Hypermarkets: three retailers investing for the future

Amin Alkhatib
Senior Retail Analyst
@RetailAnalysis

Date : 16 October 2020

The hypermarket channel is perceived to be struggling to grow, whether it is in store terms or sales. However, this is far from reality on a global basis. Retailers are finding ways to achieve incremental increases in basket size and are developing their proposition to attract shoppers back to store. We have selected three retailers investing in their largest stores and implementing new strategies to achieve growth and gain share.

Walmart launches ‘Supercenter of the future’

Walmart revealed a new look and feel for its US Supercenters, with a new lay out inspired by airports to help its shoppers complete a fast and easy trip. This includes the use of the Walmart app, which features iconography and a store directory to help them shop. Shoppers are encouraged to download it at the store entrance area.

Source: Walmart

New signage, featuring bold dimensional typeface, helps spotlight different departments. Commenting on the initiative Walmart US’s executive vice president and chief customer officer, Janey Whiteside, said: “We were inspired by airport wayfinding systems as best-in-class examples of how to navigate large groups of people.”

Asda accommodates multiple missions with in-store partnerships

Asda has expanded its ‘test and learn’ partnerships strategy by joining forces with leading UK toy retailer, The Entertainer. It has also announced further initiatives to accelerate its in-store partnerships strategy. In 2019 it began to bring complimentary brands, popular with customers into stores, such as jewellery and accessories retailer Claire’s.

Since then it has added partnerships with Greggs, B&Q, musicMagpie, Fragrance Point and now The Entertainer. The retailer says it has accelerated its in-store partnerships strategy following a shift in shopper behaviour brought on by the pandemic, with an increasing number looking to complete multiple shopping ‘missions’ on a single trip.

Giant Singapore adds new departments, spotlights prices

Dairy Farm’s Giant in Singapore refreshed its 53 stores, adding new departments that highlight its investment in prices. They offer shoppers’ better value with various pricing areas, such as the $1 zone (US$0.70), which includes a range of household products, personal care, snack, and beverages. There is also a full catalogue and sales area dedicated to products where lower prices are guaranteed to last, with a fresh zone providing lower prices on essentials like leafy vegetables, potatoes and bananas, which are included in the price initiative.

  

Source: IGD Research

How are these winning strategies helping hypermarkets to grow?

The examples demonstrate four key strategies where retailers are investing in their hypermarkets to drive incremental sales growth and encourage higher levels of footfall to their stores:

• Modernisation of the look and feel

• Repurposing of space for in-store concessions

• Investing in an omnichannel propositions to improve in-store experience

• Flexing use of space to market new campaigns

For more insight on hypermarkets and supermarkets, visit channel hub here.