scaling click and collect beyond the store
TRANSCRIPT
Scaling Click and Collect
Beyond the Store
Andy 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 Pickup
Click 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
