabler in this process, helping retailers address shopence with web tools that can recommend products based pers' biggest frustrations."
on previous purchases or even recipes. Smaller retailers have these
opportunities-which reduce frustration and increase satisfaction-
because they have a more focused
consumer base."
GET
Supermarket chains have taken
AW E S O M
note. Over the last decade, the
PACKAGIN E
G!
average square-footage of supermarkets in North America has
decreased. Even Wal-Mart is expanding its smaller-format stores.
"Across the globe, we're seeing
the rise of proximity retailing,"
said Dodd. "In the eyes of global
shoppers, small and simple is
beautiful right now...and digital is
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CANADIAN RETAILER | SUMMER 2016

4/29/16 11:46 AM

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Table of Contents for the Digital Edition of Canadian Retailer - Summer 2016