Nordstrom Goes Supermarket?
The New York Times reports that luxury retailer is set to take Manhattan; but it’s no Barneys. The popular retailer will open Nordstrom Rack later this year that will offer the retailer’s goods at a discount price, much like Century 21 and Filene’s Basement.
What makes the move by Nordstrom so interesting is the change in customer experience. The store is set to open checkout lanes, no different than those of your local supermarket. So why the change?
From The New York Times:
The checkout line is another attempt at efficiency. A large television screen automatically directs a single line of customers to one of 19 cash registers, the first such check-out operation at a Nordstrom store.
“We’re big fans of Whole Foods,” said Geevy Thomas, president of Nordstrom Rack, adding that Nordstrom studied how throngs of New Yorkers are swiftly moved through the checkout lines at Whole Foods supermarkets.
What do you think? Will the move to checkout lanes improve the customer experience at Nordstrom Rack?
Walmart Grocery Sales Up
The retailing giant has drawn half of its U.S. sales from groceries for the first time in the store’s history, reports the Wall Street Journal. Writes reporter Karen Talley, “The drive to offer more groceries is appealing to certain retailers, especially as consumers are still a bit skittish about discretionary purchases. Target Corp. is making a big push into groceries by converting existing stores to sell food and incorporating fresh produce and food at newer ones.”
Do you think that Walmart will continue to lead other retailers in their grocery offerings? When the recession ends will they still reign?
Can I get an Order of Wi-Fi With those Fries?
Wi-Fi is increasingly becoming a popular commodity in which most consumers require in their shopping experience. Starbucks has always offered wi-fi to its customers, but according to this article in RetailWire more companies will start to offer the same service.
McDonald’s rolled out it’s Wi-Fi service to 11,000 of its 13,000 locations this January. Many food service companies are beginning to feel the heat as it looks like this trend is here to stay. Rutter’s Farm Stores is another food location which has offered free wi-fi as well. And in response to this, the company has received many thank you letters from customers that have expressed gratitude for this offering.
I wonder if other fast food giants like Burger King or Wendy’s will quickly follow suit…
Walmart Set to Cut Grocery Prices
Blogging Stocks reports that Walmart is ready to start slashing its grocery prices, putting more pressure on its competitors. The cuts will be across all of the retailer’s grocery lines.
Over the next six weeks, the mega-retailer will cut food prices and start a new advertising campaign to promote the move. Grocery stocks, on the other hand, will be running for cover over the same period. This is, as expected, a move by Walmart to keep the customer foot traffic it recruited during the recession in 2009 who now may be returning to rival competitors for purchasing their wares.
What do you think about the move by Walmart? Will we see the competitors drop their prices; and how will this effect the US economy?
Learn more: Walmart Again Vows to Slash Grocery Prices Nationwide
Should retailers leave demographics behind?
Reuters reports that German consumer products maker Henkel has found that shoppers who plan their trips, scanning circulars and clipping coupons, actually spend more money than others, making them a prime target for retailers and manufacturers.
These shoppers accounted for 31 percent of spending on packaged goods in 2009, even though they only make up 26 percent of U.S. households.
Despite their bargain-hunting ways, the group — which Henkel dubbed “Shoptimizers” — on average spent more than $7,100 last year, buying more packaged goods while cutting back on some fresh items, Henkel said.
Consumers who do a little planning before they shop and look for deals once they are in stores, a group Henkel calls “Mainstreeters,” spent close to $6,300 on average, up $81.
Carefree shoppers, who never use coupons, spent just over $5,600 in such outlets last year, up $246, Henkel found.
Despite their distinct shopping patterns, the three groups generate profit margins for retailers that are nearly identical, he said. They are also split evenly in age, income and household size.
Learn more about the survey done by Henkel ACNielsen and Information Resources Inc by visiting the original article.
Retailers should leave demographics behind
Engaging Shoppers with Every Step, Real Time
Stop & Shop/Giant has set out to improve its customer loyalty by creating a uniquely personal and relevant shopping experience. In this session, you will learn how a customer-facing technology was leveraged to create operational enhancements and reach customers at their point of purchase. This case study showcases how real-time in-store behavior and past purchase history can be translated to deliver highly targeted promotional messaging and exclusive savings to customers while they shop. You’ll learn how participating brands are experiencing saldes life and how the retailer is benefiting by giving their customer a rewarding shopping experience.
Stephen Vowles, Senior Vice President of Marketing, Stop & Shop will discuss:
- How new audience targeting tactics are revolutionizing the way retailers and brands can reach specific customers
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- Pitfalls to avoid when selecting & implementing customer-facing technology solutions
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“Engaging Shoppers with Every Step, Real Time” Monday, July 12 at 9am
Meijers Scales Down with Focus on Groceries
Dana Hunsinger of The Indianapolis Star reports that the Meijer, the Midwest mega retailer is set to open smaller stores throughout the Midwest that will focus on groceries.
“We’re definitely looking at markets like Columbus, Detroit and Indianapolis. And down the road, if there is an opportunity, we could definitely go into Indianapolis,” said Frank Guglielmi, Meijer spokesman. “It lets us put stores where we never would have been able to put one before.”
The new concept is about half the size of traditional Meijer stores, at about 100,000 square feet.
The traditional stores carry a fairly steady mix of merchandise from store to store. The new concept will try to find a niche and sell groceries that reflect the ethnicity and demographics of the surrounding neighborhoods.
Learn more: Meijer’s new approach focuses on groceries, niches
What do you think of this move by Meijer? Will we see the “friendly acres” diminish in favor of smaller stores? What are the major benefits of this move?
Customers and the impact of food labels
Australian Food News reports that an study has recently concluded on the influence food labels have on shoppers in Europe. The study, which questioned 17,300 people from various European countries, both in supermarkets and at home, found that only 18% of Europeans regularly look for nutrition information on food packaging in-store.
A new finding was that people spend an average of 30 seconds selecting a product. By comparison to previous studies, this is substantially more time than previously observed. The UK was lowest at 25 seconds per product, with the highest average time clocked at 47 seconds.
How does this compare with shopper behavior in America?
Learn more: European study highlights impact of food labels
