Joanne Denny-Finch CEO IGD

IGD chief executive Joanne Denney-Finch

Grocery research charity IGD and The Consumer Goods Forum (CGF) have joined forces to reveal the ten areas that grocery retailers must focus on to ensure physical stores remain relevant in an increasingly digital age.

The report, prepared by the grocery research charity for CGF’s E2E Value Chain Learning Series The Evolution of the Physical Store, examines the forces informing and influencing store evolution and features global case studies of best practice.

It also offers separate checklists for retailers and manufacturers to ensure they make the most of the report’s advice.

Commenting on the report, the IGD’s CEO Joanne Denney-Finch said: “We believe there will always be a place for bricks and mortar stores in grocery retailing, as physical stores will always be best placed to deliver instant gratification, impulse purchases and customer service.

“So we expect the store of the future to merge the physical and digital worlds, to create a much more absorbing experience, featuring fresh food, new products, unique events and more ways to taste, learn and discover.

“Retailers and manufacturers must therefore work collaboratively to prepare for the very different future taking shape around us.”

According to IGD, the ten areas for retailers and supplier to focus on are:

1.Understanding shoppers and their missions

The best retailers increasingly recognise and cater for shoppers’ different missions, but there is still more to be done. Distinctions between formats will become less relevant and retailers and suppliers will engage and interact with shoppers in a much more individual way.

2.Using better data

Enhanced use of data and analytics will help retailers make more informed decisions about their ranges. Personalisation will also be a major part of the store of the future.

3.Enabling flexible store designs

Robotics and technology will free up more space in store that can be used to excite shoppers and drive footfall, with more focus on fresh food, mission-focused fixtures and convenient meal options.

4.Investing in staff

One of the main benefits of using more robotics and technology in store will be to free up staff to focus on value-added services. As technology removes some of the human elements of in-store services, it will be essential for companies to have a friendly face to bring their brands to life

5.Reconsidering ranges

Shoppers’ more regular purchases will have increasingly shifted online, so stores’ ranges will need to be unique, adaptable and relevant.

6.Removing friction from the shopping trip

Retailers will need to understand where and why there is friction in shoppers’ journeys around their stores. A speedy experience at the checkout is very important to shoppers, so removing checkouts altogether could be a big gain. Freeing up space for new features and fixtures and giving staff the opportunity to spend more time helping and inspiring shoppers would also help.

7.Building and supporting brands

Brand integrity is crucial and manufacturers will need to continue to invest to find creative ways to build and support their brand.

8.Involving the supply chain team earlier and more often

More pressure will be placed on retailers’ supply chains to meet shoppers’ demands. Retailers will need greater understanding of demand planning and the ability to react quickly, plus greater collaboration across the chain

9.Finding different ways to measure success

Retailers will need to come up with new ways of guaging success based on changing shopper demands

10.Getting investment from the top

Creating the store of the future will require investment and long-term planning. Retailers will need a company-wide view of how the store will develop for their brands, putting the shopper at the heart of this evolution. Senior teams will need to commit to drive these wide-ranging, long-term changes.