What is the future of In-store
Brand, Performance &
Consumer Behaviour?
September 2011
Presented by Gareth PearsonBMI Research
1
2
South Africa’s GDP
Source: SARB
Note: Percentage change at seasonally adjusted annualized rates
5.1%
2.5%
5.5%
1.3%
-0.7%
3.7%
-7.4%-2.8%
0.9%3.2%
-1.8%
4.8%2.8%
2.7%
4.5%2.8%
4.8%
-8.0%
-5.5%
-3.0%
-0.5%
2.0%
4.5%
7.0%
GDP % Change
3
South Africa’s Retail Sales
2.3%
0.4%
-1.0%
-0.4%
-2.4%
-5.4%
-3.3%
-3.4%
1.3%
4.9%
6.2%
7.7%
5.6%
-8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
Q1
Q2
Q3
Q4
2011 2010 2009 2008
% change y/y at constant 2008 prices
Year-on-Year % Retail Sales at constant 2008 prices
Source: Stats SA
Our Shopper- recession impact
4
• tighter family income vs. continued inflation
• seeking VALUE from retailers and wholesalers with intensity and vigour
• convenience has a price
• consumers are drinking & eating more @home
• price point centric – reduce pack sizes
• down trading : premium – mid – econo
• focus on promotional purchases
Our Retailers- recession impact
5
• offering longer print promotions
• offering 3 for 2’s and value promotions
• much more effort on price competitiveness
• focusing on optimising product ranging
• focus on promotions – wider use by all retailers
So what’s new?
6
Retail Shelf – the battleground
7
Case Study- shelf health for soap
8
• forward share
• promotional spend
• in store promotions
• regional share
9
% Share of Shelf
Total
Brand A Brand B Brand C Brand D Brand E
2011Q1 20.65% 6.35% 26.22% 14.95% 31.83%
2011Q2 18.22% 6.28% 27.55% 15.20% 32.75%
2011Q3 21.14% 6.58% 26.61% 13.77% 31.90%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2011Q1
2011Q2
2011Q3
10
No. of Ad’s Total
Brand A Brand B Brand C Brand D Brand E
2011Q1 803 268 536 801 801
2011Q2 764 255 510 765 765
2011Q3 778 259 518 777 777
0
100
200
300
400
500
600
700
800
900
2011Q1
2011Q2
2011Q3
11
% Share of Display
Total
Brand A Brand C Brand D Brand E Brand B
2011Q1 20.00% 24.62% 18.46% 23.08% 13.85%
2011Q2 29.41% 19.12% 17.65% 22.06% 11.76%
2011Q3 31.25% 22.50% 15.00% 25.00% 6.25%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2011Q1
2011Q2
2011Q3
12
No of Type of Display
Total
2011Q
1
2011Q
2
2011Q
3
2011Q
1
2011Q
2
2011Q
3
2011Q
1
2011Q
2
2011Q
3
2011Q
1
2011Q
2
2011Q
3
2011Q
1
2011Q
2
2011Q
3
Brand A Brand C Brand D Brand E Brand B
Dump Bin 2 3 4 2 1 2 2 3
FSU 1 3 5 2 1 1 3 1 1 1
GE 4 1 5 3 7 3 2 2 5 3 9 3 2 3
0
1
2
3
4
5
6
7
8
9
10
Dump Bin
FSU
GE
13
Share of Shelf by Region
Brand A Brand B Brand C Brand D Brand E
E Cape - 2011Q1 18.93% 4.12% 27.39% 16.86% 32.70%
E Cape - 2011Q2 16.18% 3.78% 30.57% 16.13% 33.35%
E Cape - 2011Q3 18.63% 4.88% 28.12% 14.35% 34.02%
FS - 2011Q1 23.02% 7.09% 23.61% 13.84% 32.43%
FS - 2011Q2 22.06% 7.11% 25.71% 12.78% 32.35%
FS - 2011Q3 24.36% 8.02% 24.31% 14.44% 28.87%
Gauteng - 2011Q1 21.61% 7.17% 25.70% 14.07% 31.44%
Gauteng - 2011Q2 18.47% 7.06% 26.88% 14.70% 32.89%
Gauteng - 2011Q3 21.66% 7.37% 25.87% 12.28% 32.82%
KZN - 2011Q1 23.00% 8.34% 22.18% 15.50% 30.98%
KZN - 2011Q2 20.79% 8.19% 24.33% 14.59% 32.10%
KZN - 2011Q3 26.62% 7.91% 24.94% 13.90% 26.63%
W Cape - 2011Q1 17.42% 4.95% 30.05% 15.43% 32.14%
W Cape - 2011Q2 16.21% 5.29% 29.02% 17.15% 32.33%
W Cape - 2011Q3 17.52% 4.97% 28.83% 16.25% 32.42%
0.00%5.00%
10.00%15.00%20.00%25.00%30.00%35.00%40.00%
E Cape - 2011Q1
E Cape - 2011Q2
E Cape - 2011Q3
FS - 2011Q1
FS - 2011Q2
FS - 2011Q3
Gauteng - 2011Q1
Gauteng - 2011Q2
Gauteng - 2011Q3
KZN - 2011Q1
KZN - 2011Q2
KZN - 2011Q3
W Cape - 2011Q1
W Cape - 2011Q2
W Cape - 2011Q3
14
Share of Shelf PnP
Brand A Brand B Brand C Brand D Brand E
2011Q1 20.80% 7.50% 24.48% 15.23% 31.99%
2011Q2 18.44% 7.28% 26.76% 14.79% 32.73%
2011Q3 21.73% 7.27% 24.83% 14.39% 31.77%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2011Q1
2011Q2
2011Q3
15
Share of Shelf Shoprite
Brand A Brand B Brand C Brand D Brand E
2011Q1 18.93% 4.74% 24.38% 15.77% 36.18%
2011Q2 17.95% 4.91% 27.47% 14.89% 34.78%
2011Q3 19.86% 4.78% 28.66% 14.23% 32.47%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
2011Q1
2011Q2
2011Q3
16
Share of Shelf Spar
Brand A Brand B Brand C Brand D Brand E
2011Q1 23.38% 9.05% 27.17% 9.70% 30.69%
2011Q2 18.15% 9.67% 28.46% 10.99% 32.73%
2011Q3 22.66% 8.99% 29.71% 9.05% 29.60%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2011Q1
2011Q2
2011Q3
In store Brand Performance
Dash Board – Brand "A" August 2011
17
IN STORE KPI Brand “A”
MONTHLY
SCORE
YTD
SCORE
MONTHLY
TARGET
YTD
TARGET
OOS (2 observations) (480/600) (3960/4800)
Organogram compliance (272/300) (2176/2400)
In store promotional - Gondola
End (255/300) (2284/2400)
In store promotional - Dump Bin (290/300) (1921/2400)
Shelf quality (eye level, category) (180/300) (1760/2400)
Forward share % (35%) (38%)
Shelf exposure (cm) (8180/9000) (61200/72000)
Shelf Health CheckStore 321 (12 - 17 September)
18
Drop 1 , Shelf 5 # HFacings# Total
Facings# VFacings # Stock
Drop : Shelf Position
Shelf #Correct
Placement: y/n
6001049110518 BRAND "A" PROCESSED CHEESE SLICES SWEETMILK 400GR 1 1 1 24 1 5 N
6001049110495 BRAND "A" CHEDDAR SLICES 400GR 1 29 1 5 N
6001049110457 BRAND "A" CHEDDAR SLICES 400GR 1 23 1 5 N
6001049110471 BRAND "A" PROCESSED CHEESE SLICES BILTON 400GR 2 30 1 5 N
6001180066767 BRAND "B" BIG EASY SLICE
6001180633783 BRAND "B" SINGLES 200GR 1 1 1 18 1 5 N
600104110556 BRAND "A" BILTONG 200GR 2 3 2 56 1 5 N
6001049110570 BRAND "A" WITH CHEDDAR 2 2 1 45 1 5 N
# HFacings Number of Horizontal Facings touching Shelf
# Total Facings Number of Total Facings
# Stock Complete Physical Count of prd
Fwd ShareForward Share Prd start to Prd end, measurement (cm's)
Drop : Shelf Position Drop 1 furthest to the left = 1
Shelf # Shelf 1 = Top Shelf of Drop for majority or first if a few
Correct Placement: y/n if 1 prd is out of line mark as No
Merchandising Performance
OOS
• costs retailers (4% of annual revenue) & manufacturers(2.5%)
• 30% between factory and store site
• 70% between store stock to shelf (50 m)
• data accuracy
• inaccurate forecasting
• ordering
• shelf capacity and shelf management are pivotal to success
19
Merchandising Performance….
OOS Consequences
• OOS translates to
• brand substitution
• cancel purchase
• buy from another store
• repeated OOS experiences negatively impact brand equity (product and store)
• labour cost, shoppers seeking assistance from packers
• effective execution throughout chain is essential
• impartial tracking and management can translate to significant upside
• real time dashboard to monitor merchandisers
20
Pricing Strategy
21
Regional Pricing
EDLP
Promotional Pricing
High Low
EDLP
22
• promising shoppers low price on selected items without the need to wait for sale price events or comparison shop
• premise is that shopper loyalty is developed
• saves retailer effort and expense of marking prices down
Source: Wikipedia
High Low
23
• products offered are regularly priced higher than competitors
• lower promotional prices are targeted to increase footfall
• shoppers then offered these and other higher prices products
Source: Wikipedia
Pricing Strategy
• tactically important to monitor weekly
• monitor competitors in store pricing and own (compliance)
• introduce promotional pricing when appropriate
• react tactically and strategically
• use science and available intel
24
Promotional Pricing –August 2011
25
R 14.99
R 12.99
R 16.99
R 16.77
R 13.99
R 17.49
12%8%
3%
CHECKERS
HYPERAMA
COMBINED
SHOPRITE CAMBRIDGE FOODS
Clover Fresh Milk 2L
Promotion RSP
R 12.99R 12.99
R 12.99
R 11.99
0%-8%
METRO HYPER PICK N PAY FAMILY
SUPERMARKET
Coca Cola Coke 2L
Promotion RSP
Promotional Pricing –August 2011
26
R 23.99
R 20.99
R 20.99
R 23.99
R 21.64
R 20.99
0%3%
0%
FRUIT-VEG CITY SPAR MAKRO
ACE Super Maize Meal 5kg
Promotion RSP
R 14.99
R 12.99
R 16.99
R 16.77
R 13.99
R 17.49
12%8%
3%
CHECKERS
HYPERAMA
COMBINED
SHOPRITE CAMBRIDGE FOODS
Black Cat Peanut Butter 400g
Promotion RSP
Promotional Pricing –August 2011
27
R 17.99R 17.99
R 19.99R 18.49
R 18.08
R 19.99
3% 1% 0%
CHECKERS
HYPERAMA
COMBINED
SHOPRITE FRUIT-VEG CITY
Selati White Sugar 2.5kg
Promotion RSP
R 17.99 R 19.99R 18.95
R 19.27 R 21.87 R 19.73
7%9%
4%
SHOPRITE PICK N PAY
HYPERMARKET
SPAR
Five Roses Teabags 100
Promotion RSP
Promotions –offering value
• correct products - basket
• 3 for 2 Options
• combo deals
28
Shopper vs. Consumer
• consumer - exposed to holistic, multi-layered communication
• shopper – exposed to rapid communication and transitory, relying on visuals & symbols
• consumer is integral to consumption, driving awareness and visibility, triggering brand identity & communicating specific message
• shopper communication can be used to elicit and support brand equity
• POS signs, displays, in store media are unique to retail
29
Types of Shoppers
30
Future Consumer
• rising inflation constrained by tighter family income
• access to more data to support better purchase decisions
• seeking value through promotions and value buying
• brand stakeholder - SMR
• once in store greater propensity to “buy more”
31
32
Future Consumer
• time poor, data rich
• growing collaborative power – social media
• health, longevity and product source – major
drivers
• price pressure – electricity, fuel, tolls, inflation
• job losses – multiplier effect
CPG Manufacturer Trends
33
• increasing input costs = pressure on margins
• packaging prices are up due to oil price
• energy price increases
• smaller players are experiencing declining volumes
• market pricing more aggressive
• margin pressure resulting in business strategy changes
• imports are increasing as strong Rand makes these products cheaper
• retailers are requesting smaller pack sizes
Ranging
• select product from whole range, including products not merchandised in store previously
• remove poor sellers
• CPG company needs to produce & offer products which sell
• successful ones have done their homework and becoming an essential part of a retailers range is highly beneficial
• store specific meeting a localised need
• best product mix within store parameters (size, customer base, seasonality)
• relevant vs full product range
• dynamic 34
Optimizing brand performance in store
• optimal type of in store communication
• visual brand triggers
• communication on pack
• visibility of packaging
• marketers have traditionally focused on building “brand equity
• brand power in the mind of the consumer
35
Case Study Chocolate Bars Local Market Performance vs.
GDP vs. PCE
36
Market Trends – Count Lines
37
• count lines increased by 17.6% in 2010
• category grew despite the high price increases
Growth seen in this sector attributed to the following;
• active participation of major players in promotional activity
• advertising campaigns
• outdoor advertising
• promotional competitions
• sponsorships by leading manufacturers of count lines
• new packaging designs
• soccer world cup centred promotions
• price promotions
Advertising, promotional activities, innovation
Market Trends – Health Bars
38
• health bars increased 4.5%
• general retail remains the most popular
distribution channel for health bars
The growth seen in this category over the years
could be attributed to the following;
• product innovation such as the reformulated
of Special K bars
• introduction of new brands and new flavours
39
% Share of PrintNo Ads by Retail Group
FoodsNov – Dec 2009 vs. Nov - Dec 2010
44.1%
33.2%
8.5% 8.0%
4.1%
1.5%0.5%
51.7%
29.0%
7.3% 6.6%
3.1%1.9%
0.4%
0%
10%
20%
30%
40%
50%
60%
Shoprite Pick 'n Pay Spar Massmart Fruit-Veg MetCash Woolworths
2009
2010
During the festive season when the overall ad spend is
expected to be higher year-on-year, only Shoprite and
Masscash increased advertising spend significantly. Perhaps
a sign of the slow recovering economy
Total Market Spend 2010 = R160 mil
Total Market Spend 2009 = R145 mil
40
Ads by Product Group and Retail Group in 2010
Nov - Dec 2009 vs. Nov - Dec 2010
37.6%
4.2%5.0%
20.0%
3.2%1.9%
4.5%
1.3%0.3%
2.8%1.6% 2.1%
1.1%0.3% 0.1%
1.4%0.3% 0.1%0.3% 0.0% 0.0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
NUTRITION REFRESHMENTS CONFECTIONERY
Shoprite
Pick 'n Pay
Spar
Massmart
Fruit-Veg
5.2%
2.5% 2.3%
32.2%
23.4%
3.0%
1.9% 0.9%0.3%
2009
2010
41
R 0
R 1 000 000
R 2 000 000
R 3 000 000
R 4 000 000
R 5 000 000
R 6 000 000
R 7 000 000
SHOPRITE PICK N PAY MASSMART CLICKS SPAR
2010Q1
2011Q1
Shoprite Continues
Advertising Spend
Adspend by Retail Group Confectionery
Jan – March 10 vs. Jan – March 11
Total Market Spend 2010 = R 8 mil
Total Market Spend 2011 = R 9.6 mil
42
R 0
R 500 000
R 1 000 000
R 1 500 000
R 2 000 000
R 2 500 000
R 3 000 000
R 3 500 000
R 4 000 000
R 4 500 000
R 5 000 000
CHOCOLATE ASSORTMENT CHOCOLATE BARS SLABS CHOCOLATE COUNTLINE SWEETS
2010Q1
2011Q1
Increase in spend
driven by Shoprite
Adspend by Category
ConfectioneryJan – March 10 vs. Jan – March 11
Total Market Spend 2010 = R 8 mil
Total Market Spend 2011 = R 9.6 mil34%
30%26%
-14%
43
Ad spend by BrandChoc Assortment Top 15
Jan – March 10 vs. Jan – March 11
R 0
R 100 000
R 200 000
R 300 000
R 400 000
R 500 000
R 600 000
R 700 000
R 800 000
2010Q1
2011Q1
Cadbury decline by all Retailers
Ferrero Increase driven by PnP
Tiffany, Whitakers, Diamond, Hollander,
Azure – Shoprite Housebrand
11%
-50%
5%
-10%
Total Market Spend 2010 = R 3.4 mil
Total Market Spend 2011 = R 4.7 mil
R 0
R 100 000
R 200 000
R 300 000
R 400 000
R 500 000
R 600 000
R 700 000
R 800 000
2010Q1
2011Q1
Cadbury increase - PnP & Massmart
(Game)
Beacon decline – PnP & Clicks
+165%
50%
-34%
Adspend by Brand SlabsJan – March 10 vs. Jan – March 11
Total Market Spend 2010 = R 1 mil
Total Market Spend 2011 = R 1.26 mil
R 0
R 100 000
R 200 000
R 300 000
R 400 000
R 500 000
R 600 000
R 700 000
2010Q1
2011Q1
Nestle decline – PnP, Massmart &
Clicks
Cadbury increase – Shoprite
39%
7%
400%
-26%
166%
Adspend by Brand Count lineJan – March 10 vs. Jan – March 11
Total Market Spend 2010 = R 1.5 mil
Total Market Spend 2011 = R 1.9 mil
R 0
R 100 000
R 200 000
R 300 000
R 400 000
R 500 000
R 600 000
R 700 000
R 800 000
2010Q1
2011Q1265%
36%
-25%
-15%
Adspend by Brand SweetsTop 10
Jan – March 10 vs. Jan – March 11
Total Market Spend 2010 = R 2 mil
Total Market Spend 2011 = R 1.8 mil
Beacon decline – All
Manhattan decline – Shoprite
Sally Williams (Nougat) Spend – Shoprite
Wedgewood (Nougat) Spend– Shoprite & PnP
Inflation/DeflationPromotional Pricing
Top 20 Promoted SKU’s Jan – March 10 vs. Jan – March 11
SKU 2010 2011 % Inc/Dec
BEACON PREPACKS 400 GRAMS R 16.99 R 14.99 -11.77%
BEACON MARSHMALLOWS 400 GRAMS R 9.99 R 8.99 -10.01%
BEACON CHOCOLATE SLAB 100 GRAMS R 5.99 R 5.49 -8.35%
BEACON CHOCOLATE SLABS 100 GRAMS R 5.99 R 5.59 -6.68%
BEACON MARSHMALLOWS 150 GRAMS R 4.99 R 4.79 -4.01%
BEACON MARSHMALLOWS 125 GRAMS x 4 R 20.00 R 20.00 0.00%
BEACON FAVOURITES 200 GRAMS R 21.99 R 21.99 0.00%
FERRERO ROCHER 200 GRAMS R 39.99 R 39.99 0.00%
BEACON CHOCOLATE SLAB 200 GRAMS R 9.99 R 9.99 0.00%
MANHATTAN MARSHMALLOWS 150 GRAMS R 4.99 R 4.99 0.00%
BEACON CHOCOLATE SLABS 200 GRAMS R 9.99 R 9.99 0.00%
CADBURY ENDEARMINTS 120 GRAMS R 5.99 R 5.99 0.00%
WILSONS JELLY TOTS 100 GRAMS R 4.99 R 4.99 0.00%
NESTLE PASSIONS CHOCOLATES 300 GRAMS R 39.95 R 39.99 0.10%
CADBURY CHOCOLATE SLABS 90 GRAMS R 6.79 R 6.89 1.47%
CADBURY CHOCOLATE SLABS 180 GRAMS R 12.49 R 12.99 4.00%
CADBURY WHISPERS 150 GRAMS R 18.99 R 19.99 5.27%
CADBURY MILK TRAY 250 GRAMS R 34.99 R 36.99 5.72%
CADBURY WHISPERS 200 GRAMS R 22.99 R 24.99 8.70%
Case Study - Bottled Water
48
40.1
42.1
35.6
13.4
13.1
5.0
32.8
33.4
30.4
4.9
3.3
4.2
0.0 10.0 20.0 30.0 40.0 50.0
2005
2006
2007
2008
2009
2010
Annual Volume Growth Annual Value Growth
Value growth has consistently outstripped volume growth for many years, with cost-pull
inflation pushing up bottled water prices.
Recession derailed
double
digit growth path
Bottled Water vs. GDP vs. PCE
49
32
.8%
33
.4%
30
.4%
4.9
%
3.3
%
4.2
%
4.9
%
5.0
%
5.1
%
4.0
%
-2.7
%
1.8
%6.9
%
8.2
%
7.0
%
5.5
%
-1.3
%
-0.9
%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
2005 2006 2007 2008 2009 2010
% Growth Category % GDP Growth % PCE Growth
Bottled Water Trends
50
• bottled water up 27.0%p.a (1998-2007)
• growth in popularity of bottled water was exceptional
• increase of 33.3% in 2009 & 4.2% in 2010
• recession translated into a decline in growth for bottled water
• limited players who had entered the market were forced to close down as the market became more competitive
• cost-pull inflation pushed up bottled water prices
Future Category Demand Segment Sizing Forecasting
• new Segment Sizing Projection Model (SSPM)
• model predicts product demand by volume & value for selected segments
• LSM, Age, Gender, Ethnic group, Region and many other segments
• this model offers great speed – speed is pulling & calculating figures to allow more time for insights
• minutes rather than days or weeks
• any sector & offers a complete solution for population dynamics
• brand owners can now predict future volume demand of both the product category & brand
• AMPS can be easily adapted to transfer the relevant data for other sources, Homescan or Continuous Tracking
51
52
BMI Segmentation Model –Bottled Wine 2009
LSM 4 LSM 5 LSM6 LSM 7
1 POPULATION 8 412 404 7 915 121 5 566 786 2 808 067
2 TOTAL MARKET (KL) 16 862 22 190 30 469 15 029
3 % VOLUME 11.8 15.5 21.3 10.5
4 PCC per annum ( 2/1 ) - ml 2 004 2 803 5 473 5 352
5 % USING 3.7 4.6 4.6 5.3
6 NO OF USERS ( 1/5) 313 550 363 096 257 971 149 691
7 USER PCC per annum ( 2/6) - ml 53 780 61 113 118 113 100 401
8 PCC ' UNITS ' per day 147 167 323 274
53
BMI Segmentation Model –Bottled Wine LSM 7
2009 2010 2011 2012 2013 2014
1 POPULATION 2 808 067 2 785 877 2 764 057 2 742 844 2 722 848 2 703 987
2 TOTAL MARKET (KL) 15 029 15 956 15 759 15 665 15 473 15 186
3 % VOLUME 10.5 10.8 10.7 10.7 10.7 10.6
4 PCC per annum ( 2/1 ) - ml 5 352 5 727 5 701 5 711 5 682 5 616
5 % USING 5.3 5.13 4.9 4.6 4.3 4.1
6 NO OF USERS ( 1/5) 149 691 142 851 134 521 126 083 117 812 109 695
7 USER PCC per annum ( 2/6) - ml 100 401 111 698 117 154 124 249 131 344 138 439
8 PCC ' UNITS ' per day 274 305 320 340 359 379
Retail Renaissance - Tesco Mobile Application
54
• scan barcode
• check stock availability
• select delivery date
• offer price
• enter quantity
• check out
• delivery
www.tesco.com
55
Retail Renaissance
• OFF=ON: How the benefits of shopping online can now be had offline by consumers too.
• RETAIL SAFARI: How experiences still rule.
• INSTANT STATUS FIX: How shopping in the real world delivers instant status gratification in a way that online (still) can’t.
• CITYSUMERS: The future of consumerism is urban, and urban culture is retail culture. On a global level.
Source: trendwatching.com
56
Bringing the best of online to the real world
In February 2011, JC Penney, the US department store, rolled out its findmore service to 120 stores across the US. In-store, 42 inch touch screens allow shoppers to view the retailer’s full online catalogue, check inventory levels in local stores, share products with friends and scan product bar codes to receive extra information and complementary product recommendations.
Source: trendwatching.com
57
Retail Renaissance
•Singapore-based mobile operator SingTel launched their flagship store in
Singapore’s Comcentre in July 2011. The store’s exterior glass walls have
embedded interactive digital touchscreens in them, meaning that the store is
effectively open 24/7 Source: trendwatching.com
58
Retail Renaissance
•Home plus, the Korean branch of Tesco, recently launched a series of virtual
stores on subway platforms, enabling customers to make purchases using their
smartphones while they wait for a train. During the campaign, Home plus online
sales increased by 130%, with over 10,000 customers trying the stores.
Source: trendwatching.com
59
Retail Renaissance
•US drugstore Duane Reade opened a flagship store on Wall Street in July
2011. As well as a pharmacy and onsite doctor, the store contains hair and nail
salons, virtual makeover kiosks, secure cell phone charging stations for
customers while they shop, and a shoe shine service (the latter's proceeds
going to charity).Source: trendwatching.com
60
Retail Renaissance
The Financial Times reported in July 2011 that Tesco, the UK based supermarket was piloting free in-store wifi, allowing customers to check prices online and read product reviews. Nordstrom, Sam’s Club and Home Depot in the US already offer similar services in many stores.
Source: trendwatching.com
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Retail Renaissance
The Financial Times reported in July 2011 that Tesco, the UK based supermarket was piloting free in-store wifi, allowing customers to check prices online and read product reviews. Nordstrom, Sam’s Club and Home Depot in the US already offer similar services in many stores.
Source: trendwatching.com
So what’s new?
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