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Today contactless, tomorrow via smartphone, time and convenience are driving customers to digital payments

By
fabrizio.gomarasca
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A future of digital payments, which will see the smartphone taking on an increasingly important role. That’s the forecast of Carlos J Menendez, President Enterprise and Growth Partnership at MasterCard. While mobile shopping, transportation and restaurants seem to be at the forefront of the new wave of quick and easy payments, supermarkets are far from being excluded. Payment is contactless already on a daily basis in Australia, Canada and Poland. Because “new” shopping is more frequent, the cart is smaller and customers short of time want it to be even faster. Hence, having overcome the security concerns, the demand for time saving solutions. And the younger generation is the first to request it.

Also in Italy, which has always had a very high density of mobile phones and smartphones but with one of the lowest uses of digital payments in Europe, the consumer seems ready. From the Mastercard survey on the analysis of social interactions, Italians particularly show their appreciation for digital payments when the shopping experience concerns consumer technology (99%), travel (98%) and fashion (97%). The most discussed topic is the convenience of digital payments (34%), followed by the possibility of obtaining benefits and additional services (29%) and by customer service (14%). According to Fabrizio Burlando, Head of Europe Mastercard “we must explain to the consumer what are the advantages of using the card. Today there are 250 thousand contactless cards on the market but in fact, compared to other European countries, we have skipped a generation in terms of use of digital payments. A delay that could be bridged thanks to the use of mobile payments, given the great national affection towards smartphones and the like”.

Relying on this and to further drive use, especially by small shops, Mastercard has chosen Italy for the launch a new service, Local Market Intelligence. Presented at the World Retail Forum 2015, it provides a geolocalised analysis of competitor data “because the benefits of digital payments on the retailer side may not be immediately obvious, but they are there, for example, in terms of analysing customer data, useful for repositioning the offer where necessary and better following the market” explains Burlando. Local Market Intelligence is a platform that allows a better understanding of business performance through data analysis, processed in anonymous and aggregate form, enabling the transformation of big data into information useful for businesses. The analytics used by the platform analyse the transactions made with credit cards in urban areas that represent a temporal, geographical and product category benchmark, providing SMEs with information essential to better understand the market and improve their business strategies.

Patrick Dodd (Nielsen): “Customisation is the future of retail”

By
fabrizio.gomarasca
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During the World Retail Congress we interviewed Patrick Dodd, who is the Nielsen Global President Retailer Vertical. In this role Dodd has a broad view of the changes taking place in retail at the global level.

For Dodd, the transformation of retail (the theme of the WRC) involves the consumer and the power in the hands of every shopper, never so strong, thanks to connectivity. “The shopper is at the centre of the transformation and is the key to the success of every retailer, regardless of the channel”.

In the omnichannel debate, Dodd focuses attention precisely on technology and its simplification and uses the example of proximity stores, which are becoming successful everywhere. “The next step of proximity – he says – is the smartphone that we all have in our pocket. I think that companies should devote a little more time to thinking about how to transform the retail experience on mobile platforms in a way that is as simple as possible for the consumer”.

According to Dodd, there are two main concerns for retailers: how to manage omnichannel in a profitable manner and, at the same time, how to make promotions profitable through customer loyalty.

But also manufacturers are involved in the retail transformation: “The industry has a great opportunity and must take steps at the earliest in order to have a multi-channel role. Having specific offers for the different channels and the different purchasing paths of individuals will be the key to governing growth. This means, however, also having the ability to change business processes with flexible models. The days of the model valid for everyone are over. The future is in customisation”.

 

Finalists of the 2015 World Retail Awards

By
fabrizio.gomarasca
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As every year during the World Retail Congress (Rome, 8-10 September) the prestigious World Retail Awards will be assigned, divided into the five categories of the Retailer of the Year super award.

There are only two Italians present: Yoox Group in the eCommerce Retailer of the Year category and Coop with ‘Chiedilo alla Coop – Ask Coop’ in the Retail Advertising Campaign category. The other categories are: Young Retail Entrepreneur of the Year, Retail transformation and reinvention concerning activity re-engineering and restructuring projects with a view to sustainable growth, and Store Design. The lists of those selected for the other two categories – Retail Transformation of the Year and Retailer of the Year – will be revealed shortly.

Ian McGarrigle, President of the World Retail Congress, said: “We are very pleased to see so many participants in each category. Once again, the calibre of the finalists is really exceptional with a variegated representation of the retail world. It will be difficult to determine the final winner in each category; we are nevertheless very grateful to all those who participated.”

In the Store Design category there are six finalists, all very representative of retail trends, from food to luxury goods, from games to sport and cars. These last two (Rockar and Rose Biketown) are a remarkable example of multi-channel and integration between on-line and off-line channels. In particular, Rockar represents a possible revolution in the way cars are sold.

 

Store Design of the Year

– Galeria Melissa, London. Muti Randolph and IDL: Architecture
– Hamleys World, Moscow by Fitch
– Mad Cooperativet, Copenhagen by COOP Denmark inhouse concept design team and Cada Design
– Markthal, Rotterdam by MVRDV and Designers Winy Maas
– Rockar, Bluewater, UK
– Rose Biketown, Munich by Blocher & Blocher

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These are the other finalists

Young Retail Entrepreneur of the Year
Sponsored by MasterCard


– Kunal Bahl, co-founder, Snapdeal
– Nitin Passi, founder, Missguided.com
– John Winning, CEO, the Winning Group
– Bahman Nedaei, Zahir Dehnadi, co-founders, Navabi
– Gökhan Meriçliler, founder, Poi

 

Retail Advertising Campaign of the Year

– Continente for “Going to Continente Makes it Worth Your While”. By Fuel
– Coop Italy for “Chiedilo alla Coop”. Y&R Italy
– Intel for “Get In The Mix with NE YO”. Arc Worldwide/Leo Burnett Chicago, Chicago
– M&S Food for “Adventures”. RKCR/Y&R
– M&S “For Every Milestone”. RKCR/Y&R
– Watsons Taiwan for “Have a cozy and lazy life with Gudetama”. By Dentsu Taiwan

 

eCommerce Retailer of the Year
Sponsored by JDA

– Appliancesonline, Australia
– JD.com, China
– Jumia, Nigeria
– Matchesfashion.com, UK
– Michael Hill Jewellery, Australia
– Mudo, Turkey
– Yoox Group, Italy

The advance of the “Grocerants”: John Lewis opens more Rossopomodoro restaurants

By
fabrizio.gomarasca
-

Saving time, quality and health, but also convenience: these are the factors that are driving the advance of the “Grocerants”, i.e. restaurants, refreshment areas and bars opened inside a supermarket (Grocery stores, hence the “mishmash word”). A trend which in countries such as Canada, the US and the UK is booming. And which is much appreciated by Millennials: foodies, in a hurry and often skipping meals just to keep up with their social or business commitments, and who appreciate stores able to have a “holistic approach” to food. Above all, they appreciate the opportunity to save time by having a bite while shopping.

The latest confirmation comes from John Lewis, a British high-end store, which has decided to introduce another ten Rossopomodoro restaurants (in the picture the last opened in London) and Joe & the Juice cafés within the next year in its stores in the UK. The two chains are also present with temporary premises on the summer terrace of the John Lewis flagship store in Oxford Street in London, which already has two Ham Holy Burger and Rossopomodoro restaurants.

According to Carman Allison, VP of Nielsen Consumer Insights, the presence of fresh and healthy ingredients is one of the keys to success, along with a diversified offer designed to meet the tastes of increasingly demanding and curious foodie customers. “Supermarket sales are static and people tend to spend more on eating out. Retailers are trying to intercept this market”.

The ideal offer is that which includes fresh food, sushi and salads, but the more savvy retailers are starting to “create environments”, perhaps with a “fireplace corner” that makes customers feel like they are “in a restaurant”, but also lets them just drink a glass of wine or a beer as an aperitif, as already happens at Eataly Smeraldo.

The strategies are different: the store can sign a partnership with veritable chains which are already structured, as John Lewis did with Rossopomodoro, but also “supply” the catering area with the offer of the store, for example by offering a sushi at the fish counter or even cooking the fish purchased by the customer who can sit down and eat on site. Multifunctional areas are on the rise, such as the new Sapori&Dintorni in Naples which, in the Gourmeet area, works alongside a bistro and “Bombe”, a restaurant designed by the Michelin three-star chef Niko Romito and managed by the students of his cooking school, where you can buy its famous street food.

Millennial dads shop online for leading brands and in the premium segment

By
Anna Muzio
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They are more optimistic about the general economic situation and their own finances, willing to spend more without getting lost in tedious price comparisons and, above all, are becoming increasingly involved in shopping for the home, including that concerning their children: they are the “new fathers “, those of the Millennial generations, between 25 and 34 years of age. An audience, according to marketing research, which is decidedly interesting, especially for the premium segment, because they more easily allow themselves to be persuaded to spend more, are influenced by the brand and tend where possible to purchase online. So the industry and retailers should start looking more attentively at this target, also for products, such as those for children for example, traditionally considered “mum-centric”. And they would do well to develop effective multi-channel strategies to intercept them.

A survey by Initiative on Millennial dads (from which the infographic below is derived) shows some interesting data. 45% of “new dads” think that brands play an important role in their lives (compared to 39% of men without children), so much so as to be inclined to recommend them (65% of them do, compared to 56% of non-dads and 60% of mums). They are hyper-connected, more than any other group: 62% have three or more devices, and 82% have a smartphone, from which they carry out most of the product research. The young fathers are also sensitive to corporate social responsibility, and are optimistic about the future: 62% think that companies have the potential to do good, and 58% feel more loyal towards brands that prove they have implemented positive initiatives for society. We are talking about a group that in the near future will constitute the majority of families with children, and whose influence is thus expected to increase.

The survey was carried out by interviews with over 5,000 dads in the range 25 to 34 years of age in 19 countries, including Italy.

Millennial_Dads_Infographic

The Kantar top 50 global retailers: first three confirmed, Tesco loses ground. Amazon grows the most

By
fabrizio.gomarasca
-

According to the Kantar Retail ranking of the top 50 global retailers, Walmart, Carrefour (despite a reduction in the CAGR – compound annual growth rate – of 3% for the period 2009-2014) and Costco are reconfirmed at the top, while Tesco exits the select group of the top five. The distance between Walmart, which recorded sales of over 512 billion, and the other two leaders whose sales amounted to just over 115 billion dollars, is significant.

Kantar sticks its neck out by providing an annual growth forecast for the period 2014-2019: while for Carrefour it is of the order of 3%, for Costco it is 7%. An exchange of positions, therefore, could be imminent.

As for the other highlights, the Russian Magnit and Canada’s Loblaw’s record the highest increase in position in the ranking, while Sears, Morrisons and Safeway are the retailers who fall most significantly.

Analysing the data, rather striking is the presence of Amazon which, with more than 87 billion in turnover, recorded an annual growth of 30% between 2009 and 2014, destined, according to the Kantar forecasts, to fall to 13%.

To stay in Europe, Tesco is feeling the pinch and exits the select group of the big five, replaced by the German Schwarz Group (Lidl), along with the Metro Group which, during the five years in question, suffered a decrease CAGR of 1%, and the Dutch Ahold with an annual decrease of 4% per year and which is in negotiations with Delhaize for a possible merger.

(click on the image to enlarge)

Kantar_Retail_Top_50_Global_Retailers_2015

Nielsen: consumers are changing, smaller stores are becoming more popular

By
Anna Muzio
-

“Channel hopping” is a well-established practice in the new multi-channel consumer, who easily goes from discount stores to supermarkets, from the farmers’ markets to online stores for his purchases, but with which rationale? Investigating the intricacies of the mind of this new anthropological species is the latest Nielsen retail and e-commerce “The Future of Grocery” survey, carried out on 30 thousand consumers in 60 countries. Which also it reveals that, while the large stores for now remain dominant, small stores (and it is no surprise: we see it also with our neighbourhood supermarkets) are the most dynamic. In terms of value, super and hypermarkets account for 51% of global sales. The survey highlights the regional differences, but the smaller stores, small supermarkets and traditional stores, have grown more in the last 12 months (4 to 6% compared to 2% for the larger stores). “Worldwide we are seeing the growth of neighbourhood retailing – said Patrick Dodd, President, Global Retailer Vertical, Nielsen – In the eyes of the global consumer, at the moment, small is beautiful”. The influence of e-commerce on the concept of proximity and convenience is evident, but the fact remains that the smaller stores are growing in all markets, developed or developing, and are mainly used for small urgent purchases or particular products. It is therefore interesting to consider how the product category in fact influences the choice of channel for “physical” shopping. In mature markets, where 61% of sales in large stores are concentrated on personal hygiene products, 62% on food and beverages and 79% on household products, convenience stores have interesting market shares of approximately 20%. In all three categories, the highest growth was recorded in small stores, with a tendency to fragmentation. In the food sector, it is precisely traditional stores and kiosks that are meeting the needs of speed and convenience. Price above all, but also product quality influences “channel hopping”. “Large supermarkets and hypermarkets are important players in the global retail landscape, and will continue to be so in the future – said Dodd -. But smaller stores have an important share in certain categories and are growing in others. Distribution efforts should focus on a mix of both, understand where the consumer buys and for which categories, provide the necessary insight to develop more precise distribution strategies for each market”.

The ideal ten commandments of the supermarket for consumers

By
fabrizio.gomarasca
-
IperConad di Corciano (PG)
M. Dona,jpg
Massimiliano Dona

During the conference presenting the Sustainability Report of modern distribution organised by Federdistribuzione, the general secretary of the Italian National Consumer Union, Massimiliano Dona, highlighted the possible risk of the report being self-referential, albeit acknowledging the merits of the effort to measure an entire industry.

Dona, who cited the results of a study of the Consumer Union on users’ desires, went on to encourage modern distribution to do more in the eyes of the consumer. He cited the ten things that supermarket customers would like to see improved.

1) INTERACTION. Envisage more effective interaction tools with customers: not only with the traditional feedback point at the supermarket (or the call center), but also Apps and other digital channels, such as social networks;

2) INFORMATION. More information on the origin of products, also beyond the legal requirements, starting with the introduction of information on the production plant on the label;

3) CHECK-OUT COUNTER DISPLAYS. Prohibition of placing products for children at checkouts, so as not to encourage impulse purchases by the younger one’s;

4) ITINERARIES. Arrangement of products inside the store according to consumer needs (and not according to the supermarket’s visual merchandising techniques): therefore, first mineral water, to avoid crushing other products, then canned products, followed by fresh produce such as cheese, fruit and vegetables, and finally frozen foods near the checkouts, so as not to break the cold chain;

5) PLACEMENT. Commitment not to change the placement of products only to confuse consumers and force them to wander around the aisles;

6) PRICES. Indication of the cheapest product to facilitate the shopping of those looking for the lowest prices;

7) ENVIRONMENT. Commitment to environmental sustainability: from the use of recyclable materials to containers for the collection of used batteries, from the prohibition of using PVC film for cold cuts and cheese to the installation of thermometers visible to the public in freezers, as well as proper collection of WEEE;

8) TRAINING. Serious investment in store staff training, also introducing new types of customer assistants that can direct consumers to find products on the shelves and provide the information necessary for value-for-money purchases;

9) RECEPTION. Better customer reception: from the availability of signage on warranty and after-sales rights to the presence of “green” labels and products for special consumer needs, from the reduction of checkout queues (offering reserved or automated tracks), to the availability of WiFi areas or those for charging smartphones or tablets, as well as places equipped for minors or the elderly;

10) CERTIFICATION. Certification by consumer associations of the quality of information, feedback services and product safety (for example, through inspections or mystery shopping in order to achieve the issue of a trustmark).

 

With Sapori&Dintorni in Milan Central Station, Conad has launched the leadership race in Northern Italy

By
fabrizio.gomarasca
-

The new Sapori&Dintorni store opened in Milan Central Station is something more than a new outlet for the Conad strategy. “With this store we begin our quest for leadership in the North” said the CEO of Conad, Francesco Pugliese, sending a strong message to its cousins, Coop Italy.

True to the Sapori & Dintorni concept, this store will welcome visitors to Expo with the best of Italian food excellences, so much so that the leitmotif reiterated on many occasions by Pugliese is that promotion will be of the products and not on the products. As if to say that what is needed today is attention and care with regard to the products that represent the best of Italian agrifood and not trivialization on prices. A vision that is slowly making ground in distribution, where the wounds of the price war have also started to infect the healthy tissue of private label products.

It should be noted that Sapori & Dintorni is the Conad brand that offers typical local products (but there is also a laboratory for the preparation of sushi) from a selection of qualified producers: the store in Milan Central Station – over 3500 products, open from 7 am to 10 pm – will offer Viaggio in Italia (Italian Journey), a different “traveller’s basket” every day to promote all the local specialities. Sapori&Dintorni, recalled Pugliese, adopts a competitive price policy but with a high quality, so much so that the profitability of the eight stores, with a total turnover of 500 million euros, is the highest in the market: 24,000 euros per sqm.

Schermata 2015-04-29 alle 12.20.52 Schermata 2015-04-29 alle 12.21.13 Schermata 2015-04-29 alle 12.21.33 Schermata 2015-04-29 alle 12.22.40

 

 

 

Self-scanning with your smartphone at Intermarché

By
fabrizio.gomarasca
-

Inaugurated at the end of January, the Intermarché supermarket in Mairie d’Issy features an interesting innovation which, in a not too distant future, could become a standard everywhere: self-scanning with your smartphone.

The 1,000 square metre store offers 15 000 products with a natural emphasis on fresh produce and branded products, adopts solutions with low environmental impact, such as 100% LED lighting, doors on all fridge windows and separate plastic and cardboard waste collection.

But what sets the Les Mousquetaires supermarket in the Paris suburbs apart is that it is the first supermarket in the world to adopt self-scanning with your smartphone and an App. By bringing the phone close to the NFC electronic label on the shelf, the customer records the price of the product on his virtual receipt. If, on the other hand, the device is not NFC, the product is recorded in the traditional manner by scanning the bar code. Always on the smartphone, the specific App proposes customised promotions. You then pay at a reserved checkout. The application received an award at last edition of the NRF in New York.

The store also introduces other innovations: a Columbus Café (a absolute first for Intermarché), soon to be followed by a drive and a smart service, targeted to those who work in the vicinity: i.e. the possibility of storing shopping done before going to work in a special cold room and then collecting it in the evening.

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