Redesigning Supermarkets to Better Engage Shoppers
We know consumers are all about VALUE and PRICE these days and are watching every penny. Yet, Kevin Kelley, Founding Partner and Principal of Shook Kelley, reminded the audience at an FMI Customer Connect workshop this week that consumers still snap up items like iPhones, iPads, gourmet coffee, and tickets to Avatar, spending money when they really want something. Kelley believes consumers have become internet-empowered experts at categorizing products as commodities or products that provide meaningful experiences. So, retailers either have to become proficient commodity sellers or drive sensory rich experiences that connect with consumers physically, socially and emotionally.
Yet, supermarkets often look old-fashioned -- laid out with long, narrow aisles, accompanied by old-fashioned signage, lighting, and merchandising. Consumers hurry in and out of these stores as fast as they can. Kelley advises recreating the shopping experience and cited several examples of brands and retailers that were able to re-engage shoppers by breaking up traffic flow and encouraging shoppers to linger in more appealing spaces.
- A redesign of Nabisco cookie and cracker sections, for instance, made them look more like kitchens, complete with kitchen tables, drawers, wood strips and menu cards. Female shoppers in particular felt that the areas reminded them of home and that they felt neat, attractive and unique. "Bump outs" were added to aisles to break the traditional pattern and literally give shoppers the opportunity to pull their carts out of traffic to linger. Passageways were created between aisles to create more random traffic flows and encourage shoppers to meander instead of barreling down an aisle in a hurry to get out. Sales went up in double digits.
- Kelley feels the front end often provides a terrible experience for shoppers, who see the checkout as a loading dock and actually develop "line rage" as they wait for pokey shoppers to write checks, pick a line, etc. Since retailers really can't make the checkout process fast enough to meet shoppers' standards, the idea is to redesign the area to better entertain shoppers while they are in line and give them opportunities to pick up "grab and go" items.
- Convenience stores have problems too, and often are designed in hodge-podge fashion. They have merchandising elements that don't work together, and their food offerings and consumption areas have limited appeal. Meanwhile, operators like Trader Joe's and Fresh & Easy are doing a good job of providing quality food and a convenient experience. Kelley suggests redesigning c-stores so that they are circular, with a sense of movement, and focusing on key sections with L-shaped pods rather than traditional aisles.
So, it really comes down to making the store look better, either one aisle or category at a time, or via redesigning the whole store. Still, a May 10 article in Supermarket News makes the case that in order to appeal to 'convenience shoppers,' supermarkets need to make the store easier to shop, which could mean helping shoppers get in and out more quickly, vs. encouraging them to linger.
One area where Kelley and Bill Bishop (quoted in the SN article) seem to agree is the idea of putting items such as milk, bread, and commonly purchased items near the front to improve ease of shopping. In this same article, John Rand of Management Ventures notes that "the store is set up to be efficient for the operator, not for the shopper."
Discussion Questions: Should supermarkets be redesigned to encourage shoppers to linger or to get them in and out more quickly? What should operators consider when thinking about redesigning sections of the store vs. overhauling the entire store?