Supermarkets in the bag
Pamela Buxton looks at how retailers are using design to give them the edge in the competitive and fast changing supermarket sector.
Words by Pamela Buxton
The supermarket sector is experiencing huge change. Not only are the traditional big players in the market continuing to be challenged by the rise in popularity of discount chains such as Aldi and Lidl, but the growth of online grocery shopping (20 per cent of adults now do their grocery shopping online, according to Mintel) has led supermarkets to question the nature of their physical stores, both in terms of size and customer experience.
Sainsbury's describes the market as 'incredibly dynamic and competitive'. One major consequence has been the swing towards new, smaller convenience concepts - Sainsbury's and Tesco for example both now have more of the latter than their conventional supermarket formats, and Tesco has recently scaled back developing its larger stores.
Waitrose is expanding its Little Waitrose brand, which opened in 20 locations last year mainly in London, outside the M25 and into the Home Counties, and Morrisons has developed its M Local brand. To add to the complexity, Sainsbury's has formed a joint venture with Danish discount chain Netto, which entered the UK market last year, and Tesco recently collaborated with new sandwich bar brand Fred in a number of its London Tesco Express outlets.
Morrison's Ilkley M Local, created by Fitch
All this is fuelled by huge changes in how people shop. It's not just a matter of online versus in-store; the new picture is of a combination of different types of shopping transactions. The traditional weekly shop, for example, is increasingly a thing of the past, according to Siân Novakovi, insights strategist of Household, which has recently worked with Little Waitrose and Tesco. Instead, she says, this might be replaced with several 'big-basket' shops a week, or even daily visits to a convenience-style supermarket to supplement a less frequent online and/or discount chain stock-up.
Another major factor, says Household's Novakovi, is a polarisation of shopping needs. 'One of the things we've seen is a massive change in how people are shopping in terms of lifestyle needs,' she says. Not only do customers want convenience, they want a considered food offer, she adds, with a greater level of inspiration and emotive connection, for example through the use of produce that is local, fresh, healthy and with an appealing provenance.
'The product and the environment and the communication should come together hand in hand...it's not just about the product on the shelf but about how you bring that to life,' she says.
And that's where the opportunities for design come in. Although traditionally the sector is not the most glamorous of areas, the recent seismic changes there have provided new opportunities for designers, as the big supermarket players respond to changing dynamics and seek to connect with changing consumer priorities. Instead of concentrating on the most convenient formats to build and operate, the focus is increasingly on a range of offers to meet diverse and changing customer needs. 'Design isn't just how the store looks and feels, but is the journey the store takes the customer on - the product flow, the layout, the adjacencies,' says Household creative director Sarah Page, adding that design expression and choice of materials can help create a deeper connection with the consumer who is after far more than just convenience. 'People are looking for an authentic expression - they...want a more tactile, authentic and authoritative experience, and that's where design is leading the way,' she says.
Coop at Old Street, London, by Fitch
Fitch design director Nathan Watts considers supermarket design to be a particularly interesting area to work in because of the scope for impacting on customers' lives on such a regular basis. The design company worked with Morrisons on its M Local convenience brand and more recently with Co-operative Food. Above all, he says, supermarkets should ensure that customers feel emotionally connected to the store environments through the 'soft' power of customer experience via the use of language, change of pace, ambience, tactility and storytelling. They should also explore how they can deliver a more personalised shopping experience using digital means.
'The big story is that everyone is interested in convenience and nervous about larger format stores because everyone wants to get closer to the customer. Convenience stores are all exploring ways to become more 'heart of community', for example as pick-up points for other retailers or accommodating community groups, he says. With convenience-store formats it's essential, he says, for retailers to be able to present regularly changing ideas to customers and for customers to be able to pick up what they want quickly and easily. 'Some of the convenience stores have become quite mechanical with high shelving as they are under pressure to be high density,' he said. 'At M Local, we lowered the height in the first third of the store and created more of a compelling fresh food experience.'
Sainsbury has also been adapting to the growing trend for customers to shop more frequently - whether for lunch or top-ups rather than just doing a big weekly or monthly shop. This has led to an emphasis on decluttering and an increased focus, especially in smaller convenience stores, on its growing hot food and food-to-go. In larger stores, general merchandise and clothing has become increasingly important and there is more emphasis, says the retailer, on displaying these in a way that customers might see in specialist high-street stores to reflect their quality.
Tesco, by Household
Waitrose is also extending its offer. The retailer recently opened its first station store at King's Cross in London catering for 'transumers' with an emphasis on travel accessories, and twice as much space dedicated to foodto- go as in its regular convenience stores. Hospitality has become more important across the Waitrose estate, with the supermarket introducing eat-in areas at several branches and trialling new concepts for a bakery, a juice and smoothie bar, and a wine and beer bar.
Looking ahead, it's clear that more change is afoot as discount retailers continue to make inroads into the sector, and supermarkets respond by creating a more customer-focused environment. Fitch's Nathan Watt thinks there is more opportunity for all supermarket retailers to consider how they can create multiple formats within the convenience sector, for example for a store in a travel, work, or neighbourhood environment, that are better suited to particular requirements. Household expects supermarkets to explore the potential for greater use of technology in the shopping experience, such as linking to apps and location awareness technology. But above all, the customer is king, as supermarket environments work far harder to give, and communicate, what the shopper wants, than ever before.
