Lincoln - A realistic Extra.. (16 May 2014)
16 May 2014
For so long, the Extra format was a real cash cow, fuelled by cheap consumer borrowing and the expansive range encompassing homewares, ever growing electricals along with Books, DVDs and other media.
Once the slowdown hit us, cheap borrowing became harder to obtain and the rise of the internet made it much more appealing (and cheaper) to shop from the comfort of your own home.
Retailers were quick to act with click&collect becoming a more convenient option than home delivery, which is remarkable when you think someone delivering goods to the home is considered inconvenient.
So given that the Extra format had its growth essentially generated by putting non-food first and giving over prime space to that category, the change in the market saw large stores 'lumbered' with outdated plans and layouts.
Watford aimed to change this (along with Purley and Coventry) with a 'food first' strategy which included putting their 'mall' style units on the right side of the store, with food at the front and non food at the back of the store.
Lincoln changes this by going back to the standard format with Produce towards the back / middle of the store and non food on the right hand side once more.
There are subtle changes too, the addition of goalposts on non food highlight ranges like Lego well.
The major talking point in this store is the addition of the 'Connected World', this an 'Electrical' store hybrid with video walls and several displays centred around Microsoft Windows, Xbox, Playstation and Tesco Mobile.
Click / Collect is an increasingly important part of the new retail world, and there's a bit of though for it in this store, with a nice area for customers to sit and wait in.
There is an extensive Produce and Counters offering in store, not the biggest within the company, but a great size regardless. The Meat range is perhaps the most impressive with the 'fan' style display unit used.
Bakery is another category where things have gone awry for Tesco, rumours of a category going from being profitable to unprofitable in 3 years for example don't give great confidence.
The news that Euphorium are to supply Surrey and wider London stores is interesting, and it'll remain to be seen how this translates further north.
Lincoln's bakery shows great development of the offer, the Pancake hotplate is popular and offers great theatre. There was a time where only Morrisons offered pancakes fresh in store, now they are the only retailer not to offer them.
The main talking point from the Bakery is the introduction of a 'Create Your Cake' within the Bakery counter.
Simple cakes are produced in store with options for customisation around flavours and personalisation. Prepared cakes are merchandised to the side of the display.
Goalposts have been used with varying levels of success within Tesco across Core Grocery, used typically to flag particular categories or ranges, such as American food.
Brand outlet is the replacement for the '£ shop' as was; ranging their discount range within half an aisle.
The assortment is standard, Weetabix Flakes as we see in so many discount stores these days alongside a selection of Books and DVD's too.
There is some great innovation going towards 'digital', electronic shelf edge labels were looked at but there are still some elements that aren't quite right.
Overhead gondola end signage is a great innovation, it only displayed the products on the relevant ends on this visit.
However it's easy to see how this could be developed further to deliver advertising messages for promotions.
The major innovation was at checkouts, with 4 'Star Wars' checkouts installed, focussing on 'guided service'.
These units scan automatically and the checkout picks a 'zone' in which the customers shopping will be sent to once it's scanned. Very efficient and they looked easy to use.
Health and Beauty was also strong in store; a similar template to Dudley which has been under that format for around 2 years now.
A focus on Make up and beauty with the core 'Health' category ranged near the Pharmacy / Opticians in the centre of the store.
Overall, Lincoln is a great store and I feel this store has a better level of 'hope' for sustainability in terms of a roll out compared to the 'concept' stores of Watford for example.
Connected World is sharp and solves the issue of electricals by focussing on growth areas in gaming and mobile. There are around 8 televisions ranged in store, that's it!
Pushing on other brands will also help the Tesco cause in this new era, adding Hudl's for use in the Decks restaurant for example is a smart move.
The first Tesco Click&Collect drive thru to offer clothing, non-food and food is in Lincoln. This shows the direction of the business in the new era of retailing, only Asda offer this at the minute.
Maybe those with bigger stores are further ahead with the larger store slowdown than we think?
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From the Grocery Insight newsletter archive, first sent to subscribers on 16 May 2014. Steve now writes at read.groceryinsight.com. See also the blog archive and briefings.