Top 15 stores you must visit in 2018 (according to Institute of Grocery Distribution report) - EDA new format convenience store of X5

1. August 18
© IGD 2017
Top 15 stores you must visit in
2018
Our guide to some of the best new stores globally

2. Re-shaping the
in-store
environment
© IGD 2017 Page 2
Grocery retailing continues to evolve at a
rapid pace. While innovative technologies
are creating new routes to market, they are
also re-shaping the in-store environment.
With new store openings being moderated
in many markets, retailers are switching
their focus to invest in improving the
relevancy of their existing store formats.
Several operators are also developing new
propositions to reach new customer groups
or to cater for different shopper missions.
Featuring a mix of new store formats and
remodels from many of the world’s major
retailers and independent operators, these
stores have the potential to have an impact
across the wider sector.
Introduction
Source: IGD Research

3. Top 15 stores
© IGD 2017 Page 3
Introduction
Source: IGD Research
Over the last 12 months, our team of analysts have visited over 30 countries.
Based on these visits and recently opened stores, we have compiled our list of
the Top 15 stores you should visit.
Fresh The Good
Food Market
X5
Alibaba
MetcashCarrefour
Soriana
Nations Experience
Couche-Tard
Transmart
Central Food
Retail
M&S
Lidl
Kaufland
Centra
Target

4. Themes
shaping format
development
© IGD 2017 Page 4
Introduction
Source: IGD Research
CREATING
EXCITING
DESTINATIONS
FRESH
FOCUSED
FOOD-TO-GO
FUSION
CONVENIENT
SOLUTIONS
TESTING NEW
CONCEPTS

5. M&S Food hall
2 Sunset Walk, Saxon Gate East,
Milton Keynes MK9 3PD, UK
© IGD 2017 Page 5
Overview
• This remodelled store within an M&S
department store provides a modern food hall
experience with stunning counters and shop-
in-shop wine and flowers
• The new Market Place concept creates a food
to go zone, including counter, coffee, Wasabi
sushi, seating and checkouts
Future development
• Following a slowdown in like-for-like sales in
its food business, the company’s recent
growth engine, M&S will slow its new store
opening programme in order to focus on
repositioning its food proposition
• This includes renewing focus on innovative
food-for-now and food-for-tonight solutions
• Trial concepts such as the Wasabi
partnership, and this latest food-to-go concept
are likely to evolve and roll-out in the year
ahead.
Why you should visit
• A new approach to food-to-go with The Market Place concept
• Premium counters across deli, patisserie and food-to-go
• Cross-merchandising and incorporation of relevant non-food into the food
hall
Western Europe UK
Source: IGD Research

6. M&S Food hall
2 Sunset Walk, Saxon Gate East,
Milton Keynes MK9 3PD, UK
© IGD 2017 Page 6
Western Europe UK
Source: IGD Research

7. Centra
Parnell Street, Dublin 1, Dublin,
D01 XV21, Ireland
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Overview
• Centra is Ireland's leading convenience
retail group with over 450 stores throughout
the Republic of Ireland
• Part of the Musgrave Group, Centra stores
are owner operated, enabling a strong
entrepreneurial spirit and unique identity to
shine through in each store. At the same
time a strong centralised support function
provides a suite of solutions to enable each
store to drive local relevance
• This store takes city centre convenience to
a new level, with a fusion of convenience
and food-to-go that is inspirational for
shoppers and profitable for Centra’s
retailers
Future development
• Wider rollout of many of the elements is
already well under way, with food-to-go
becoming an ever more critical element of
the Centra proposition. Expect to see
Centra embrace new concepts and cuisines
in future format development.
Why you should visit
• Great counter served fresh food complements a strong coffee range, both
barista served and bean to cup
• An efficient counter organisation enables Centra to serve a huge variety of
food within a relatively small space, appealing to many different shopper
groups and missions. This is underpinned by high levels of personalisation
in many products
Europe Ireland
Source: IGD Research

8. Centra
Parnell Street, Dublin 1, Dublin,
D01 XV21, Ireland
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Europe Ireland
Source: IGD Research

9. Fresh the Good
Food Market
Unit 5, Block F, Smithfield Square,
Dublin 7, Ireland
© IGD 2017 Page 9
Overview
• Fresh the Good Food Market is a Dublin
based chain, operating a handful of large
format stores in and around the capital. It is
a large format space meeting multiple food-
to-go and later needs
• Fresh ranges lie at the heart of its
proposition, while the highly visible food
preparation also underpins the wider
freshness of the proposition
Future development
• Fresh continues to innovate across all
formats, and is currently rolling out the
same thinking across its other stores in
Dublin
• It also continues to upgrade its Smithfield
store, most recently for example adding a
new salad bar concept, including hot salad
options. This follows on from the
introduction of an Italian café concept as
part of its remodelled Camden Street store,
and a new look delicatessen in its Grand
Canal Dock store.
Why you should visit
• Inspiration in how to deliver freshly prepared food and create a
community hub
• Hugely impressive counters and food preparation areas bring the
freshness and range of the offer to life
• The in-store kitchen is a pivotal component of the offer
Europe Ireland
Source: IGD Research

10. Fresh the Good
Food Market
Unit 5, Block F, Smithfield
Square, Dublin 7, Ireland
© IGD 2017 Page 10
Europe Ireland
Source: IGD Research

11. Circle K
Østre Aker vei 29, 0581 Oslo,
Norway
© IGD 2017 Page 11
Overview
• Oslo is being used as a pilot for forecourt
operator Circle K’s latest thinking in new
store concepts, acting as a testbed for
12,500 outlets on three continents
• On launching the first store, Marketing
Director and Deputy Norwegian
CEO Christoffer Sundby said, ‘We are going
to blow up all the boundaries of what it's
possible to serve at a gas station’
• The concept is all about quality, counter
served, food-to-go, with a wide range of
options underpinned by a strong coffee offer
Future development
• A roll-out to other forecourts in Norway is
underway, while we’re seeing similar
initiatives being rolled out in Ireland, where
Circle K operates the Topaz chain of
forecourts. Circle K will no doubt be looking
at how it can bring elements of these
propositions to its stores in other markets.
Why you should visit
• The store design challenges the status quo in forecourt retailing
• The variety of food counters should attract a different shopper
demographic
• The option of self-checkouts helps to speed up the customer journey
• The seating area maximises appeal and offers added convenience
Europe Norway
Source: IGD Research, Circle K

12. Circle K
Østre Aker vei 29, 0581 Oslo,
Norway
© IGD 2017 Page 12
Europe Norway
Source: IGD Research

13. Lidl
1 Kappelergasse, Zurich,
Switzerland
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Overview
• Lidl has recently opened this new store in
Zurich. The store has a modern design and
includes enclosed chillers along with
updated signage and eye catching displays
• The store has a high end look and features
a large selection of Lidl’s premium Deluxe
range, giving it an upmarket feel overall
Future development
• Lidl only entered the Swiss market in 2009
but has been slowly expanding, opening a
steady stream of new stores
• This store demonstrates a move away from
the typical discount image, both through the
ranging and the store design. As Lidl
continues to upgrade its store estate, we
expect to see more of these modern
features in its stores.
Why you should visit
• Dedicated convenience area, unusual for Lidl
• Modern signage and logo improving the brand positioning
• Large range of premium products (Deluxe range)
Europe Switzerland
Source: IGD Research

14. Lidl
1 Kappelergasse, Zurich,
Switzerland
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Europe Switzerland
Source: IGD Research

15. Kaufland
Barbu Vacarescu 120-144.
Bucharest, Romania
© IGD 2017 Page 15
Overview
• This store showcases the latest concept
from Kaufland in Romania, with an overall
size of 5,000 sq m and a large food court
with multiple eateries
• Located in Bucharest, the store
demonstrates a customer first approach,
with careful thought given to improving the
shopping experience
Future development
• This concept store incorporates a number of
new initiatives that Kaufland is trialling, both
in Romania and more broadly
• The retailer is increasingly tailoring its offer
to suit the needs of each local market but
may look to roll out successful concepts into
other stores and markets.
Why you should visit
• Mall style food court creates a strong destination feel
• Strong counters, incorporating digital communication
• Branded promotions executed well throughout the store
• Spacious and modern layout
Europe Romania
Source: IGD Research

16. Kaufland
Barbu Vacarescu 120-144.
Bucharest, Romania
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Europe Romania
Source: IGD Research

17. X5 Retail Group
EDA
Vorontsovskaya Ulitsa 35b
Moscow, Russia
© IGD 2017 Page 17
Overview
• Convenience store concept with strong
focus on food to go and food for now
• Sales area of 120 sq m
• The store is located in affluent
neighbourhood in Moscow with several
large office buildings nearby
Future development
• This is a new store format which X5 Retail
Group is testing in Moscow
• Operating hypermarkets, supermarkets,
convenience and discount stores, this food
to go focused concept would fit to X5’s
multi-format strategy
• The growth opportunities lie in large
Russian cities, but retail space above 300
sq m is limited. A network of small stores
like EDA can however be more easily
developed.
Why you should visit
• Large counter selling fresh made sandwiches and bakery products, hot
soups and dishes, tea, coffee and a variety of cakes. A salad bar as well as
a wide choice of ready meals on shelves complemented by soft drinks and
alcohol
• A Starbucks coffee corner, with a seating area, complements the food-for-
now offer. Other services include a collection point for online orders
Europe Russia
Source: IGD Research

18. X5 Retail Group
EDA
Vorontsovskaya Ulitsa 35b
Moscow, Russia
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Europe Russia
Source: IGD Research

19. Target
112 W 34th St,
New York, NY 10120, USA
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Overview
• This 4,200 sq m store opened in October
2017, showcasing Target’s latest thinking
for its flexible store formats
• The store is located in a high footfall area in
the heart of Manhattan and is one of a small
number of stores in the area to test a same-
day delivery service
Future development
• This is the retailer’s primary vehicle for new
store development, with 50 stores planned
for 2018
• Target continues to see strong returns from
the format and will continue to develop it in
urban and dense suburban areas, and close
to college campuses
• Target is also undertaking a major remodel
program for its larger format stores, with
1,000 stores expected to be updated by the
end of 2020 to its next generation store
design.
Why you should visit
• New grab-and-go, convenience-focused food ranges
• New-look beauty department, which also features its exclusive partnership
with Harry’s, first-to-market brands and a differentiated service model
• Curated non-food ranges, showcasing recent private brand launches
including Goodfellow & Co, A New Day, JoyLab and Cat & Jack
North America USA
Source: IGD Research, Target

20. Target
112 W 34th St,
New York, NY 10120, USA
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North America USA
Source: IGD Research, Target

21. Nations
Experience
1980 St Clair Ave W, Toronto, ON
M6N 4X9, Canada
© IGD 2017 Page 21
Overview
• Nations Experience is a new format and
banner for Toronto based Nations Fresh
Foods, one of the city’s leading ethnic
grocers
• This unique 15,000 sq m store opened in
October 2017, with the goal of creating a
retail destination around the themes of
eating, shopping an playing
Future development
• This is the third, and largest, store in the
chain and the focus over the next 12
months will be embedding the operation;
changes have already been made since the
launch to the individual food stations
• The store will look to build on its ‘play;
elements through adding new elements
such as a VR room
• Over the medium term, the retailer
continues to see additional opportunities
beyond the Toronto market.
Why you should visit
• Focuses on the fusion of retail and food-to-go
• Unique focus on ‘east meets west’ in the ethnic sector
• Extensive range of food-to-go options, covering multiple cuisine types
• Experiential elements including gaming arcade, play area and party rooms
North America Canada
Source: IGD Research

22. Nations
Experience
1980 St Clair Ave W, Toronto, ON
M6N 4X9, Canada
© IGD 2017 Page 22
North America USA
Source: IGD Research

23. Soriana Hiper
Miyana
Av Ejército Nacional 769, Granada,
11520 Ciudad de México, CDMX,
Mexico
© IGD 2017 Page 23
Overview
• Hiper Miyana is one of the most interesting
developments across global grocery retail in
the recent years. It’s a food-led
development that encompasses more than
a store, covering food-to-go, casual dining
and fuller restaurant options
• While this store is now 18 months old, it
remains a store that shows highly
progressive thinking and, we believe,
reflects how food shopping missions could
evolve
Future development
• This is the second store in this concept, with
another already trading in Monterrey.
Soriana is looking more widely at
opportunities for the format, targeting key
Mexican cities for this
• There is also scope for elements to be
taken into other Soriana stores, as it has
already done with its Avenida 9 food-to-go
brand.
Why you should visit
• Developed by leading Mexican retailer Soriana, Hiper Miyana stretches
thinking around what a hypermarket can achieve by combining it into a
more complete food destination, sitting alongside a wide array of food
options outside the store, cutting across both food-to-go and more
standard foodservice missions
Latin America Mexico
Source: IGD Research

24. Soriana Hiper
Miyana
Av Ejército Nacional 769, Granada,
11520 Ciudad de México, CDMX,
Mexico
© IGD 2017 Page 24
Latin America Mexico
Source: IGD Research

25. Carrefour
R. Pamplona, 1704 - Jardim
Paulista, São Paulo - SP, 01405-
002, Brazil
© IGD 2017 Page 25
Overview
• Carrefour’s latest hypermarket flagship in
Brazil, this store combines its latest thinking
around fresh food display and use of
counters within a mall-based, two-floor
location
Future development
• This store, alongside similar initiatives in its
Carrefour Bairro supermarket concept,
shows the elements upon which Carrefour
sees its future routes to growth in Brazil,
developing strengths in fresh, quality and in-
store experience to differentiate vs. the
ongoing expansion of the cash & carry/
retail hybrid atacarejo channel, where
Carrefour’s Atacadão format continues to
expand at pace
• We’re also looking closely at how it evolves
food-to-go/ the in-store café offer. It’s nicely
executed in this store, but we’d expect it to
be given greater prominence in future store
formats
Why you should visit
• Quality and freshness are the key areas of focus in this store. Impactful
counters sit alongside a strong focus on imagery and retail theatre to
create an attractive, premium-oriented shopping environment
• In-store you’ll also see smart use of technology to match demand to
service levels (and reduce queue times) at the counters, while a targeted
yet attractive non-food offer also stands out.
• Reason 3
Latin America Brazil
Source: IGD Research

26. Carrefour
R. Pamplona, 1704 - Jardim
Paulista, São Paulo - SP, 01405-
002, Brazil
© IGD 2017 Page 26
Latin America Brazil
Source: IGD Research

27. Alibaba
Hema Fresh
No. 2 Chaoyang Road, Shi Li Pu,
Beijing, China
© IGD 2017 Page 27
Overview
• Alibaba’s Hema Fresh store opened earlier
this year, operating a 4,200 sq m retail
space
• The retailer’s move to physical retail with
Hema Fresh blends online, offline and big
data with the intention to reinvent retail
Future development
• Alibaba is planning to launch a new smaller
format store in Shanghai, based on the
Hema Fresh model. Smaller formats require
less capital and can be expanded more
rapidly. It could prove to be a more cost
effective solution longer term
• By blending online and offline retail, Hema
Fresh offers consumers a destination to eat
and shop with ease and convenience
• Hema Fresh is a cashless store. All
shoppers need to download the Hema
Fresh app, and pay through Alibaba’s
Alipay. This enables the retailer to gather
shopper data for both online and offline
Why you should visit
• Alibaba’s Hema Fresh offers shoppers both an interactive and engaging
experience
• All price tags in the stores are digital. Shoppers can scan QR codes on the
tags for product information
• See how the store acts as fulfilment centre for its Hema app
Asia China
Source: IGD Research

28. © IGD 2017 Page 28
Asia China
Source: IGD Research
Alibaba
Hema Fresh
No. 2 Chaoyang Road, Shi Li Pu,
Beijing, China

29. Central Food Hall
Central Chidlom
1027 Phloen Chit Rd, Khwaeng
Lumpini, Khet Pathum Wan,
Krung Thep Maha Nakhon 10330,
Thailand
© IGD 2017 Page 29
Overview
• This store has gone through a massive
upgrade with a new dining area that forms
the centerpiece with great ambience
• Retail space has also been enlarged with
wider aisles and products from 76 countries
and top quality local produce with
guaranteed freshness
Future development
• Central Food Hall aims to delivers a truly
world class shopping experience in terms of
its range, quality and service
• This store represents the model for the
future development of Central Food Hall
• The retailer has pushed the boundaries to
set new standards in delivering top quality
food experience, further reinforcing its
reputation in this space.
Why you should visit
• World class food experience with a wide variety of top quality foods
• Superior dining experience and ambience at great value
• “6 to 9 concept” for fresh: farmers will cut the produce at 6 and deliver by 9
Asia Thailand
Source: IGD Research

30. © IGD 2017 Page 30
Asia Thailand
Source: IGD Research
Central Food Hall
Central Chidlom
1027 Phloen Chit Rd, Khwaeng
Lumpini, Khet Pathum Wan,
Krung Thep Maha Nakhon 10330,
Thailand

31. Transmart
Jl. Raya A. Yani No. 234, Pabelan
Kartosuro, Kartasura, Kabupaten
Sukoharjo, Jawa Tengah 57162,
Indonesia
© IGD 2017 Page 31
Overview
• Opened in December 2017, this store is the
first Transmart store in Solo
• The store aims to bring unapparelled
shopping experience with great food,
products, services and experiences
Future development
• Transmart is further developing the ‘4 in 1’
concept to provide a one-stop shopping
experience
• The retailer plans to open 23 stores in 2017
and 20 more stores in 2018, many of which
will be of this ‘4 in 1’ format
• Benefiting from the synergy with other
businesses of CT Corp, such as Wendy’s,
Coffee Bean and Tea Leaves, and Baskin
Robbins, the Transmart stores are
becoming shopping and leisure
destinations.
Why you should visit
• ‘4 in 1’: the store is a perfect combination of food service, hypermarket,
department store and theme park
• In-store theatre: the retailer excels at product display and shopper
engagement
• Retail excellence in fresh and personal care
Asia Indonesia
Source: IGD Research

32. © IGD 2017 Page 32
Asia Indonesia
Source: IGD Research
Transmart
Jl. Raya A. Yani No. 234, Pabelan
Kartosuro, Kartasura, Kabupaten
Sukoharjo, Jawa Tengah 57162,
Indonesia

33. Metcash
Fresh Pantry
90-96 Spencer Street, Melbourne,
Australia
© IGD 2017 Page 33
Overview
• Company-owned convenience format by
Metcash, located in busy location in
Melbourne’s city centre
• Sales area of 120 sq m
• Uses third party partnerships to deliver food
solutions and strengthen local appearance
Future development
• The concept has been developed by taking
learnings from convenience retailing in
markets across Europe. It will continue to be
adjusted to find the best solutions
• Metcash is looking to capitalise on the
untapped convenience opportunity in
Australia and could roll the format out more
broadly in the future
• The concept focuses strongly on targeting
shopper missions, as well as developing a
wide variety of fresh, healthy and
competitively priced food-for-now and food-
for-later solutions, available through the
day.
Why you should visit
• Mission-based layout for quick shopping experiences, the store has four
district zones; liquor, coffee, meal solutions and hot food, top up grocery
• Barista coffee and in-store kitchen, both operated by local suppliers and
delivering freshly prepared day-part food solutions at competitive prices
• Clear food-for-now and food-for later ranging and a focused grocery offer
Australasia Australia
Source: IGD Research

34. Metcash
Fresh Pantry
90-96 Spencer Street, Melbourne,
Australia
© IGD 2017 Page 34
Australasia Australia
Source: IGD Research

35. IGD’s
Retail Safaris
© IGD 2017 Page 35
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© IGD 2017 Page 36
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