The Current State of the Supermarket

CircularWhere it’s headed and three things

retailers need to do to prepare

May 2016Bill Bishop, Chief Architect, Brick Meets Click

What do consumers want from the ad/circular?

Two thingsInput on what to buy – could be added to a written list - or even just mental one.

Ideas on what to eat.

How does the ad/circular fit into their lives?Shows what’s on sale (aka smart to buy now). • Users are not just cherry

pickers, 60% of core shoppers also compare prices.

An entrenched habit• When changing circular

delivery, make it easy for the customer, but also make it worthwhile.

How do most consumers think of the ad/circular today?

Mostly still as a print vehicle because they are still a lot of them

Do you use print or digital circulars?

67%

19%

14%

Percent of all shoppers

Want print Don't want printNo preference

Data Source: Brick Meets Click’s Six Degrees of Digital Connections, 2013

Do you still want the print circular?

Back in 2013

Have had the option of a digital ad/circular for years

Data Source: Oracle Data Cloud’s The Circular Revolution, 2016

Do you prefer print

or digital supermarket

circulars?63%

19%

18%

Percent of all shoppersTitle

Prefer print No preference Prefer digital

Fast forward to 2016

If print circulars disappeared…

• Majority of shoppers would search out the same information from a digital source like email, website, or mobile.• About a third, however, don’t want the

digital circular and would rather find the print version in-store.

The

So what lies ahead?

Evolution - not a revolution> Digitally connect shoppers are looking for better and easier ways to grocery shop.

The

NextThree things

retailers need to do to prepare

The

1. Recognize you can’t afford to get too far ahead or too far behind your target customers

> Understand where they are today> Track where they are going> Measure your customers in your

marketRange of customers at risk can vary from 3

– 4%to 13 – 14%.

The

2. Prepare to change when the target shopper is ready

> Shift when• Core customers want access to digital

and• You’re ready to incorporate it across the

marketing/ branding strategy. > Goal: Take good care of your core customers – they are where the action and the profitability are.

Means testing, learning, reacting, & retesting

The

3.Work with progressive CPG brands

Use category insights to bring alive digital merchandising.• Work with brands who have a strong

interest in marketing online. • Tap into their knowledge & energy - it is

a great way to accelerate your own learning.