New shopper economics to drive retail future
SAN DIEGO While shoppers, retailers and suppliers look to counter growing complexity with simplicity amid the changing economic environment, they simultaneously are embracing new measures.
With the new healthcare legislation will come coverage for about 32 million people who currently are uninsured. In order to meet consumers growing needs, retailers will be thinking about how they can expand into the healthcare system as the lines between retail and health care further blur over the next four to five years.
That was one of the messages that Bryan Gildenberg, chief knowledge officer of Kantar Retail, had for attendees at Sunday mornings session, titled A shared ownership of the future: Activating the new economics of the shopper at the shelf.
There already is evidence of this shift in focus (e.g., CVS acquisition of Caremark and the growth of retail-based clinics), and Gildenberg believes this trend will continue and will drive a number of innovations in the years ahead.
Gildenberg also stated that in the next five years the industry will see continued growth in non-store retail, so retailers and suppliers should keep in mind that they will begin to see a volume shift from shoppers under the age of 30 years.
Wrapping up the presentation, Gildenberg highlighted several keys to retail success through 2020:
- Post-modernism: Pressure on expansion forces a change in focus to maximizing cash flow from existing assets;
- Optimization: The search for incremental returns and efficiencies starts with improving what we already do; and
- Precision: Step change in efficiency/growth from more focused and targeted initiatives.
NACDS puts a new spin on Meet the Market
SAN DIEGO This year the National Association of Chain Drug Stores introduced two new features to its Meet the Market format. First, NACDS hosted a Meet the Market Presentation Template webinar twice prior to Meet the Market, in which NACDS introduced a meeting template that succinctly captured all of the information retailers typically use to evaluate a new product or company.
Also new to Meet the Market were the booths of 10 service companies — trade media and professional education, merchandising consultants and marketing/media information companies — which afforded an opportunity for new and smaller suppliers to meet with these organizations.
“New companies have a need not only to meet with retailers, obviously, they have a need for their business,” noted Jim Whitman, NACDS SVP meetings and conferences. Another ongoing improvement is the productivity within each meeting, Whitman added. “We keep refining the match, the appointments,” he said.
This year, the Meet the Market format — in which smaller and new suppliers have 10-minute meetings with their category buyers — represented more than 8,000 face-to-face pre-arranged appointments.
Retail clinic growth slowing down? Not a chance
WHAT IT MEANS AND WHY IT’S IMPORTANT The news that Target is looking to expand its retail-based clinic business this year is yet one more indicator that reports of the demise of retail clinic growth have been greatly exaggerated.
(THE NEWS: Target to expand its retail clinic presence. For the full story, click here)
As the article states, Target, which opened its first clinic in 2006, is looking to open up eight new locations this September. It already operates 28 locations in Minnesota and Maryland.
It wasn’t so long ago — April to be exact — that CVS Caremark’s MinuteClinic indicated that it could double its current number of clinics in five years.
Why the growth? Well, aside from the aging population and a shortage of primary care physicians, a major catalyst is healthcare reform, which will mean that 32 million people who currently are uninsured will have healthcare coverage. With emergency rooms already overflowing, and primary care physicians already over-extended, having a retail clinic nearby where patients can receive convenient, quality and affordable health care will only become increasingly important.
Meanwhile, RediClinic, which has 22 clinics in H-E-B stores in Houston and Austin, Texas, is cranking up its marketing efforts and has tapped former Duane Reade executive Jeff Thompson as VP marketing. Thompson will be responsible for RediClinic’s consumer and partner marketing activities, including developing and implementing strategic customer acquisition/retention programs, new product delivery and brand strategy.
Thompson most recently served as VP marketing for Duane Reade.
Clearly, there continues to be significant growth opportunities for clinics — both in terms of the number of clinic locations and the scope of services offered within the clinics. As mentioned earlier, there are 32 million reasons why the growth will be quite dramatic.