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Scaling Click and Collect Beyond the StoreAndy Lockhart
Why online grocery?
� Food and Beverage market was worth $700 Billion in 2016 according to the US Department of Commerce (The single largest consumer sector in the US)
� Smallest share of the digital retail sales today
� Potential growth is huge
Source: BI Intelligence
The Growth of online grocery
� Online will be 20% of the market by 2025
� Equivalent to 3,844 grocery stores
� Retailers with a solid Omnichannel presence will retain customers and gain traffic
� Most retailers do not have a clear strategy
� How to integrate brick and mortar with digital
� Ability to meet the customer where they are is key
� Convenience, assortment and personalization will determine the winners
Why consumers shop online?
� Choice
� Convenience
� Time
� Saves money
� Retailers have to adapt to customers’ increasing preference for online grocery shopping
Source: Brick meets Click
There are still hurdles
� Biggest barrier to buying grocery online is customer desire to pick their own fruits, vegetables and meat
Source: Brick meets Click
How do you get your groceries?
� Pickup at the store
� Pickup at a remote location
� Home delivery
Can Grocery be Omnichannel?
� Meeting the customer where they want to receive their groceries
� Can retailers truly deliver Omnichannel from a store based pick model?
� Availability, accuracy, efficiency and service will be key
Customer
Shop in Store
Collect at Store
Remote Pickup
Home Delivery
Fulfillment of Grocery Orders
� Pick grocery orders in existing brick and mortar stores – click and collect
� Use existing infrastructure
� Faster time to market
� Customers come to the store
� Use dedicated fulfillment facilities
� Higher capital investment
� Accurate stock management
� Gain efficiency and improve customer service levels
The Challenges for the Store
� Challenges for picking in store for online grocery
� Picking Accuracy
� Out of Stocks
� Store Crowding
� Substitution Process
� Requires a dedicated storage space for picked orders
� Active/Passive Cooling
Dedicated fulfillment centers
� Dedicated fulfillment centers address the challenges of in store picking while providing click and collect
� Stock Control
� Accuracy
� Customer Satisfaction
� Allows multiple delivery options to suit the customer
� Home Delivery
� Remote Pickup
� Store PickupClick and Collect
Scalable Fulfillment Centers
Manual Pick
Semi Automated
Fully Automated
Customer Pickup Options
� Dedicated fulfillment allows the Grocer to deliver online orders to the consumer where they want to receive them
Grocery Fulfillment Center
Pickup at Store
Remote Pickup
Deliver to Home
Summary
� Solutions to improve e-commerce scalability and reach customers
� Dedicated Fulfillment Centers
� Improve efficiency for retailers
� Improve customer satisfaction for in-store shoppers
� Reduce losses due to out of stock and poor substitutions
� Remote Customer Pickup/Store Pickup/Delivery
� Allows retailers to meet the customer where they want to receive there groceries
� Remote pickup points provide better scalability
� Automated pickup reduces the labor requirements for pickup