The Future of Supermarket design
In recent news articles posted on this site, our insight has focused on Amazon Go, Wholefoods, Albert Heijn, Gooz and what the supermarket itself may look like in years to come.
It’s been a game-changing decade for the industry and has set the foundation in place for an entirely new way to look at the formula for Supermarkets, Hypermarket and Convenience store food retailing.
As much as tech might want to disrupt the way people shop and make everything more efficient. There are new entrants coming to the market designing app’s which make a constructive contribution to the way in which we can live our lives.
Yoti, a UK based digital identity app that puts people’s ID on their phone, is making it possible to pay for alcohol and other products at the self-scan checkout. The checkouts will confirm the user’s age by using the smartphone app, which scans the shopper’s face to confirm their identity. It is hoped the technology can remove a key bottleneck at self-service tills.
Launched in 2017 and founded in 2014, the business has built a secure digital identity platform that helps consumers and businesses fight back against the growing threat of identity fraud, an issue which is costing the economy billions every year.
To ground this discussion, let's remember that a food retailing business is all about people, health, education and a relationship to shoppers. So, it's time to imagine just what a supermarket can be.
In 2001, I sat down with Carlos Credo Perez, the then CEO of Safeway Stores in the United Kingdom and we shared a vision for what we hoped food Supermarket, Hypermarket and Convenience stores of the future would be.
Collectively, we won many awards, Retailer of the Year, Best Supermarket, Hypermarket and Convenience food store design of the year, outperforming market leaders with the share price almost tripling. We achieved success with a strategy for a Best at fresh foods, lots of retailtainment, products grouped by meal occasions, self-scanning and the top line was a food experience second to none. Here is a link to the project. https://campbellrigg.com/food/safeway-megastore-retail-design
Grocery industry management teams are constantly thinking about how they can make the shopping experience better through technology, branding, promotion communication and interior design of their goods and services.
Eataly World opened recently in Bologna, Italy, with a million square feet of food: 40 farming factories, 40 restaurants, six educational rides. The management team predicts 10 million visitors a year. Taste, education, excitement and empowerment, four points on the compass supermarket retailers should focus on.
Interesting, the shopping mall operators we work with often have a similar footprint of a million square feet and a footfall of 20 million visitors per year. So, we think there is some way to go for the Eataly World in Bologna.
How we should be using artificial intelligence is discussed in our news article on Amazon Go.
Our research also observes Hy-Vee, an employee-owned chain of more than 245 supermarkets located throughout the Midwestern United States which has done its version store-in-store. A highly successful and well-regarded regional grocery store chain. The brand is recognized for its innovative approach and its willingness to continually challenge the expectations of the grocery industry. “The message to shoppers is “we are all things food.”
In Japan, supermarkets have put greenhouses on top of, or adjacent to, supermarkets.
In Australia, Coles launched a “quiet hour” in response to customer feedback, Autism Spectrum Australia and rolled out "Quiet Hour" in 68 supermarket stores to make the shopping experience a little easier.
The initiative aims to prevent sensory overload by dimming the lights by 50 per cent, turning off the radio, turning down register and scanner volumes, avoiding PA announcements and avoiding trolley collections. So, there must be a benefit to the retailer and its customers. Less energy consumption and less sensory overload.
I have yet to see a waste-free supermarket and wonder why more homeless people cannot be provided for. My local Lidl refuses to pass out-of-date products to charities and the homeless. However, it appears that waste-free supermarkets continue to grow globally.
Our internal process of renewal, allows us to continually benchmark and write about the best in class retail trends in many market sectors across the globe. With the exception of our work for Safeway, the images contained in this article have taken from the web and are credited to other consultants, not related CampbellRigg. Please take a moment to review other news items linked to this page.
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