Home Delivery World - Scaling Click and Collect Beyond the Store
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The document discusses the significant potential growth of online grocery shopping, projected to reach 20% of the market by 2025, emphasizing the necessity for retailers to adopt an effective omnichannel strategy. It outlines the challenges faced by retailers in meeting customer preferences for convenience and personalization while addressing barriers such as the desire for personal selection of products. Dedicated fulfillment centers are proposed as a solution to improve efficiency, accuracy, and customer satisfaction in online grocery order fulfillment.
Home Delivery World - Scaling Click and Collect Beyond the Store
- 1. Scaling Click and Collect Beyond the Store Andy Lockhart
- 2. 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
- 3. 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
- 4. 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
- 5. 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
- 6. How do you get your groceries? Pickup at the store Pickup at a remote location Home delivery
- 7. 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
- 8. 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
- 9. 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
- 10. 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
- 12. 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
- 13. 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
- 14. Andy Lockhart Vice President Sales, TGW Systems, Inc Andy.lockhart@tgw-group.com Thank You