Category Archives: retail

Online shoppers welcome home grocery delivery

Though few retail grocers offer home delivery of web orders, a survey from the Food Marketing Institute, a grocery industry trade organization, suggests that consumers respond more to web grocers that offer to deliver online orders compared with grocers that require pickup at their stores.

In 2010, 32% of consumers responding to an FMI survey said their primary grocery store offered online ordering, and 28% said they had done at least some online ordering at those grocers. 4% said they shopped online at those grocers one to three times per month, and 2% said at least once a week. But 22% said they shopped online at those grocers less than once a month, with another 73% saying they never shopped there online.

By comparison, the FMI survey showed that only 17% of respondents said their primary grocery store offered home delivery—but 13% said they ordered home delivery one to three times per month, and 5% said they did so at least once a week, higher figures than for when home delivery was not an option. 17% said they ordered home delivery less than once a month, leaving 65% saying they never did.

Regardless of the demand for it by consumers, however, home delivery of groceries isn’t for all retailers, experts say. “Home delivery is only going to work for really big folks with profitable online grocery operations offered in places where the retailer has a reasonable density of customers,” says Jack Horst, a retail strategist at retail industry consultants Kurt Salmon.

The category of “really big folks” surely includes Amazon.com, the largest web-only retailer, and Wal-Mart Stores Inc., the world’s largest retailer and the leading U.S. grocery merchant. Both Amazon and Wal-Mart are experimenting with home delivery of groceries.

Amazon’s program, dubbed AmazonTote, has been tested by the company’s employees in Seattle for the past six months or so. In its infancy, the service entails weekly delivery of groceries and other items to the user’s home, with the groceries bagged in reusable tote bags, all free of charge.

According to The Financial Times, the service is linked to Amazon’s Fresh grocery delivery service, which currently only operates in the Seattle area but is available to all consumers in that area.

Fresh offers fresh produce and meats in addition to non-perishable grocery items; the service goes beyond food, too, ranging from pet supplies to beauty products and other Amazon.com categories. Granted, the convenience is reflected in the price — would you pay $2.50 for a single grapefruit under any other circumstances? — but you get what you pay for, which in this case amounts to a lot of time and energy saved.

On the other side, the “Walmart To Go” test , just launched in California last Saturday, allows customers to visit Walmart.com to order groceries and consumables found in a Walmart store and have them delivered to their homes, a company’ spokesman said. Products include fresh produce, meat and seafood, frozen, bakery, baby, over-the-counter pharmacy, household supplies and health and beauty items. Wal-Mart also offers a Pick Up Today service, which is limited to select electronics, video games and appliances.

What Amazon also needs to fear is a new initiative from the company called @WalmartLabs.  According to GeekWire, this new Silicon Valley-based arm of the company is stating it has pretty lofty goals: “Walmart plans to expand the @WalmartLabs team and expects this new group will create technologies and businesses around social and mobile commerce that will support Walmart’s global multi-channel strategy, which integrates the shopping experience between bricks and mortar stores and e-commerce.”
In other words, exactly what Amazon does, except with the integration of brick and mortar stores.

Walmart seems to be turning its collective eyes towards technology more and more as of  late, the only real question is what took them so long.  If the discount store giant starts pouring its massive resources into more technology integrations, releasing its own products and taking on the likes of Amazon, we could see the company slowly take over eCommerce just as it did with the retail world.

The majority of grocery retailers still prefer store pickup of online orders, as MyWebGrocer* CEO Rick Tarrant says. But if the Wal-Mart and Amazon test will prove to be successful, we are pretty sure that at-home delivery will be the next big trend.

*MyWebGrocer, a provider of e-commerce and digital marketing technology and services to more than 110 grocery retailers, has supermarket clients including ShopRite that offer home delivery in some markets

Italians and sustainability in the retail business: the buzz is online!

Italians speak about sustainability online.This is the result of a recent survey led by Blogmeter from October 1st, 2010 to January 31st, 2011 recording approximately more than 9 thousand post about environmental sustainability related to the major retail chains. Social media proved to be the ideal and most followed communication tool  to promote eco- initiatives, facilitating the construction of  a real “green image” for the retail business sector.

Retailers mentioned by Italians on online conversations about sustainability

When it comes to environmental sustainability Coop and Ikea and are the most discussed with over 40% of the citations. This happened for example with the Sportello Ambiente initiative,  a collaboration between Ikea and Legambiente to offer advice to consumers about home energy efficiency, and with the Coop campaign to promote the consumption of tap water in place of the bottled one.

In general, web users are showing an increaside sensitivity to organic and low-
environmental impact products:  in the online communities dedicated to women, users positively report about the presence of automatic distributors to refill detergents inside the supermarket. Retailers brands are the most mentioned ones, most widely quoted and commented by users because always available on the shelf – like Esselunga Bio, Bio of Auchan, Coop Viviverde. Lidl, for example, is particularly discussed for its range of ecological detergents W5 (on 42 over 199 posts mentioning the retailer) considered to be of good quality and highly recommended among users.

The network also tells us that attention to a more responsible consumption is steadily increasing and influencing the purchase process in different ways: users are more sensitive to labels and the presence of the Ecolabel certification is considered increasingly important for those who are looking for products with a low environmental impact.

The research also showed that a balanced relationship between quality and price of organic and /or eco products is a key criterion in the buying process: very often consumers who are interested in green products do desist because selling prices are too high. (Source: GDO Week)

McDonald’s opens its first green restaurant in Italy

Ho.Re.Ca and sustainability: in Italy there are still people who do not like to match these two words or that asserts that “the time has not yet come,” and this is the great challenge we are – successfully – addressing  with ECOFFEE. We strongly believe that the Italian consumer is able to perceive and reward the added value of sustainable products and services, and the news that McDonald’s has just opened its first green restaurant in Italy, in Lainate (near Milan) do prove that we are not wrong. This green McDonald’s was designed to be completely self-sufficient in energy: thanks to solar, wind and biomass. The project costed € 5 million, 20% more than a traditional restaurant but at the end of the year it will certainly pay off in terms of increased brand reputation, reduced  environmental and social impact, not to add the reduced costs due to the energy saving architecture and technological process. 
At the end of 2011, the results coming from the adoption of these policies will be evaluated by an Italian green environmental consulting company ECOFFEE has already established a business connection with a while ago.  Meanwhile, McDonald’s aims to achieve the European certification EN 16001, which will help the company to organize systems and processes aimed at improving the economic benefits of energy efficiency and reducing emissions of greenhouse gases.

But let’s talk about the “McGreen” in Lainate – a project whose details are available at the McDonald’s site www.persapernedipiu.info Currently, the restaurant is able to produce up to 90% of the energy needed, but within three months it is said to reach 100%, thanks to a pioneering trigeneration plant that use the exhausted cooking oil as fuel. The building structure is earthquake resistant, and thanks to the “Einstein”system  customers are always updated with real-time data regarding energy consumption and savings thanks to a monitor positioned at the entrance of the restaurant. Particular attention was paid to the restaurant supply chain and to the ingredients used in the menu, where customers can also find “local” ingredients belonging to the traditional Italian cuisine, like the Alto Adige IGP Speck, Parmigiano-Reggiano DOP, IGP oranges from Sicily, to name a few. The coffee served will not be the one of the Italian companies Illy or Lavazza, which are known for their sustainable products, but the one certified by the international organization Rainforest Alliance.

On the outside of the building, ecoattivo asphalt – when struck by sunlight it triggers a  reduction of pollutants- energy-efficient refrigerators and incentives for the customers using electric cars.
“Lainate is not a departure or arrival point, but a stage of a journey that McDonald’s sets out a while ago. For the Expo 2015 we will be able to implement a reduction of 15% of our CO2 emissions, an increase of 15% of our energy savings and another 15% increase of the energy we use from renewable sources. In 2020, these percentages will rise up to 20% allowing us to meet the Kyoto Protocol parameters”said Roberto Masi, McDonald’s Italy CEO.

In fact, McDonald’s Italy is not new to these kind of sustainable initiatives. As early as 2010, in fact, it adopted new standards for construction and renovation, with the use of building materials with high environmental sustainability, solar panels, heat pumps, roof ventilation and, where it was possible, photovoltaic. But not only that: technologically advanced machinery, power management systems, occupancy sensors, insulation and LED lighting fixtures to reduce air pollutant emissions. All new openings have already been planned to include some or all of these technologies. The 2012 politics has already been planned aiming at using certified renewable energy in all McDonald’s restaurants, building a fleet of delivery vehicles composed by 100% biodiesel  and a company’s car pool with low dioxide carbon emissions . (Source: MarketingOggi)

Brand Reputation: Italy’s best ones are Ferrero, BMW and Barilla

Ferrero, followed by BMW, and Barilla, are the company whose brand reputation has been rated the best one in Italy by the last “Reputation Pulse 2011″survey, the most important and extensive national research about company reputation conducted by the Reputation Institute in partnership with Doxa. The Reputation Institute, the main structure at a worldwide level dealing with issues such as corporate branding and reputation management, has been helping in the last 15 years more than 200 companies to measure, understand and enhance their potential in terms of reputation.

Every year the Institute carries out a research at a global level about company reputation and the factors affecting it, surveying more than 1500 companies from 32 countries. The Reputation Pulse Italy is produced in partnership with Doxa and examines more than 120 companies operating in Italy ranking them following a reputation criteria, with a score ranging from 1 to 100. The survey had been carried during the first three months of 2011, with more than 3,000 people interviewed.

So this year is Ferrero standing at the top step of the podium (with a score of 81.68), closely followed by BMW (81.19) and Barilla (81.16), with only three companies achieving a score of ” reputation of excellence “(over 80). Further down the rankings there are companies like Armani (78.90) ranked fifth, Luxottica (75.56) eight, Coop (73.54) fifteenth, Pirelli (72.55) 17th, followed immediately by Benetton (72.42), 18th. The “top 20” companies outweigh the positive threshold of 70 points, the remaining companies are hardly reaching that level: of the 124 firms surveyed, only 30% are showing a score higher than 70.

The 2011 survey considered only the companies amont the 100 rated in Mediobanca’s annual report about the “Leading Italian Companies”. The Pulse Reputation Italy survey has also expressed an evaluation in terms of gain or loss of reputation as compared to year 2010: Alitalia sees the highest score reputation increase (+12.8 points), followed by Intesa Sanpaolo (+ 7.1) and Unipol (+6.5). Mediaset (-10.7) with Lottomatica (-10.6) and Mediolanum (-10.2) are the protagonists of the worst loss of reputation, with a drop of about 10 points compared to 2010.

“Corporate reputation – said Michele Tesoro-Tess, head of the Reputation Institute in Italy (Advice dept.) – has a primary strategic importance for companies: when positive, can be a source of value, but if it is weak or negative it can make the company vulnerable. ” “We analyzed – adds Guido Argieri responsible for the Reputation Institute in Italy (Research dept.) – that in Italy more than 50% of the public has a favorable attitude toward the first three companies in our ranking, leading to consumers to be more willing to accept any increase in prices or tariffs applied to these three companies products.” (Source: Purpleandnoise)

QATAR FOUNDATION to develop local luxury brands

Qatar Luxury Group (QLG), the first venture of Qatar Foundation in the luxury segment, will unveil a series of all-new Qatari brands this year in the fashion, hospitality and lifestyle sectors. Gregory Couillard, Chief Executive Officer of Qatar Luxury Group, said that two years after the Group started it is creating a structured portfolio of culturally informed high-end brands that offer exclusive experiences and timeless products.

The press release posted in the CPP website does not mention whether the Qatar Luxury Group will embrace sustainability and responsibility- a big must now in the Middle East countries, as shown by the Masdarcity  and the many project requests ECOFFEE receive everyday. We will investigate about and keep you updated.

CPP-Luxury, an online business magazine, adds that the Group is currently active in two main sectors — fashion and hospitality. Fashion represents the core activity of the Group, which has invested heavily in world-class design and engineering equipment for in-house development of product lines. Prototyping units on jewellery, luxury ready-to-wear apparel, shoes, leather goods and accessories are all located at the QLG’s headquarters and soon a manufacturing facility will be opened for mass production of the unique product lines which is not only meant for the local market but for the international sphere as well.

The first initiative of the Group will be the launch of a restaurant later this year in collaboration with an internationally recognised 3-star Michelin French chef, two more restaurants in 2012 and one luxury fashion brand alongside the Group’s development of projects in the lifestyle sector. Couillard is optimistic QLG will contribute considerably in the country’s thrust toward diversifying its economy. The Group has a strong team with members from 14 nationalities including designers from Belgium, Chile, Qatar and US.

The press release posted in the CPP website does not mention whether this huge project will embrace sustainability and responsibility- a big must now in the Middle East countries.

Greenburgers guide: Greenopia

EVOS, Le Pain Quotidien and Pizza Fusion received the highest marks of any fast food restaurants in the latest ratings issued by Greenopia.
 
The three chains each received four green leafs, meaning they met at least 90% of the criteria across five categories: green building design, supply chain, recycling/take-back programs, stock and sustainability reporting.
 
Greenopia said EVOS is the “greenest burger chain in the US.” The company sells a variety of organic and fair trade products; incorporates green building design into its locations; uses recycled-content items; and purchases wind credits to offset its energy footprint.
 
Bakery and sandwich shop Le Pain Quotidien uses organic and local ingredients; incorporates green building design; composts food waste; and uses its spent food oil for biodiesel.
 
Pizza Fusion “tackled an incredible amount of green projects for a food chain” Greenopia said. All of its projects are LEED certified; their pizza is made with organic ingredients and delivered by hybrid delivery vehicles; employees wear organic cotton uniforms; and they have a take back incentive for their used pizza boxes.
 
Further down in the rankings Chipotle and Starbucks received three leafs, and McDonald’s improved to two leafs this year. With more than 32,000 stores worldwide other major chains should look to McDonald’s to see how to properly begin to incorporate green initiatives, Greenopia said.
 
Below is the full description of the company’s efforts and shortcomings, as cited by Greenopia:
 
Green Efforts:
McDonald’s has begun to incorporate some green elements into its culture. McDonald’s has 2 green stores, with more on the way. In fact, McDonald’s has been one of the more aggressive chains in incorporating green building designs into its locations. McDonald’s uses some recycled content in their packaging and has a comprehensive waste diversion program. It also only gets its beef from responsible sources (especially in regard to rainforest degradation) and has taken steps to green its seafood and coffee sourcing. Finally, McDonald’s has begun analyzing and scoring its supply chain to search for environmental efficiencies (as well as conducting audits) and publishes one of the better sustainability reports in the industry.
 
Green Issues:
In the green spectrum, McDonald’s is at least light green in every category. What we have listed above is good, but there is still room for improvement. For starters it would be nice to see natural and/or organic products offered and some more widespread and consistent green building design elements as well as some renewable energy sourcing. McDonald’s deserves to be applauded for what it has done (especially when compared with other major burger chains) and we hope to see improved commitment as time goes on.

Retail, web 2.0 and sustainability:an analysis

A recent Zumer and Sustainable Life Media research is helping medium to small size retailers to better understand what is the connection among sustainability, consumers and web 2.0 tools.

The survey analizes the behaviour of 50 of the biggest companies leader in sustainability, at a worlwide level. Names such as Chevron, McDonald’s, PepsiCo, Coca-Cola, Campbell’s Soup, Microsoft, Toyota, Starbucks appear in the list of the companies whose online conduct on the three top social media, Facebook, Twitter and YouTube was analyzed for six weeks between December 2010 and January 2011.

We have found three key points that can be summerized as follows:

1. Authenticity: sustainability must permeate the whole company and must involve the company’s stakeholders so that ensure an authentic online communication, a more effective management of external reputation and brand perception. This is perfectly in line with the Cone research we have posted a while ago: consumers DO PUNISH not authentic communication about sustainability.

2. Sustainability helps acquiring new market share: almost three quarters of the professional interviewed stated that sustainability-themed social media are the channels to be in in order to get the attention of new market segment and reinforce the company’s position in the more traditional ones

3.Mix platforms to get the best results: although Facebook is still the most favourite platform among the big 50 companies in the survey, with investments rising in 2011 too. Tweeting about sustainability is becoming very common too -investments will double by 2015, as well as are CSR dedicated company’s websites, while YouTube actions are still fragmented. Blogging about sustainability might be a very powerful tool, not yet fully implemented by companies (1-2% of total blog posts).

Starbucks Launches 10th Global Responsibility Report

On April 18, 2011 Starbucks Coffee Company has announced the launch of its tenth annual Global Responsibility Report, which outlines fiscal 2010 performance in ethical sourcing, environmental stewardship and community involvement. The interactive report is now available online at www.starbuck.com/2010report

“Our ten years of reporting demonstrates not only commitment to global responsibility, but also to transparency in our business practices,” said Vivek Varma, Starbucks executive vice president of Public Affairs.

The report shows that Starbucks has made significant strides towards the bold goals it set in 2008. In particular, Starbucks exceeded its goals in the following areas:

  • Renewable Energy: Starbucks reached its goal to purchase renewable energy equivalent to half of the electricity used in its North American company-owned stores, by purchasing 58% in 2010; and has been named by the U.S. Environmental Protection Agency as the fourth-largest purchaser of renewable energy in the U.S. The company is raising its sights with a new goal to make 100% of the electricity used in global company-owned stores renewable energy equivalent by 2015.
  • Youth Action Grants: Starbucks exceeded its 2015 community goal to engage 50,000 young people in community activities by engaging more than 53,600 in 2010.

“Starbucks has made significant and meaningful improvements in key areas, and recognizes the need for greater innovation, customer engagement, and policy leadership,” said Ben Packard, Starbucks vice president of Global Responsibility. “We will continue to set new performance standards, reach our ambitious goals and sharpen our focus on areas of greatest impact in communities and the environment.”

In 2010 Starbucks demonstrated progress toward reaching its long term coffee purchasing goals, bringing the company closer to achieving its long-term goal of purchasing 100 percent responsibly grown and ethically traded coffee by 2015.

The company made advances in three key areas:

  • Coffee Purchasing: Increased purchases of coffee sourced under C.A.F.E. Practices from 81% to 84% in 2010.
  • Farmer Support: Provided $14.6 million to organizations that make loans to coffee farmers, nearing its goal of $20 million by 2015.
  • Forest Carbon Programs: Expanded pilots in coffee-growing communities in Chiapas, Mexico and Sumatra, Indonesia through Starbucks partnership with Conservation International to demonstrate how coffee farmers can adapt to and be a solution to addressing climate change while increasing their incomes.

Starbucks also made meaningful improvements in 2010 toward reaching its goals related to renewable energy purchases, recycling, water conservation, and green building. Starbucks is currently on track to reach goals in a number of key areas including:

  • Recyclable Cup Solution: Making progress to develop comprehensive recycling solutions for its paper and plastic cups by 2012 by testing recyclability of cups in a New York pilot.
  • Water Conservation: Reduced water consumption by 21.6% over 2008 levels, nearing the goal 25% reduction.
  • LEED® Certified Stores: Completed pilot phase for the U.S. Green Building Council’s LEED® Volume Certification pilot program. It is the company’s goal to build all new, company-owned stores to achieve LEED® certification beginning in December 2010.

Although much progress has been made, the company still faces challenges in progress against some goals, and is working to achieve them:

  • Community Service: Starbucks partners and customer around the world contributed more than 191,000 hours of community service in 2010. Although this is well short of the company’s 2015 goal of generating one million hours, Starbucks has put new structures in place to improve in 2011, and is dedicating April as a global month of community service in celebration of the company’s 40th anniversary.
  • Front-of-Store Recycling: Starbucks continues to support local market testing and implementation to accelerate future front-of-store recycling.
  • Reusable Cups: Although Starbucks served 6.4 million more beverages in reusable cups in 2010 than 2009, there is a need for considerable innovation and customer engagement to reach the 2015 goal of 25% of beverages made in reusable cups. Starbucks is working to increase awareness by offering a free cup of brewed coffee or tea at participating Starbucks in the U.S. and Canada to customers who bring in a reusable tumbler on Earth Day 2011.
  • Energy Conservation: Starbucks did not achieve its goal to reduce energy consumption by 25% in company-owned stores by 2010. The company is now planning to achieve this goal for 25% energy reduction in 2015. (Source: Businesswire)

Mark’s and Spencer opens greenest store ever

On March 1st, 2010 Marks & Spencer announced a programme to be the world’s most sustainable retailer by 2015 launching 80 major new commitments under M&S’ eco and ethical plan, Plan A.

Plan A, started on 2007, had already proven its efficacy achieving these great results in 2009/2010:
• Cost savings of around £50m for M&S;
• New products and services, including 250,000 customers from M&S Energy;
• Cut CO2 emissions by 40,000t;
• Recycled 2 million used garments via Oxfam;
• Reduced 10,000 tonnes of packaging;
• Diverted 20,000 tonnes of waste from landfill;
• Saved 387 million food carrier bags;
• Used 1,500 tonnes of recycled polyester (equivalent to 37 million bottles);
• Saved 100 million litres of water;
• Recycled or re-used over 130 million clothing hangers;
• £15m for charities.

Yesterday, April 18th 2011, Marks & Spencer achieved a new great result opening the retailer’s “greenest-ever” store at Ecclesall Road in Sheffield.

The store is the first of a number of new ‘Sustainable Learning’ stores, that are part of M&S’ drive to become the world’s most sustainable major retailer by 2015.

The new 12,400 sq ft Simply Food store, built from scratch on a former brownfield site, incorporates a host of sustainable design and construction features, including an LED screen giving real-time public transport information, electric car charging points and a green living wall to attract wildlife.

All the bricks used in the build have also been reclaimed from a local mill.

Marc Bolland said:

“We’re delighted to be opening M&S’ greenest-ever store, providing customers with top quality M&S food and drink products in such a convenient location.”

The store is “firmly on course” to achieve a BREEAM rating of Excellent, making it one of the most sustainable retail outlets in the UK.

Its carbon emissions will be 23% lower and energy usage 30% lower than a traditional similarly sized store.

Innovative features include:

  • LED lighting, which is 25% more efficient than standard lighting, is used throughout the store, a first in the UK.
  • Sun pipes bring natural lighting onto the shop floor;
  • 100% of the timber used is FSC certified, a UK first;
  • All the bricks have been reclaimed from an old local mill;
  • Water costs will be reduced by up to 40%, compared with a traditional similarly sized store, by using harvested rainwater;
  • Capturing heat expelled from the store’s refrigeration units to help heat the store;
  • A living green roof of sedum plants and green living wall have created wildlife habitats, as well as insulating the store;
  • Bird boxes have been placed around the perimeter wall of the site;
  • In total, 62 different species of plants have been planted on or around the store;
  • Polished concrete floors have removed the need for floor covering;
  • 100% of the construction waste has been recycled.

All employees at the store have also been fully trained to understand its environmental features and will be encouraged to share this information with customers. (Source: The Food and Drink innovation Network)

Business Retail: a global view

Retail is big, but how big it is and is it equally distributed worldwide or are there countries where retail is at its best?  

The last CB Richard Ellis Survey  about the business of Retail, reveals how fluctuating this market is, measuring how the most important 323 retailers changed their strategies in 73 countries during the last year.

The survey findings are very interesting, showing us that Dubai is the most favorite city for both American (61%) and European (63%) retailers, while only 23% of retailers from the Asia-Pacific area are present in that city – not because of lack of interest, but just because the Asia-Pacific consumer market is the fastest growing, therefore retailers from those countries do not need to branch out abroad.

Retail expansion rate saw a decrease during 2010, only a 2%, compared with 4% in 2009 and 12% in 2008, with new target countries being India (8 new retailers) and Turkey (7). United Arab Emirates (UAE), Kuwait, Ireland, Romania, and Belgium all attracted six new retailers.

Online retail is becoming more and more important for retailers: 82% of the brands in the survey do have an online catalogue, even though only a smaller percentage (46%) offers to consumers the chance to purchase goods online, with Value&Denim being the most active (43%) followed by mid-range fashion  (26%) and Luxury & Business Fashion (32%). To have an online retail shop is the favored choice by those brands who already have a physical store (46%), while in more advanced market such as the U.S.A., there is a slight percentage of online seller (24%) who do not have a physical store, and that are using online sales platform to test the market before opening a physical point of sale.