The document discusses scaling online grocery shopping through click-and-collect options. It notes that while online grocery currently has a small market share, it is projected to grow significantly. Retailers need an omnichannel strategy to meet rising customer demand for online grocery and convenience options. Fulfilling grocery orders from existing stores presents challenges like picking accuracy and store crowding. Dedicated fulfillment centers address these issues while allowing multiple delivery options like home delivery, remote pickup, and store pickup. Fulfillment centers can improve efficiency and customer satisfaction through better stock control and order accuracy. Remote pickup points also provide more scalable capacity for retailers to meet customer demand for online grocery.

1. Scaling Click and Collect
Beyond the Store
Andy Lockhart

2. Why online grocery?
 Food and Beverage market was worth $700 Billion in 2016 according to the US
Department of Commerce (The single largest consumer sector in the US)
 Smallest share of the digital retail sales today
 Potential growth is huge
Source: BI Intelligence

3. The Growth of online grocery
 Online will be 20% of the market by 2025
 Equivalent to 3,844 grocery stores
 Retailers with a solid Omnichannel presence will retain customers and gain traffic
 Most retailers do not have a clear strategy
 How to integrate brick and mortar with digital
 Ability to meet the customer where they are is key
 Convenience, assortment and personalization will determine the winners

4. Why consumers shop online?
 Choice
 Convenience
 Time
 Saves money
 Retailers have to adapt to customers’ increasing preference for
online grocery shopping
Source: Brick meets Click

5. There are still hurdles
 Biggest barrier to buying grocery online is customer desire to pick their own fruits,
vegetables and meat
Source: Brick meets Click

6. How do you get your groceries?
 Pickup at the store
 Pickup at a remote location
 Home delivery

7. Can Grocery be Omnichannel?
 Meeting the customer where
they want to receive their
groceries
 Can retailers truly deliver
Omnichannel from a store
based pick model?
 Availability, accuracy, efficiency
and service will be key
Customer
Shop in
Store
Collect
at Store
Remote
Pickup
Home
Delivery

8. Fulfillment of Grocery Orders
 Pick grocery orders in existing brick and mortar
stores – click and collect
 Use existing infrastructure
 Faster time to market
 Customers come to the store
 Use dedicated fulfillment facilities
 Higher capital investment
 Accurate stock management
 Gain efficiency and improve customer service
levels

9. The Challenges for the Store
 Challenges for picking in store for online grocery
 Picking Accuracy
 Out of Stocks
 Store Crowding
 Substitution Process
 Requires a dedicated storage space for picked orders
 Active/Passive Cooling

10. Dedicated fulfillment centers
 Dedicated fulfillment centers address the
challenges of in store picking while providing click
and collect
 Stock Control
 Accuracy
 Customer Satisfaction
 Allows multiple delivery options to suit the
customer
 Home Delivery
 Remote Pickup
 Store Pickup
Click and Collect

11. Scalable Fulfillment Centers
Manual
Pick
Semi
Automated
Fully
Automated

12. Customer Pickup Options
 Dedicated fulfillment allows the Grocer to deliver online orders to the consumer
where they want to receive them
Grocery Fulfillment Center
Pickup at Store
Remote Pickup
Deliver to Home

13. Summary
 Solutions to improve e-commerce scalability and reach customers
 Dedicated Fulfillment Centers
 Improve efficiency for retailers
 Improve customer satisfaction for in-store shoppers
 Reduce losses due to out of stock and poor substitutions
 Remote Customer Pickup/Store Pickup/Delivery
 Allows retailers to meet the customer where they want to receive there
groceries
 Remote pickup points provide better scalability
 Automated pickup reduces the labor requirements for pickup

14. Andy Lockhart
Vice President Sales, TGW Systems, Inc
Andy.lockhart@tgw-group.com
Thank You