Peering into the future has been a favorite pass time for as long as human beings have possessed the ability to ponder the question.
Recently taking his own shot at what grocery stores will look like in 2023 is Bill Bishop, chief architect and co-founder of the Brick Meets Click consulting and retail advisory services firm.
“While no one can predict the future with certainty, it’s possible to develop a good idea of what it will look like if you read the trends,” he contends.
“The trends driving the grocery store of the future – shifting customer preferences, the pressure on retailers to improve profitability, and improving technology – are already making themselves felt in the marketplace,” Bishop points out.
“As new stores are built in response to these trends, the majority of existing stores will need to make adjustments to accommodate the same needs and economic pressures.”
Bishop believes ecommerce will evolve, changing consumer expectations when they visit stores, not lure them away entirely from shopping at stores, with most customers making use of both channels.
Consumers are moving toward two key shopping occasions – fresh/discovery and replenishment.
Fresh/discovery is about engaging with products and store associates, he says. “On this occasion, customers are shopping fresh products; they want to see, touch, and even taste before buying, and they are open to and interested in discovering new ideas and products.”
Replenishment is about buying familiar products that are used regularly, so they can be purchased with confidence.
Grocery stores opening five years from now will be different in key ways. For one thing, they will be smaller to allow for lower break-even levels. “Most will have a total footprint of less than 30,000 square feet, and some will be even smaller – less than 12,000 square feet,” Bishop predicts.
Groceries will compete more aggressively for “every meal, every day, every week," as well as for their share of consumers’ food spend, he explains.
Also, comfortable seating for eating in the store and fresh food will provide the main appeal for future customers.
A wide variety of top quality vegetables, fruit, meat, seafood, and floral offerings will be combined with a range of fresh prepared food designed to appeal to a diverse population, Bishop predicts.
He adds that an assortment of unique private brands and local products chosen to appeal to customers living nearby the store, and “will be refreshed frequently to draw customer interest and maintain the fun of discovery”
This combination of fresh and unique packaged products will be what makes the store a destination. “These stores will encourage frequent shopping and deliver a great shopping experience, Bishop says.
Rebalanced layouts for new stores will still offer a complete range of packaged groceries, but not presented in the traditional center-store layout.
Pantry replenishment products will be in the “background” of the fresh department so they don’t draw a lot of attention, much the way grocery products are displayed in Fresh Market stores.
Most of the replenishment grocery section will be housed in a “dark zone” instead of being displayed on the sales floor.
The reason is simple: Many customers will order these products online (or via in-store kiosks in more automated operations). Traditional grocery products in the store will be supplemented by a broader range of items customers can order for pickup or delivery.