start over strategy for tomorrow's future
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START OVER STRATEGY for tomorrow’s future
C U S T O M E R
ENGAGEMENT ?
TIME
INTU
ITIO
N Machine
Learning
People
Our Event Guest Speaker
• Doug Stephens is one of the world’s foremost retail industry futurists. He was recently ranked #9 in Vend’s Top 50 Retail Influencers.
• Doug conducts speaking engagements globally on retail & consumerism and has 10,000+ followers on Twitter @RetailProphet www.retailprophet.com
• Author of the ground breaking book, The Retail Revival: Re-imagining Business for the New Age of Consumerism.
• Presenting “The Future of the Retail Store”
About Retail Revival
- Traditional Grocery Sales
- Natural / Organic Grocery Sales
Natural / Organic Grocery Sales
Traditional Grocery Sales
organic growth rate MORE THAN 2X growth rate for all food
“IT’S JUST A FAD.”
- Traditional Grocery Sales
- Natural / Organic Grocery Sales
U.S. ORGANIC MARKET SALES
$1B 1990
$11B 2004
$27B 2012
Global organic food & beverages market is expected to reach USD 211.44 billion by
2020, growing at a CAGR of 15.7% from 2014 to 2020
global
$100B by 2018
U.S. $21B by 2016
- Traditional Grocery Sales
- Natural / Organic Grocery Sales
organic ONLINE
GROCERY SALES
$13B by 2016 Organic
Personal Care
COMPETITION from every angle
TECHNOLOGY PRICE PRODUCT PEOPLE
• Existing operating environments and technical infrastructure
• Define and gain internal agreement on the “to be”
• Define and gain agreement on roadmap, development and deployment plan
• Budget • Time
• Organization • Internal resources/capability • Training • Culture • Vendors – current and future • Competitors – current and future • Technology in general
OUR CHALLENGES ARE NOT UNIQUE
WHERE DO WE BEGIN?
Do we look at this as a POS decision?
What about on-line ordering and grocery shopping?
How does mobile come into play?
If we choose a platform that everyone else has deployed how do we create a competitive edge?
How long will it take to make changes?
How expensive will those changes be?
where do we begin?
5 MONTHS
(the clock is ticking)
we only have
Retail Food Food Service
Guiding Principles
1 platform
create a
JOURNEY
leverage our
smaller size
let history inform
the future,
not drive the it
LET GUESTS CHOOSE
quickly move from
DECISION to
ACTION
Digital Shoppers
Multi-channel buyers
Researchers
Physical store buyers
OUR CUSTOMER
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WHERE IT STARTED
in both grocery & restaurant properties
OBSERVATIONS
1 Individuals interested in eating with their colleagues spent the bulk of their time alone. • Decide what to eat • Separate to place the order • Wait for the order
• Find each other • Look for a table
2 Families were in the restaurant together but were not necessarily interested in eating the same food or eating together
in both grocery & restaurant properties
OBSERVATIONS
3 Payment options were “traditional”
4 Customers made multiple purchases from multiple stations = multiple payments and standing in multiple queues.
5 The “Queue” during lunch = people leaving the queue
in both grocery & restaurant properties
OBSERVATIONS
4 Customers made mul/ple purchases from mul/ple sta/ons = mul/ple payments and standing in mul/ple queues.
5 The “Queue” during lunch = people leaving the queue
6 Moms and dads had difficulty finding a safe way to navigate AND had a hard time finding seating that was "friendly"
7 Differently abled customers struggle with “the queue” and seating
in both grocery & restaurant properties
OBSERVATIONS
• Multitude of order options: Self Service Kiosk; Mobile; Online
• Unique Payment Options for families and groups • Food related information • Queue busters • In-store format that makes it safe and easy for parents
with children, differently abled, and seniors to order and enjoy their food
• The ability to grocery shop AND enjoy
let’s address the breaks in the journey &
CREATE
what we saw
EVERYTHING is still channel based
SINGLE-CHANNEL
MULTI-CHANNEL
OMNI-CHANNEL
CATALOG
CATALOG
?
MULTIPLEX brand
experience
• Start-ups will continue to enter the market in a variety of roles and they will rapidly drive change
– Technology – Business models
• Larger retailers will begin to more seriously investigate opportunities to transition to a more nimble, customer experience driven operating environment
• The definition of convenience will continue to morph as new technologies are introduced
• Labeling is the tip of the iceberg • Local origin, artisanal, small batch is the fastest growing segment –
and one of the most difficult to incorporate • Mobile payment will become THE form of payment
WHAT’S NEXT?
N E X T G E N E R A T I O N
RETAIL ARCHITECTURE
A retail solution should not be a big box!
…it should be a combination of discrete capabilities…
…that leverages the right solutions…
Bespoke solutions that are differentiators and offer a business advantage.
Commodity solutions that add value, but don’t differentiate.
…to build a platform for innovation and evolution.
REPLACEABILITY FLEXIBILITY SCALABILITY AVAILABILITY EXTENSIBILITY
60:40
JOHN LEWIS
Q&A
Joshua@Sigel.com
@JoshuaSigel
APPENDIX
379+ stores growing to 1000 with a market cap matching that of Kroger
150 stores growing to 1,200 & Sprouts IPO'd in August of 2013 and raised $344M
344 stores in 25 states with an estimated $11B in revenue.
Raised $290M for IPO and operates 131 stores in 25 states with estimated $1.3M in revenue
The “Nature’s Market” sec/on is featured in more than 1,300 of their 2,500 stores.
Launched it’s own brand of natural and organic food in 2009
Promising to drive down organic food prices by 25% with a new line of organic food products
Free same-‐day and early morning delivery on orders over $35 of more than 500,000 Amazon items, including fresh grocery and local products.
• Our own stores • Competitors stores, online and off • Other consumer facing businesses • Past work experience • Customers • Street and analyst community • Employees
Observation (The good, the bad and the ugly) 1
Research 2
Identify & Prioritize Customer Segments 3
Create a contextual end-to-end customer journey map for each segment
4
Create and prioritize action-oriented tasks 5 Identify overlapping tasks and actions 6
Identify value of the tasks, and ease of implementation
7
Define the roadmap 8
Define tools that support execution of roadmap AND allow for flexibility
9
• We did not have time to execute a traditional approach – who does anymore?
• A traditional approach would have given us a “Traditional” solution and would force us to execute a vision that was not ours
• “Traditional” solutions were developed to solve channel issues not to address the complexities of today’s customer journey – do we build a future based upon the past?
• We needed to work with a partner that would ask: – Understood the importance of “Speed to Value” – Embraced service and experience design as a necessary step
in delivering a solution – Believed that innovation was driven by more than technology
• Approaching the project with the goal of supporting the customer’s mission was key
• “How do we continue to create an awesome customer experience?” • Adopting a test and learn approach to rolling out initiatives
can make a huge impact • Design experiences, not touchpoints • Manage expectations and transitions across the ecosystem
– Customers – Executive level, mid management, store associates – Vendors – from food purveyors to IT consultants
• Do not underscore the importance of testing and training
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Where it Ended
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For Concept Purpose Only
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For Concept Purpose Only
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For Concept Purpose Only
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For Concept Purpose Only
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For Concept Purpose Only
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For Concept Purpose Only
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Experiences Digital Signage • Subway Entrance Video Wall • Atrium Column Wrap • Virtual Host Hologram • Entrance Floor Projec/on • Express Market Signage
Children’s Area • Children Interac/ve Video Wall
Digital Menus • Kitchen Sta/on • Bar Screens
Customer Ordering POS Single Kitchen Kiosk Express Market Kiosk
Fulfillment Screens Kitchen Sta/on Column Screens
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