PROJECT BACKGROUND
The grocery store industry hasn’t changed much since it’s first commercial self-serve concept over 100 years ago. While a store brand logo, merchandise, and advertising campaigns change - the concept of selling value to shoppers remains a key identity to large scale supermarkets. Digital platforms were viewed as something nice to have, with some grocery chains making it part of their brand to not offer online sales.
In order to pass along savings to customers, the self-serve model works well. The arrival of Covid-19 disrupted supply chains and store customers found themselves choosing between shopping during a pandemic or spending twice the amount of money for the convenience of online delivery services. These experiences brought attention that a new look at the grocery shopping experience was needed.
DISCOVERY
In order to understand the shopping behaviors of customers, I began by researching the traditional supermarket model and how the industry standardized food shopping in the United States. Due to the highly perishable nature of fresh food and produce, it has long been viewed that grocery shopping is best done in person. Customers are able to select items of their preference and stores can manage inventory based on the frequency and quantity of purchases. Store layouts encourage exploration by placing essential foods along the perimeter and all other items in center aisles.
KEY RESEARCH FINDINGS:
Cash & Carry business model began 100 years ago and remains a part of the industry formula.
With a narrow profit margin, the industry minimally invested in digital services, expecting that people will continue to shop in person.
People have a preference to buy their food in store, rather than on-line.
The industry is predicting an increase in fresh food buying post-Covid.
COMPETITIVE & COMPARATIVE ANALYSIS
To further understand the industry, I took a look at three supermarket chains along with three comparative brands on their digital service, store identity, and customer loyalty.
While most supermarket chains have impressive store locations, a digital presence is viewed as an additional feature to give customers, rather than a behavioral choice. Because of this, with the arrival of Covid-19, people experienced long lines and empty shelves. While the standard supply chain is partly the cause of unavailable products, the longstanding in person shopping method guided store managers to keep a certain amount of inventory and shoppers left to depend on availability without knowing in-stock status.
USER INSIGHTS
In speaking with shoppers about their buying preferences the following insights were learned:
100%
Access to fresh food was important
2/3 :
PREFER IN STORE SHOPPING; ONLINE IS CONVENIENT BUT FEES ARE EXPENSIVE
Additionally:
Lack of available products stressful
Reduced number of trips to specialty (Asian markets)
Want to see wider store aisles to maintain social distancing
With the increase of apps, customer service needs to increase
PROBLEM STATEMENT:
Shoppers need to have in-store and online purchasing options for fresh food & items, so that they can have an engaging and informed shopping experience.
HOW MIGHT WE:
Provide a cohesive physical store and digital shopping experience where people can shop efficiently, safely with their favorite grocery stores
A CLOSER LOOK : H Mart