scaling click and collect beyond the store

Scaling Click and Collect

Beyond the Store

Andy Lockhart

Why online grocery?

Food and Beverage market was worth $700 Billion in 2016 according to the US

Department of Commerce (The single largest consumer sector in the US)

Smallest share of the digital retail sales today

Potential growth is huge

Source: BI Intelligence

The Growth of online grocery

Online will be 20% of the market by 2025

Equivalent to 3,844 grocery stores

Retailers with a solid Omnichannel presence will retain customers and gain traffic

Most retailers do not have a clear strategy

How to integrate brick and mortar with digital

Ability to meet the customer where they are is key

Convenience, assortment and personalization will determine the winners

Why consumers shop online?

Choice

Convenience

Time

Saves money

Retailers have to adapt to customers’ increasing preference for

online grocery shopping Source: Brick meets Click

There are still hurdles

Biggest barrier to buying grocery online is customer desire to pick their own fruits,

vegetables and meat

Source: Brick meets Click

How do you get your groceries?

Pickup at the store

Pickup at a remote location

Home delivery

Can Grocery be Omnichannel?

Meeting the customer where

they want to receive their

groceries

Can retailers truly deliver

Omnichannel from a store

based pick model?

Availability, accuracy, efficiency

and service will be key

Customer

Shop in Store

Collect at Store

Remote Pickup

Home Delivery

Fulfillment of Grocery Orders

Pick grocery orders in existing brick and mortar

stores – click and collect

Use existing infrastructure

Faster time to market

Customers come to the store

Use dedicated fulfillment facilities

Higher capital investment

Accurate stock management

Gain efficiency and improve customer service

levels

The Challenges for the Store

Challenges for picking in store for online grocery

Picking Accuracy

Out of Stocks

Store Crowding

Substitution Process

Requires a dedicated storage space for picked orders

Active/Passive Cooling

Dedicated fulfillment centers

Dedicated fulfillment centers address the

challenges of in store picking while providing click

and collect

Stock Control

Accuracy

Customer Satisfaction

Allows multiple delivery options to suit the

customer

Home Delivery

Remote Pickup

Store Pickup

Click and Collect

Scalable Fulfillment Centers

Manual Pick

Semi Automated

Fully Automated

Customer Pickup Options

Dedicated fulfillment allows the Grocer to deliver online orders to the consumer

where they want to receive them

Grocery Fulfillment Center

Pickup at Store

Remote Pickup

Deliver to Home

Summary

Solutions to improve e-commerce scalability and reach customers

Dedicated Fulfillment Centers

Improve efficiency for retailers

Improve customer satisfaction for in-store shoppers

Reduce losses due to out of stock and poor substitutions

Remote Customer Pickup/Store Pickup/Delivery

Allows retailers to meet the customer where they want to receive there

groceries

Remote pickup points provide better scalability

Automated pickup reduces the labor requirements for pickup

Andy Lockhart

Vice President Sales, TGW Systems, Inc

Andy.lockhart@tgw-group.com

Thank You