Blog

What if a 'foodie' ran your store?

September 9, 2013 by Chris Petersen — Owner, IMS

After returning from India, I had to an opportunity to meet with over 70 technology retailers from Latin America last week. For all retailers owning brick and mortar stores, the overwhelming questions are how to generate traffic and convert sales. While sales are the final result outcomes in retail, today's retailers are searching for ways to engage consumers and get them to linger longer. If consumers linger longer in stores, they are more likely to discover something new and purchase. Most tech retail stores are still boring, even with "Apple-like tables." It got me wondering what would happen if a "foodie" ran the store?

Omnichannel is the new retail normal

We and a host of others have posted a number of times about the growth of online shopping. With the rise of smartphones, consumers shop in many ways, any time and everywhere. They use their smartphones to research products, check availability, and comparison shop. Mobility shopping has become so ingrained that consumers worldwide are "showrooming" – standing right in the retailer's aisle while shopping somewhere else on their phones.

If the product is a true commodity, chances are that consumers can get it cheaper online. And, consumers will check a number of channels, including social media as they shop. But for "considered purchases" which are more "expensive" and "personal," consumers tend to shop online, but purchase in store. This concept is becoming known as webrooming. Worldwide, the general benchmark is that 75+% shop online, but 75% purchase products in store. Today, retailers must do much more than price match online if they are to survive. They must find ways to engage consumers in meaningful experiences in their stores that online competitors simply cannot provide.

Case studies from India

The world seems replete with stories about retailers changing their store stage with "Apple-like" tables and clean merchandising concepts. The latest is Samsung's installation of their store-within-store concepts at Best Buy. But, to truly differentiate and get consumers to stick longer in stores will take more than tables and fixtures. Today's consumers are not easily wowed by merchandising. Compelling store experiences will require engagement beyond the products themselves, and beyond the purchase transaction.

After spending a lot of time working in international retail, I'm very cognizant that not everything new rises in western retail. I ran across an interesting article by an Indian agency called DNA. The title of the article was: "Retailers try out new tricks to keep shoppers longer in their stores." The author Nupur Anand points out numerous ways in which Indian retailers are driving traffic to stores and getting consumers to stick around:

Watches and More have begun organizing events within stores to attract consumers.

Vaidya has also organized events and have replaced cash counters with tablets.

At Simba Toys, they have gone back to getting the kids to stick around by setting up small play areas where kids can play with toys for free.

Landmark books and toy stores have organized summer festivals and carnivals.

The Mobile Store Lounge is now revamping stores for consumer experience and has added zones allowing consumers to download apps and transfer data for free.

Some Indian retailers have also started doing away with doors at the start of the day to encourage more walk-ins.

According to Biren Vaidya, managing director of Rose group of companies: "Times have changed and therefore, the conventional form of retailing needs to go. We need to welcome the consumers and give them a reason to walk into the store."

What can bricks and mortar stores learn from a true foodie experience?

There is nothing more basic than food. If there ever was a true commodity it has to be consumer packaged goods and produce. Indeed, Peapod, Amazon Fresh and other online sellers are going to war by selling food online. Yet, there are stores like Wegman's and Whole Foods who have managed to create a whole experience around food. From personal experience, you definitely linger longer and purchase things you never intended to buy when you have a rich sensory experience in a place like Whole Foods.

I ran across an interesting post by Sherry Orel on Mediapost.com entitled: "The Next Frontier: The In-Store Experience." Sherry creates a very powerful metaphor of imaging what your experience could be like if the store was run by a "foodie":

Let's close our eyes again and imagine the future of the In-Store Experience. Imagine a Recipe Resource Center in the supermarket, where you can ask a permanently placed, highly educated foodie everything from time-saving cooking tips and food/wine pairings to the best calorie-cutting ingredient swaps. Maybe the foodie gives demos and cooking classes during off-peak shopping hours to drive incremental traffic. There's something Peapod and Fresh Direct can't do.

Now let's monetize this interaction. Recipes and tips shared in-store can be scanned via QR code and uploaded to the shopper's retailer app. Coupons and offers can be targeted based on shopper interaction. VIP invitations to special events can be used to drive incremental shopping trips for customers that average the highest grocery spend. Branded content can drive merchandising dollars for retailers. Now there's a reason to get off the couch.

WOWSER! The foodie is doing more than demos to create a personalized experience! The consumer gets food and cooking tips, even recipes. Everything is integrated seamlessly for the omnichannel world and uploaded into the retailer's app and the consumer's smartphone.

DOUBLE WOWSER! Technology stores are reported to be in the business of integrating technology and making it all work with your lifestyle. Why can't they deliver this kind of experience in their stores? Why can't they even come close to having the "foodie" type person in the technology aisle?

What is really striking about Sherry Orel's foodie metaphor is that most, if not all of it is possible in great food retailers today. It is all about delivering things of value to consumers in an interesting and compelling ways … and making it easy. Even if you yourself are not a "foodie" in terms of preparation, there would be very compelling reasons to visit such a store and linger longer.

About Chris Petersen

---

None

Connect with Chris: