Josh Siegel, CIO of Natural Markets Food Group and Mark Collin, Head of Retail, ThoughtWorks Europe at ThoughtWorks Live Europe 2014.
Today's retail food landscape is in a constant state of change - with digital disruption creating multi-channel challenges. In addition, there is increasing consumer demand for healthier food options. Retailers must adapt by learning how to address these continual shifts and develop meaningful customer experiences across multiple touch points. Learn how Natural Markets Food Group is leveraging experience design and technology to create a truly innovative approach in the retail food and food service industry.
4. • Doug Stephens is one of the world’s foremost
retail industry futurists. He was recently ranked
#9 in Vend’s Top 50 Retail Influencers.
• Doug conducts speaking engagements
globally on retail & consumerism and has
10,000+ followers on Twitter @RetailProphet
www.retailprophet.com
• Author of the ground breaking book,
The Retail Revival: Re-imagining Business
for the New Age of Consumerism.
• Presenting “The Future of the Retail Store”
About Retail Revival
5.
6.
7.
8. Natural / Organic
Grocery Sales
Traditional
Grocery Sales
organic growth rate
MORE THAN 2X
growth rate for all food
“IT’S JUST A FAD.”
12. • Existing operating environments and
technical infrastructure
• Define and gain internal agreement
on the “to be”
• Define and gain agreement on roadmap,
development and deployment plan
• Budget
• Time
• Organization
• Internal resources/capability
• Training
• Culture
• Vendors – current and future
• Competitors – current and future
• Technology in general
OUR CHALLENGES
ARE NOT UNIQUE
15. Do we look at this as a POS
decision?
What about on-line ordering and
grocery shopping?
How does mobile come into play?
If we choose a platform that
everyone else has deployed how
do we create a competitive edge?
How long will it take to make
changes?
How expensive will those changes
be?
where do we begin?
21. in both grocery & restaurant properties
OBSERVATIONS
1
Individuals interested in eating with their colleagues
spent the bulk of their time alone.
• Decide what to eat
• Separate to place the order
• Wait for the order
• Find each other
• Look for a table
2
Families were in the restaurant together
but were not necessarily interested in eating
the same food or eating together
22. in both grocery & restaurant properties
OBSERVATIONS
3 Payment options were “traditional”
23. 4 Customers made multiple purchases from multiple stations
= multiple payments and standing in multiple queues.
5 The “Queue” during lunch
= people leaving the queue
in both grocery & restaurant properties
OBSERVATIONS
24. 6
Moms and dads had difficulty finding a safe
way to navigate AND had a hard time finding
seating that was "friendly"
7 Differently abled customers struggle
with “the queue” and seating
in both grocery & restaurant properties
OBSERVATIONS
25. • Multitude of order options: Self Service Kiosk;
Mobile; Online
• Unique Payment Options for families and groups
• Food related information
• Queue busters
• In-store format that makes it safe and easy for parents
with children, differently abled, and seniors to order
and enjoy their food
• The ability to grocery shop AND enjoy
let’s address the breaks in the journey &
CREATE
26.
27. what we saw
EVERYTHING
is still channel based
SINGLE-
CHANNEL
MULTI-
CHANNEL
OMNI-
CHANNEL
CATALOG
CATALOG
?
29. • Start-ups will continue to enter the market in a variety of roles and
they will rapidly drive change
– Technology
– Business models
• Larger retailers will begin to more seriously investigate
opportunities to transition to a more nimble, customer experience
driven operating environment
• The definition of convenience will continue to morph as new
technologies are introduced
• Labeling is the tip of the iceberg
• Local origin, artisanal, small batch is the fastest growing segment –
and one of the most difficult to incorporate
• Mobile payment will become THE form of payment
WHAT’S NEXT?
30. N E X T G E N E R A T I O N
RETAIL ARCHITECTURE
32. …it should be a combination of discrete capabilities…
33. …that leverages the right solutions…
Bespoke solutions
that are differentiators
and offer a business
advantage.
Commodity solutions
that add value, but
don’t differentiate.
34. …to build a platform for innovation and evolution.
REPLACEABILITY
FLEXIBILITY
SCALABILITY
AVAILABILITY
EXTENSIBILITY
41. 379+ stores growing to 1000 with a market cap
matching that of Kroger
150 stores growing to 1,200 & Sprouts IPO'd
in August of 2013 and raised $344M
344 stores in 25 states with an estimated
$11B in revenue.
Raised $290M for IPO and operates 131 stores in 25
states with estimated $1.3M in revenue
42. The
“Nature’s
Market”
sec/on
is
featured
in
more
than
1,300
of
their
2,500
stores.
Launched
it’s
own
brand
of
natural
and
organic
food
in
2009
Promising
to
drive
down
organic
food
prices
by
25%
with
a
new
line
of
organic
food
products
43. Free
same-‐day
and
early
morning
delivery
on
orders
over
$35
of
more
than
500,000
Amazon
items,
including
fresh
grocery
and
local
products.
44. • Our own stores
• Competitors stores, online and off
• Other consumer facing businesses
• Past work experience
• Customers
• Street and analyst community
• Employees
Observation (The good, the bad and the ugly)1
Research2
45. Identify & Prioritize Customer Segments3
Create a contextual end-to-end customer
journey map for each segment
4
46. Create and prioritize action-oriented tasks5 Identify overlapping tasks and actions6
51. • We did not have time to execute a traditional approach
– who does anymore?
• A traditional approach would have given us a “Traditional”
solution and would force us to execute a vision that was not ours
• “Traditional” solutions were developed to solve channel issues
not to address the complexities of today’s customer journey
– do we build a future based upon the past?
• We needed to work with a partner that would ask:
– Understood the importance of “Speed to Value”
– Embraced service and experience design as a necessary step
in delivering a solution
– Believed that innovation was driven by more than technology
52. • Approaching the project with the goal of supporting the customer’s
mission was key
• “How do we continue to create an awesome customer experience?”
• Adopting a test and learn approach to rolling out initiatives
can make a huge impact
• Design experiences, not touchpoints
• Manage expectations and transitions across the ecosystem
– Customers
– Executive level, mid management, store associates
– Vendors – from food purveyors to IT consultants
• Do not underscore the importance of testing and training
68. Experiences
Digital
Signage
• Subway
Entrance
Video
Wall
• Atrium
Column
Wrap
• Virtual
Host
Hologram
• Entrance
Floor
Projec/on
• Express
Market
Signage
Children’s
Area
• Children
Interac/ve
Video
Wall
Digital
Menus
• Kitchen
Sta/on
• Bar
Screens
Customer
Ordering
POS
Single
Kitchen
Kiosk
Express
Market
Kiosk
Fulfillment
Screens
Kitchen
Sta/on
Column
Screens
68
Editor's Notes
Hello, my name is Josh Sigel. I been the CIO and Technology leader in a number of organizations. Recently I was with Natural Markets Food Group and today I was to share with you our “Start Over” journey.
Hello, my name is Josh Sigel. I been the CIO and Technology leader in a number of retail and distribution organizations. Recently I was with Natural Markets Food Group and today I am excited to share with you our recent “Start Over” journey.
To understand our journey it’s important that I quickly share with you some facts about the Organic and Natural Foods Industry. It’s hard to turn on your TV or open a newspaper (or Turn on a newspaper for those who have gone paperless!) without hearing about the benefits of Organic or the health concerns raised by nutrition experts regarding all the antibiotics, pesticides, and other bad things being introduced into our food supply.
The customer journey will continue to cause the channels to blur.
The customer will demand mobile payment and loyalty cards.
The value of conventional loyalty programs will continue to be questioned – creating a higher purpose.
The “currency” or the value to the customer is in giving.
Do you need demographics? Then check the research.
We believe that Ralph Lauren needs an IT system that will act, as a platform for innovation, one that can meet the business needs of today and evolve to meet those of tomorrow…
How do we build such a platform? Well firstly, it is important to think about the architecture and domain in terms of capabilities, which, for online retail there are really 5 key capabilities that one can think of:
We believe that Ralph Lauren needs an IT system that will act, as a platform for innovation, one that can meet the business needs of today and evolve to meet those of tomorrow…
How do we build such a platform? Well firstly, it is important to think about the architecture and domain in terms of capabilities, which, for online retail there are really 5 key capabilities that one can think of:
12 screens making up a window into the world we are creating. We have a concept we have been developing and presenting soon.
A farm scene made up of cut-paper creates the background. In front we use the concept of the Farmer’s Almanac, old-time but with modern sensibility. Tweets
Eye catching imagery connects the space with the upper floor. Landmark place. Combination of typography and messages that draw people in, and imagery of fresh food, coffee, treats. Atmospheric, not pushy.
Our virtual host puts a face to the space. She talks to the our audience and provides education for how to get the most out of the experience. She makes the use of the mobile app less mysterious. She represents the quality of the food. She is tech savvy, but not tech obsessed. She is smart and uses it to get more time for her life.
On the floor, we see imagery that points people to the space. It’s a welcome mat that points the way and highlights the kitchen brands.
The screen rotates among several messages, ranging from how to best use the app, what is looking good, highlight our Children’s area, reinforce the brand.
Separate area dedicated to families with small children provides a detail that separates this space from a common food court.
A unified design based on typography and letter pressed menus has a modern feeling with the old time charm. Anachronistic it avoids nostalgia and being ‘fake.’
Balanced with chalkboards, the design works together, and each medium focuses on what it does best. Digital is able to be updated from the central system, and the analog boards can high light a special or even a particular associate.