Appearances matter

Consumers have a myriad of grocers to select from; making a store attractive—from the outside in— is a must in today’s competitive environment.

Shoppers are a judgey lot.

They routinely size up a grocer’s worth way before they step foot into the store. Industry observers say the reason for this is clear—consumers today are not just sold by the brands grocers carry, but also how inviting the store looks from the parking lot on in, how easy the store is to navigate and how much attention has been paid to keeping an updated appearance.

Designing modernized stores that appeal to a younger aesthetic is especially important if retailers hope to attract more Millennial shoppers. “With so many different grocery stores for consumers to choose from, many independents and chains are recognizing that price and selection are not enough to build brand loyalty anymore,” says Scott Christie, national sales manager, retail, for Brasco International, based in Madison Heights, Mich.

At the same time, Christie says grocers are taking a more sophisticated approach and in their quest to create a unique shopping experience, they are embracing a more synergistic strategy. For instance, he says retailers are ensuring something as basic as a cart corral enclosure matches the design intent of the store’s exterior. Christie says a holistic design both makes an impact on the high-end consumer and improves the safety and cleanliness of the parking lots.

Observers say for grocery stores to stay front-and-center with shoppers in a highly competitive market it will be imperative to differentiate the customer experience. “Savvy grocers are bolstering customer experiences by leveraging front-of-store services and opportunities to grab additional market share,” says Bob Gibson, vice president, branch operations for Cummins Allison based in Mount Prospect, Ill. Gibson says the need for differentiation aligns perfectly with coin counting services, specifically kiosks featuring excellent up-time and accurate performance and consumer-friendly, easy-to-use interfaces.

“As this industry faces increasing pressure from growing online shopping and delivery options, it is important for grocers to proactively implement strategies that provide value to customers as well as the additional advantages of increased traffic and in-store purchases,” says Gibson. “Self-service coin redemption is a cost-effective way to achieve this goal and add profitability without taking up valuable store space.” 

Security and counterfeit detection are also likely to be key concerns for grocers in 2015. Observers say data breaches may lead consumers to favor more secure forms of payment—such as cash and checks—to avoid risk. Similarly, grocers must protect themselves against security risks associated with counterfeit bills. In 2013, more than $88 million worth of counterfeit currency was seized, a figure that is expected to increase in 2015.

“Currency processing equipment with advanced counterfeit detection technology can help grocers spot fake bills before they are passed onto a financial institution or recirculated, thus protecting the store’s reputation and customers while also identifying the need for additional cashier training, reducing and managing future losses in this area,” says Gibson.

Lighting, too, is anticipated to be top of mind with retailers this year. With product presentation a focal point, Robb Northrup, marketing manager for Rockford, Ill.-based Southern Imperial says retailers will be looking for more ways to enhance how products come across to shoppers. “By making the merchandise more appealing and visible, retailers can increase impulse sales at checkout,” he says.

Customers’ overall shopping experience will be a focus for retailers as well, say observers. More and more, customers are seeking out retailers that offer a friendlier destination that serves up hot foods, soups, salads, sushi, coffee and gelato in a hip and trendy Internet café.

“In the past, going to the supermarket was more of a chore or an errand that you had to knock off your list,” says Alex Poulos, U.S. sales director for systec POS technology based in St. Charles, Ill. “Today, retailers are building stores that are more of a destination because they know when a customer is more comfortable in a store they may shop for a longer period of time.”

Some observers point to the evolution in shopping cart appearance and functionality as examples, noting that many of today’s carts are being constructed and accessorized with comfort, safety and practicality in mind.

With the trend toward smaller store footprints, Kimberly Steury, business development manager for Versacart Systems, based in Boulder Colo., says increasingly this is translating to retailers offering more two-tier “express-style” shopping carts. “The proliferation of more intimate shopping formats is resulting in consumers frequenting stores more but only buying an average of 18 items. Thus, customers want something that is easier to maneuver in tight aisles,” says Steury.

Taking a look at trends with displays and merchandising fixtures, Yasmina Dhimes, director of sales for Forte Product Solutions, a fixture and equipment company based in Kansas City, Mo., says for 2015, retailers will continue to be attracted to multi-purpose fixtures that are easy to install and maintain and add an element of style to their stores. “Equipment that meets this criteria can be used in many environments and for a wide range of applications, requires less labor and contributes to store profits,” says Dhimes.

Kendra Sewell, vice president of sales for Pan-Oston based in Bowling Green, Ky., says smaller footprint stores are also driving changes in fixtures as retailers look toward those that are both smaller and more versatile. Pan-Oston has been designing and manufacturing smart front-end solutions, as well as a broad range of permanent merchandising fixtures and retail fixtures and products, for 45 years. The company is working with major retailers to develop store fixtures that combine point-of-sale with merchandising.

Pan-Oston also provides self-service kiosks such as produce weigh stations, price check kiosks, and touch point kiosks to allow retailers to save customers time and increase potential for impulse buys. Sewell says it is likely there will be even more advancements in the way of technology designed to improve the shopping experience.  That could include faster throughput at checkout with high-speed scanning to allowing customers to use technology throughout the store from produce kiosks to information kiosks.

Technology will also continue to be front-and-center in regard to customer service programs such as home delivery, self-scan and smartphones, says Steve Brown, vice president and general manager for Instore Products based in Mississauga, Ont., Canada. Brown says consumers are looking for ways to optimize their time and these services enable them to shop from the comfort of their home and pick up their groceries at a convenient time for them or choose to have them delivered.   

Overcoming concerns

Upgrade costs are often factors, but observers say it is important to focus on the long-term benefits of equipment. With cart corrals and shelters, for instance, aluminum construction may cost slightly more up front, but officials at Brasco say aluminum will outlast steel by many years. Instead of spending capital and resources every two to three years replacing rusted steel or cracked plastic corrals, increasingly retailers are realizing the smarter move is to invest in a cart corral or shelter that both looks better and lasts much longer, note Brasco officials.

“Other manufacturers have imitated our products in the architectural cart corral market, but they still endure the same problems as cheaper corrals,” says Christie. “This is because they aren’t properly engineered for wind and snow loads, steel frames begin to rust and break down once the powder coat is scratched, and plastics fade and crack very easily.”

The razor thin margins grocers operate on will continue to be a challenge, says Gibson, making it critical to improve efficiency and increase productivity in all parts of the store, including payment processing. “Streamlining the deposit process with cash and check scanners will eliminate back-office inefficiencies, minimize errors with bank deposit reconciliations, free up a significant amount of time in the daily schedule and the same machine can also be used to count cash,” he says.

Maximizing efficiency with a single platform device, adds Gibson, can also help reduce overhead spending, freeing up funds for customer-end projects.

“Our JetScan iFX is the fastest, most accurate cash counter and check scanner available, able to process about 1,600 bills per minute—33% faster than other money counting equipment,” says Gibson. He adds the Deposit Balancing Manager capability allows grocers to quickly process all checks and cash, including an image of every document, ensuring no problems recognizing the necessary information on the check and a perfected deposit down to the penny with no errors.

Keeping up with technology and the online shopping world is key concern for retailers, notes for Instore Products’ Brown. The trick, he says, is partnering with companies who are constantly adapting and customizing products to stay ahead.

Expertise is key

In 2015, Brasco will be introducing Capsol, a new line of covered cart corrals. Capsol features a modern, European design that can withstand the wind and snow load requirements of northern climates. “Capsol offers something no other corrals do, which is a reconfigurable, multi-way modular design. It can accommodate nearly any space with its side or front cart access,” says Christie.

Capsol is made from a no-rust aluminum extrusion that frames panels of high-density polycarbonate for the roof and walls. Company officials say the line is ideal for high-capacity parking lots or small urban retail locations. They add it is easily branded and both the frame and polycarbonate can be customized to color preference.

Cummins Allison will continue to support grocers with coin, currency and check processing solutions in 2015. Company officials say enhancements to its JetScan iFX and Money Machine 2 product lines will help grocers drive revenue, reduce costs and create an efficient store environment.

“We worked with several grocers in 2014 to replace poor performing, existing equipment with durable, reliable Money Machine 2 self-service coin machines,” says Gibson. “Our self-service coin offerings will continue to provide grocers with a greater opportunity to generate revenue, as well as multiple options for product procurement.” Four flexible options let grocers buy, lease, rent or place a machine without owning it, giving them more choices for adding coin counting.

Officials at Southern Imperial will be featuring a number of products this year, including its new Allura LED lighting solutions. Northrup says this affordable solution runs with low energy consumption and a high color-rendering index that helps maximize the merchandise’s appearance. Allura LEDs can be retrofitted into existing fixtures using Southern Imperial’s Bus Bar powering system.

“With LED lighting solutions, Southern Imperial’s ability to provide quality products that can be customized to the specific needs of our customers is what sets our products apart from others in the market,” he says. Southern Imperial’s products are designed for easy installation, especially in retrofitting existing fixtures, eliminating a key barrier to entry for implementing lighting at the fixture level.

Pan-Oston offers its new ErgoLane, which combines three checklane styles: Scan & Pass, Carousel, and Scan Bag & Pass into one. “With the ErgoLane, customers experience less wait time and 11% higher efficiency,” says Sewell, noting the ErgoLane design is the first to include an optional complete cash management solution in conjunction with a versatile bagging system. “Labor costs, shrink, and cash float diminish significantly without changing the lane,” she says.

Also from Pan-Oston is the FastLane X3. Developed by the Utopia Technology Group, a division of Pan-Oston, through a partnership with SpanTech and Datalogic, it incorporates high-speed portal scanning with contactless sorting, resulting in one lane doing the work of six lanes.

Systec has made great strides in developing new innovative designs to improve shopping experience. Best known for its patented coin lock system for shopping carts, today systec’s product line includes antistatic advertising handles, retractable seat belts and containment systems for shopping carts.

“Customers are growing more concerned about their children’s safety sitting in the shopping cart so we came up with SmartSafe, the first adjustable and retractable seat belt,” says Poulos. “SmartSafe provides more safety for children and a more relaxed shopping experience for parents.”

Officials at systec say the relaXt ergonomic handles for the shopping cart make for a more enjoyable shopping experience while helping the retailer advertise their products and services. According to Poulos, the relaXt handles offer an anti-static feature to eliminate the risk of customers experiencing static shock. “The relaXt handles ergonomic “ergo sticks” make it easier for customers to maneuver larger shopping carts and the optional cup holders allow the shopper to shop along with a beverage of their choice,” he says.

Throughout the year, officials at Instore Products will be highlighting a number of retail solutions. “We’ll be focusing on everything from conventional shopping carts and reusable bags to technology inspired picking vehicles, Click & Collect bins, sorting bins, carry-out carts and our Greenbox,” says Brown. “We truly stand behind our innovative and completely customizable products, and strongly believe we can make concepts come to life, thus feel that we surpass in comparison to the products in the market.” 

Versacart officials see retailers continuing to focus on carts and equipment that help them to stand out. They say enhancing the store with superior functioning equipment entices customers to shop the same retailer more often. Given the increased use of portable technology, Versacart has introduced cart accessories for smart phones and tablets. “These accessories help to accommodate the customer that uses electronic devices instead of a paper shopping list and accommodates parents that like to keep their younger children occupied while shopping,” says Steury.