Reniventing the Interior of the Supermarket?

For the past several years, supermarkets have faced a barrage of new competitors, from big-box stores such as Wal-Mart and Target (which have increased their emphasis on food products in their product mix) to specialty chains such as Whole Foods and Trader Joe’s to online retailers.
In response, supermarket chains have become more innovative than in the past — by adding prepared meals, a greater variety of produce, indoor cafes, and many other tactics. Now, the traditional gridiron store layout with long-time fixed product locations is being reimagined by some supermarkets — especially the store perimeter.
For example. as reported by Stephanie Strom for the New York Times: “The doors of the Cub Foods grocery store in this middle-class suburban city [Eagan, Minnesota] open onto piles of picture-perfect peaches and nectarines nestled next to jewel-toned plums and grapes. Around the corner, corn delivered in the morning from a local farm is heaped decoratively on one side of a wide, meandering path that guides shoppers through the produce section and toward the deli counter and sushi bar, where they can catch the aromas of freshly baked breads and doughnuts, a Cub specialty, a little farther away. ‘You can pretty much be in Anywhere, U.S.A., in center store, but the perimeter is the fashion side of the grocery business,’ said Sharon A. Lessard, chief designer at Supervalu, which operates Cub Foods stores as well as chains like Jewel-Osco, Shaw’s, and Albertsons in some markets. ‘The perimeter is where we can best distinguish ourselves from everyone else.’”
Click the photo to learn more. Shown here is Peggy Hoffman, looking for fresh corn in the perimeter area of Cub.

 

Photo by Tim Gruber for the New York Times

 

Posted in Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing | Tagged , , , , , , , , , , , , | Leave a comment

The Discounting Boom in China

After many years of exceptional economic growth, the Chinese economy has slowed down dramatically (something to which people in many parts of the world can certainly relate). As a result, consumers in China are becoming more discount-oriented. This presents both retailing opportunities and problems.
As Justina Lee and Vinicy Chan report in Businessweek: “About a year ago, Chinese shoppers were in full-on conspicuous-consumption mode. Executives routinely spent $12,900 on Rolexes and other high-end watches to give to business contacts and suppliers, much to the delight of Cartier, Financière Richemont, and Swatch Group. Gold bars carved with Chinese characters signifying good luck were also in vogue as gifts. This year’s economic slowdown has crushed the market for high-end corporate swag and set off a wave of discounting across Chinese retailing. Executives are now choosing watches that cost 40 percent less, says William Li, chief financial officer of Hong Kong jewelry retailer Luk Fook Holdings. Switzerland will likely feel the pain. China’s per capita spending on Swiss timepieces is six times that of the U.S. and double the level of France, according to research by Frankfurt-based investment bank MainFirst Bank.”
Click the image for the full Businessweek story.
Illustration by Ana Benaroya
Posted in Global Retailing, Part 1: Overview/Planning, Part 3: Targeting Customers and Gathering Information, Part 8: Putting It All Together | Tagged , , , , , , , , , , | 1 Comment

The Use of Barcodes: An Infographic

ScanLife regularly produces reports on the use of barcodes, including QR codes and mobile shopping. The latest report is from the second quarter of 2012. 
Click the infographic to learn more.

 

 

Posted in Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Technology in Retailing | Tagged , , , , | Leave a comment