Supermarkets switch onto smart phone technology
Over the next five to 10 years, supermarkets across western Europe are expected to undergo a radical transformation, predicted researchers who surveyed 40 stakeholders in the sector.
Anne Bordier, IGD director of customised research, identified three possible scenarios comprising: the “connected store”; supermarkets that were “shopper centric” and “green stores”. (See definitions below.)
But she added that combinations of all three might evolve, since IGD had identified 30 different concepts across these three scenarios that could materialise in the future.
Supermarkets and brand owners such as CCE will use the latest IT systems such as smart phones and intelligent shopping trolleys to connect with shoppers, who can expect experiences customised to their particular needs. This might allow them to discover more about the provenance and nutritional properties of the products they buy, said Bordier.
Smart technology
Smart technology was likely to develop quickly over the next five years, with more intelligent sections, digital screens and “interactive booths” within stores, said Bordier. She even suggested that “omni labels” would be developed, which would allow consumers to assess a variety of background data about products in a single scan using their smart phones.
“Expect smart phones to become a remote control,” said Bordier, as consumers use their mobiles to access more information about products. However, new developments in IT will also feed in to back-office developments for both retailers and their suppliers, which will need to collaborate more closely, she added.
The store of the future will also be about “empowering” shoppers, enabling them to make use of multiple channels to access goods and services, in which sustainability will be a central feature, she added.
But as well as meeting the needs of technology-savvy young shoppers, supermarkets and brand owners will also have to adapt to meet the needs of the growing numbers of ageing shoppers who will expect goods and services to meet their particular needs, she said.
£1.4bn growth
Simon Baldry, md of Coca-Cola Enterprises GB, said: “Smart phones are going to be the wallet in your pocket in the future and that capability is also not far off in terms of being real.”
He said the research would help inform the way his company interacted with consumers in the future. It would help the firm to tap into the potential £1.4bn growth identified in the soft drinks category over coming years, he added.
By 2016, online retailing is expected to grab a 6% market share, compared with 4% today, said Bordier. In the future shoppers are likely to purchase bulkier “big shop” items online for home delivery, releasing more store space for more digital content and services and the grouping of products for “time related merchandising” – related to particular times of the day or weather conditions.
'Generation Y', also know as the Millennial Generation, refers to people born in the 1980s.
What’s in store?
- The Connected Store: integrates the latest technology such as smart phones, integrated digital screens and electronic posters.
- The Green Store: reflects the growing focus on nutrition, ethical issues plus waste and energy reduction.
- The Shopper-centric Store: As more food and drink sales move online, stores will find more creative ways to use floor space. This will lead to a more experience-driven outlet with spare space devoted to concessions such as doctor’s surgery.
