the supermarket circular: where it's headed and 3 things retailers need to do
TRANSCRIPT
The Current State of the Supermarket
CircularWhere it’s headed and three things
retailers need to do to prepare
May 2016Bill Bishop, Chief Architect, Brick Meets Click
What do consumers want from the ad/circular?
Two thingsInput on what to buy – could be added to a written list - or even just mental one.
Ideas on what to eat.
How does the ad/circular fit into their lives?Shows what’s on sale (aka smart to buy now). • Users are not just cherry
pickers, 60% of core shoppers also compare prices.
An entrenched habit• When changing circular
delivery, make it easy for the customer, but also make it worthwhile.
How do most consumers think of the ad/circular today?
Mostly still as a print vehicle because they are still a lot of them
Do you use print or digital circulars?
67%
19%
14%
Percent of all shoppers
Want print Don't want printNo preference
Data Source: Brick Meets Click’s Six Degrees of Digital Connections, 2013
Do you still want the print circular?
Back in 2013
Have had the option of a digital ad/circular for years
Data Source: Oracle Data Cloud’s The Circular Revolution, 2016
Do you prefer print
or digital supermarket
circulars?63%
19%
18%
Percent of all shoppersTitle
Prefer print No preference Prefer digital
Fast forward to 2016
If print circulars disappeared…
• Majority of shoppers would search out the same information from a digital source like email, website, or mobile.• About a third, however, don’t want the
digital circular and would rather find the print version in-store.
The
So what lies ahead?
Evolution - not a revolution> Digitally connect shoppers are looking for better and easier ways to grocery shop.
The
NextThree things
retailers need to do to prepare
The
1. Recognize you can’t afford to get too far ahead or too far behind your target customers
> Understand where they are today> Track where they are going> Measure your customers in your
marketRange of customers at risk can vary from 3
– 4%to 13 – 14%.
The
2. Prepare to change when the target shopper is ready
> Shift when• Core customers want access to digital
and• You’re ready to incorporate it across the
marketing/ branding strategy. > Goal: Take good care of your core customers – they are where the action and the profitability are.
Means testing, learning, reacting, & retesting
The
3.Work with progressive CPG brands
Use category insights to bring alive digital merchandising.• Work with brands who have a strong
interest in marketing online. • Tap into their knowledge & energy - it is
a great way to accelerate your own learning.