The Jupiter Drawing Room CT presents: The Deeply Insightful Report This report aims to spotlight key topics, insights and learnings that we can get inspired and informed from. To be competitive and to drive sales every single month, most retailers are resorting to price cuts and promotions to attract shoppers. You see SALE signs everywhere, all the time. In this report we look at retail brands that are moving past sales and focusing on brand and experience to win over the shopper. If you would like the full presentation in your inbox, please email hello@jupiterct.co.za.

1. REPORT: RETAIL IN 2019

2. “You walk into a retail store, whatever it is, and if there is a
sense of entertainment and excitement and electricity, you
wanna be there.”
Howard Schultz, Chairman, Starbucks

3. Last year, both Toys R Us and Sears filed for bankruptcy.
Locally, trading numbers have been dismal.
Edgars have had to close down some of their stores. There are
more retailers locally and globally (brick & mortar, online, international, local)
vying for the same wallets (which are already stretched). Only the fittest
is going to survive in this very competitive environment.

4. To be competitive and to drive sales every single month, most retailers
are resorting to price cuts and promotions to attract shoppers.
You see SALE signs everywhere, all the time.
This puts more pressure on margin. What gets sacrificed?
Long-term branding initiatives and communications… Because there
isn’t enough money and they don’t bring in the numbers.

5. In a category that is already very merchandise-centric, and not
brand or even customer-centric enough, this is a never ending cycle
where many businesses are not building value for their brands
and are taking a very inward view. There is a need to build
long-term equity, even if it means sacrificing some short-term gains.

6. 1. Make it easy for consumers
2. Go green
3. Create more than just a store, but an experience
4. Convince your shoppers to join the club
Here are some areas that we believe retailers need to look at in 2019:

7. 1.
MAKE IT EASY

8. “82% of consumers say that they are more likely or much more
likely
to purchase for a brand that offers multiple delivery options.”
PSFK Future of Retail 2019 Report

9. 1.
MAKE IT EASY
It may seem like common sense to make it easy for consumers to find you.
To buy your products. To talk to you. To pay.
Retail 101, right? But it seems like it’s difficult to deliver as shoppers’
expectations of easier, faster and the way-I-want have become difficult to keep
up.
But it’s not just about delivery. Think about the shopping experience in-store.
What if a shopper has a question? What if she/he is looking for a specific
product?

10. ALIBABA HEMA NEW RETAIL
Alibaba “New Retail” vision is about making it
convenient to buy what you need or want in
whatever way is the most convenient to you —
whether at the store or online, delivered to your
home or picked up at a nearby store location.
Nowhere is the New Retail idea more on display
than in Hema, a fast growing supermarket chain
in China.
The fresh-food-focused supermarket offers
customers the ability to shop in-store or on its
app, see the origins of its products, have food
prepared for pickup or delivered for free within 30
minutes (if you live within 3km radius), and pay
with facial-recognition technology.
Video: https://www.youtube.com/watch?v=UDIvWdwVZMg&t=2s

11. WALMART PICKUP TOWER
Walmart, in an attempt to fend off
Amazon, is using its strength – store
locations as an attraction.
In 2017, it launched Pickup Today service,
which allows shoppers to order online and
pick up on the same day.
In 2018, they added Pickup Towers, which
serve as vending machines for online
orders, to 700 stores within 2018. These
tall orange machines allow shoppers to
pick up their online orders in about a
minute via bar codes sent to their
smartphones.
Video: https://www.youtube.com/watch?v=W94X3EC9RPY

12. IKEA KIDS PLAYGROUND SMALAND
It isn’t just all about faster. It’s also about creating
an environment where parents can shop without
having to rush out because their children are
screaming and they just want to get out of the
shop/mall now.
Check out IKEA’s playground where it’s safe and
it’s free (for an hour).
If SPUR built a whole business focusing on
parents with young children, surely there is a
demand in the retail sector.

13. WHOLEFOODS CHATBOT
Whole Foods has a Facebook Messenger
Chatbot that lets customers find recipes for
an upcoming meal.
Functionalities include:
• Search and browse recipes.
• Search using food emojis or keywords
such as type of cuisine or diet.
• Find nearby stores
Users can mix and match by typing a word,
selecting a cuisine (like Tex Mex), and
adding an emoji to the text chat. They can
also select keywords and choose recipes for
special diets.

14. 2.
GO GREEN

15. “The types of changes in society, technology and natural
resources
that are happening today are threats to the viability of
businesses. Businesses that are prepared for the long term will
get ahead of
these trends in order to assure their longevity.”
Adam Werbach, Strategy for Sustainability

16. 2.
GO GREEN
This is no longer an option for businesses. Nor should businesses wait
for legislation to drive change. Consumers are not expecting businesses to
make
360 change immediately, but there needs to be a roadmap to a vision and
some easy to implement solutions now. There are businesses out there that
prove that it is possible to build a model that’s good for the planet, people and
profits.

17. FOR THE FULL REPORT,
PLEASE EMAIL US ON
HELLO@JUPITERCT.CO.ZA

18. THANK YOU