BRotD - Entry 0261 Google Report on Omnichannel Shopping

Best Reading of the Day

As I started to read this I was struck initially by how pedestrian the article was.  It gets better though and is well worth your time.

What bogey are you chasing today in your marketing strategy?  AOV?  CR?  Looking at your mobile traffic suddenly over 50%?

Read this little article to give you some help:

https://www.thinkwithgoogle.com/consumer-insights/omnichannel-shopping-journey/

Here is a snippet from the piece:

In other words, people feel that online shopping makes it easier for them to find the right item at the right price.
...
Ultimately, people are looking to meet their needs in the most efficient way possible, whether that means shopping online only or researching online before heading to the store.

Happy Reading,

J.W. Gant

Online eCommerce Grocery Sales to Grow Fast

The toughest nuts to crack are often the best.

Not sure that is the case here but I'm still convinced we will see quite a shift in our Supermarket shopping habits as the Information Age continues to change our daily lives.

These folks continue to think grocery will move to online.

Here is a snippet from the piece:

Online sales of groceries continue to grow much faster than the overall market and that web growth is expected to continue, according to recently released datafrom the United Kingdom-based Institute of Grocery Distribution (IGD).

Yes, it references the UK but the data is U.S. focused.

Here is the full article:

https://www.digitalcommerce360.com/2018/12/17/all-signs-point-to-continued-growth-in-online-grocery-sales/

Happy Reading,

J.W. Gant

BRotD - Entry 0264 Grocery App Usage Increase

Best Reading of the Day

Forbes.com has a great piece out about mobile apps and supermarkets.  That's something I know a little bit about as I led an effort for 3 years in that space.  They predict the apps will see a 50% increase in usage.  That is something else I know a little about having written a few papers on the subject.

Here is a snippet from the piece:

When the fridge is empty, and you are too tired to put on real clothes to go shopping, reaching for the phone to use a grocery app is an easy solution. You are not alone when you do this. According to a study from eMarketer, grocery app usage will grow by 50% this year, and 18 million Americans will order food this way. However, brick-and-mortar grocery stores are not going away and can take advantage of this industry shift.

Here is the whole story:

https://www.forbes.com/sites/lanabandoim/2018/09/11/grocery-app-usage-will-grow-by-50-what-this-means-for-the-industry/#752a389164dd

Happy Reading,

J.W. Gant

Whole Foods After Amazon

Where do you shop for your food and "super" market needs?

Whole Foods?

Before Amazon bought it or after or both?

What has changed?

Take a look:

https://www.boston.com/news/food/2018/03/01/amazon-whole-foods-changes

I think it is safe to say this is only the beginning.  One becomes the other and the other becomes the one.

Happy Reading,

J.W. Gant

Amazon Acquires Whole Foods - What Does It Mean?

When the news broke that online retailer and all-around everything super-center Amazon was acquiring Whole Foods my instinct was to get straight to my blog.  I have thoughts on this, of course, but I also knew there would be a slew of industry leaders leaning in on this deal.  So I decided to wait a bit and gather the best articles in one place.

First, my thoughts.

Clearly Amazon wants to become more like Walmart as Walmart continues to try to be more like Amazon.

If I were to look in to the future of retail and how digital will ultimately impact it I think we'll see a new normal settled upon in the very near future.  Within that normal there will be room for all kinds of players so long as they define a clear space that differentiates them from others.  Pure online, pure mobile, pure physical retail, and everything in between will be the new reality.  The largest players will be heavy in physical AND digital, while smaller players will excel at only one or the other.

So Walmart might one day be 70/30 physical to digital and Amazon might become 30/70 physical to digital.  Something like that.  You'll still see the mom & pop shop on Main Street, and the little niche mobile-only player that gets the job done too.  Great time to be a customer huh?

The Food Marketing Institute back around 2012 was predicting roughly 10% of current Supermarket business would shift online.  Most of that, 80%, would be taken from packaged center store goods that were easily shipped and often good targets for subscription models (such as diapers).  Don't see any reason this prediction was off and that means big changes for Supermarkets across the country.  They are suddenly too large for their needs.  We should see stores removing aisles to make room for more fresh and prepared in-store options.  Combined with a robust digital presence the best Supermarket chains will survive and thrive (Wegmans).

Now to it and there is a lot of reading for you should you choose to do so.

RIS weighs in with their slew of experts:
https://risnews.com/experts-weigh-amazon-snatches-organic-grocer-whole-foods-137-billion

Re/Code tell you how to keep Amazon from swallowing your business too:
https://www.recode.net/2017/6/19/15832958/amazon-whole-foods-jeff-bezos-acquisition-aws-vendor-tips-cloud-open-source

RetailDive tells us how the war between Amazon and Walmart is accelerating:
http://www.retaildive.com/news/amazon-vs-walmart-why-the-whole-foods-deal-escalates-the-war-for-the-amer/445294/

Bloomberg tells us Amazon is after every single thing you buy (which is exactly what Walmart is after by the way):
https://www.bloomberg.com/view/articles/2017-06-20/amazon-s-real-target-isn-t-whole-foods-it-s-everything-you-buy

Digital Transactions tells us why Amazon is changing the checkout (payment) process with this acquisition:
http://www.digitaltransactions.net/news/story/With-Its-Deal-for-Whole-Foods_-Amazon-Could-Usher-in-Seismic-Change-for-the-Checkout

Business Insider is always a good read and they say Walmart and Kroger (supermarket) should be terrified by this deal:
http://www.businessinsider.com/amazons-whole-foods-acquisition-should-terrify-walmart-kroger-2017-6

Finally the NRF (National Retail Federation) tells us the retail reinvention is just getting started but also cautions against the belief that traditional retail is imploding (correct):
https://nrf.com/news/retails-reinvention-story-is-just-getting-started

Happy Reading,

J.W. Gant

Is B&M Retail Collapsing?

Why not ask the banners that are opening countless new locations.

Yeap.

All of the doom and gloom we keep seeing in the news around brick & mortar retailers misses some important news.  Some retailers are doing exceptionally well (plus the U.S. is way, way over saturated with retail locations so much of this is just folks coming back to planet earth).

Here is a snippet from the piece:

The retail consulting firm IHL Consulting Group compiled a list of 22 retailers bucking the retail apocalypse by growing their store counts.

The list, which includes plans for nearly 3,000 new stores this year, is dominated by discount stores and grocery chains...

Here is the full article:

http://www.businessinsider.com/retailers-opening-new-stores-this-year-2017-5

Happy Reading,

J.W. Gant

PS  Shoot, I just noticed I wrote a portion of my blog post almost identically to the original, before reading the entire article.  Oh well.  Brilliant minds ....

Grocery Delivery 2.0

Interesting approach:

http://www.retailleader.com/top-story-tech___logistics-coming_soon__grocery_delivery_2.0-6207.html

Here is a snippet of the news:

According to the Sacramento Bee, Instacart has teamed up with personalized nutrition service provider PlateJoy to offer same-day delivery of groceries tailored to individual nutrition requests.

That fits.  The hyper-personalization approach opens doors to anything imaginable.

Happy Reading,

J.W. Gant

Grocery and the Digital Shopper

Great little read from the folks at FMI.

For the folks who don't know the Supermarket retail sector here is a quick note to help you.  "Grocery" is not the store you go to.  That is called a "Supermarket".  Grocery is all the stuff in boxes, bags, plastic or glass bottles, etc. in the center of the store.  Combine that with fresh produce, meats, deli and bakery and you get more than just a "Market" you get a "Supermarket".  Hard to order your fresh apples online, but easy to get that box of diapers.  Yes?  Yes.

Read the whole story here:

http://www.fmi.org/digital-shopper

Happy Reading,

J.W. Gant

Grocery Stores in Decline

If you aren't growing, or increasing market share, you are probably going the other way.

Bad news for the well-established Supermarket concept.

Here is a snippet from the story:

Sure, Americans head to Costco some days, drop by the dollar store another, and sometimes swing by their neighborhood grocer, too. But that doesn’t mean they’re happy about all that running around, andProgressive Grocer’s new annual report finds that many feel forced to make multiple trips to find everything they want.

And whether shoppers are looking for deals, quality or variety, supermarkets continue to be on the losing end, with their share of total grocery spending—about $2 trillion each year—falling to 54.5%. That means its slice of the grocery pie has fallen more than six percentage points since 2007. Warehouse clubs and supercenters continue to be the big winners, with their combined share rising from 25.1% in 2007 to 31.3%.

Read on:

http://www.mediapost.com/publications/article/280591/report-finds-grocery-stores-continue-to-lose-share.html?edition=94758

Happy Reading,

J.W. Gant

Giant Eagle Retailer Takes off with MyWebGrocer

Omnichannel retailing done right?

Maybe.

Here is a snippet from the piece:

Supermarket chain Giant Eagle is taking a bigger stance on mobile and digital to create a commerce-driven omnichannel experience that features curbside pickup and shopping list management.

Giant Eagle is equipping its shoppers at local store locations with mobile and digital capabilities to better serve customers in a streamlined, omnichannel fashion. The new push will include the mobile version of its print circular, platform for online ordering and curbside pickup and digitized shopping lists.

Here is the story:

http://www.mobilecommercedaily.com/giant-eagle-soars-on-mobile-digital-experiences-in-omnichannel-shopping-creation

Happy Reading,

J.W. Gant

Food Lion Doing Great Work with Mobile Beacons

If buzzwords were a measure of a marketing effort this one might win.

Check out the story over on Mobile Commerce Daily:

http://www.mobilecommercedaily.com/food-lion-initiates-in-store-mobile-coupons-through-shazam

Here is a snippet from the piece:

Food Lion is giving shoppers a way to save money by using the Shazam application to listen to a location’s music, in an innovative mobile coupon experience that also leverages beacons.

The grocery store chain is providing its in-store shoppers with a modern couponing experience, streamlining the process as well as making it an interesting experience.

Happy Reading,

J.W. Gant

Kroger Dominating

If you don't live near a Kroger supermarket you are an increasingly small audience.  This behemoth is still growing and is already enormous, 2nd only to Walmart.

Here is the full story over on Bloomberg:

http://www.bloomberg.com/gadfly/articles/2015-12-03/kroger-earnings-the-chain-quietly-gains-on-walmart-whole-foods

Here is a snippet from the piece:

Retail is in the doldrums. Grocery chains are filing for bankruptcy. Former industry darlings like Whole Foods are struggling to boost sales. Amazon is making a big bet on online grocery delivery. Drugstore chains are selling boatloads of food. And for the first time ever, more people are eating out at restaurants than making food at home.

Sound like a recipe for disaster? Not for Kroger, the grocery chain that has been quietly growing its empire to become the second-largest U.S. retailer by sales after almighty Walmart, which derives 56 percent of its sales from groceries.

I only found this piece thanks to the efforts over on MorningNewsBeat so be sure to check there daily:

http://www.morningnewsbeat.com/

Happy Reading,

J.W. Gant

Hershey's Center Store Kiosk

Center store, literally the center of the supermarket, has seen sales steadily decline over the years as shopping behavior migrates towards fresh and the perimeter of the store.  Company's with processed foods such as Hershey's chocolates have had a negative impact as a result.  They aren't sitting still.

Hershey's has a kiosk to place in the center of the aisle, in the center of the store, that customers must smile in to for a sample product.

Brilliant.

Here is the story:

http://www.wired.com/2015/07/even-tom-brady-smash-phone-itd-make-zero-sense/

Happy Reading,

J.W. Gant

Amazon Order & Collect Grocery Service

News today from Amazon shows the company's continuing efforts to craft a traditional brick & mortar approach to its services.

http://www.bizjournals.com/sanjose/news/2015/07/23/exclusive-amazon-planning-drive-up-grocery-stores.html

Here is a snippet from the piece:

For decades, drive-thrus have served up everything from coffee to prescriptions to dry cleaning — not to mention burgers and fries. Now Amazon.com Inc. wants to add another item to the list: Your groceries.

The e-commerce giant is developing a new drive-up store concept in Silicon Valley that will allow consumers to order grocery items online, then schedule a pickup at a dedicated facility, according to industry sources familiar with Amazon’s plans.

Happy Reading,

J.W. Gant

Regional Grocers Continue to add In-Store Pickup

Hy-Vee, based in Des Moines, Iowa, is the latest grocer to respond to the challenge of grocery in-store pickup or delivery.  Walmart is moving forward with plans to expand after a successful test and this may quickly become a table stakes offering for supermarkets.

One VP of Marketing I know stated last year Hy-Vee needs this more than most of the other regional players.  Apparently the executives at Hy-Vee agree on its importance.

Here is the story from MorningNewsBeat:

http://morningnewsbeat.com/News/Detail/47437/2015-07-22/

Here is a snippet from that piece:

KC's View: Hy-Vee has that right. I continue to believe that when Walmart makes the decision to roll out e-grocery nationally, it will do it fast and it will do it decisively ... mostly because it has to. And so it is incumbent on brick-and-mortar retailers to simultaneously do everything they can to differentiate their in-store experiences while also building up their e-commerce credibility. It's that, or risk losing the customer because of real or perceived irrelevance.

Here is his home site:

http://www.morningnewsbeat.com/

Happy Reading,

J.W. Gant

Digital Retail Strategy

The world is changing so rapidly we can often find ourselves lost.  However, as with most things when we look closely we find that what was old is new again.  If we take a moment to evaluate where we have been, where we are now, and what we can see coming we can begin to plan for the future with some sense of certainty.

That is the purpose of the new white paper I've recently finished.

Here is the title:

Digital Retail Strategy

And the Impact of Phase IV Product Marketing

The Story of Mass Marketing in America Continues

Here is a link to the full 50 page white paper, with roughly 2.5 pages of executive summary followed by a few dozen pages of appendices:

Digital Retail Strategy White Paper

Here is the opening paragraph:

     The modern era of the mobile internet combined with an explosion of social media has created a new paradigm for retailers and manufacturer brands in the United States that present risks and opportunities for both. Manufacturer brands are now rushing to embrace the opportunities presented in the new era and retailers must respond or risk disruption and irrelevance. The 1990s launched the Information Age and a new form of product marketing. This was named the 4th phase of product marketing by Richard S. Tedlow of Harvard Business School. At the time of the 1996 update to his book ‘The Story of Mass Marketing in America’ the strategic characteristics and implications of the 4th phase were unclear, while the defining infrastructure was determined to revolve around the information revolution. In 2015 we can see the call to action that is the new phase of product marketing and it is loud and clear: digital and mobile is king, customers have much more power, and both retailers and brand manufacturers are faced with new risks and new opportunities.

I hope you enjoy the read. This was a fun one to research.  It took me to many places I was uncertain of when the journey began.

Happy Reading,

J.W. Gant

A&P and Omnichannel

Great little article over on Mobile Commerce Daily about the slowly fading but still historic A&P supermarkets and missed opportunities to go digital.

http://www.mobilecommercedaily.com/how-an-omnichannel-mobile-strategy-might-have-eased-aps-decline

Here is a snippet from the piece:

Embattled supermarket chain A&P could have used mobile as the linchpin in an omnichannel campaign to reach consumers, helping to stave off its latest round of financial troubles in a fiercely competitive marketplace.

The grocer’s biggest oversight has been a lack of an omnichannel experience with mobile delivery and loyalty, and failing to invest more in mobile to attract the millennial consumer. Today, A&P, once the nation’s largest grocery with as many as 15,000 stores, is down to fewer than 400 and on the verge of its second bankruptcy filing in five years, Bloomberg reported.

Happy Reading,

J.W. Gant

Mobile for Walgreens and for Supermarkets

Two stories today on mobile, in-store engagement, and mobile apps.

First is a critique of the efforts by Walgreens to be a digital leader:

http://www.mobilemarketer.com/cms/news/strategy/20713.preview

Here is a snippet from that piece:

“There is so much disruption and transformation taking place among brick-and-mortar retailers, I feel that Walgreens is missing out by not making its wellness-centric approach more prevalent and more connected to the mobile device,” said Vanessa Horwell, chief strategy officer for ThinkInk, Miami.

“For Walgreens, mobile is the key to in-store engagement, so the two experiences – physical and mobile – must be consistent and interconnected.”

Next is a brief story from Supermarket News on how mobile apps is transforming the grocery industry:

http://supermarketnews.com/marketing/how-mobile-apps-are-transforming-industry

Here is a snippet from that piece:

One area of explosive growth in the retail supermarket industry is the number of mobile apps that have come on the market to assist shoppers.

Take a look at the Center for Advancing Retail and Technology (CART), and you’ll see what I mean. A year ago, there were only a handful of apps featured; today, more than a dozen are available, with more coming.

Happy Reading,

J.W. Gant

The Future of Retail - Malls and Boxed

Two stories that speak to the potential future for retail are worth checking out today.

First is a great read on the eCommerce startup 'Boxed' that ships mostly national brand CPG products in bulk.  I think they'v recaptured a bit of the spirit of Mr. Cullen's original supermarkets and have a real threat to traditional brick & mortar retailers.

http://www.mobilecommercedaily.com/boxed-wholesale-ceo-mobile-made-success-for-us-possible

Here is a snippet from that piece:

The CEO of Boxed Wholesale, speaking at the Global Mobile Internet Conference New York 2015, explained that his company would not have succeeded if not for mobile, where shopping behavior is not as rigid as on desktop.

During the “Using Mobile to Deepen Customer Engagement” session, the CEO detailed how developing an application first, allowed its brand to take off because there is room in the mobile space for a retail service such as this.

Next is PYMT.com on some new analysis regarding foot traffic and spending habits at malls as provided by the folks at RetailNext:

http://www.pymnts.com/in-depth/2015/why-a-decline-in-foot-traffic-has-retailers-looking-up/#.VXrbj_lVhBc

Here is a snippet from that piece:

Keeping in line with the unfortunate trend of 2015 so far, RetailNext’s latest survey on physical retail has a whole lot more red ink on it than the nation’s merchants wanted to see. On average, traffic to physical stores was down about 9.8 percent on average, while sales have fallen off by 7.6 percent.

However, RetailNext’s VP of retail consulting, Shelley Kohan, said that there’s more to measuring the health and well-being of physical retail than foot traffic and sales numbers.

Happy Reading,

J.W. Gant

PS  One more story is a great testament to 'bricks & mobile':
http://www.businessinsider.com/retailers-are-making-a-huge-mistake-2015-6

Here is a snippet from that piece:

American shoppers have become addicted to checking consumer reviews on everything they buy.

But stores have failed to find a way to make reviews readily available in stores, and that's killing business for many traditional retailers such as Macy's, JC Penney, and Best Buy.

Regards

How to Disintermediate Retailers 101

The news is real, though the headline is a bit sensationalistic.  I'm finishing up a white paper on this topic though so this subject is quite interesting to me. Kellogg is planning a fresh snack food subscription service, direct to consumer.  This cuts out retailers all together, something the big food companies would absolutely love to do.

http://www.bloomberg.com/news/articles/2015-06-09/kellogg-said-to-plan-snack-subscriptions-as-general-mills-exits

I found the story over on MorningNewsBeat first:

http://morningnewsbeat.com/News/Detail/47220/2015-06-11/

Here is a snippet from the Bloomberg piece:

Kellogg and General Mills both have been looking for new ways to grow and appeal to consumers seeking healthier and more natural alternatives to processed foods. The companies also are testing sales channels outside of grocery stores as customers become more comfortable purchasing online.

Happy Reading,

J.W. Gant

PS I'll be posting the white paper soon.