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What grocery retail will look like in 2030


Published on

NRF 2019: Retail's Big Show
Carl Boutet, Retail Strategist, CloudRaker
David Marcotte, SVP, Strategic Advisory Services, Kantar Consulting, WPP

Published in: Retail
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What grocery retail will look like in 2030

  1. 1. What Grocery Retail Will Look Like in 2030 David Marcotte Senior VP Market Insights Kantar Consulting Carl Boutet Retail Strategist Retail Rx
  2. 2. How will retailers manage grocery stores in 2030? New research from Kantar Consulting, in partnership with the Coca-Cola Retailing Research Council, explores the future of grocery retailing. • How stores will meet the needs of a digitally-enabled shopper • How complex automation and the robot/employee relationship will evolve • What investments are most likely to drive profitability
  3. 3. Four variables that the future is already imposing on shoppers Providing connections, enabling flow, creating experiences, and seeking simplicity…all at the same time • Source: Kantar Consulting Futures Against the pressure of accelerating lifestyles, consumers’ emerging needs focus on the efficiency, accessibility, and flexibility of the products, services, and spaces that they use. Consumers’ desires now seek to minimize the complexity of a fast-paced, modern life, making decisions less taxing and finding solutions that can anticipate their needs. Consumers are changing their priorities, and possessions are taking a backseat to stimulating, shareable experiences—the “intangibles.” Consumer needs increasingly focus on nurturing relationships and forging community allegiances, working against the isolating pressures of modern life. Connections Flow Experiences Simplicity
  4. 4. Today’s shopper is becoming ‘Epicurean’ Shoppers will shape the retail and shopper landscape over the next several years • Source: Kantar Consulting Experiences Simplicity Responsibility Flow The Four Key Drivers
  5. 5. Value Diffusion As self-gratification motivates more shopping decisions “Value” becomes less price-focused and more nebulous Epicureans will shape the future of shopping in three ways Each is digitally enabled across all channels: omni-digital • Source: Kantar Consulting Routine Reconsideration Shopping routines that are not gratifying Or do not simplify shoppers’ lives Face a heightened risk of being eliminated Self-Reflective Shopping How we shop WHERE we shop What we buy Are all reflections of who we are Values Rule Routines? Who We Are?
  6. 6. The smart home starts with ‘point and command’ but in the future will become proactive Directly connecting the home and retail greatly expands transactional relationships and longer term loyalty drivers • Source: Kantar Consulting, company websites 1 2 2 1 4 4 3 2
  7. 7. Smart homes, smart retail integrate to smart cities for full effectiveness Integration provides benefits to all, but especially to the retailer in an omnichannel environment • Source: Kantar Consulting., fieldtrack
  8. 8. Smart includes humans and robots Robots are AI in motion and critical partners going forward • Source: Kantar Consulting, Amazon, Schnuck’s
  9. 9. Smart buildings and stores are now Online B2B expands to B2C engagement via eCommerce, digital signage, through malls and commercial tenants. • Source: Kantar Consulting, public releases
  10. 10. Shopping App Embedded in Taobao HEMA supermarkets have successfully integrated digitally to create a smart store • Source: Kantar Consulting, Alizia HEMA, the new retail format by Alibaba, integrates both offline store and digital advantage -- and has proven to be a successful business model 3~5 km around HEMA Store 30-minute ~ 1-hour delivery Free delivery for all orders 5,000 SKUs 250 million GMV yearly per store 70% of orders from online 80% fresh foods Tmall Super Shelf in Hema Internet Hero SKUs and Internet Brands’ landing offline via Hema Shopping zone for Online Hero SKUs
  11. 11. Interactive surfaces and store integrate AI are the next step • Source: Kantar Consulting, AWM Every part of the store is digital and accessible to the cloud ecosystem of the shopper, the retailer, and potentially the vendor
  12. 12. Actionable Takeaways from this session: • The New Shopper drivers for 2030 are set • The smart home and the smart store will be integrated • The smart shopper and the smart employee will be the key parts of your success