In the past few months I’ve written a number of posts criticizing some of the largest retailers in the world for being slow to adapt to changing shopping habits. Shoppers are definitely changing, shopping trips are fragmenting, yet too many stores I visit look pretty much the same as they did ten years ago (perhaps with a few more promotional deals!) But that isn’t always the case, and a recent trip to Amsterdam showed the contrast between retailers who were responding to changing shopping habits, and those that weren’t. A contrast of a couple of really awful retail stores, and some great ones which have showed that it is possible to innovate in grocery retail. These retail stores create differentiated shopping environments that reflect the reality of what shoppers want today from retail stores.
First – The not so good: Two retail stores stuck in a time warp
My first stop was to a retail store operated by Albert Heijn, the market leading supermarket chain in The Netherlands. Perhaps I hit the retail stores on a bad day, or perhaps (both of) the stores I visited were poor examples. But these stores defined for me so much of what is wrong with too many large chain supermarket retail stores. Take a look at the out of stocks (I could have shown several other photos!). The shelves, where full, are pretty standard, and probably haven’t changed very much in the last decade!
And yes, there is a lot of signage, to be fair, showing (some) appetizing images of food. But look how high up they are! I only noticed it when I reviewed the images for this blog. How many shoppers actually see them and respond to them, or do they just add to the overall cluttered feel of the stores?
Innovative retail stores – Jumbo Food Markt, Amsterdam
A short drive away in North Amsterdam there is another supermarket retailer which has taken a very different approach. Still competing on price, they have attempted to create a far more interesting and engaging shopping experience.
Fresh is massively expanded, recognizing that to many shoppers, this is where a supermarket can add value. Packaged grocery can be bought on line, or at discounters perhaps, but fresh? That’s a different matter. And yes, that is a pizza oven you can see: ready to eat food is clearly seen as a differentiator for shoppers here.
Even in the more traditional supermarket aisles efforts have been made to make shopping engaging and easy. Single can sodas in a gravity feed unit – I just had to buy one (and I rarely drink soda!) Here (in a market with a very healthy tradition of craft beer) the category is explained simply.
The wine aisle is a little less exciting, but still has a clean feel, differentiated by a wood-style finish, and again informative signage. And look how wide the aisle is – allowing plenty of space to browse and creating a more open, less claustrophobic feel.
I’m no expert on the Amsterdam retail scene, and I may be being very unfair on Albert Heijn (though many of the people I met at the conference assured me I was not). The Jumbo effort – a large chain in their own right -shows that large retail chains can create great retail stores, with engaging and value adding shopper experiences. They do this by really understanding their shoppers, how shopping behavior has changed, and what it takes to create great retail stores.
Innovative retail stores recognize that retail marketing is about targeting shopper segments
The next example is a super little store that would have struggled to exist before shopping basket fragmentation had taken place. Marqt is a chain of organic and specialist foods, which covers most of the bases of a supermarket. They have packaged goods and fresh, butnothing that you would find in Alber Huijn (or Jumbo for that matter). It has a high street location, and (based on the shoppers I saw) caters to shoppers picking up a few items that are particularly important to them. One or two purchased large baskets full of goods, but most picked up a few items to top up a main shop completed elsewhere.
The last store I visited was a Lidl. Not an innovative retail store by any stretch, but an interesting juxtaposition with the Albert Heijn stores I visited on the same day. Not a single line out of stock, and signage which is bright, at eye-level, and unmissable. They have fresh (not out of stock!).
Traditional supermarkets such as Albert Heijn really need to step up their game if they are not to lose shoppers to the twin threat of efficient discounters and engaging, more shoppable alternatives.
Do you have any examples of great retail stores? Please share in the comments section below.
Title image: Flickr
