Driving innovation in convenience stores
James Harries, senior retail analyst at industry think-tank IGD, looks at how independent retailers can use their size and agility to implement new ideas in a timely fashion.
With so many convenience stores in the UK and competition constantly increasing, it has never been more important for stores to stand out from the crowd and offer something different.
I often go out into stores and never fail to be impressed by innovations from independent convenience operators – creating points of difference and providing additional reasons for shoppers to visit.
Customer expectations
One of the key strengths of independent retailers is their ability to implement new ideas and launch products in a timely fashion. It is this nimbleness that allows ‘innovative indies’ to keep raising the bar of convenience retailing.
Two of the best examples we have seen recently at IGD are Simply Fresh Bethnal Green and Londis Finsbury Park.
Both of these retailers have a strategy that offers a range going above and beyond what is expected from a small store.
In Simply Fresh, a deli counter really sets the tone for the strong focus on quality. It has become a destination store within the local community, offering a comprehensive fresh offer and specialist dietary foods, such as flax seed crisps and local craft beers.
The store has also teamed up with a local wine merchant to offer a refillable wine service, which changes every six to eight weeks. This is a very clever product to offer, as it works on two levels
- Customers return to refill their bottles.
- It generates customer excitement, as the wine changes on a regular basis.
Retailers can also look to become famous for offering ranges and products not commonly found in other stores. In north London’s Finsbury Park, Londis offers a range of specialist foods suited to those with dietary requirements.
These include gluten-free, lactose-free and foods suited to diabetics. What both these stores have in common is an understanding of their local shoppers.
Independent retailers who demonstrate that they understand their shoppers put themselves in a strong position to succeed.
Engaging technology
Retailers are also making more use of technology in-store. One Nisa store in Cardiff, for example, is using digital display screens both in the windows of the store and above fixtures.
These screens allow the retailer to communicate with shoppers, changing the messages to reflect the time of day and shopper missions. Taking this a step further, Scotmid Co-operative has developed an interactive display screen that allows shoppers to join the Co-operative movement, learn about local suppliers, look up recipes and leave feedback.
This opens up new opportunities to interact with shoppers and share messages. Using technology does not have to be complicated or expensive. Retailers are using social media to both communicate with shoppers and build relationships.
If used effectively, social media offers huge opportunities for retailers. However, a clear strategy is needed to make sure what is shared is relevant and engaging.
Offering inspiration
On a more store-specific level, there are several opportunities to inspire shoppers. One of the trends we are seeing across the convenience channel is mission-based ranging.
In its most basic form, this can be as simple as positioning limes with bottles of Corona or having cooking sauces located on fixtures next to protein.
The Co-operative Food provides a great example of this in its Old Street store in central London, offering customers ‘food-for-now’, ‘food-for-tonight’ and ‘food-for-later’ zones.
In the ‘food-for-tonight’ section, all the ingredients needed to create a meal are grouped with wine and beer. This approach to retailing puts shoppers first, saving them time and offering inspiration.
Shoppers can also be engaged and inspired by events. These provide the opportunity to drive excitement in-store through staff‑ interaction and themed decorations, as well as linked promotions and dual-siting of products.
By supporting events such as Halloween, retailers can interact with the local community, giving shoppers the convenience of combining their day-to-day spending.
As part of the preparations for IGD’s Convenience Retailing Conference 2014, we’ve seen a lot of innovation within the channel.
In a market that is evolving so quickly, it is important to stay close to developments and challenge established principles.
Standing still is not an option. It’s also vital to keep an eye on the basics by understanding shopper needs, maintaining availability, keeping a keen eye on price and delivering solid store standards.
Getting the basics right provides a solid platform from which to inspire and engage shoppers.
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