The future of grocery stores : Omnichannel and AI technologies and Next-Generation Brick-and-Mortar Grocery Stores

In recent years the grocery retail industry has been experiencing tremendous change, driven mainly by advances in technology. Traditional brick-and-mortar grocery stores are under threat from industry disruptors who incorporate new technologies into their business models and operate with online channels. Therefore, this paper introduces omnichannel and artificial intelligence (AI) use cases as factors influencing the future success of brick-and-mortar grocery stores. To identify critical drivers for success, semi-structured expert interviews were conducted to discover how grocers can implement an omnichannel strategy and combine various AI technologies to remain competitive. Furthermore, a customer survey tested the acceptance of specific use cases and scrutinized the resulting increase or decrease in shopping frequency due to omnichannel in conjunction with AI. The analysis indicates an upcoming change in the grocery industry. A move towards a combination of an online and offline world is rising. Moreover, use cases like online shopping, personalized prices and offers, and cashier-free checkouts have the highest potential to increase the points-of-delight by consumers while grocery shopping. Therefore, grocers must adopt an omnichannel strategy and incorporate several AI-driven technologies to increase profits and remain competitive.Nos últimos anos, a indústria retalhista de mercearia tem vindo a sofrer mudanças tremendas, impulsionadas principalmente pelos avanços da tecnologia. As mercearias tradicionais de tijolo e cimento estão ameaçadas pelos disruptores da indústria que incorporam novas tecnologias nos seus modelos de negócio e operam com canais em linha. Por conseguinte, este documento introduz casos de uso omnichannel e de inteligência social (AI) como factores que influenciam o sucesso futuro das mercearias de tijolo e de marfim. Para identificar factores críticos para o sucesso, foram realizadas entrevistas semi-estruturadas com peritos para descobrir como os merceeiros podem implementar uma estratégia de omnichannel e com-bine várias tecnologias de AI para se manterem competitivos. Além disso, um inquérito aos clientes testou a aceitação de casos específicos de uso e examinou o aumento ou diminuição da frequência de compras resultante devido ao omnichannel em conjunto com a AI. A análise indica uma próxima mudança na indústria de mercearia. Está a aumentar uma tendência para uma combinação de um mundo online e offline. Além disso, casos de utilização como as compras online, preços e ofertas personalizadas, e caixas sem caixa têm o potencial mais elevado para aumentar os pontos de venda dos consumidores enquanto fazem compras de mercearia. Por conseguinte, os merceeiros devem adoptar uma estratégia omnichannel e incorporar várias tecnologias impulsionadas pela AI para aumentar os lucros e permanecer competitivos

The driving factors of continuance online shopping: Gender differences in behaviour among students in Saudi Arabia

This study proposes a revised technology acceptance model that integrates expectation confirmation theory to measure student gender differences with regard to continuance online shopping intentions in Saudi Arabia. The 234-respondent sample consists of 61.5% women and 38.5% men. A structural equation model confirms model fit. Perceived usefulness, enjoyment, and subjective norms are determinants of online shopping continuance in Saudi Arabia. Both male and female groups are equivalent. The structural weights are also largely equivalent, but the regression paths from subjective norms to enjoyment and subjective norms to continuance intention (in the men sample) and perceived usefulness to continuous intention (in the women sample) are not supported. The model was operationally generalized across the whole of Saudi Arabia. This research moves beyond online shopping intentions and includes factors affecting online shopping continuance. The research model explains 71% of the intention to continue shopping online. This research suggests that online strategies cannot ignore either the direct or indirect gender differences on continuance intentions in Saudi Arabia. The model can be generalized across Saudi Arabia

Exploring the UK high street retail experience: is the service encounter still valued?

Purpose: The relationship between service quality, the service encounter and the retail experience is explored within a changing UK retail environment. Design: Data was gathered from forty customers and twenty staff of an established UK health and beauty retailer with a long standing reputation for personal customer service. A qualitative analysis was applied using both a service quality and a customer value template. Findings: Customers focused more on the utilitarian features of the service experience and less on ‘extraordinary’ aspects, but service staff still perceived that the customer encounter remained a key requisite for successful service delivery. Research implications: Recent environmental developments - involving customers, markets and retail platform structures - are challenging traditional service expectations. Practical Implications: Retailers may need to reassess the role of the service encounter as part of their on-going value proposition. Originality/value: There has been limited research to date on the perception of shoppers to the service encounter in a changing retail environment and to the evolving notions of effort and convenience

The role of the tenant mix in the positioning and image of shopping centres

The retail real estate sector has faced several challenges in recent years, from the rapid advance of digital technologies, the growth of e-commerce, to the consumers’ habits changing and their demand for more impactful physical shopping experiences. In order to counter these, shopping centre owners and managers are rethinking the tenant mixes and types of anchor stores that are able to meet consumers’ expectations. This research was conducted with the aim of understanding the tole of the tenant mix in the definition of the positioning and image of shopping centres. Moreover, it was investigated if the tenant mix was related to some business drivers, such as the frequency of visits, money and time spent, patronage intention and participation in loyalty programs. Secondary data was used to define concepts as retail strategy, shopping centre, tenant mix, mall image and mall positioning based on theory. Primary data was collected through one-on-one interviews with professionals working on the retail real estate sector, as well as by collecting answers from 141 consumers through an online questionnaire. The empirical analysis shows the tenant mix is not the number one contributor to neither mall positioning nor mall image, however it is one of the main dimensions that explain these concepts. Moreover, strong and moderate positive correlations were found between the importance given to the tenant mix and its influence on frequency of visits, patronage intentions, money spent, and time spent. .O setor imobiliário de retalho enfrentou vários desafios nos últimos anos, desde o rápido desenvolvimento das tecnologias digitais, o crescimento do e-commerce, até à mudança dos hábitos dos consumidores. Na procura pelo sucesso, proprietários e gestores de centros comerciais começam a repensar as combinações de lojistas e os tipos de lojas âncora que são capazes de responder às expectativas dos consumidores. Este estudo foi realizado com o objetivo de compreender o papel do tenant mix na definição do posicionamento e imagem dos centros comerciais. Além disso, foi investigado se o mix de lojistas estava relacionado com alguns fatores de sucesso do negócio, tais como a frequência de visitas, dinheiro e tempo gasto, intenção de recomendar o centro e participação em programas de fidelização. Dados secundários foram usados para definir conceitos como estratégia de retalho, centro comercial, tenant mix, imagem e posicionamento de um centro comercial. Os dados primários foram recolhidos através de entrevistas individuais com profissionais que trabalham no setor imobiliário de retalho, bem como pelas respostas de 141 consumidores através de um questionário online. A análise empírica providencia evidência de que o tenant mix não é o fator que mais contribui para a definição, nem do posicionamento, nem da imagem de um centro comercial, sendo, no entanto, uma das principais dimensões que explicam esses conceitos. Além disso, foram encontradas correlações positivas fortes e moderadas entre a importância atribuída ao tenant mix e a sua influência na frequência das visitas, intenções de recomendar o centro, dinheiro gasto e tempo gasto

Shopping centres revisited: exploring new attributes of attractiveness

Traditional retailing is facing tough challenges, driven not least by the trend towards online shopping. This paper revisits shopping centres research in light of the recent increasing role of technologies, leisure activities and changes in consumer behaviour. Drawing upon 10,544 consumers’ unsolicited communications on Twitter relating to the 19 main shopping centres in UK that were posted in May 2019, this research seeks to understand how retail attributes are unevenly distributed across consumers’ evaluations to define the attributes driving consumers’ evaluations of retail-leisure complexes. Results demonstrate the impact of each identified attribute on preferences for retail-leisure complexes. In particular, findings provide important insights for scholars and practitioners related to the design of future attractive shopping centres. Shopping centres can play an important role in contributing to the viability and vitality of towns. We consider the findings in the light of wider policy and regulatory debates

New trends in convenience stores

In the last few decades, several innovations appeared that completely transformed the concept of convenience all around the world. In Portugal, a country where convenience stores and gas stations exist side by side, the propagation of electric cars can quickly change what convenience means for the Portuguese customers – it is expected that these places become unnecessary if they do not adapt to new trends. Several questions arise: How can one engage customers that will now spend around 10/15 minutes waiting for their cars to charge? How can these stores become true entertainment centres instead of being just “places to buy gas”? How can managers prevent that these stores become “obsoletes”? And how can new trends (such as hybrid stores, “retailtainment” and interactive screens) impact Portuguese customers and their decision on where to shop? To try and answer even more questions, this project was developed in a joint effort between the author, Marketing Future Cast Lab and Galp. With the main purpose of studying the influence of future trends on Portuguese convenience stores, an extensive literature review and benchmark analysis phase was started. The most relevant trends were then used as a basis to create new concepts and innovative ideas while posterior testing (both quantitative and qualitative) validated/excluded them. By combining the knowledge obtained from the literature review, the feedback from the stakeholders of the project and the insights from the chosen methodologies, it was possible to conclude that there exists a serious possibility of a breakthrough in this sector through a new, perception-changing positioning on what is a convenience store. The focus should be, namely, on New Assortments (e.g. food and vending machines), Store-in-Store concepts (e.g. fresh food stations), Partnerships with recognized brands and investment on Digital/Technology. In the final remarks, managers are advised to acknowledge the vital need of accepting and implementing these trends, never losing focus with the fact that the only constant is change.Nas últimas décadas, surgiram diversas inovações que revolucionaram o conceito de conveniência por todo o mundo. Em Portugal, um país onde lojas de conveniência e postos de abastecimento surgem lado a lado, a disseminação de carros elétricos pode rapidamente alterar o que é a conveniência para os portugueses – é expectável que estes locais se tornem desnecessários caso não se adaptem a novas tendências e formas de consumo. Surgem diversas questões: Como entusiasmar pessoas que passam, agora, 10/15 minutos à espera que o seu carro carregue? Como podem estas lojas tornar-se centros de entretenimento e experiências ao invés de serem apenas locais para a compra de gasolina? Como prevenir que se tornem obsoletas? E como podem novas tendências (tais como lojas híbridas, retailtainment e ecrãs interativos) impactar os consumidores portugueses e as suas decisões de escolha de locais de compra? De forma a responder a estas e mais perguntas, este projeto foi desenvolvido entre o autor, o Marketing Future Cast Lab e a Galp. Com um principal foco no estudo da influência das novas tendências nas lojas de conveniência portuguesas, uma profunda revisão literária e análise de benchmark foi efetuada. As tendências mais relevantes foram, então, utilizadas como base para a criação de conceitos e ideias inovadoras que foram posteriormente testadas (quantitativamente e qualitativamente) e consequentemente validadas ou excluídas. Ao juntar o conhecimento obtido pela revisão literária com o feedback recebido pelos stakeholders do projeto e com os insights gerados pelas metodologias escolhidas, foi possível concluir que existe uma forte possibilidade de alteração do paradigma deste sector através de um reposicionamento assente na mudança da perceção dos clientes acerca do objetivo das lojas de conveniência. O foco deve estar, também, na gestão de sortido (como comida e máquinas de venda automática), no conceito loja dentro de loja (estações de comida), em parcerias com marcas conhecidas e no investimento na vertente digital e tecnológica da marca. Nas conclusões finais, sugere-se à Galp que reconheça a necessidade de aceitar e implementar estas novas tendências, nunca perdendo a noção de que a única constante é a mudança

Study on shopping centre: Consumer behaviour and environmental factors -Case Skanssi

The tendency to buy goods and especially services is increasing in our society. This has strongly affected the retail markets in Finland during the last decade. The consumers are affected by the dynamic society, which have set new challenges for consumption. Shopping centres are similar to each other and therefore the experience can be a determining factor when choosing the shopping centre. A shopping centre is not just a place where people fulfil their basic shopping needs but a recreational destination where people come to spend time and socialise. This holistic customer experience is widely affected by the retail environment that shopping centre offers. Holistic shopping experience lies beyond the satisfaction of basic shopping needs. This study examines the broader retail view of the shopping centre and how people approach to the phenomenon. Also, the competitive advantages a shopping centre can create for today's consumption society have been investigated. It has great importance to offer the retail mix in a unique style environment and creating interesting events and activities. The purpose of this thesis is to study the phenomenon of a modern shopping centre and the relationship between the modern shopping centre and the young adults. The research has been carried out through qualitative research method and a case study. Shopping centre Skanssi, located in Turku Finland, was used to evaluate the influence of shopping environment. Eight respondents were interviewed to unfold young people’s attitudes toward shopping centres. The main conclusion of this thesis is that shopping environment is widely influenced by how people appreciate their shopping experience. Shopping centre has to create an atmosphere and a retail mix that serves people on multiple levels. This process is dynamic and it is affected by different factors such as background, design and social factors. In this thesis the process is called environmental stimulation. Young adults found that modern shopping centre should produce interesting environment and social experiences

Driving online shopping: Spending and behavioral differences among women in Saudi Arabia

This study proposes a revised technology acceptance model that integrates expectation confirmation theory to measure gender differences with regard to continuance online shopping intentions in Saudi Arabia. The sample consists of 650 female respondents. A structural equation model confirms model fit. Perceived enjoyment, usefulness, and subjective norms are determinants of online shopping continuance in Saudi Arabia. High and low online spenders among women in Saudi Arabia are equivalent. The structural weights are also largely equivalent, but the regression paths from perceived site quality to perceived usefulness is not invariant between high and low e-shoppers in Saudi Arabia. This research moves beyond online shopping intentions and includes factors affecting online shopping continuance. The research model explains 60% of the female respondents’ intention to continue shopping online. Online strategies cannot ignore either the direct and indirect spending differences on continuance intentions, and the model can be generalized across Saudi Arabia

Fashionitis

Shopping is the nation’s fourth favourite leisure activity , costing us £37billion per year – but it seems that for some it has become a compulsive obsession for having the latest look, the ultimate outfit and chicest wardrobe. Jeff Bray suggests: ‘Fashion-itis describes the behaviour whereby clothes shopping is highly hedonistic, forms a significant social and leisure activity, and becomes almost an obsession.