“You have to look hard at what works economically,” Baker adds. Retailers must have the required traffic flow and volume to justify the fixed costs. Further, each store within a chain may differ, with one offering a full experiential shopping experience and others serving as streamlined spokes around the hub.
Each iteration of retail also affects suppliers, especially those in perishables. Whether touting low-priced fresh produce or a wide range of both staples and exotic fruits and vegetables, it can be a boon for wholesalers—especially when locally grown items are in season. Knowing the strategies and not just meeting expectations but exceeding them will put suppliers in good stead.
Experiential Impact
Millennial shoppers in particular are interested in experiences more than products. According to a 2017 poll by global researcher Ipsos Group S.A., 75 percent of millennials would rather buy an experience than a desirable thing, and while they are a tech-driven generation, 75 percent also feel that participating in or attending a live event is more impactful than taking action online.
While these figures may apply to experiences such as concerts and political rallies, the results translate to supermarket shopping as well. Millennials tend to enjoy in-store activities that inspire, educate, offer a sense of community, and make shopping pleasurable. Examples include in-store demonstrations, produce butchers, retail dietitians, in-store or ‘grocerant’ dining options, or kiosks offering information about fruits, vegetables, herbs, and cooking.
“Millennials will get many of their products online, but they still like the experience of going to the store if it’s fun and exciting,” Grinstead says. “Just going to pick up groceries has no interest to them, so millennials are significantly driving this change and many retailers are either proactively changing the shopping experience or are being forced to out of self-preservation.”
Visibility and engagement
Experiential events and activities are likely to become even more important as online shopping expands. “Community events are an area that’s harder for pure-play ecommerce providers to replicate, so retailers should look for ways to be fully engaged and visible within their communities,” counsels Numainville.
Locally grown produce plays into this trend. “Local reinforces fresh and makes the retailer seem more aligned with the community,” agrees Numainville. Further, being creative with store promotions and events tied to specific seasonal commodities can attract shoppers.
