Tomorrow’s Retailer:
A View for Bord Bia
Prepared and Presented by
Ethan S. Sinick
Shirland Ventures Limited
September 2013
Demand and Supply Trends Will Move the
Weekly Shop to Smaller Stores
Continuous Improvement
Sources: Shirland Ventures Limited Photos and Twitter
Changing the Marketing Mix
Demand Growth Will Support More
Grocery E-Commerce
Increasing Demand
Latent Demand
Omni-Connected
Shoppers and
Consumers
Mega-City
Population Growth
Sources: Shirland Ventures Limited Photo, drawingsrings.blogspot.com and Chronodrive
Retailer Supply Will Expand to Meet
Demand
9 Collection & Delivery Models
Fulfilment Capacity Growth
UK & France Grocery E-Commerce Capacity in SqM
UK & France Sq.Ms per Household
0.100
3,466,288 0.090
3,500,000
3,165,327
3,000,000
0.080
2,845,616
0.070
2,500,000
0.060
2,060,401
2,000,000
0.050
0.040
1,500,000
1,177,238
1,000,000
919,390
731,737
589,938
500,000
0.030
0.020
0.010
-
2008 2009 2010 2011 2012 2013 2014 2015
Sources: Shirland Ventures Limited Photos, Instacart and Shirland Ventures E-commerce database
Grocery E-Commerce Sq.Ms per Household
Grocery E-Commerce Distribution Capacity in Sq.Ms
4,000,000
The Digital Experience Will Get Better for
the Shopper
Better Delivery Service
Cheaper Home Delivery
Flawless Fulfillment
Faster Fulfillment
Sources: Shirland Ventures Limited Photos, Iceland Foods and Ocado PLC
Service, Education and Experience Will
Return to Self-Service Retail Stores
Sources: Shirland Ventures Limited Photos
A Signature Meal Experience Will Become
More Commonplace
IKEA Meatballs
In Test
Thrifty (Rite-Aid)
Ice-Cream
Costco Hotdog
Sources: Shirland Ventures Limited Photo, IKEA, Seattle Times and LA Times
Price and Exclusivity Will Also Protect
Store-Based Retailing
Offline Price Leadership
Sources: Electro Depot and IKEA
A Unique Offering
Retailers Will Become Multi-Channel
Marketers
Online to In-Store
In-Store to Online
for Information
In-Store to future
Online Purchase
In-Store to Future
Online
Relationship
Sources: Shirland Ventures Photos
Promotions Will be More Important in a
Multi-Channel World
• Promotions are the
result of retailer and
channel competition
which will only increase
in the future
• Retailers will offer a
smarter array of
promotions
• Mass promotions will
move to new media
platforms
Sources: Shirland Ventures Photo and Facebook
Smart Promotions
Mass Promotions
Key Competencies for Irish Food &
Drink Companies in This Environment
•
Develop a brand, pack, price and promotion portfolio to gain entry into fast growing
channels and maintain your foothold in shrinking but still important channels
•
Understand demand-creation tools for grocery e-tailing so that you can target your
investments and ride the coming wave
•
Reinvent your category within traditional supermarkets and hypermarkets to offer
unique values which are inaccessible online or through more convenient channels
•
Own and exploit assets and conversations in the multi-channel marketing world
(Twitter, Facebook, Reddit, websites and blogs)
•
Plan for more promotions and develop models which increase the return on
investment for each action to offset the number of activities
•
Embrace “Done is Better Than Perfect” to keep pace in this environment
Sources: Shirland Ventures
END.
For more information please contact:
Shirland Ventures Limited
www.shirlandventures.com
One Kingdom Street, 4th Floor
Paddington Central
London W2 6BD
UNITED KINGDOM
Office: +44 203 402 3645
Email: ethan@shirlandventures.com