New York - February 2020

2 March 2020

Visit the Retail Bible - our new platform for imagery and insight

The (Big Apple) Bulletin

Last week, we returned from New York post our annual trip to stores.

Some very interesting elements were noted on the visit, so let's step on!

1. Plant-based, despite the Meat focus in the US is a growing trend.

It can be seen everywhere in Fresh aisles and counters too, Whole Foods were also strong in this arena (unsurprisingly) but Stop and Shop had a bay of plant-based food at the end of their aisle of free from / health-based ambient products notably....

A key trend and one that continues to run and run. The various brands of Vegan burgers etc were noted too.

2. CVS really don't care.

I'll do a follow up on this chain specifically, but they'll go the way of Kodak and other leaders in their space that was too used to fat margins, and ended up dying as a result.

Once the US market is disrupted, either politically or by technology or Walmart / Amazon... That's that.

Currently, there is very little reason to go in the store bar filling your prescription, which is frustrating as they have a decent range of products and their locations are very strong, in New York especially. But they don't care about retailing, or growing basket spend.

The moving parts aren't far off, but by just offering that one service that's 'good'. Once a reason comes around that means you don't need CVS, what are the other reasons to believe? Therefore they must prepare for this and start to imagine life as a seasoned c-store operator.

It's a must. Currently, they have all the real estate, range and assortment, but the stores are just run into the ground from a standards viewpoint.

Despite it being late in February, Valentine's day range remained in situ alongside a vast Easter range (the buyers know what they're doing, clearly). But the merchandising was 'bin' like and it looked a disaster in truth.

Not appealing to anyone there.

Even checkout units, where products are easily picked up for sale were left empty.

A near dereliction in duty. Easy money left on the table.

Pennsylvania CVS was in trouble for selling products that were expired, even if register warnings said not to. Part of their agreement with the attorney's office was to put these signs everywhere and offer a cash reward (c. $3 per item) if any were found.

Pointing to a serious operational issue and if you note the signage, it says 'permanent. do not discard'. Which says it all.

This does nothing for confidence.

Must do better, and could do brilliantly well could CVS if they're able to sort themselves out and provide other things, beyond the pharmacy.

3. An innovative digital advert.

Digital is growing and digital signage is absolutely everywhere now. Every station has digital signage displaying numerous messages from sponsors.

As do some yellow cabs, including this one, which was showcasing the 'blue screen of death' via Microsoft.

4. When Target is good, they are brilliant.

However, when they're bad, they're bad. Some own goals in the photo areas (which was abandoned) and the books area was disappointing also. Just debris and stock all over.

A national, stock market listed chain has huge fans with kids having their birthday parties in-store, alongside people proposing to their partners outside the store.

Their branding is second to none, including signage and Bullseye the dog is noteworthy by his presence around the store. Their brands are developing all the time too with a number of brands now seen around the store, including their athleisure brand 'all in motion' which is backed superbly around the store.

NB further images from our trip can be seen on our "Retail Bible" platform. Contact us today to discuss.

Super branding from Target on 'all in motion' and their work here, alongside other brands is second to none. The future remains bright for the chain, as they're working so hard in areas that are exclusive to Target, like sub-brands and the wider 'feel' for the chain which is one of warmth.

5. Shopping in a Prime Depot?

The descent for Whole Foods post their Amazon ownership continues, Chocolate covered Strawberries for Mrs D were finally located (after 3 stores had none) but they were rotten under the Chocolate.

Disappointing, are they no longer done in store? Either way, the customer should have never experienced that (especially not us!) But anyway.

The strategy remains complex, Amazon Go+ has now appeared in Seattle with no checkouts and the rest, albeit over a bigger sized store. The challenge for Amazon Go isn't the technology, that works well.

It's the ranging and the assortment, product quality and the like. Just doesn't feel right, even in New York where it's reasonably obvious what will sell, and what will not.

For the larger stores, Whole Foods remain a strong operator with great credentials, store design and freshness cues. Price remains an issue as it's all Prime and little else.

However, the Prime picking operation and turning these stores into fulfilment centres is harming the shopping experience. This store in PA was poor in that the queue was far too long and once you were through the register, you were battling a mini Prime depot, which was just after the checkouts.

Around the store, one shopper audibly 'sighed' when we were in her way, taking the 'shopper' badge a little too far there, Hindering flow, but it was clearly busy, Prime is popular and the store was broadly well set up too.

However this is putting stores under pressure.

6. Marty.

Noted in Giant Food and then seen in Stop and Shop (sister chain of Ahold/Delhaize) actually on the move, he was putting a call out in aisle 15 as he'd seen a spillage and came complete with a smile and a set of googly eyes....

The future?

Let's see!

Visit the Retail Bible - our new platform for imagery and insight

From the Grocery Insight newsletter archive, first sent to subscribers on 2 March 2020. Steve now writes at read.groceryinsight.com. See also the blog archive and briefings.