IIDA Perspective - Spring 2018 - 32

"

Grocery store design
needs to break those routine
patterns and entice customers
with new ideas." -Michelle Du-Prat
This trend looks to continue.
According to a report by management consultancy Bain
& Co., in partnership with AIM-the European Brands
Association-market share of European supermarkets
and hypermarkets (retail and grocery store combos) will
erode from 70 percent in 2016 to a range of 48 percent to 59
percent by 2025. At the same time, the report predicts that
the closing of larger stores, combined with the popularity of
discount stores, convenience stores, and online shopping,
means that average store size could shrink by as much as 35
percent in the coming decade.
To retain their foothold, grocery stores must rethink
the customer experience-and that has many seeking out
innovative new designs on look, layout, and functionality.

Tech's Supermarket Takeover
Like the bookstores, department stores, and electronics
stores before them, e-commerce has come for grocery stores.
Although globally 70 percent of shoppers say they still
make their grocery purchases in-store, according to PwC's
Total Retail Survey 2017, that number varies widely when

32

perspective

iida.org/perspective

you break it down by country-and in many cases dwindles
significantly. Only 24 percent of grocery shoppers in China
prefer the in-store experience over online. And in the
Middle East, Singapore, Thailand, the United Kingdom, and
Vietnam, one-third or more of customers go online for some
of their grocery needs.
At the same time, tech juggernauts are not satisfied to
simply siphon away grocery shoppers via online channels.
They're entering the physical space as well. Take Amazon.
Not only did the company purchase high-end grocer
Whole Foods, but it also opened a grocery store powered
by artificial intelligence in Seattle, Washington, USA
in January. There are no checkout lines and no cashiers.
Customers simply walk in, pick out what they want, and
walk out. Amazon automatically knows who you are and
what you took, so once you leave, your Amazon account is
automatically billed, according to Fast Company.
China's Alibaba got into the physical space even
sooner. According to TheStreet, patrons can use Alibabaowned stores, which started popping up in 2015, to shop
for and order groceries for delivery within 30 minutes in
local communities. In addition, customers can stop by
the stores, called Hema's, to eat dishes from more than
50 countries. All items can be paid for through its digital
payment system, known as AliPay, which has about 450
million users worldwide.
Designers must help traditional grocers learn from these
tech leaders if they don't want to be overshadowed. And
that means integrating digital in ways that improve the
customer experience while keeping the physical space front
and center.
"The physical design of supermarkets has never been as
important as it is in the digital era," says Carlo Ratti, director
of MIT Senseable City Lab, Cambridge, Massachusetts,
USA and founding partner of Carlo Ratti Associati, an
innovation, design, and architecture firm in Torino, Italy.
Ratti and his firm recently designed Coop Italia's
Supermarket of the Future in Milan, Italy. The high-tech
store puts the story of each and every product at a shopper's
fingertips, literally. For example, do you know if the apple
you selected is organic? How were the workers who picked it
treated? What kind of carbon footprint did it leave? When a
customer picks up a product, mirrored displays above-via a
combination of data, sensors, and augmented reality-share
its backstory, as well as nutritional details, waste disposal
information, correlated products, pricing and promotions,
and even prep info.
But while there's a major cool factor, it doesn't come
at the expense of physical presence. The store's design
includes extra-wide aisles to prevent shopper pileups during
busy times and bookstore-like shelves and food tables that
encourage patrons to stay awhile. "What really informed the

Photo by: (previous page) Owen Smith/Getty Images

T

The traditional grocery store is taking a hit.
Shifting shopper demographics, desires, and dining
habits, as well as the now cliché global technological
transformation, are disrupting customer expectations.
Yet many brick-and-mortar food retailers have been slow
to react.
"The industry always felt they had their consumers for
life, and the supermarket with tens of thousands of products
under one roof was their efficient model," says Phil Lempert,
foodservice analyst and self-described supermarket guru,
in Santa Monica, California, USA. "But that's not the way
shoppers shop [anymore]."
The United States, for example, has 4.15 square feet
(0.37 square meters) of retail food space per person-
almost 30 times higher than in 1950, according to CoStar
Group data. But demand hasn't kept pace with that
growth. So as supermarkets got bigger, their profits got
smaller. Whole Foods' revenue growth, for example, has
fallen every year since 2012, according to The Atlantic-
making it ripe for the picking for Amazon.


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Table of Contents for the Digital Edition of IIDA Perspective - Spring 2018

IIDA Perspective - Spring 2018
From IIDA
Contents
Next
World View
Sum of Its Parts
Talk, Talk
Data Viz
Pre/Post
I Design
Redesigning Gender
The Real Deal
Supermarket Shift
Safe Spaces
Ready for Takeoff
Scratch Pad
Insider Intel
IIDA News + Updates
Why This Design Works
IIDA Perspective - Spring 2018 - IIDA Perspective - Spring 2018
IIDA Perspective - Spring 2018 - Cover2
IIDA Perspective - Spring 2018 - From IIDA
IIDA Perspective - Spring 2018 - Contents
IIDA Perspective - Spring 2018 - 3
IIDA Perspective - Spring 2018 - 4
IIDA Perspective - Spring 2018 - 5
IIDA Perspective - Spring 2018 - Next
IIDA Perspective - Spring 2018 - 7
IIDA Perspective - Spring 2018 - 8
IIDA Perspective - Spring 2018 - 9
IIDA Perspective - Spring 2018 - World View
IIDA Perspective - Spring 2018 - 11
IIDA Perspective - Spring 2018 - Sum of Its Parts
IIDA Perspective - Spring 2018 - 13
IIDA Perspective - Spring 2018 - Talk, Talk
IIDA Perspective - Spring 2018 - Data Viz
IIDA Perspective - Spring 2018 - Pre/Post
IIDA Perspective - Spring 2018 - I Design
IIDA Perspective - Spring 2018 - Redesigning Gender
IIDA Perspective - Spring 2018 - 19
IIDA Perspective - Spring 2018 - 20
IIDA Perspective - Spring 2018 - 21
IIDA Perspective - Spring 2018 - 22
IIDA Perspective - Spring 2018 - 23
IIDA Perspective - Spring 2018 - The Real Deal
IIDA Perspective - Spring 2018 - 25
IIDA Perspective - Spring 2018 - 26
IIDA Perspective - Spring 2018 - 27
IIDA Perspective - Spring 2018 - 28
IIDA Perspective - Spring 2018 - 29
IIDA Perspective - Spring 2018 - Supermarket Shift
IIDA Perspective - Spring 2018 - 31
IIDA Perspective - Spring 2018 - 32
IIDA Perspective - Spring 2018 - 33
IIDA Perspective - Spring 2018 - 34
IIDA Perspective - Spring 2018 - 35
IIDA Perspective - Spring 2018 - Safe Spaces
IIDA Perspective - Spring 2018 - 37
IIDA Perspective - Spring 2018 - 38
IIDA Perspective - Spring 2018 - 39
IIDA Perspective - Spring 2018 - 40
IIDA Perspective - Spring 2018 - 41
IIDA Perspective - Spring 2018 - Ready for Takeoff
IIDA Perspective - Spring 2018 - 43
IIDA Perspective - Spring 2018 - 44
IIDA Perspective - Spring 2018 - 45
IIDA Perspective - Spring 2018 - 46
IIDA Perspective - Spring 2018 - 47
IIDA Perspective - Spring 2018 - 48
IIDA Perspective - Spring 2018 - 49
IIDA Perspective - Spring 2018 - Scratch Pad
IIDA Perspective - Spring 2018 - 51
IIDA Perspective - Spring 2018 - Insider Intel
IIDA Perspective - Spring 2018 - 53
IIDA Perspective - Spring 2018 - IIDA News + Updates
IIDA Perspective - Spring 2018 - 55
IIDA Perspective - Spring 2018 - Why This Design Works
IIDA Perspective - Spring 2018 - Cover3
IIDA Perspective - Spring 2018 - Cover4
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