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New ecosystems for partnerships emerging in retail

New ecosystems for partnerships emerging in retail

In an increasingly digital world, retailers have to rethink how they use square meters of retail space. “Innovation in retail is not just about creating a new store formula, it is about adopting a shopper-driven philosophy.”

Give up thinking about the channel

How do you identify missing products from your collection? How do you decide the optimal frequency for promotions? How to improve your shopping experience? How can you increase the value of small purchases? These are the questions that retailers constantly face and the answers to which are not always clear. In his new bookRetail Innovation ToolkitShopper Marketing Expert Constant Berkhout 42 offers a tool that you, as a retailer or supplier, can use to better serve your shoppers. It is not a theoretical book on category management, but a practical guide with specific instructions and exercises.

The author says: “Category management has to keep up with the times.” “In addition to the store, you also have to bring a mobile phone and online, for example Customer journey It’s becoming less clear: the customer journey today consists of many different steps, and with each step it competes with someone else. Retailers often still think of it as a channel of distribution, rather than taking the perspective of the customer. You have to let go of that channel thinking: As a supermarket, you are now competing too Amazon However Deliveroo. “

Use retail space differently

Category management is all about collaboration, partnerships, trust, and data sharing. But cooperation is no longer limited to the retailer and its suppliers: “There are many stakeholders. British supermarket chain Morrison Too late with his own suggestion online and thus collaborated with websuper Okado. But they also provide fresh produce for Amazon Fresh. And if you have to go fast, Deliveroo delivers groceries. New ecosystems of partnerships are emerging.

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“For the future, I see a complete rethink of how you use your physical retail space,” says Constant Berchot. Think about a topic like health in the supermarket: In the UK, Boris Johnson wants to impose strict restrictions on promotions and offers of unhealthy products. This will have dire consequences for the status of those categories. The Netherlands wants to ban the sale of tobacco in the supermarket. What should you do Supermarkets with a service counter? Can you be profitable from selling recharge cards? Additional deployment of self-scanning also creates a space that you can use otherwise. FRESHIBO Supermarkets from Ali Baba Only 40% of the area is devoted to the traditional “display” of products. The rest is for logistics – online ordering – and experience: consumption in store, entertainment and education. ”

Define new KPIs

This challenge also applies to non-food retailers. American series Depot Office For example, online competition for some office supplies has seen a strong increase. The retailer responded by focusing more on services for SMEs in its stores and opening pickup points for orders from Alibaba. Features of Garden center in Overvecht near Utrecht Steak Itself is an “oasis city”. Together with local partners, the entrepreneur is redefining the concept of a garden center, while providing more space for education. “And why can’t a hardware store collaborate with a coffee shop? Traffic is a problem for retailers: How do you get people to come to your store more often? Give them more reasons to visit your store: Not only to buy, but also to shop, or play with children, Or have a coffee. “

The problem, however, is that retail organizations often stick to old KPIs, Barkhut believes. A supermarket chain wanted to put a children’s unit in its stores, where kids could play for a while. This takes up space, so the question internally is “What is a business case, and what will it produce?” But parameters like productivity or turnover per square meter just don’t get you there. It is, for example, if you also start to see customer satisfaction as a key performance indicator. “.

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Improve the shopper experience

Konstant Brecht does not see category management as the only way, but as a way to “achieve innovation”. “Innovation in retail is not just about creating a new store formula. Innovation is not just a thing for the coordination development department. Every category manager must innovate. If you are a category manager for soup or cookware, then you need to be pushed to think about the shopper experience. It’s about adopting a shopper-led philosophy. “

He consciously chose a very practical book with short texts, clear action points, and engaging visuals. “In my assignments, I often work with very smart guys who are not familiar with category management because they didn’t get it in their training, and who tend not to read books but get their information on YouTube, for example. I want to share them with the story in a fun way. I want to give Category management is a new touch and reaching people who haven’t learned this at university. 30 years ago, category management was a project, and today it is a process. It is about improving the shopper experience, and it involves more empathy. I want to convey this message. ”

RetailDetail readers can read the book Order the Retail Innovation Toolkit here: With the rdtoolkit discount code you get 10% off until June 30th.