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The New World of Retail

How competition is giving rise to a fresh produce focus
MS_New World Retail

“In-store demonstrations can be extremely impactful in the produce category if handled properly,” Grinstead adds. “The person demonstrating the product has to be very knowledgeable about where it’s grown, growing practices, nutritional value, and how to prepare and enjoy the product, etc. Just handing out samples isn’t an overly effective selling tool.”

Experiential events, however, must be subject to the same cost-benefit analysis of any other initiative. “You have to look at it and question the value and the economics,” cautions Strapagiel. He believes some supermarkets may be driven more by industry trends than consumer needs. “There’s a missing piece here,” he insists. “Yes, businesses are trying all of this, but there must be in-and-out efficiency, good quality, and decent pricing.” To his way of thinking, “I don’t want a mariachi band, I don’t want to be entertained—I want to be served.”

On the other hand, Jackson Berkley notes the investment is often worthwhile. “It’s like specialty produce,” she explains. “There’s shrink, but it’s good shrink.” Experiential activities like produce butchers expand customer palates and set a store apart from its competitors, which can make the cost, including the shrink, well worth it.

The Technology Edge
Technology itself provides another means of enhancing the consumer experience. “Supermarkets need to be exploring all of the different opportunities emerging today to take advantage of new technology that helps them know and serve their customers better,” Numainville says. “While some of these have been around longer than others, and new tech is being born every day, retailers need to explore what’s right for them and works with their format.”

“We’re definitely seeing more use of technology in our membership,” confirms NGA’s Strange. “Based on what consumers are asking for, one [grocer] might be focused on self-checkout and another on delivery.”

As with the other components of the shopper experience, judgment plays a pivotal role. “Not all tools are right for every format and every demographic, but neither is waiting on the sidelines,” emphasizes Numainville. This is especially true as “players like Amazon get more engaged in the food industry and utilize all of the arrows in their quiver, such as voice-ordering via Alexa and easy replenishment through Amazon Dash, as well as the checkout-free experience offered at Amazon Go.”

Shelf and checkout tools
A hotbed of current interest is speeding up checkout like Walmart’s Check Out with Me anywhere process to self-scanning to eliminating the process entirely, like the Amazon Go model. “I think the scan-and-go technologies are going to be the greatest factor in reinventing the shopping experience,” predicts Grinstead. “Waiting in line to check out remains the most frustrating thing about grocery shopping for most people.”

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