![]() That can ultimately prevent spoilage and decrease food waste, while also keeping heating and cooling costs to a minimum. The sensors can track the temperature of refrigerated displays, for example, and alert managers when the temperature is outside of the ideal range. An Internet of Things (IoT) platform can integrate sensor-enabled lighting with HVAC and refrigeration systems. Smart stores can even use a digital ceiling to help manage refrigeration needs. This type of environment could hook customers who value high-quality goods and encourage them to return to the store. The brighter light can bring out the colors in natural foods, increasing their appeal and helping shoppers choose the freshest items. That starts with illuminating the space efficiently and strategically: For example, LED lighting in the produce section can help grocers show off the quality of their goods. As grocery stores shrink, how they use the limited space they have becomes even more important. This type of forward-thinking smart store design will be essential for success. The Digital Ceiling in the New Age of Retail When a customer is done shopping and leaves the store, Amazon Go charges their account and sends a receipt-no lines, no scanning and no waiting. Those stores use a combination of sensors and deep learning, tracking when items are taken from shelves with the help of a mobile app. A similar method is on display with Amazon Go. To speed up the process, retailers are experimenting with tech such as mobile checkout. According to NCR, 73% of consumers think the checkout line is the biggest pain when shopping, and as much as one-fifth of customers will abandon their items if the checkout lines are too long. Faster checkout is also a theme with grocers such as Kroger, which has plans to test scan-and-go technologies.Ī frictionless checkout experience will be much tested in the future. The space is designed for quick shopping trips, with smaller baskets and checkout lanes optimized for higher traffic. Then in 2014, the brand started TargetExpress, which were small format stores that only covered about 15% of a typical Target outlet. It launched its small format stores in 2012, with the bulk of these locations found in densely packed urban areas. ![]() Target is trying to appeal to this same demographic in its testing of smaller stores. The idea is to appeal to those customers who are making several quick shopping trips per week to pick up fresh of prepared foods. Whole Foods Market 365 features lower prices, smaller spaces (about half the size of a typical Whole Foods) and digital pricing capabilities. While the average size of a grocery store clocked in around 40,000 square feet a few years ago, many modern outlets are under 20,000 square feet-with some, such as Trader Joe’s and Aldi, regularly measuring closer to 12,000.Įven traditionally larger grocers like Whole Foods are testing new concepts centered around the smaller store footprint. However, closer to urban areas, limited physical space and expensive real estate have combined to force retailers, and especially grocers, to think creatively. The trend of smaller retail store designs isn’t ubiquitous-many stores in rural areas remain larger and act as supercenters. Grocers are now constantly looking for ways to reduce operational costs and identify new investments that will improve the customer experience. Grocery Tracker report from JLL noted that “grocers are focusing on online shopping, grocery delivery, and click-and-collect digital platforms.” As the online presence of stores get bigger, the physical store footprints are shrinking, and retailers’ priorities are changing. This shift, combined with the rise of online platforms, are drastically altering how grocers do business. But whereas the majority of consumers used to make one big trip to a supermarket per week, today’s shoppers don’t mind stopping in multiple times a week to pick up fresh ingredients or ready-made food. Most customers still make trips to physical stores to pick up their food. Online shopping may be growing in popularity, but when it comes to groceries, old shopping habits die hard.
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