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The New World of Retail

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

Technologies at the shelf or bin level, such as advertising to provide fluid information and pricing, have become more affordable in the past decade. Among the chains in this realm are Kroger, with plans to implement its Kroger Edge technology, developed with Microsoft Azure, in 200 stores.

The technology, which Kroger is also selling to other retailers, displays pricing, nutritional information, video ads, and coupons digitally at the shelf.

Ultimately, it will communicate with customer smartphones, highlighting items on shopping lists or spearheading products for those with specific dietary needs. Though the technology currently revolves around packaged goods, it could prove useful for bulk produce and fresh-cut items as well.

Scandit offers similar smartphone-based augmented-reality scanning in stores. The company currently has several dozen deployments in large retail chains including Southeastern powerhouse Publix. “You’re bringing the ecommerce experience to the store,” notes Christian Floerkemeier, cofounder, vice president, and chief technology officer at Scandit. In addition to pricing, nutritional data and the like, stores can also enable devices to verify shelf-label information.

Employee use of technology such as Scandit’s could improve the shopper experience as well. Rather than having a half dozen Zebra or Honeywell point-of-sale scanners in store, Floerkemeier says each employee could have a smartphone equipped with simpler, more flexible capabilities. This would improve customer service by allowing any employee to respond to shopper questions quickly and accurately.

Focus on Fresh
A supermarket’s produce department, if done well, is a key part of a good shopper experience in the store. “Our research shows that satisfaction with the fresh department is three times more important in overall satisfaction than any other part of the store,” Baker says.

Numainville reiterates the importance of locally grown fruits, vegetables, and herbs. “While local might be defined differently, the aspect of telling the story behind the food is something many shoppers find important to their purchase decision. Plus, local reinforces fresh and makes the retailer seem more aligned with the community.”

Fresh produce also enjoys a connection to a healthy lifestyle—which is marketing gold. The NGA study, for example, found that 63 percent of shoppers who frequent independent stores expect them to support healthier lifestyles. “There’s an opportunity for independent supermarket operators, especially in the area of fresh, to excel,” confirms Strange.

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