creating omnichannel experiences with loblaw digital - ecommerce toronto meetup

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LOBLAW DIGITALCreating Omnichannel Experiences

PA G E 2

Intro to Loblaw Digital

JoeFresh.com

Click & Collect

BeautyBOUTIQUE.ca

Agenda

1

2

4

3

PA G E 3

About Loblaw Companies Ltd.

Vision: To be Canada’s best food, health and home retailer by exceeding

customer expectations through innovative products at great prices

$43B in sales

6 divisions, 2,300+ stores

14M+ customers weekly

192,000 employees

Canada’s leading Brands

Discount

Emerging

Market

PA G E 4

Our vision: Create compelling and seamless end-to-end digital experiences for customers

• We established the team 3 years ago

• We are responsible for designing and building digital experiences across the

enterprise

• We operate 3 eCommerce businesses

• We have ambitious goals and an aggressive growth plan

PA G E 5

Our downtown Toronto office space reflects our culture …

PA G E 6

… As do our social activities

PA G E 7

We launched and now operate 3 businesses

2013

JoeFresh.com

2014

Click & Collect

2015

beautyBOUTIQUE.ca

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JoeFresh.comLauren Steinberg

PA G E 9

Greater exponential growth versus brick & mortar retail

3rd fastest growing category online, after books/music/video & mass merch e-retailers

Apparel companies in top 500 collectively increased online sales 20% from 2013 to 2014, while

overall apparel sales increased only 3.4%

eMarketer forecasts US retail ecommerce sales of apparel and accessories will reach $60.0

billion in 2015, a 17.2% share of total US retail ecommerce

US apparel industry dollars for the 12 months ending February 2015 shows that industry sales

grew 2% overall, while in-store sales shrank 2%.

Rapid Growth in Online Apparel

PA G E 1 0

That’s the promise of Joe Fresh. Our designs

bring a modern point of view to everyday

wardrobe favourites that are infused with

easy polish and thoughtful details. In

categories spanning apparel, accessories,

footwear and beauty, our assortments

provide the building blocks of personal style.

With lifestyle collections for women, men and

children, we make shopping for fashion

convenient, fun and affordable for the entire

family.

ESSENTIAL STYLE, EXCEPTIONAL VALUE

366Locations across

Canada

#2Canadian apparel

market share

PA G E 11

2006 2013Launched e-

commerce in

Canada

Founded in

Toronto, ON by

Joe Mimran

2014Launched e-

commerce in US

2015Released iPad and

iPhone mobile apps

2008 Launched

kids category

which now makes

up 43% of total

sales

2012 Entered new

markets including

US via JC Penney

and standalone

First e-commerce

business launched

by Loblaw Digital

No marketing had

been done to drive

digital engagement

Little if any brand

recognition,

separate pricing

strategy, small

store footprint, lots

of competition

THERE’S MORE…

Created the Joe Fresh Centre for Innovation with partners at Ryerson DMZ

Launched internationally in Mexico, Korea, Egypt, United Arab Emirates, Saudi Arabia and soon the Philippines

PA G E 1 2

HOW WE WORK

E-COMMERCE BRAND

MARKETING

ACQUISITION

RETENTION

DEMAND GEN

GRAPHIC DESIGN

PHOTOGRAPHY

COPYWRITING

TRADING

STRATEGY

PURCHASING

INVENTORY

MERCHANDISING

CATEGORY

ON-SITE TOOLS

MARKETING

TRADITIONAL MKTG

IN-STORE MKTG

BRAND BUILDING

CAMPAIGN IMAGERY

PR + SOCIAL MEDIA

MERCHANDISING

PURCHASING

PRICING OF

ASSORTMENT

PROMOTIONAL

STRATEGY

FINANCIAL PLANNING

SKU CREATION

MARGIN MANAGEMENTSITE CONTENT

PROMOTIONS

ANALYTICS

ROADMAP

PA G E 1 3

Email Marketing

Paid Search | SEM

Paid Social (FB)

Affiliate Marketing

Dynamic Display

Remarketing

Referral Marketing

Influencer Campaigns

Drive demand via paid channels

RETURN ON

AD SPENDATTRIBUTION

CLICK-THRU CONVERSION

IMPRESSIONS

PA G E 1 4

TURN

TRADITIONAL

CAMPAIGNS

INTO

SHOPPABLE

CONTENT

PA G E 1 5

PA G E 1 6

PA G E 1 7

PA G E 1 8

PA G E 1 9

PA G E 2 0

PA G E 2 1

PROBLEM: Photography is extremely

high cost. Unsure of the impact to site

engagement and transactions.

ASSUMPTION: Off-figure product

imagery, given the quality actually

negatively impacts add-to-cart’s and

conversion

IMPROVE ON SITE CONVERSION: PHOTOGRAPHY

?

PA G E 2 2

ACTUAL: Without off-

figure, we saw -11.4%

less add-to-cart clicks,

6.2% more product page

views and 5.7% more

quick view hits

TAKEAWAY: Customers

want more imagery to

eliminate uncertainty.

Improve off-figure imagery

to increase add-to-cart’s

and conversion

TEST, LEARN, PIVOT

PA G E 2 3

TEST, LEARN, PIVOT

PA G E 2 4

Not only do we

collaborate within our

Loblaw Digital team and

across e-commerce

teams and brand division

but also across business

divisions.

DRIVE SALES BY LEVERAGING INTERNAL PARTNERS

• Strong results – 33% of total revenue for duration

• 75% New vs. 25% Repeat Customers

• AOV $68 (vs. regular average of ~$75)

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Click & CollectRalph Faminial

PA G E 2 6

Online grocery is making a big impact globally

£6.5B

£14.6B+125%

€5.2B

€11.0B

Grocery eCommerce Market2

+113%

2013 2018

Online Grocery Sales, Worldwide1

$100B

$23B

2019

+34%

2014

Source: 1Online Food Shopping and Grocery Delivery in the U.S.: Future of Food Retailing, Packaged Facts, Oct. 2014; 2IGD research, Sept 2013

PA G E 2 7

We are in a period of rapid change and accelerated

investment through digital

PA G E 2 8

Customers have high expectations of online grocery shopping

Broad Assortment Deals & Offers

Quality Payment Options

High Product Availability

Fast & Convenient

PA G E 2 9

Click & Collect today: 4 banners and 53 stores

PA G E 3 0

Order Online (50K+ items enriched online)

PA G E 3 1

We Do The Shopping (deliver fresh, high-quality produce)

PA G E 3 2

Fast, convenient pick-up

PA G E 3 3

Quick Shop leverages online & in-store purchase history

PA G E 3 4

Personalization throughout the shopping experience

Customer Purchase History

Item purchased in past

Incorporates PC Plus offers

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BeautyBOUTIQUE.caJeff Kolenc

PA G E 3 6

The eCommerce Beauty Industry

In 2012, the global beauty and personal care category grew at a rate of 29% in

eCommerce compared to an overall growth rate of 6%*

Sources:* eMarketer: Beauty Sector Sees Strong eCommerce Growth, 2013ATK Kearney: Beauty and the E-Commerce Beast, 2014

PA G E 3 7

Introducing BeautyBOUTIQUE.ca

PA G E 3 8

• Running a replenishment based

business

• Not just another brick and mortar

store

• Choosing the right 3PL

• Make sure you have a strong

foundation for your analytics

• Gaining an understanding for the

consumer beyond conversion

• The power of A/B testing

• First large scale SDM eCommerce

website

• Working with multiple

stakeholders (SDM, vendors, 3PL)

to execute assortment,

marketing, etc.

• Promotions takeaways

Successes and Challenges

Launch Website Analytics Inventory Management

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QUESTIONS?