Inside The Aisle » Alex Delotch Davis

Shoppers prefer the STORE

Alex Delotch Davis — Wed, 27 Apr 2011 15:52:14 +0000

Walmart is testing a grocery delivery service. Shoppers can purchase a limited assortment of grocery products online and have them delivered to their door for a small fee. Walmart is not the first player in the grocery delivery business but they definitely plan to follow their formula and become the biggest.

According to The New York Times, Walmart’s pricing is aggressive and the delivery charge is low which makes it already more attractive than some competitors like PeaPod and Fresh Direct.

The interesting part of this conversation, however, is the fact that no matter the offer, grocers who have tried this before found that consumers prefer to come into the store. Supervalu made a go of online delivery and it didn’t work out well.

Currently, the mass merchandiser is just testing the program out of a San Jose, CA store. But it will be interesting to watch what unfolds. Surely, Walmart’s foray into this market will lead to best practices for the future of online delivered groceries.

More Ideas for a Digital Environment

Alex Delotch Davis — Thu, 31 Mar 2011 16:47:43 +0000

Kim Williams at Digital Signage Today recently posted takeaways from the GlobalShop Conference where the subject of digital connectivity in the retail environment was a hot topic.

“There isn’t a single way of doing things anymore. Retailers must understand that the customer’s full brand experience matters more now than ever before. From the consumer’s perspective, the lines between brick-and-mortar and online shopping of a particular brand are blurred, and these aspects will continue to meld together.”

We don’t need to beat the drum anymore for the fact that consumers are expecting some form of digital interaction in-store. What continues to be interesting, however, is the number of ways that people are attempting it.

In this article, Williams discusses Lord & Taylor’s approach with a type of digital billboard as well as the explosion of QR codes and how they might play a role. Click here to read the entire article.

Where do these oranges come from?

Alex Delotch Davis — Fri, 25 Mar 2011 23:42:26 +0000

Tesco surveyed customers to determine their highest priorities in the grocery store. Of course they found that consumers are more savvy than ever before. That’s standard fare considering the incessant amount of information available to consumers. Advances in connectivity with mobile devices not only means more information is available but it’s also at their fingertips in the aisle.

While you might expect that there is an information overload, it turns out that consumers actually want more. Tesco’s research found that in the case of produce, consumers are very intersted to know where exactly the food comes from.

“They want more special offers, value options and Internet deals, but they also increasingly want to ensure that the product is of high quality, and about its provenance.”

This provides a labeling issue for grocers as well as a new in-store communications consideration. How do you effectively inform consumers about the origins of their food?

Several years ago, we discussed the introduction of DataBar which could replace the traditional PLU codes found on produce. Besides the technical challenge of changing over an entire system, grocers would now consider how they visually communicate origin to consumers inside the store. Signage and displays could take on a whole new presence inside the grocery store beyond the unassuming style we’re used to.

Airports: The New Retail Frontier

Alex Delotch Davis — Thu, 17 Mar 2011 03:19:36 +0000

Just a couple of weeks ago, I relayed my surprise at discovering a comfortable contemporary airport terminal at JFK that was more of a hang out than a wait station. Turns out, that’s all the rage.

Just like everyone else, airports are being squeezed in this economy, and to make up for shrinking airline rent and landing fees, they are investing in retail. Roger Yu at USA Today details the new approach that airports are taking to encourage spending from passing travelers.

“Their goal is not only to reflect a unique local feel, but to distinguish themselves amid intense competition for air service and a need for more revenue. And, some say, it’s paying off.”

Yu describes an interest in positioning the airport as a postcard for its host city that includes adding local restaurants and retail shops throughout.

“There is more of an approach to make (airports) a visitor center,” says Bill Hooper of Gensler, an airport architecture firm. “If you can make terminals feel more comfortable and interesting, people do (account for that) in making decisions on what airport they want to fly to.”

Spot on. MSNBC recently ran a list of top airports for shopping. Their list reviews airports all over the world and goes well beyond newsstands. Amsterdam airport houses an H&M outlet. Dubai airport’s duty free shop has your standard fare, cologne and cognac, plus 30 superstores in their award-winning contemporary retail space. Heathrow has a Gordon Ramsey restaurant and a spa in addition to expansive retail offerings.

It seems the airport is a ripe retail frontier.

Designing for Efficiency?

Alex Delotch Davis — Thu, 10 Mar 2011 18:16:08 +0000

A major, less talked about, aspect of retail design is designing with the employee in mind. Although aesthetics rate high in the list of factors that beat out one design over another, efficiency and functionality for the professionals who work in an environment can also be a deciding factor.

However, according to The Ledger that may no longer be of much concern as retail employees are phased out. The introduction of self-service stations, kiosks and vending machines have made the actual salesperson more and more scarce.

Retail Jobs Evaporate as Shoppers Adjust to Self-Service