Store Of The Future 2016: HypermarketsRelease date: November 20th, 2015 (131 pages) PDF/Powerpoint format. Price: GBP999.00 |
Abstract
In 2015/6 the hypermarket is under pressure. Decline is inevitable, the format was groundbreaking in the 1980s. But this also opens up space for innovations...
Among the initiatives employed are the obvious, the innovative and the truly radical.
More obvious solutions have seen retailers trying to integrate the format with online:
1) by opening drive thrus, click & collect solutions, locker banks or dedicated pick up points.
2) by bringing online technology into the store, but often these solutions interrupt the shopping journey. In most cases they won’t bring about transformational change either.
3) by renting out space to concessions. In France, Casino has more or less outsourced its non food business to Cdiscount, the online marketplace. This has added such flexibility and been so successful, that Carrefour has copied the strategy with the RueDuCommerce acquisition.
Moving from the obvious to more innovative solutions:
The old weekly market on the main city square has been revived and updated. Especially in the Netherlands both the introduction of food service elements and the addition of organic, local and hipster brands have been a huge success (Landmarkt, Jumbo). There are different versions, but all concepts described here are radical and have no non food at all.
If revitalisation attempts fail, then retailers should use the space so it is still producing value for the business. Retailers could use part of the buildings to get into the huge real estate demand for shared office space for (retail) start ups. Retailers could also use the sheds as server farms. These could store crucial business data and the big data from customer touch points in a private cloud.
Moving to the more radical possibilities:
One option would be turning sheds into warehouses to fulfill from. After all many hypermarkets are in perfect locations for this, near conurbations and residential areas. Crucially links to established B2B supply chains are up and running. Instacart or Uber could work well in combination with such out of town depots.
Alternatively, one could combine hypermarket space with UAVs. Solar panels apart, many hypermarket roofs are dead space. One could now use drones and robots to make urban farming on roofs a reality, all access needed would be a lift shaft.
Table of contents
Executive summary | p10 |
Context: Does the format have a future? | p17 |
France’s no1, Auchan Vélizy 2011-14, sales in €m, 18,800 sq m | p18 |
Hypermarkets: The problem – despite Velizy’s sales density of €15,000 per sq m | p19 |
Hypermarkets: And now even Kaufland is starting to struggle… | p20 |
Hypermarkets: Kaufland’s great modernisation programme for 50 German hypers | p21 |
Hypermarkets: No reason to get carried away, the format will survive | p22 |
Hypermarkets: B&M stores and the move to omnichannel | p23 |
Updating the model, combining the offer with online | p24 |
Hypermarkets: The obvious solutions being installed right now | p25 |
In store technology: tinkering around the edges? | p26 |
Hypermarkets: Using in store tech to make the shopping trip friendlier | p27 |
Hypermarkets: Carrefour trials geo fencing | p28 |
Recommendations: A word of warning – details matter | p29 |
Following the shopper use case | p30 |
Recommendation: adapting technology to shopper use cases | p31 |
Localisation – In search for authenticity | p32 |
Hypermarkets: Bringing out the local roots of the store and authenticity | p33 |
Localisation: US retailers looking for authenticity Nike, Target and McDonald’s | p34 |
Localisation: Kohl’s and Macy’s range localisation | p35 |
H-E-B: Neighbourhood concept store in Wimberley, Texas | p36 |
H-E-B: Unique store features at other H-E-B outlets, Instacart tie-up | p37 |
Concessions, renting out – scouting for partners | p38 |
Hypermarkets: Concessions, giving up on turning it around from own position of strength | p39 |
Tesco: Extras to stock Arcadia brands, Asda on the look out | p40 |
Sainsbury’s: ...rivals also filling up dead space, the Argos link up | p41 |
Other uses of redundant space: restaurants and child care facilities | p42 |
Click & collect, drives – all eyes on food and robots | p43 |
Future channel innovation: Drive thrus becoming automated | p44 |
E.Leclerc: the pizza and sushi drives, updating and combining the offer, highways | p45 |
E.Leclerc: slowdown and closures ahead, a drive for downtown | p46 |
Asda: Click & collect pod concept | p47 |
Amazon: Grocery drive thru plans in the US | p48 |
Revitalisation strategies: the long tail, 3P non food marketplaces | p49 |
Hypermarkets: teaming up with a 3P platform | p50 |
Casino: Cnova/Cdiscount, the best French omnichannel player, financials | p51 |
Cnova: GMV growth, the IPO, using Casino’s vast network to compete | p52 |
Cdiscount: Global operations, active customers, key foreign markets | p53 |
Casino/Cdiscount: FBA equivalent, C le Marché runaway success, going offline | p54 |
Groupe Casino: the French online grocery offer, home delivery, drives, click & collect | p55 |
Cdiscount: recent developments | p56 |
Summary: Offering an integrated solution Casino & Cdiscount | p58 |
Ahold: latest financial results | p60 |
Ahold: acquisition of Bol.com complements the supermarket business | p61 |
Ahold: non food and click & collect potential | p62 |
Ahold: 3P marketplace accounting for 20% of 2014 GMV, the AH overlap | p63 |
Recent key developments: BOL’s 3Ps hit €100m in sales | p64 |
Recent key developments: US revamps, NY expansion, same day delivery | p65 |
Recent key developments: self-scan stores, Delhaize merger update | p66 |
Summary: Offering an integrated solution, Ahold & Bol | p67 |
Recommendations: implications and keys to success, learnings from Ahold and Casino | p68 |
Non-food marketplaces: Grocers transforming into true multichannel players | p69 |
The revival and rebirth of markets: Hypermarket equivalent of the future? | p70 |
Hypermarkets: copying markets, the former inspiration of the concept | p71 |
Landmarkt, Amsterdam – The trendsetter, all organic and regional | p72 |
Landmarkt: the revolution has started, a 3P marketplace in the offline world | p74 |
Landmarkt: a Wholefoods 2.0? | p75 |
Landmarkt: cash flow issues and the link up with online | p76 |
Jumbo Foodmarkt, Breda – How to get food service right | p77 |
Jumbo: sales figures, omnichannel strategy, Foodmarkt concept | p78 |
Jumbo: the Breda store, dishes at different stages of preparation | p79 |
Jumbo, Foodmarkt - the focus on foodservice | p80 |
Hypermarkets: Jumbo NL, sampling and tasting sessions, retail theatre | p81 |
Hypermarkets: Jumbo NL, no non food, 36k footfall per week | p82 |
Rindermarkthalle, Hamburg – Market anchored by the majors | p83 |
Rindermarkthalle Hamburg: rebooting original markets, anchored by brands | p84 |
Rindermarkthalle: Aldi Nord moving into hipster territory in Hamburg, sharing footfall | p85 |
Aldi Nord store visit, Rindermarkthalle Hamburg | p86 |
Torvehallerne, Copenhagen – Food service and Retail mix | p87 |
Torvehallerne Copenhagen: €30,000 per sq m, incredible sales density | p88 |
Torvehallerne Copenhagen: reasons behind the success, food service | p89 |
Torvehallerne Copenhagen: the inspiration behind Markthal Rotterdam | p90 |
The street food revolution - looking for shed space and shopping centres | p91 |
London Union: Changing London’s food landscape, looking for shed space | p92 |
Hypermarkets: London Union, the boom in street food | p93 |
Hypermarkets: street food vendors in Trinity Leeds | p94 |
Moving the format – into the inner city | p95 |
IKEA: the city centre store, smaller but taller, Hamburg Altona | p96 |
IKEA: city centre stores to revive the high street? | p97 |
IKEA: what has happened, food service a run away success, a store visit | p98 |
IKEA: among top 5 of most visited German stores, but basket sizes down | p99 |
IKEA: innovative furniture delivery solutions and the need to adapt ranging? | p100 |
IKEA: Altona a template for future stores? | p101 |
IKEA: click & collect stores, Canada, Greece, Thailand and the UK | p102 |
IKEA: bringing out-of-town to town, moving on to Oxford Street? | p103 |
The logistics opportunity: Turning sheds into DCs | p104 |
Hypermarkets: Logistics opportunity, demand for DCs for online fulfillment | p105 |
Margins: all about route optimisations and efficiency, the rise of click & collect and lockers | p106 |
New use case: hubs on the outskirts, bundling trips from all retailers, milk round deliveries | p107 |
City consolidation centre – a chart | p108 |
The evolution of the high street: start ups, pop ups, smart cities, smart parking | p109 |
Changing context | p110 |
The future high street: low emission zones, congestion charging, pedestrianisation | p111 |
4 case examples: Copenhagen, Melbourne, Bogota and New York | p112 |
Liveable cities: the triple bottom line | p113 |
The future high street: the triple bottom line, learning from shopping centres | p114 |
The future city: pedestrianisation leads to logistics knock on effects | p115 |
Smart parking: ecosystem link up, temporary pedestrianisation | p116 |
Heathrow Terminal 5 - a model for the high street? | p117 |
Heathrow Terminal 5: reducing cost, improving OSA, increasing sales | p118 |
Hub Solution: combining sectors, online grocery & food service, comprehensive solution | p119 |
Retail logistics: Reducing the empty runs, interleaving | p120 |
Retail logistics: Partnerships will become a necessity as online shopping continues to expand | p121 |
Rethinking outbounding | p122 |
Reconsider usage – The attraction of sheds | p123 |
Hypermarkets: shared co working space – start up and innovative spirit | p124 |
Hypermarkets: server farms, private clouds for customer data, vertical integration | p125 |
Drones & urban farms – A radical departure | p126 |
Hypermarkets: urban farming and opening up roofs, City Farm Systems | p127 |
Hypermarkets: drones for agriculture and drone helipads | p128 |
Outlook: what to do now | p129 |
Outlook: format to remain under pressure | p130 |