Start Over Strategy For Tomorrow's Future

START OVER STRATEGY for tomorrow’s future

C U S T O M E R

ENGAGEMENT ?

TIME

INTU

ITIO

N Machine

Learning

People

Our Event Guest Speaker

•  Doug Stephens is one of the world’s foremost retail industry futurists. He was recently ranked #9 in Vend’s Top 50 Retail Influencers.

•  Doug conducts speaking engagements globally on retail & consumerism and has 10,000+ followers on Twitter @RetailProphet www.retailprophet.com

•  Author of the ground breaking book, The Retail Revival: Re-imagining Business for the New Age of Consumerism.

•  Presenting “The Future of the Retail Store”

About Retail Revival

- Traditional Grocery Sales

- Natural / Organic Grocery Sales

Natural / Organic Grocery Sales

Traditional Grocery Sales

organic growth rate MORE THAN 2X growth rate for all food

“IT’S JUST A FAD.”



U.S. ORGANIC MARKET SALES

$1B 1990

$11B 2004

$27B 2012

Global organic food & beverages market is expected to reach USD 211.44 billion by

2020, growing at a CAGR of 15.7% from 2014 to 2020

global

$100B by 2018

U.S. $21B by 2016



organic ONLINE

GROCERY SALES

$13B by 2016 Organic

Personal Care

COMPETITION from every angle

TECHNOLOGY PRICE PRODUCT PEOPLE

•  Existing operating environments and technical infrastructure

•  Define and gain internal agreement on the “to be”

•  Define and gain agreement on roadmap, development and deployment plan

•  Budget •  Time

•  Organization •  Internal resources/capability •  Training •  Culture •  Vendors – current and future •  Competitors – current and future •  Technology in general

OUR CHALLENGES ARE NOT UNIQUE

WHERE DO WE BEGIN?

Do we look at this as a POS decision?

What about on-line ordering and grocery shopping?

How does mobile come into play?

If we choose a platform that everyone else has deployed how do we create a competitive edge?

How long will it take to make changes?

How expensive will those changes be?

where do we begin?

5 MONTHS

(the clock is ticking)

we only have

Retail Food Food Service

Guiding Principles

1 platform

create a

JOURNEY

leverage our

smaller size

let history inform

the future,

not drive the it

LET GUESTS CHOOSE

quickly move from

DECISION to

ACTION

Digital Shoppers

Multi-channel buyers

Researchers

Physical store buyers

OUR CUSTOMER

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WHERE IT STARTED

in both grocery & restaurant properties

OBSERVATIONS

1 Individuals interested in eating with their colleagues spent the bulk of their time alone. •  Decide what to eat •  Separate to place the order •  Wait for the order

•  Find each other •  Look for a table

2 Families were in the restaurant together but were not necessarily interested in eating the same food or eating together


OBSERVATIONS

3 Payment options were “traditional”

4 Customers made multiple purchases from multiple stations = multiple payments and standing in multiple queues.

5 The “Queue” during lunch = people leaving the queue


OBSERVATIONS

4 Customers made mul/ple purchases from mul/ple sta/ons = mul/ple payments and standing in mul/ple queues.

5 The “Queue” during lunch = people leaving the queue

6 Moms and dads had difficulty finding a safe way to navigate AND had a hard time finding seating that was "friendly"

7 Differently abled customers struggle with “the queue” and seating


OBSERVATIONS

•  Multitude of order options: Self Service Kiosk; Mobile; Online

•  Unique Payment Options for families and groups •  Food related information •  Queue busters •  In-store format that makes it safe and easy for parents

with children, differently abled, and seniors to order and enjoy their food

•  The ability to grocery shop AND enjoy

let’s address the breaks in the journey &

CREATE

what we saw

EVERYTHING is still channel based

SINGLE-CHANNEL

MULTI-CHANNEL

OMNI-CHANNEL

CATALOG

CATALOG

?

MULTIPLEX brand

experience

•  Start-ups will continue to enter the market in a variety of roles and they will rapidly drive change

–  Technology –  Business models

•  Larger retailers will begin to more seriously investigate opportunities to transition to a more nimble, customer experience driven operating environment

•  The definition of convenience will continue to morph as new technologies are introduced

•  Labeling is the tip of the iceberg •  Local origin, artisanal, small batch is the fastest growing segment –

and one of the most difficult to incorporate •  Mobile payment will become THE form of payment

WHAT’S NEXT?

N E X T G E N E R A T I O N

RETAIL ARCHITECTURE

A retail solution should not be a big box!

…it should be a combination of discrete capabilities…

…that leverages the right solutions…

Bespoke solutions that are differentiators and offer a business advantage.

Commodity solutions that add value, but don’t differentiate.

…to build a platform for innovation and evolution.

REPLACEABILITY FLEXIBILITY SCALABILITY AVAILABILITY EXTENSIBILITY

60:40

JOHN LEWIS

Q&A

[email protected]

@JoshuaSigel

APPENDIX

379+ stores growing to 1000 with a market cap matching that of Kroger

150 stores growing to 1,200 & Sprouts IPO'd in August of 2013 and raised $344M

344 stores in 25 states with an estimated $11B in revenue.

Raised $290M for IPO and operates 131 stores in 25 states with estimated $1.3M in revenue

The “Nature’s Market” sec/on is featured in more than 1,300 of their 2,500 stores.

Launched it’s own brand of natural and organic food in 2009

Promising to drive down organic food prices by 25% with a new line of organic food products

Free same-‐day and early morning delivery on orders over $35 of more than 500,000 Amazon items, including fresh grocery and local products.

•  Our own stores •  Competitors stores, online and off •  Other consumer facing businesses •  Past work experience •  Customers •  Street and analyst community •  Employees

Observation (The good, the bad and the ugly) 1

Research 2

Identify & Prioritize Customer Segments 3

Create a contextual end-to-end customer journey map for each segment

4

Create and prioritize action-oriented tasks 5 Identify overlapping tasks and actions 6

Identify value of the tasks, and ease of implementation

7

Define the roadmap 8

Define tools that support execution of roadmap AND allow for flexibility

9

•  We did not have time to execute a traditional approach – who does anymore?

•  A traditional approach would have given us a “Traditional” solution and would force us to execute a vision that was not ours

•  “Traditional” solutions were developed to solve channel issues not to address the complexities of today’s customer journey – do we build a future based upon the past?

•  We needed to work with a partner that would ask: –  Understood the importance of “Speed to Value” –  Embraced service and experience design as a necessary step

in delivering a solution –  Believed that innovation was driven by more than technology

•  Approaching the project with the goal of supporting the customer’s mission was key

•  “How do we continue to create an awesome customer experience?” •  Adopting a test and learn approach to rolling out initiatives

can make a huge impact •  Design experiences, not touchpoints •  Manage expectations and transitions across the ecosystem

–  Customers –  Executive level, mid management, store associates –  Vendors – from food purveyors to IT consultants

•  Do not underscore the importance of testing and training

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Where it Ended

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For Concept Purpose Only

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Experiences Digital Signage •  Subway Entrance Video Wall •  Atrium Column Wrap •  Virtual Host Hologram •  Entrance Floor Projec/on •  Express Market Signage

Children’s Area •  Children Interac/ve Video Wall

Digital Menus •  Kitchen Sta/on •  Bar Screens

Customer Ordering POS Single Kitchen Kiosk Express Market Kiosk

Fulfillment Screens Kitchen Sta/on Column Screens

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