Nrf13 brasil varejo vencendo em um mundo com menos paredes
1. 14/01/2013
TEARING DOWN THE WALLS:
Winning in a “wall-less” retail world
PRESENTED BY:
Bryan Gildenberg
Chief Knowledge Officer, Kantar Retail
Anne Zybowski
Vice President, Kantar Retail
Miguel Almeida
Vice President eCommerce, Walgreens
AGENDA
• Tearing Down the Walls
• Winning in a “Wall‐less” Retail World
• In‐Depth: Walgreens Omni‐channel Strategy
2
Macro, Shopper, & Information Forces
Execution: I ran out of room or I couldn’t do it
Macro Forces Shopper
Information
ROI: I want
to carry
more, but
I’ve run out
of cash
3 Source: Kantar Retail analysis
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2. 14/01/2013
Brand Positioning Falls into 4 Families: 4Es
Must become broader than SKUs & categories sold
These quadrants
reflect strategies more
so than channels,
though store size
obviously correlates
quite strongly with
strategy here
4 Source: Kantar Retail analysis
Fast Forward 50 Years… New Efficiency
Amazon tears down walls of the store
Macro Forces Shopper
Information
Execution: Technology and transportation
change the art of the possible
ROI: Jeff
Bezos
unpacks the
power of
unlimited
non‐physical
assortment
5 Source: Kantar Retail analysis
With Digital Retail Driving Change….
Boundaries again get dramatically altered
Dynamic pricing,
limited inventory,
alternative
revenue streams
6 Source: Kantar Retail analysis
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3. 14/01/2013
None of the 4Es Positionings Can Fend Off
New economics & efficiencies of post‐modern landscape
RETAIL’S FUNDAMENTAL PROBLEM TO SOLVE IS NO LONGER ABOUT WHAT
SKUS AND CATEGORIES I SELL
It’s about
Must understanding the
need states retail
remove was using SKUs and
categories to
the walls! optimize… and
finding new
positioning
7 Source: Kantar Retail analysis
Rebuilding Value Proposition Without Walls
Need to rebrand these ideas around concepts that stretch beyond the
store (or retail)
8 Source: Kantar Retail analysis
AGENDA
• Tearing Down the Walls
• Winning in a “Wall‐less” Retail World
• In‐Depth: Walgreens Omni‐channel Strategy
9
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4. 14/01/2013
Creating New Shopper Moments:
4 Capability Clusters
10 Source: Kantar Retail analysis
Small is Not Necessarily Convenient
“These are big box experts trying to
drive a small box solution through
efficiency. These stores are actually the
polar opposite of convenience”
Confectionery supplier after visiting
Tesco Express & Sainsbury’s Local,
March 2012
11 Source: Kantar Retail analysis
Convenience: Improving the NOW
Balancing 4 factors
Ease and Speed
Quick In /Out One‐Stop Shop
Impulse Stock Up
Immediate Planned
Easy Access Familiar
All four factors are present at all times – different retailers balance them differently;
the mix defines the store model
12 Source: Kantar Retail analysis
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5. 14/01/2013
NOW Format Innovation: Click & Collect
France is leading the way
“We have the ambition to make
Chronodrive.com the largest e‐
commerce business in France”
Ludovic Duprez, co‐founder
13 Source: Kantar Retail analysis, quote from Lineares 2009
NOW: Everyone is a Convenience Store
Key skills to look for
Differentiated and Focused Stores:
• smaller, more convenient, more local, more memorable
Multi‐channel:
• your best retailer will be engaging your shoppers digitally as well as physically
Manage Shoppers Time:
• either by making the store experience more efficient, or so absorbing that the
shopper feels the time is well spent
• It better be faster, easier – or a LOT more fun
14 Source: Kantar Retail analysis
Experience is Not Just About Pretty Stores
Experience must have a purpose: closing the sale
15 Source: Kantar Retail analysis and store photos
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6. 14/01/2013
Experience – Part of the WOW
Key skills to look for
Retailers That Deliver on Experience:
• will make the visit more compelling than a website is easy
Ability to Execute:
• reliably, efficiently, from shelf condition to checkout – in stock and visible on
shelf
On Trend:
• literally, having the Right Stuff is still vital
16 Source: Kantar Retail analysis
Right: Local Market Sensitivity & Loyalty
Know thy Shopper
Block‐by‐Block Analysis
Tesco studies shopping patterns and preferences of
individual neighbourhoods to have the ability to appeal to
local consumers. Tesco offers product mixes and price
ranges that are aligned with local neighbourhoods.
17 Source: Kantar Retail analysis; store visits
Right: Engaging Shoppers Via Store Experience
Not your typical store loyalty
BrandZ: Diagnosis of Bonding
Ranked by importance of attribute in category
18 Source: Kantar Retail analysis and store visits; BrandZ
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7. 14/01/2013
Loyalty: Getting it RIGHT for the Right Shopper
Key skills to look for
Know and Engage Their shoppers:
• whether analytical or intuitive, this is key to all else
Collaborative:
• Getting the supplier community engaged and aligned is a skill that
attracts investment, and leverages the best of both sides of the desk
Masters of Their Own Brand:
• the clarity of the brand determines the ability to make decisions
19 Source: Kantar Retail analysis
Shoppers Actively Creating Own Value
Deal‐Seeking and Limiting Will Continue
Participation in Shopping Behavior Changes
(among primary household shoppers)
Plan for
Behavior Changes In Recession 2012 Type of Behavior
Taking advantage of good sales/deals 41% 54% Deal‐Seeking
Buying only things I truly need 40% 52% Limiting
Using more coupons 34% 48% Deal‐Seeking
Buying fewer things 33% 42% Limiting
Doing more price comparisons before purchasing 33% 38% Deal‐Seeking
Shopping less often 31% 34% Limiting
Using/keeping items longer before replacing 20% 30% Limiting
Buying only items needed in the near term 23% 28% Limiting
Shopping more at discount/value retailers 22% 28% Trading‐Down
Postponing more purchases 28% 25% Limiting
Buying less expensive versions of products 27% 24% Trading‐Down
Buying fewer luxury items 35% 24% Limiting
Buying more store brands vs. national brands 26% 22% Trading‐Down
Trading down to less-expensive brands na 16% Trading‐Down
Shopping online for more things na 13% Moving Online
Shopping online more often na 12% Moving Online
Using smart phone to compare prices while in stores na 6% Deal‐Seeking
Switching some purchasing to "auto-replenishment" programs na 1% Moving Online
20 Source: Kantar Retail ShopperScape®, February 2010 and October 2011
Smart: Harder with a Well‐Informed Shopper
Role of in‐store education & experts
V
21 Source: Kantar Retail analysis & store visits
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8. 14/01/2013
Smart: Everyone is a Value Retailer
Key skills to look for
A Clear Value Perception:
• whether price based or based on something beyond price, a retailer must be
worth something
Masters of Promotion:
• effective marketing that distinguishes the retailer, supports their brand, and is
worth your investment
Financially Competent:
• It is hard to imagine a retailer who can deliver value without a keen management
of their own finances – either through efficiency (ASDA), cost and margin control
(Tesco), or a better business model (Costco)
22 Source: Kantar Retail analysis
Must Master All 4 Capability Clusters
One is insufficient
23 Source: Kantar Retail analysis
AGENDA
• Tearing Down the Walls
• Winning in a “Wall‐less” Retail World
• In‐Depth: Walgreens Omni‐channel Strategy
24
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9. 14/01/2013
Omni-channel strategy
Miguel Almeida
Vice-President, eCommerce
January 13th, 2013
A company founded in 1901
With $72B of revenue in 2012
32
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10. 14/01/2013
Featured in Jim Collins books
With a long history of innovation
Stand-alone
Pharmacies stores with Multiple Opened
linked by drive-thru language First
satellite pharmacies Rx labels Take Care
1981 1992 2002 2006
1950 1960 1970 1980 1990 2000 2010
1950 1968 1991 1999 2005 2010
Self-service First with Point-of-sale Prescription Online Refill by
stores child-resistant scanning history online digital photo scan
containers
In the next 3 years, over half of all retail sales will
happen online or be influenced by online channel
3,799
US Online and Web-Influenced Retail Sales 3,636
3,478
($ Billions) 3,313
3,155
2,977
1,812
1,780
1,771
Non-Web 1,741
1,723
Influenced 1,672
Retail Sales
Web Influenced
Retail Sales
Online Retail Sales 202 226 252 278 304 327
US online and web 2011 2012 2013 2014 2015 2016
influenced as a % of
total retail sales 44% 45% 47% 49% 51% 52%
Source: Forrester Research (June 2012)
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11. 14/01/2013
Customers are connecting with brands and
retailers differently
More than 50% of mobile phones are now smartphones
Tablet ownership reached 19% of adult population
68% of online adults have a facebook account ; including over
50% of adults over age 68
56% of social networkers have liked, followed or became
fan of a brand, product or company
We engage with millions of customers via our
online properties and channels
Web Mobile Social
6,600,000 3,200,000 42,000,000
visits per week visits per week reached per week
Our multi-channel customers are more valuable
Average annual spend,
Average Annual Spend per Customer
Source: EDW, eComm Analysis in $USD
2011 6X
4X
($) 3.5X
Store ONLY Store
Store Store
+
+ + ONLINE
ONLINE MOBILE +
MOBILE
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12. 14/01/2013
What omni-channel means for us
Our Strategy
Give our customer
…Whatever she wants …Wherever she wants …Whenever she wants
The Yesterday, Today, and Tomorrow of
What, When, and Where
24 hour pharmacy
Pharmacy Photo 8,000 stores Worksite pharmacies One hour photo
What
Product reviews
Where Take Care Clinics
When
Daily Living Drive-Thru 5-7 day shipping
Walgreens.com
Kiosk
yesterday “where we were”
The Yesterday, Today, and Tomorrow of
What, When, and Where
Skinstore.com Auto-ReOrder
Contact Lenses In store mapping VisionDirect.com
Immunizations Beauty.com
1 hour web pickup
Creative Photo Products
8,000 stores Drugstore.com 24 hour pharmacy
Pharmacy Photo Worksite pharmacies One hour photo
Pharmacy Chat
What
Product reviews
Where Take Care Clinics
When
Drive-Thru
Daily Living Walgreens.com
80,000 new products Mobile Kiosk 1-2 Day Shipping
Prestige Beauty Tablet
today “where we are”
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13. 14/01/2013
The Yesterday, Today, and Tomorrow of
What, When, and Where
Consumer Health Tools
Personalized Content International
Skinstore.com Auto-ReOrder
Contact Lenses In store mapping VisionDirect.com
Immuniations Beauty.com
1 hour web pickup
Creative Photo Products
8,000 stores Drugstore.com 24 hour pharmacy
Pharmacy Photo Worksite pharmacies One hour photo
Pharmacy Chat
What
Product reviews
Where
Drive-Thru Take Care Clinics
When
Daily Living Walgreens.com
80,000 new products
1-2 Day Shipping
Mobile Kiosk
Prestige Beauty Tablet Same Day Home Delivery
Boots Private Label Site to Store
tomorrow “where we’ll be”
Our Team
Success in Omni-Channel requires achieving best
in class experiences both online and offline
Offline Online
Convenience of great locations Extensive product assortment
Strong and relevant product selection Personalized offers
Customer “Well” experience Fast shipping
User experience
Omni-Channel
Seamless integration across all channels
Several fulfillment options to meet all customer needs
Omni-channel marketing messages
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14. 14/01/2013
We have been remodeling our stores
…building best in class ecommerce capabilities…
…and innovating in social, local and mobile
Social Local Mobile
>2MM in-store Top 10
Facebook Fans mapping mobile
shopping app
>100K Exclusive
Twitter Followers Foursquare Refill by scan
partnership
Native Facebook Passbook QuickPrints
Apps for Photos Geofencing
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15. 14/01/2013
While seamlessly connecting our physical and
digital channels
In Store
Web Pickup
Shopping
Same Day Home
Site to Store
Delivery
eCommerce Commercial
The challenges
Pricing models
Technology & Operations
Channel conflict
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16. 14/01/2013
The key learnings
Be user centric
Test & learn
Innovate across the value chain
“If you always do what you always did, you
will always get what you always got”.
- Albert Einstein -
Thank You.
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