WASHINGTON -- While electronic commerce over the Internet represents a radical shift in the relationship between retailers and consumers, supermarkets are uniquely positioned to take advantage of the changes.
"The [Internet] provides instant individual access to information -- it is a 180-degree shift from the traditional world," said Chuck Martin, an Internet industry consultant and author of "The Digital Estate." "Traditional business will not go away. However, an interactive environment will start to drive what retailers do in their core business."
Retailers and wholesalers such as Fleming Cos., Oklahoma City; Wegmans Food Markets, Rochester, N.Y.; Randalls Food Markets, Houston; and Wal-Mart Stores, Bentonville, Ark., among others, are using web sites to interact with current and potential customers, according to Martin. He spoke at the "Competing, Surviving and Thriving in an Interactive Age" seminar at the Food Marketing Institute's Information Systems Conference here, held Sept. 21 to 24.
Retailers have incredible opportunities in an interactive environment, especially compared with companies that have only an on-line presence, said Martin. "Whoever is closest to the customers has the greatest opportunities," he said. "You have the brand name and your customers have known you forever, so the opportunities are just yours to gain."
Fleming relies on consumer feedback to provide site content. "Fleming's mission is to get its information out into the market, and let the community know it's out there," said Martin. By focusing on what the consumer deems valuable information, Fleming helps plan the site's ever-changing content, according to Martin. "The end of the site's opening page states 'Thanks for visiting this interim page,' " he explained. "This is a great concept because it alerts consumers that this is just a starting point of the information that the site has to offer."
Wegmans also successfully focuses on its customers via the Web. "Wegmans has aggregated local community information of the areas its stores reside in as a way to integrate themselves into the consumer's physical community," Martin explained.
By providing an electronic list of events in its areas, "Wegmans is proving its credibility on-line," he added. "Retailers need credibility, otherwise having an on-line presence could be a little risky."
Retailers also deliver on-line credibility by providing an appropriate environment for home shopping, said Martin. "Consumers need to understand that on-line shopping is only one piece of retailer web sites," he explained. Randalls is one retailer that is positively portraying this distinction on its web site, according to Martin.
"Randalls' site makes it clear to the community that there is an abundance of information available through their web site, and home shopping is an enhancement to that service," Martin said.
Even though the retailer has partnered with a third-party home-shopping service, Peapod, Evanston, Ill., the site clearly states that the groceries are from Randalls. The site displays a separate icon directing consumers to the retailer's home-shopping option.
Similarly, Wal-Mart Stores uses its web site to offer its version of home shopping to its on-line community. However, Wal-Mart is targeting what Martin calls the Interactive Generation -- an interactive community comprised of people who integrate technology into their everyday lives, and in turn expect instant service and satisfaction.
"Wal-Mart promotes sale items exclusively on-line before they are on sale in the physical environment," he explained. "The items are promoted on-line to gain sales from the interactive generation, as well as to attempt to bring them into the stores."
Another retailer focusing on the interactive generation is Hannaford Bros., Scarborough, Maine. "Hannaford is taking traditional job listings for their company and posting them on-line in hopes of sparking the interest of this generation," he said.
These retailers understand that "the Internet allows them to reach the right people at the right time," said Martin.
