Guide

www.retailanalysis.igd.com | retailanalysis@igd.com | +44 (0) 1923 851 956 |

@retailanalysis

© IGD 2013
Hello and welcome
This guide is from IGD’s Retail Analysis service – your online
source of insight on retailers, markets, ...
Tesco Extra Watford – an introduction
•

Image Source:
Tesco WatfordIGDlocated Google mapsnorth west of
is Research, 20 mi...
Facts & figures
Tesco Extra Watford: key information
Date & time of IGD visit

13 August 2013 (08:30 – 10:30)

Store forma...
Key store initiatives and features
Re-establishing the ‘Extra’ difference

‘Food first’ in action

Stronger category autho...
Tesco Extra Watford store layout

Beauty &
Personal Care

Baby &
Toddler

Electricals &
Entertainment

Cookshop &
Dining

...
Re-establishing the ‘Extra’ difference

Exclusive services delivering something ‘Extra’
•

Image Source: IGD Research, Tes...
Re-establishing the ‘Extra’ difference

Giraffe restaurant promotes leisure appeal
•

Image Source: IGD Research

As part ...
Re-establishing the ‘Extra’ difference

Euphorium brings theatre to store entrance
•
Image the entrance Tesco’s new bakery...
Re-establishing the ‘Extra’ difference

Harris + Hoole modernises the in-store café offer
•

Image Source: IGD Research

T...
‘Food first’ in action

New layout brings food to front of store
•

Image Source: IGD Research

In April 2013 Tesco set ou...
‘Food first’ in action

New fixtures show off great quality fresh food
•
Image area IGD Research
The produceSource: uses n...
‘Food first’ in action

New look fresh food counters
The new formatIGD Researchbrings the counters to the front of the sto...
‘Food first’ in action

Shouting about expert credentials
•

Image Source: IGD Research

The counters showcase the work th...
Stronger category authority

‘Fresh Thinking’ creates added bakery interest
•

Image Source: IGD Research

Euphorium and T...
Stronger category authority

Food-to-go convenience and meal solutions
•

Image Source: IGD Research

Image Source: IGD Re...
Stronger category authority

New BWS shop-in-shop concept
The•BWS department Research transformed to resemble that of a sp...
Stronger category authority

Clearer shopper navigation in core grocery
•

Image Source: IGD Research

Over-shelf signage ...
Relevant and exciting non-food

F&F boutique a major step change
•

Image Source: IGD Research

Image Source: IGD Research...
Relevant and exciting non-food

New look and feel for general merchandise
•

Image Source: IGD Research

With general merc...
Relevant and exciting non-food

One stop destination for baby and toddler
Baby has been given significantly more space in-...
Relevant and exciting non-food

Beauty builds on recent format experiments
•

Image Source: IGD Research

Learnings from t...
Relevant and exciting non-food

Dedicated area for ‘health & wellbeing’
•

Image Source: IGD Research

Image Source: IGD R...
Digital integration throughout

‘Clicks & Bricks’ implementation in-store
•

AsImage Source: IGD Research & Bricks’ strate...
Additional features

Community focus creates stronger local appeal
•

Image Source: IGD Research

Tesco has installed a ‘Y...
Additional features

Best of the rest…
•

Image Source: IGD Research

Tesco’s ‘Love
Every Mouthful’
campaign aimed
at cham...
So what do we think?
1.
1 Tesco’s new destination format store at Watford is a huge step change
from the old store with st...
Next steps
The store visit reports and photo gallery on Retail Analysis will help you stay up-to-date
with the latest stor...
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Tesco Extra, Watford UK: IGD's guide to Tesco's 'destination' hypermarket

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As the first store to trial Tesco's new 'destination' hypermarket concept, Watford Extra is a must-see store! In this complimentary guide, food and consumer goods experts IGD tour the store and explore the key features which make it a more compelling and leisure-oriented shopping experience. We also look at how the retailer's strategy to 'build a better Tesco' is being delivered in-store. Taken from IGD's Retail Analysis service, http://www.retailanalysis.igd.com

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Transcript of "Tesco Extra, Watford UK: IGD's guide to Tesco's 'destination' hypermarket"

  1. 1. Guide www.retailanalysis.igd.com | retailanalysis@igd.com | +44 (0) 1923 851 956 | @retailanalysis © IGD 2013
  2. 2. Hello and welcome This guide is from IGD’s Retail Analysis service – your online source of insight on retailers, markets, channels and trends in the food, grocery and consumer goods industry Resources include retailer and country profiles, trends and channels analysis, daily news, store visits and photos, and an interactive database of figures and forecasts Our easy-to-use insights will help you: • Develop stronger business plans based on robust data and analysis • Identify growth opportunities in current and future markets • Stay up-to-date on key trends shaping the industry • Better understand the future direction of leading retailers • Implement sales and marketing initiatives inspired by examples of innovation and best practice Please contact us to find out if your company subscribes or to request a free trial: E: retailanalysis@igd.com T: +44 (0) 1923 851 956 W: retailanalysis.igd.com © IGD 2013
  3. 3. Tesco Extra Watford – an introduction • Image Source: Tesco WatfordIGDlocated Google mapsnorth west of is Research, 20 miles central London and is one of the retailer’s largest and highest performing Extra stores in the UK. The store, along with two other Extra stores in Coventry (West Midlands) and Purley (Surrey) are the first to trial Tesco’s new look ‘destination Extra’ format – the retailer’s strategy to create more compelling retail destinations from its c.50 largest hypermarkets in the UK that have a sales area over 80,000 sq ft. Central London Town Centre Image source: IGD; Google © IGD 2013
  4. 4. Facts & figures Tesco Extra Watford: key information Date & time of IGD visit 13 August 2013 (08:30 – 10:30) Store format Hypermarket Address 239-241 Lower High St, Watford, Hertfordshire, WD17 2BD Store opened 1988 (refresh launched 12 August 2013) Checkouts 39 Opening hours 24 hours (Sat closes 22:00, Sun 10:00 – 16:00) Peak trading hours Weekday evenings and Friday / Saturday Size >80,000 sq ft / >7,400 sq m Estimated food / non-food split 55% food / 45% non-food Counters Pizza, Hot Food, City Kitchen, Olives, Deli, Meat, Fish Services Giraffe (family restaurant), Euphorium Bakery, Harris + Hoole (café), Tesco Direct Click & Collect, Phone Centre, Photo Shop, Opticians, Pharmacy, Community Room Competition Sainsbury’s has a superstore on the edge of Watford town centre, 2.5km to the north west, but the main competition comes from a Sainsbury’s superstore and an Asda hypermarket, both located on the A41, 5km to the north. The nearest Morrisons is located in Hatch End, 7.5km to the south and the nearest Waitrose is in Northwood, 7.5km to the south west. Source: IGD research © IGD 2013
  5. 5. Key store initiatives and features Re-establishing the ‘Extra’ difference ‘Food first’ in action Stronger category authority Relevant and exciting non-food Digital integration throughout Image Source: IGD Research © IGD 2013
  6. 6. Tesco Extra Watford store layout Beauty & Personal Care Baby & Toddler Electricals & Entertainment Cookshop & Dining Homeware DIY / Car Care / Sport Toys Books & Magazines / Stationery / Cards Seasonal F&F Clothing Health & Wellbeing Seasonal Bakery Fresh Food Counters Ready Meals Meat & Fish Dairy World Foods Ambient Grocery Household & Pet Food Frozen BWS & Soft Drinks Food to go Scan & Shop Customer Services Your Community Fresh Produce © IGD 2013 Image Source: IGD Research Click & Collect Photo Phone Centre Shop Pharmacy Opticians
  7. 7. Re-establishing the ‘Extra’ difference Exclusive services delivering something ‘Extra’ • Image Source: IGD Research, Tesco The front of store is significantly different, bringing together all of Tesco’s new services under one roof for the first time. As well as crossing broader boundaries between retail and food service and strengthening core destination features, the new services reposition Tesco’s Extra format giving it clear points of difference versus competitors’ hypermarkets. Image Source: IGD Research, Tesco © IGD 2013
  8. 8. Re-establishing the ‘Extra’ difference Giraffe restaurant promotes leisure appeal • Image Source: IGD Research As part of its strategy to increase the destination and leisure appeal of its largest Extra stores, Tesco acquired the Giraffe restaurant chain in March 2013. Watford Extra is the first store to see a Giraffe open. The restaurant has its own separate external entrance, as well as one from inside the store. The family-orientated restaurant significantly strengthens the offer at Watford and will encourage shoppers to stay longer at the store. Image Source: IGD Research © IGD 2013
  9. 9. Re-establishing the ‘Extra’ difference Euphorium brings theatre to store entrance • Image the entrance Tesco’s new bakery partner Euphorium Just inside Source: IGD Research delivers fantastic ranges of artisan breads, sandwiches and patisseries. The new bakery delivers a stronger quality perception and provides a warm welcome to the store, with staff offering samples to newly arrived customers. Image Source: IGD Research © IGD 2013
  10. 10. Re-establishing the ‘Extra’ difference Harris + Hoole modernises the in-store café offer • Image Source: IGD Research Tesco invested a stake in coffee chain Harris + Hoole in August 2012, so that it could provide a stronger coffee shop offer in its stores. Watford is the first Extra store to offer a Harris + Hoole outlet, delivering yet another reason to visit the store and an alternative dine in option to that of Giraffe. A lounge area towards the back of the café-in-store concept provides an area away from the shop floor to relax and the adjacency next to F&F gives this part of the store a strong leisurely appeal. Image Source: IGD Research © IGD 2013
  11. 11. ‘Food first’ in action New layout brings food to front of store • Image Source: IGD Research In April 2013 Tesco set out a clear strategy that its stores would follow a ‘food first’ approach, with general merchandise ranges then built around food. Food has been brought to the front of the store in Watford, with customers able to walk straight into produce, which has been given more space, new grey tiled flooring, specialised lighting and lower units that enhance product display and provide clearer sightlines. Image Source: IGD Research © IGD 2013
  12. 12. ‘Food first’ in action New fixtures show off great quality fresh food • Image area IGD Research The produceSource: uses new fixtures to both show off Tesco’s fresh credentials and vary product display, tempting shoppers to try new ranges and encouraging greater dwell time. Across the department, well thought out cross merchandising opportunites are brilliantly executed on corner and over shelf units. A fresh food misting table and giant ice tub adds to the theatre and heroes seasonal produce. Image Source: IGD Research © IGD 2013
  13. 13. ‘Food first’ in action New look fresh food counters The new formatIGD Researchbrings the counters to the front of the store in a new island formation, but also features • Image Source: not only an upweighted offer in terms of broader ranges, improved product display and new solutions. The new City Kitchen counter, hot deli and pizzeria provide freshly made food-to-go and food-for-later meal solutions. Image Source: IGD Research © IGD 2013
  14. 14. ‘Food first’ in action Shouting about expert credentials • Image Source: IGD Research The counters showcase the work that Tesco has done to improve service and staff across its store network over the last 18 months. The attractive displays, hand written signage, personalised service, shop floor production and new imagery all shout about Tesco’s food credentials and craft skills. Image Source: IGD Research © IGD 2013
  15. 15. Stronger category authority ‘Fresh Thinking’ creates added bakery interest • Image Source: IGD Research Euphorium and Tesco’s new ‘The Bakery Project’ scheme is bringing added personality, exclusive ranges and local relevance to the bakery category. It aims to restore old school classics, train apprentice bakers, work with local suppliers and support charities, but most of all make great value bread and cakes. As part of the project a new product will be introduced every month. Image Source: IGD Research © IGD 2013
  16. 16. Stronger category authority Food-to-go convenience and meal solutions • Image Source: IGD Research Image Source: IGD Research The food-to-go area at the front of the store brings together both strong snacking and meal solution ranges. The area is well merchandised with the central island providing a salad bar and a section that gets rotated throughout the day. Meal deals, hot pies and pasties, Krispy Kreme Doughnuts, healthy snacking, ready meals, chilled BWS and a bank of five dedicated self service tills, create a strong shop-in-shop convenience store concept for quick top-up shopping trips. © IGD 2013
  17. 17. Stronger category authority New BWS shop-in-shop concept The•BWS department Research transformed to resemble that of a specialist Image Source: IGD has been liquor store. It has its own dedicated area with a more spacious layout, new flooring and lighting, in-fixture refrigeration for wine, specialist fine wine fixtures, educational signage and clearer category segmentation. The soft drinks fixture has also been integrated to encourage cross purchasing. A new cocktails fixture provides cocktail ideas and brings together small measure spirits, lemons and limes, mixers and other accessories. Image Source: IGD Research © IGD 2013
  18. 18. Stronger category authority Clearer shopper navigation in core grocery • Image Source: IGD Research Over-shelf signage has been installed across grocery categories such as world foods, snacking and bakery, helping deliver added personality to the categories, but also navigate the shopper. In all the grocery aisles, wood surround mods highlight ranges and provide cooking inspiration and as in other departments, cross merchandising is maximised throughout, with features such as a dips fridge in the crisps aisle. Image Source: IGD Research © IGD 2013
  19. 19. Relevant and exciting non-food F&F boutique a major step change • Image Source: IGD Research Image Source: IGD Research The new F&F boutique occupies the back corner of the store, creating the ambience of a high street fashion retailer. Tesco has clearly transferred learnings from its standalone F&F stores in central Europe and brought them back to Watford. The separate checkout, variety of fixtures, mannequin displays, fitting rooms, flooring, spot lighting and dedicated staff, all deliver a modern and fashionable experience away from the rest of the shop. © IGD 2013
  20. 20. Relevant and exciting non-food New look and feel for general merchandise • Image Source: IGD Research With general merchandise spread along the back of the store, Tesco has split the departments into dedicated zones. New inviting merchandise displays give more space to the range, which have been upgraded to give a more credible seasonal focus. Varied fixtures and fittings plus ‘test and play’ stations promote browsing and a department store ambience. Image Source: IGD Research © IGD 2013
  21. 21. Relevant and exciting non-food One stop destination for baby and toddler Baby has been given significantly more space in-store to • Image Source: IGD Research create a destination for new parents, with hanging signage showing sleep, gift, play, eat and bath areas. The department is underpinned by the ‘Tesco Loves Baby’ brand that was introduced in January 2013. As well as your traditional baby products, the department brings together chilled food, furniture, clothes and other essential accessories. Image Source: IGD Research © IGD 2013
  22. 22. Relevant and exciting non-food Beauty builds on recent format experiments • Image Source: IGD Research Learnings from trial stores such as Dudley and Woolwich Extras and Bishop Stortford Superstore have clearly been implemented in Watford. Dedicated fixtures with specialist lighting, premium ranges, branded features, experimental stations, specially trained staff and beauty services deliver great authority and a credible offer to compete with high street specialists. Image Source: IGD Research © IGD 2013
  23. 23. Relevant and exciting non-food Dedicated area for ‘health & wellbeing’ • Image Source: IGD Research Image Source: IGD Research Tesco has created a new ‘health and wellbeing’ zone, which builds more of a feature for healthcare, nutrition, sports supplements and health foods (e.g. Tesco Free From and branded ranges). The pharmacy, which also offers a consultation room, plus the opticians are both integrated into the offer, creating a strong destination for the back corner of the store. © IGD 2013
  24. 24. Digital integration throughout ‘Clicks & Bricks’ implementation in-store • AsImage Source: IGD Research & Bricks’ strategy, where it is looking to create a seamless experience between its part of Tesco’s ‘Clicks stores and its online offer, there are a number of features in-store that highlight how this is evolving. A screen and promotion in the snacking aisle promotes movie rentals from Blinkbox, Tesco’s digital entertainment service. An ‘endless aisle’ screen in toys allows shoppers to browse the full range and order in-store. An ipad in BWS helps customers choose the right whiskey. A large Click and Collect desk is located along the back wall, with pods to order Tesco’s full range in each general merchandise zone. Image Source: IGD Research Point of sale in clothing reminds customers that more styles and sizes are available online. © IGD 2013
  25. 25. Additional features Community focus creates stronger local appeal • Image Source: IGD Research Tesco has installed a ‘Your Community’ space at the front of the store, which highlights Tesco’s charitable activity and also looks to create a stronger bond with the local community from its largest stores. The store also takes learnings from Tesco’s Asian markets and features a new free to hire community room. A blackboard at the store entrance advertises activities that will be taking place in-store and also provides contact details for the in-house community champion. Image Source: IGD Research © IGD 2013
  26. 26. Additional features Best of the rest… • Image Source: IGD Research Tesco’s ‘Love Every Mouthful’ campaign aimed at championing food was running in-store. A season’s best board at the store entrance immediately draws shoppers attention to food and product quality. The retailer’s continuing work to re-launch all 8k core private label lines is visible throughout, with newly launched products highlighted across the store. Image Source: IGD Research © IGD 2013
  27. 27. So what do we think? 1. 1 Tesco’s new destination format store at Watford is a huge step change from the old store with strong features and services that will clearly differentiate Tesco from its competitors’ hypermarkets. 2. 2 The store brings together 18 months of hard work under one roof, with clear advances across all six parts of the retailer’s plan to ‘build a better Tesco’ visible in-store. 3 With more space and prominence given to fresh food, Watford signals 3. Tesco’s intentions that it is primarily a ‘food first’ retailer. 4. 4 The store is exciting and engaging for shoppers, pushing the format away from one that is overly oriented towards operational efficiency. This will create new challenges for staff in-store and Tesco’s operational model. 5. 5 The concept achieves its purpose of being a stronger leisure destination, with improved, more relevant non-food ranges and specialist departments that will generate footfall in their own right. 6. 6 Time will tell whether features from Watford, Coventry and Purley will be rolled out to all of the retailer’s largest stores, but with all aspects scaleable and affordable, this is a positive step in the right direction. Image Source: IGD Research © IGD 2013
  28. 28. Next steps The store visit reports and photo gallery on Retail Analysis will help you stay up-to-date with the latest store concepts and in-store merchandising tactics being rolled out by key retailers around the world… Please contact us to find out if your company subscribes or to request a free, no-obligation trial: E: retailanalysis@igd.com T: +44 (0) 1923 851 956 W: retailanalysis.igd.com Sign up for our newsletter > Follow us on Twitter > Join our LinkedIn group > © IGD 2013

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