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How S’pore supermarkets can draw customers in this age of online grocery shopping

​Traditional supermarkets in Singapore like FairPrice and Cold Storage are being challenged by the advent of e-commerce grocery stores like RedMart and Amazon. The million-dollar question for traditional supermarkets then is how they can make their stores more enticing for customers to visit instead of them going to shop online.

Experiential supermarket retail is the way to go, says the author.

Experiential supermarket retail is the way to go, says the author.

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During this festive season, do you buy your groceries from traditional supermarkets in Singapore like FairPrice and Cold Storage, or do you opt for e-commerce grocery stores like RedMart and Amazon?

More and more Singaporeans, especially digital natives and busy PMEBs prefer the convenience of shopping online instead of having to navigate the crowds and queues in a typical supermarket, not to mention having to lug back the purchases.

While online sales still account for less than 15 per cent of overall supermarket sales, the percentage will only grow as the digital lifestyle of Singaporeans becomes more pervasive. 

Meanwhile, online stores are also setting up physical stores but with a difference, in line with their O2O (Online to Offline) strategy.

This is the trend worldwide with Amazon and Alibaba having established their own physical stores with advanced product search and payment systems in place delivering a unique shopping experience.

In Singapore, Honestbee, which started off as an online personal grocery shopping and delivery service has ventured into a 60,000 square feet brick and mortar supermarket concept – Habitat - that combines retailing and dining while promising an ultra-fresh, ultra-sensory, cashless and queue-less grocery shopping experience.

The reverse is happening as well with traditional supermarkets like Cold Storage, FairPrice etc also setting up and aggressively promoting their online stores and promising same day delivery.

The million-dollar question for traditional supermarkets then is how they can make their stores more enticing for customers to visit instead of them going to shop online.

First, experiential supermarket retail is the way to go.

One thing the online store is unable to offer is the sensory experience – that of smell, taste or touch.

Fresh produce and ingredients especially organic can be a great draw. Outlets like Little Farms, SuperNature and Ryan’s Grocery that have wellness, artisanal and organic product offerings punch above their weight by attracting a regular clientele.

Sensing the winds of change, the refurbished FairPrice Xtra at Ang Mo Kio Hub has reopened and includes an integrated health and wellness concept that has everything you need to live, feel, look and eat well.

Second, have a section where customers can interact with a subject matter expert in real time inside the supermarket.

Imagine if one could interact with and get tips from a seasoned chef; or take advice from a nutritionist; or consult a skin specialist – all inside a supermarket.

Third, tie up with companies to create ‘festivals’ and promote sampling.

This can be in the form of a wine and cheese festival, a local cuisine festival, an organic produce festival and so on.

A well-designed and executed festival is a great way to attract and engage consumers while generating a positive buzz for the supermarket brand.

Also, most fast-moving-consumer-goods companies would be interested in such consumer activation - which is basically driving sales through brand interaction and product demonstrations.

What better venue than a supermarket to reach consumers?

Every festive season is a great opportunity to drive footfalls. Hari Raya, Deepavali, Christmas and Chinese New Year festivals are occasions when the average shopping basket size increases manifold.

Supermarkets that connect with shoppers by bringing the festivals to life in a meaningful manner will see footfalls into stores rising.

Historically, supermarkets like FairPrice and Cold Storage have been pulling out all the stops to attract footfalls during festivals – from cooking and sampling of recipes to festive activities to deals. 

These need to get more unique and memorable as the online pressure increases.

Last but not least, supermarkets must never forget they they have to make shopping a pleasant experience and not a chore.

Bright stores, wider aisles, well-displayed and easily accessible products, proactive staff that is keen to help, quick and efficient check out all add to a pleasant shopping experience.

The icing on the cake would be free home delivery for purchases as low as S$25.

All a consumer needs to do is come by, shop and pay. The supermarket delivery team would then do the rest.

There would be cost implications but remember, a physical store is trying to attract a consumer who otherwise has the convenience of shopping online.   

The establishment and popularity of online supermarkets is fast disrupting the traditional supermarket ecosystem.

This disruption is universal and not unique to Singapore. Whether it is Tesco in the United Kingdom or Woolworths in Australia or Walmart in the United States, all have to constantly reinvent and repackage their offerings to fend off online retailers.

In the meanwhile, with so much online and offline choices, the consumer never felt so empowered.

And yes, he or she is not going to visit a supermarket unless there are good reasons to.


ABOUT THE AUTHOR:

Suresh Kumar is a marketing and advertising professional based in Singapore.

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