First Impressions 2018-01-01 (2)

Shifts in consumer buying behavior, coupled with a hyper-competitive marketplace are driving supermarket operators to change decades-old strategies and approaches to their front ends.

The most talked about shift is the increase in the amount of food purchases being made online, which some say is a clear sign that shoppers do not find brick-and-mortar stores the most convenient option to shop. And, if studies are correct, by the end of this year it is possible that nearly a third of consumers will be making grocery purchases online.   

So what is a grocer to do to get consumers excited again about shopping in supermarket stores? Industry observers say that today’s shoppers are easily distracted, time-pressed and demand convenience, so to even be considered retailers need to offer an easy shopping experience as well as inspiration and creative ideas. 

Therefore, making a great first impression and building deeper, more meaningful lasting impressions are must-haves to succeed today. Retailers that do not make the best use of their shoppers’ time and provide relevant products and information at the front end will see more business erosion.   

In today’s marketplace retailers need to develop new strategies and build an authentic connection that leaves a lasting impression on their shoppers, says Harry Newton, director of sales and marketing for Structural Plastics, based in Holly, Mich. “It is more important than ever that the front end strategy and experience evolves, because so much is on the line for brick-and-mortar grocers,” he says. 

This rich, fertile ground can be much more than CPG impulse items. Observers say retailers should use the front end as an opportunity to build deeper more meaningful connections with their shoppers. “It is a chance to create experiential retail that pulls shoppers in by bringing out the fun, magnetic personality of your brand,” says Newton. “A loyal customer that values your in-store experience is worth much more than a $1 candy bar.”

Observers say retailers have to sell the look of their stores before they can sell a product. “Consumers shop with their eyes, so products need to be seen, but also shown off,” says Yasmina Dhimes, director of sales and marketing for Forte Products, based in Kansas City, Mo. “Eye appeal has become extremely important in today’s society and it is the main reason why retailers are re-imaging and renovating their establishments to draw in more customers and stay ahead of their competitors.”

Store presentation and attractive product displays, notes Dhimes, play major roles in how customers change their shopping habits once they are inside the store. Products that are highly visible and showcased throughout the store, she adds, have a higher rate of being picked by shoppers. “Merchandising is key to successfully accomplishing this objective, and displays and fixtures need to have the ability to look stylish without taking the attention away from the product being promoted,” says Dhimes. 

Flexibility is the key to today’s front end, says Elizabeth Newbould, marketing and e-commerce coordinator for Pan-Oston, based in Bowling Green, Ky. The biggest challenge today, she says, is that the front end has expanded and is now located throughout the store and even outside. “From mobile checkouts that allow you to check out in any part of the store, to pick-up lockers, where you never enter the store, the front end is wherever you want it to be,” she says. To address these needs, Pan-Oston developed products, like produce weigh stations, to enhance the checkout experience by speeding up the checkout process and reducing lines.

A retailer’s reputation and the perception of the quality of a store are among the many factors shoppers consider before even going through the door, note officials at Sheboygan Falls, Wis.-based Bemis Retail Solutions. They say that a well-kept parking lot, neat cart corrals and bright signage all signal to a shopper that the upcoming shopping experience will be top-notch. 

“Inside the store, having an adequate fleet of carts, and having the right carts, makes a significant impression,” says Jon Bemis, general manager at Bemis Retail Solutions. “A cart that’s noisy, that pulls to one side or that has wobbly wheels may annoy a shopper as they enter the store. No store wants an annoyed or distracted shopper, and no store wants to present an image of poor quality or lack of attention to detail.”

The challenge with carts today, says Bemis, is that more and more shoppers seem to be individualizing their shopping experiences, meaning that some prefer to shop multiple times per week, while others do a large weekly shop and buy in bulk quantities. “It is important that a store have multiple ways for shoppers to carry their goods,” says Bemis. “A store needs a roomy cart for the weekly large-quantity shopper, a useful smaller or two-tier cart for the daily shopper, and an ergonomic handbasket for the grab-and-go shopper looking for prepared food items for lunch or dinner.”

Younger shopper influence

A new generation of shoppers—and how they shop, more specifically—is driving the need for a new approach to the front end. As study after study highlights, today’s most influential shopping segment—Millennials—value experiences, new adventures, information and want authentic engagement with the brands and stores they shop. Robin Jimerson, vice president, sales and marketing for Process Retail Group, based in New Berlin, Wis., says that nearly 80 percent of Millennial shoppers use mobile devices throughout the shopping process—to shop or surf—which is now in direct competition with the front-end’s ability to capture shoppers’ attention. 

To attract these shoppers, she says, retailers need to provide these more immersive experiences. “Fresh thinking around in-store merchandising opportunities can engage shoppers, further build loyalty and ultimately, increase basket size,” notes Jimerson. 

 There are two front end areas and strategies SPC’s Retail Design Lab team uses to help grocery retailers transform their stores and space into new revenue streams and immersive retail experiences. The first is the “front porch,” which consists of front entry areas/vestibules, exterior sidewalks and parking lots that they turn into pop-up live goods, seasonal farmer’s markets, outdoor living and holiday shops. The second is “community engagement” programs.

“Today, the front end does not stop at a retailer’s sidewalk or parking lot,” says Newton. “It stretches out into the communities they serve, all the way to the front door of shoppers and out to where they live, work and play.” He notes that today’s new hybrid grocery shopper has hundreds of brick-and-mortar, e-commerce and subscription food service options to choose from. As the lines between online and offline shopping blur, and nearly 70 percent of all purchases involve the internet in some form, Newton believes the time has come to re-think retail.

According to research, nothing makes a worse impression than long lines while other lanes are closed or unmanned because it makes customers feel that their time is not valued. To address the challenge, officials at Pan-Oston created a convertible lane that allows retailers to offer all lanes open, all the time. 

Newbould says that research has also proven that a tired, outdated front end is a deterrent for shoppers, driving them to shop elsewhere. In an effort to improve the shopping experience and create a more appealing front end, the company is working with major retailers to update their front end with everything from new technology, new wraps on their existing lanes and even new lane lights. 

Pan-Oston is also introducing improved self-checkout solutions that allow the retailer to control the self-checkout process, from custom lane designs to self-checkout solutions that are integrated to the retailers’ own custom POS solutions.

Officials at Process Retail Group say to be most effective, this area needs to be treated as part of an integrated program across the storefront with multiple touchpoints that tell a larger, more cohesive story. “Fragmented destinations oftentimes act as a disconnect rather than a compelling focal point,” says Jimerson.

 Millennials, she adds, are most sensitive to any misalignment, which is why she says it is important that in-store efforts should support and complement the experience given online. “With a fickle and less loyal generation, it’s sometimes the in-store experience that can be the key driver in keeping these shoppers coming back,” says Jimerson.

With an approach centered on creating an experience ahead of the experience, Process Retail Group uses a HoloLens to give retailers a virtual experience of its custom front end or in-store designs. Jimerson says this saves time and money ahead of prototyping while also having the ability to effectively make design changes, address any possible consumer shopping challenges and more. It also enables them to showcase the modularity and flexibility of their designs.

Forte Products understands the need to create impulse buying in customers and design and manufacture merchandising fixtures to create impressive and noticeable displays that connect with customers and attract them to other items that were not in their buying list. Dhimes says Forte’s fixtures also offer retailers the ability to maximize valuable floor space, cross-merchandise related products, reduce labor time by restocking less often and increase efficiencies.  

“Our U-Link Curve Merchandiser has a unique and distinctive look to bring products to life in virtually any part of the store,” says Dhimes. “This unit is effectively used in floral departments to create charming environments that attract more shoppers, leading to increasing sales and more revenue.” She adds that the U-Link Curve can be used as a single unit, two pieces or four units to best meet space availability. Each unit has a two-tier space to merchandise on both levels and is easily accessible from all angles. 

Bemis Retail Solutions has rolled out a shopping cart that enhances the front end experience. According to company officials, the brightly colored carts with store logo graphics add to a store’s branding and feel welcoming to a shopper. In addition, Bemis carts, being constructed entirely of engineering-grade polymer plastics, resist fading, cracking and warping, and enhance the quality perception of a store. “Our carts don’t bend like metal carts, which means the wheels never wobble and they don’t rattle like metal carts, making the whole store quieter and less chaotic,” says Bemis. “Truly functional features such as cupholders, bag hooks and a two-tier cart give shoppers a more convenient and pleasant experience.”