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FOUR FACTORS THAT WILL DEFINE FOOD RETAIL OUTCOMES FROM THE ROUNDTABLE SESSION @ LOUNGE #7 ORANGE PAPER #4 PART OF JOS DE VRIES INTERNATIONAL B.V. FOUR FACTORS THAT WILL DEFINE FOOD RETAIL OUTCOMES FROM THE ROUNDTABLE SESSION @ LOUNGE #7 ORANGE PAPER #4 PART OF JOS DE VRIES INTERNATIONAL B.V. LAST YEAR WE ORGANISED THE FIRST ROUNDTABLE SESSION IN OUR LOUNGE AT #7. IT WAS A SUCCESSFUL KICK-OFF TO A REGULARLY OCCURRING GATHERING THAT EXPLORES NEW DEVELOPMENTS IN RETAIL, DESIGN AND ARCHITECTURE. THIS TIME WE ORGANISED THE EVENING IN COLLABORATION WITH BAKERSTREET, BULTHAUP AND SAMSUNG SOLUTIONS. FOOD RETAIL Social changes influence consumer be - haviour. We expect that hyper-urbanisation and the energy transition, in particular, will have major consequences for retail. The gap between urban and regional areas will widen. There is compaction and dilution. Cities continue to grow, with the number of people per square meter rising: com - paction. Meanwhile, in regional areas the population shrinks: dilution. This has major consequences for mobility and puts pres - sure on infrastructure. Life in the city is be - coming more expensive, resulting in more households in which both parents work, greater financial insecurity and a scarcity of time. What does all this mean for food retail? It means that the consumer is wait - ing for a market player who really under - stands the challenges of a busy life. THE INFLUENCE OF URBANISATION ON FOOD RETAIL In urban areas an increasing number of high-rise build - ings are being constructed to meet the growing demand for housing. These are often huge residential towers full of apartments, where the lower levels are designed as public spaces. In order to avoid mobility problems, the aim is to fa - cilitate working, shopping and meeting in public areas within the same residential towers. These vertical villages bring dif - ferent functions together in one location. In Marseille in 1952, Le Corbusier’s residential complex Unité d’Habitation was already constructed for this very purpose. Here, too, different functions were united in a single 18-story building. The complex housed 337 residences and included a shopping street and sun terrace on the roof. An increasing number of districts are being developed based on this con - cept, and retail has an important role to play here. In order to respond to both compaction and dilution, the food for - mula in urban zones will look different to that of regional areas. The function of a supermarket in a village is very different to that of one in a city. In a village the supermarket serves a village function: where you can drop off or pick up a parcel, for instance. In the city these functions are better served by specialists. In a village, travel times are longer so customers often come by car and use the shop to stock up. In the city, shoppers are more likely to cycle to the supermarket to pick up a couple of missing ingredients for dinner. In order to a make a difference with your formula, you must really understand the unique needs that apply to each location. One size does not fit all. Due to urbanisation, the number of square metres per person is under pressure. People are settling for increasingly smaller living spaces, as long as it’s in a coveted part of town. And the square metres are more expensive than ever. There is less storage space and, above all, less time, because everyone needs to work more to afford expensive city life. Does this mean that people no longer want to spend time preparing and cooking delicious food? Of course not, enjoying good food together is a fundamental part of human culture, we just make more of a distinction between functional and emotional cook - ing and eating. FROM SPACES TO PLACES Bulthaup defines different ‘actors’ in the kitchen. Together they make the kitchen. The actor is the basis of cooking, such as the cooking island, which is linked to other elements used for storage or decoration. These are known as the ‘con - nectors’ and the ‘support act’. The connecters ultimately connect the actor, the heart of the kitchen, with the kitchen table, the centre of living. The kitchen table is the heart of the household, where all family members come together. A good kitchen doesn’t just help with managing a busy life, it is also the stage for valued moments of togetherness. On Monday evening it needs to be quick and easy, while Saturday night is real quality time with family and friends. The house, and espe - cially the kitchen, must adapt to these chang - ing needs. What functionality does a kitchen really need? Do you still need a freezer in your tiny apartment, or can you just use the freezer at Albert Heijn or Spar? How much space do you want to surrender to storage? How many toilet rolls do you want to store? Real estate often still follows the old rules instead of asking what the kitchen of the future will look like. Tempt, don’t train. What do you do if, as a retailer, you want to lead the way in healthy eating and responsible food? How can you do it without patronising the mainstream client? By seducing instead of instructing them: no finger-wagging, just really deli - cious, responsible, healthy food. Consum - ing less is the trend, in particular fewer animal products. Around 4% of the Dutch population does not eat meat, and around half to three-quarters of Dutch society has at least one meatless day a week. Meat consumption per capita has been decreas - ing since 2010. This is a trend that you, as a food retailer, need to think about. The vegan and vegetarian concepts are most - ly gaining ground in the cities, but how do you translate this trend for the mainstream customer? VEGAN, VEGETARIAN AND LOCAL Tempt, don’t train. Currently this trend is being taken up mostly by early adopters, but in the future it will become increasingly important for the mainstream public. Recently Unox developed a vegetarian smoked sausage, the Vege - tarische Slager (The Vegetarian Butcher) brand was bought by Unilever and even McDonalds added two veggie burgers to their menu. If you don’t want to miss the boat as a food retailer, then you already need to start facilitating by offering customers a choice. If you provide a tasty meat-free option then you will see that an increasing number of people will opt for it. Vegan and vegetarian are terms that don’t always sound appealing, and are often still associated with long-haired hippies and greenie health food stores. A vegetarian-la - belled sandwich will sell less than one with exactly the same ingredients but without the word ‘vegetarian’. Meanwhile, quality vegan and vegetarian cuisine can be extremely delicious and well-balanced, as demonstrat - ed by ‘by Chloe’ and the Vegan Junk Food Bar. Just order The Classic Burger with tempeh-lentil-chia-wal - nut patty, pickles, onion, beet ketchup, special sauce, potato bun. Finally, we see that data is now being primarily used for prac - tical reasons: for gathering customer knowledge or to facil - itate store visits. Meanwhile, there is still plenty to discover about the store experience and service. Once you’ve gathered the data, what do you do with it? The first step is pretty simple: go use it. Why leave a promo running on screens when the product has sold out? Additionally, retailers must determine which data is relevant based on loyalty profiles. Last but not least, retailers must dare to share their knowledge. Today everyone clings to their own data, while the future lies in platforms where retailers share and connect their data to gain an even better insight into the consumer, thus being able to communicate in an even more personalised manner. What are you supposed to do? Better understand the client? There is still relatively little done with data on the shop floor. Webshops are already more advanced, with quick insights into how customers navigate online, where the bottlenecks are, and how long and often customers visit a webshop. This is still a different story on the physical shop floor, and that’s a shame. By employing smart technology, you can collect a lot of data on location about shopping behaviour. When this data is combined: from the webshop, website, physical store and/ or app then retailers can really get to know their customers. Then then data gains meaning: it doesn’t just show what cus - tomers do, but why they do it. BIG DATA; WHAT TO DO WITH IT? WE CREATE PRESENTING PARTNERS: Henri Froeling & Marcel Voermans Bakerstreet Holding B.V. Tore van Rooij Bulthaup Edwin Hexspoor Samsung Solutions SPECIAL THANKS TO: PART OF JOS DE VRIES INTERNATIONAL B.V. WE CREATE PRESENTING PARTNERS: Henri Froeling & Marcel Voermans Bakerstreet Holding B.V. Tore van Rooij Bulthaup Edwin Hexspoor Samsung Solutions SPECIAL THANKS TO:
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