Understanding Retail - Part 2: dynamism and innovation

Start

Conventional mass retailing is currently undergoing a profound multi-factorial change that is forcing it to reinvent itself rapidly, calling into question the very foundations that ensured its success fifty years ago. This second part continues the description of the seven major key changes affecting food chains and specialist retailers, detailing their strengths and weaknesses.

home product5 - Made in " Chez moi " and short circuits : today, we As we have seen, the Frenchman wants to feel that the coveted product comes "d'à by being manufactured by French SMEs, producers, distributors, and local, or at the location of the sign itself. These basic trends, initiated by organic and AMAPs, are currently becoming widely popular. scale with, in particular, the media coverage of "made in France": are concerned the manufacture of the product, the origin of its materials and its distribution. This major change in mentalities for brands and retailers is in fact the end of the road for a new generation of excessive relocation and unbridled territorial expansion (which supermarkets currently find too expensive), long erected in quasi-ideology.

The food retail industry has responded quickly through partnerships supported with regional producers (local alliances de Leclerc...), translated in recent years by a multirayon offer. still in the minority, but promised to last. It also proposes more and more diversified fresh products are being produced on site (bread, fresh pasta, pastries, pizzas...) with craftsmen working under the eyes of the clients (the Italian Leclerc Conad is an example of this) completed). Surfing on the wave of ultra-short production circuits, The Lotte Mart hypermarket in Seoul (Korea) goes so far as to offer salads grown on site in a "vertical farm".

sustainableimpact6 - Time for environmental and social responsibilities : rightly accused of having contributed to the development of agriculture intensive, to the placing of SMEs under supervision, and poor conditions the mass retail sector is starting to give real signals of positive progress. Sign of the times, the almost all the major distribution groups have a management of sustainable development with real influence, to help to promote concrete social and ecological approaches. Several significant initiatives have been carried out:

- Transportation: Franprix has been supplying since the start of the new school year 80 of its 350 Parisian stores by river, a first in the European food distribution. This system will make it possible to save eventually the equivalent of 3,874 trucks per year.

Why not enjoy unlimited reading of UP'? Subscribe from €1.90 per week.

- Stores: France's first HQE shopping centre to open in 2010 in Soissons. Casino launched in 2010 the "Label V" which signals shopping centres with a triple approach (respect for the environment, social role and local involvement). This label is certified Ecocert. The Caserne de Bonne shopping centre in Grenoble goes even further with a building bioclimatic of 17,300 m2 that isn't heated or air-conditioned.

devdurable-systemeu- Carbon footprint of products : Casino in France and Tesco in England, both pioneers of environmental impact labelling products, display with Leclerc the carbon footprint of a part of their offer. System U to optimized nearly 70 % of its references for dessert to limit the maximum cardboard packaging.

- Social progress: if mass distribution is known for her high stress and working hours... It now offers real opportunities for "extending" it, providing real opportunities for career through internal promotion. For hostesses of efforts have been made: at the Leroy Merlin of Chantepie (Rennes), turnover does not exceed 3.5 %. Moreover, if the commercial relations with the major brands are still in place. partnership with manufacturing SMEs has become essential to the success of our business. for both parties, becoming more and more long-term.

hypermarche-desenchantment7 - A society that has become schizophrenic, divided between hyperconsumption and hyperconsumption and desire for meaning: in a typical world in transition from fundamental values, the consumer of the years 2010 is divided between a very consumerist attitude and a very strong (buy everything at the best price), and the emergence of a great desire to make sense of his purchases.

However, while the current economic recession is encouraging a review of our lifestyles and consumption patterns (Ėtude Ėthicity 2012), she also stimulates the hunt for the right price and plan. The mass retail sector, which, on the whole, knows that its future lies in the plays between these contradictory issues, constantly juggling with both extremes, aided by a very sure instinct for commerce and a strong culture of innovation reinforced by fifty years of struggle commercial. With some success since System U is often cited as an example, both for its turnover per metre and for its its positioning as a convenience store, and its talent in talk to the consumer, the client and the citizen at the same time. The "Plan A" from Marks and Spencer, launched in 2007 - one of the the most ambitious social and environmental responsibility in the distribution - has also shown its effectiveness, with a 2012 distribution net profit of £185m generated by its shares in favour.

IV - Mass distribution innovates at all costs

grandedistrib-innoveA very great capacity for innovation: according to Michel Choukroun, expert in distribution, the notion of combat is one of the three genetic keys to distribution marketing (with the price and the proof): in plain language, this means never letting a carrier current pass through, even if it is at the antipodes of its culture (hence the commitment of the of distribution in the bio...). We should not hesitate to invest too, stammer, fumble, and accept mistakes until the right business--model be found, without fear of copying, but by improving it. the original model. It must then be tested in secret, and very quickly if the innovation lends itself to it, duplicate it. This anticipatory culture explains the the tremendous dynamism of this sector, its strong capacity to adapt during previous crises (e.g., the arrival of hard-discount in the 1990s), and its resistance to today's dangerous challenges.

The mass retail sector is in fact fighting on all fronts: let's underline that that, for her, the conquest of the organic market is nothing but a trade war. among others, and is not the highest priority. The store bio " clone " Coeur de Nature is nonetheless an intelligent copy, promised to find its marks, and faithful to the philosophy innovation in distribution: the bulk offer extends, for example, to hygiene and maintenance.

We have just seen it, for conventional distribution the time are to vital changes, due to a conjunction of societal and high-tech (Internet) change. The model "1 caddy - 1 car park - 1 periphery - 1 mass offer at tight prices", is questioned in its very foundations for the first times in 50 years, especially for food distribution.

Let's now detail the strongest business innovations :

To fight against disinformation and to favour analyses that decipher the news, join the circle of UP' subscribers.

distrib-proximity1● Precision trade the time of geographical segmentation and social: "No more big blocks on the periphery, a place where the to the precision trade" claims Jean-Charles Naouri in 2008, CEO of Casino. One of the strongest characteristics of the distribution has just fallen: the famous housewife of less than 50 years old shopping in a hypermarket. It's time for development accelerated surgical business adapted to a new population: single-parent families, senior citizens, singles

Geographical proximity becomes the key word for accessibility increased points of sale, and quick and easy shopping : here is the revival of supermarkets, but also the rapid rise withdrawal points, drives, flow shops (train stations, metro...), shops, etc. automatic-virtual-ephemeral-pops-ups, shopping malls medium-sized urban areas, rural businesses, etc. A modern signage must now be present on a majority of these sales channels, taking care to integrate the specificities of each one.

● "Downtown" atmosphere, the new imagination if the distribution to weaken and corrupt the small shopkeepers of the city centre, he is ironic that it contributes in its own way to reinvigorating the heart of the city, with a proximity that is meant to be geographical and relational, and who surfs on new desires consumers. At a time when specialist organic retailers are out of the cities and into the suburbs... The food industry initiated the movement with Carrefour as a pioneer. Express, quickly copied and sometimes overtaken by U-Express or Casino shopping. The advice and service are privileged there: withdrawal dry cleaning, fresh bread, wifi access, snacking bar, etc.

Specialist and multi-specialist brands follow with the return of DIY stores in city centres (Mr.Bricolage), or the brand new "miniaturized" city center format of FNAC.

It should be noted that retail parks and large shopping centres also have the measure of this concept of proximity, either by integrating harmoniously shopping malls in the heart of cities either by urbanizing and humanizing open-air shopping malls... with pedestrian walkways. The trend is towards the creation of living spaces with the image of city centres and the integration of user-friendliness standards of local shops: a reinforced welcome and a wide range of products. services (newsstands, doctors' offices, notaries, etc.), such as the future Muse commercial space in Metz (opening 2014).

The revival of vending machines is also noteworthy. that offer, in transit areas, streets or isolated suburbs from fresh bread, vegetables and other foodstuffs daily troubleshooting.

fingrandedistribution● What to do with hypermarkets? The hypermarket format no longer has the coast. Since the end of the 1990s, he has suffered a slow decline in love, which has been confirmed in 2011. The current economic recession is temporarily boosting its activity, but at the cost of increased promotions, which are margins. Each brand takes advantage of this temporary reprieve to reinventing this mega-format at the origin of mass distribution, and which is still necessary for mass distribution, as it ensures in particular the purchase volumes needed to negotiate with the major brands.

The general strategies range from upgrading the product shelf (for example, the Grand Frais chain or the organic shop). American Whole Foods), to simplified sales promotions, and the desire to counteract the drive effect by improving the service and the advice. As the ideal formula does not yet exist, each brand goes his own way:

- Casino is shrinking its giant hypermarkets by cutting back on their floor space... to accommodate new specialized areas.
- Leclerc takes into account socio-demographic location by with both a historical price positioning and a new layout. (Leclerc Atlantis of Nantes, organized as a "popular" (Leclerc Atlantis de Nantes, organized as a a big bazaar), and a top-of-the-range positioning and service with its new hyper located in the mall. SOwest: furniture and "premium" gondola heads, parking at Caddies, very high prices on certain products (wines).
- Auchan believes in the traditional "all under one roof" model. to present the full range of products sought after by the various consumers: first prices, private labels, national brands, organic, local, premium products.
- Carrefour tests the successor to the late Carrefour Planet in the hypermarket of L'Haÿ-les-Roses (Touch control wall for the wholesale household appliances, collection point Parcel Relay ). It returns while waiting on a discount communication. The new Carrefour de La Chapelle Saint-Luc in Troyes focuses on food discounting, including fresh produce and local products. Its configuration, original for a hyper, is modelled on a supermarket.

Savior Fernandez, www.econovateur.com (1st publication : www.biolineaires.com No. 44 Dec 2012)

Passionate about organic for 27 years, Sauveur Fernandez is an independent marketing expert sustainable and eco-innovation. Pioneer French of the principles of communication responsible, he deciphers future trends, and helps brands and retailers to creation of ethical products and services.

Read Part 3

Read Part 1

{Jacuzzi on}

0 Comments
Inline Feedbacks
View all comments
Previous article

Understanding Retail - Part 1: Changes in sight

Next article

Understanding Retail - Part 3: innovation and weaknesses

Latest articles in Transfer of Services

JOIN

THE CIRCLE OF THOSE WHO WANT TO UNDERSTAND OUR TIME OF TRANSITION, LOOK AT THE WORLD WITH OPEN EYES AND ACT.
logo-UP-menu150

Already registered? I'm connecting

Register and read three articles for free. Subscribe to our newsletter to keep up to date with the latest news.

→ Register for free to continue reading.

JOIN

THE CIRCLE OF THOSE WHO WANT TO UNDERSTAND OUR TIME OF TRANSITION, LOOK AT THE WORLD WITH OPEN EYES AND ACT

You have received 3 free articles to discover UP'.

Enjoy unlimited access to our content!

From $1.99 per week only.
Share
Tweet
Share
WhatsApp
Email