News and Views
Supermarket design and innovation inside Hema the rise of the in-store app.
Hema innovation China
The supermarket sector has remained relatively static over the past decade, with few groundbreaking innovations in the UK and parts of Europe since the early 2000s. In the UK, this has been particularly evident, with major supermarkets locked in an ongoing price war, showing little interest in enhancing the in-store experience.
Against this backdrop, it’s refreshing to see rapid innovation elsewhere. Alibaba is expanding its online-offline retail superstore chain, Hema, across China, while Loblaws in Canada is injecting fresh energy into supermarket design with its vibrant Hypermarket concept.
Why Hema is Innovative
Hema elevates convenience by integrating in-store picking for online orders, with a delivery time of just 30 minutes for customers within a three-kilometre radius. The store operates on a cashless model, using Alipay for all transactions. No cash is exchanged in-store.
Hema elevates convenience by integrating in-store picking for online orders, with a delivery time of just 30 minutes for customers within a three-kilometre radius. The store operates on a cashless model, using Alipay for all transactions. No cash is exchanged in-store.
Here’s why Hema stands out:
Integrated Retail and Fulfillment: Hema functions as both a retail store and a fulfillment centre, streamlining operations while enhancing the customer experience.
Redefining Convenience: Customers can buy fresh produce and seafood, dine in-store, or even have a lobster cooked on-site for takeaway. This “one-stop shop” concept encourages repeat visits, fostering loyalty.
Integrated Retail and Fulfillment: Hema functions as both a retail store and a fulfillment centre, streamlining operations while enhancing the customer experience.
Redefining Convenience: Customers can buy fresh produce and seafood, dine in-store, or even have a lobster cooked on-site for takeaway. This “one-stop shop” concept encourages repeat visits, fostering loyalty.
Mobile Integration: Shoppers can scan items using their mobile devices, and the app offers recommendations, helping guide their choices. Groceries can be ordered for delivery to their homes in just 30 minutes.
Real-Time Pricing: Every price tag in-store has a barcode, allowing customers to scan and view product prices, reviews, delivery dates, and even certification details for organic products.
The store operates as both a retail space and a distribution hub. Staff can be seen filling online orders, which are transported via conveyor belts to the back of the store for dispatch. Sampling stations, reminiscent of Costco, are scattered throughout the store, allowing customers to taste various products.
The store operates as both a retail space and a distribution hub. Staff can be seen filling online orders, which are transported via conveyor belts to the back of the store for dispatch. Sampling stations, reminiscent of Costco, are scattered throughout the store, allowing customers to taste various products.
Why Visit a Physical Store?
For many Chinese consumers, the key reason to visit Hema in person is to check the freshness of seafood, which is essential in their shopping decisions. Tanks of live seafood offer a tangible connection to the products they’re purchasing.
For many Chinese consumers, the key reason to visit Hema in person is to check the freshness of seafood, which is essential in their shopping decisions. Tanks of live seafood offer a tangible connection to the products they’re purchasing.
When it's time to checkout, customers use self-scanners, and the Hema app, linked to Alipay, automatically deducts the total from their account—no cashiers, no lines. For those dining in-store, the app allows them to check in, order, and even pay at their table. It’s a seamless experience where robots deliver food directly from the kitchen.
Loblaws: A Traditional Superstore with a Fresh Twist
While Hema revolutionizes grocery retail with technology and convenience, Loblaws in Canada offers a more traditional but equally innovative approach. The Maple Leaf Gardens Loblaws store, in particular, sets a new standard in grocery design.
The key feature is what Loblaws calls a “theatre of food,” with a focus on fresh, high-quality products and live food preparation. Highlights include:
- A deli counter with dry-aged beef and premium cold cuts.
- A fruit and vegetable section featuring exotic produce like cactus pads and tamarind pods.
- Bold, distinct department signage and wide, spacious aisles designed for easy navigation.
- A 100-seat food court offering everything from freshly prepared salads to wood-fired pizzas and sushi.
One of the standout features is the 18-foot “Wall of Cheese”, featuring over 450 varieties of cheese from around the world, with a focus on unique Canadian products. This innovative display transforms the shopping experience, encouraging customers to explore and indulge.
Shoppers can enjoy fresh-squeezed juices, artisan breads baked on-site, and chef-prepared meals. The store also features a cookery school, offering classes and events.
Convenience and Innovation
Loblaws’ Maple Leaf Gardens store is more than a grocery store; it’s an experience. It embraces three key value propositions that resonate with today’s shoppers: convenience, inspiration, and value for money. The store’s combination of ready-to-go meals, freshly prepared foods, and local, organic produce meets the demand for both quality and convenience.
Ultra-convenience goes beyond location; it’s about making the entire shopping experience as easy as possible, whether through express checkouts, home delivery, or in-store services like dry cleaning or click-and-collect. And with the rise of cashless payment systems and app-based tracking, the future of grocery retail is becoming increasingly seamless.
Final Thoughts
The combination of technology, design, and convenience at both Hema and Loblaws signals the direction in which the supermarket sector is heading. Whether it’s the ultra-convenience of Hema’s cashless, app-based model or the experiential food theatre at Loblaws, the future of grocery retail is about creating memorable and engaging experiences for shoppers.
Our continuous renewal process allows us to benchmark and highlight best-in-class branding and design trends from around the globe. Images in this article are sourced from the web and credited to other brand consultants.
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