Research and Markets: Global Hypermarket Revitalization Strategies - Just Over Three Quarters Of the 1,327 Kmart Stores in the US Have a Pharmacy Instore.

M2 PRESSWIRE-May 11, 2011-: Research and Markets: Global Hypermarket Revitalization Strategies - Just Over Three Quarters Of the 1,327 Kmart Stores in the US Have a Pharmacy Instore(C)1994-2011 M2 COMMUNICATIONS

RDATE:11052011

Dublin - Research and Markets(http://www.researchandmarkets.com/research/e9ca7c/global_hypermarket) has announced the addition of the "Global Hypermarket Revitalization Strategies" report to their offering.

The hypermarket has grown as a popular grocery format, providing a one-stop shopping destination. However emerging consumer trends, along with stricter legislation on expansion, is prompting superstore retailers to adapt the format in the form of innovative instore services, development of click and collect and downsized stores, resulting in an entirely new large format grocery store concept.Uncover range assortments and complementary instore services that can be used to attract shoppers and revive sales in large format stores.Identify a variety of new ways to reinvigorate the layout of your hypermarket or supermarket by uncovering how other retailers have managed to do it.Adapt the hypermarket size according to trends surrounding urbanization and household sizes by accessing demographic data covering global markets.Develop innovative multi-channel strategies and consider alternative store formats by identifying the strategies of your competitors.Auchan's Chronodrive click and collect model in France allows customers to order products online and collect them at a suitable time from the Chronodrive warehouse. The service saves customers time as well as money on delivery costs. More importantly, the service is a cost effective way of boosting Auchan's revenue and extending its customer base.Carrefour is consolidating its non-food offer to focus on the best performing categories, which will help it to boost store profitability. The health and beauty sales area has been extended by a substantial 40% with the addition of complementary services, such as a hairdressing unit, while the home department has been cut by 15%.Just over three quarters of the 1,327 Kmart stores in the US have a pharmacy instore, acting as a complementary service to its health and beauty department. The pharmacies include a seasonal walk-in clinic at the majority of Kmart sites, such as during the flu season, with trained nurses to administer vaccinations.What consumer trends are responsible for the overall change in the performance of hypermarkets? Is there evidence that hypermarkets are in decline?How can I improve my store layout and what services should I offer to improve sales performance at my large store network?How can I engage shoppers when they are conducting their grocery shopping and how can I better position myself as a food specialist?Which products sold in hypermarkets are proving most resilient and which are damaging profit margins? How can I use the internet to maximise my offer?How can I protect myself from the rising threat of the online and convenience store channels?

Key Topics Covered:

OVERVIEW

About the series

Summary

STRATEGIC ACTION POINTS

Ensure the online offering complements the physical store model

Sell large ticket non-food items online

Create a click and collect model to allow customers to pick up orders from a hypermarket

Create a click and collect model by using a specialized warehouse as a pick-up point

Extend the click and collect service to pedestrians and cyclists

Offer additional services and events to improve the shopper experience

Add services that offer customers convenience to boost basket sizes

Add eating areas to prolong customers' store visits

Add services that are complementary to your product offering

Host events that promote specialism in your core product area of food

Add facilities that allow customers to complete other chores alongside their grocery shop

Add electric vehicle charging points to your car park to promote sustainability initiatives

Rationalize your food and non-food categories

Rationalize your SKU count across all categories

Remove or cut down underperforming non-food categories, such as DIY and electricals

Enhance the clothing offer to attract female customers, focusing strongly on childrenswear

Extend the health and beauty department to capitalize on resilient spend in this category

Improve the soft DIY and homewares offer

Adapt the non-food proposition on a store-by-store basis to meet local demands

Modernize the store format and layout to better suit customers' needs

Downsize the store to create a compact hypermarket

Segment the store into clear departments to create a modular store layout

Divide the store clearly into food and non-food by providing separate entrances

Widen aisles and lower shelves to improve instore navigation for customers

Add large, clear signage and banners to promote pricing and make products visible throughout the store

Adapt the store to suit the rising population of elderly shoppers

Create an additional revenue stream by opening shopping centers in high footfall locations

Open up hypermarkets as anchors to shopping centers

Add leisure and entertainment facilities to your hypermarkets

STRATEGIC CONTEXT

Several developments are motivating hypermarket retailers to revitalize their format

Social and demographic changes are impacting consumers' shopping patterns

New channels are emerging as credible competitive threats to the hypermarket

A number of operational factors need to be taken into account by hypermarket retailers

Rapidly developing urban areas are creating new catchment areas for hypermarket retailers

Some retailers are considering creating an entirely new hypermarket format and brand

The size of the hypermarket is changing to fit new locations

The layout and design of a hypermarket may have to be amended to improve navigability for customers

Category choice across non-food may have to be rationalized to improve sales densities and margins

Changing consumer demand is prompting retailers to rationalize their food product assortment

Adding additional services can improve the hypermarket offer

Adapting pricing strategies is a fundamental consideration for retailers looking to improve footfall

Utilizing the online channel can complement sales at physical hypermarkets

Other store formats and channels can act as an alternative point of expansion

STRATEGY IN FOCUS: RETAILER CASE STUDIES

Downsizing formats allows hypermarket operators to enter new catchment areas

Downsized stores are proving a better fit for changing demographics

Carrefour's hypermarkets are gradually decreasing in size

Meijer launched a small format in the suburbs of Chicago in 2010

Walmart is using a smaller format to target untapped customers in rural regions in growth markets

Retailers are increasingly opening hypermarkets in shopping centers

Shopping center development is a profitable venture for hypermarket retailers

Aeon's shopping center subsidiary is outperforming its retail business

Carrefour's partnership with Klpierre has allowed it to boost footfall to its hypermarkets that anchor malls

Hypermarket retailers are adapting their store layouts to improve mobility

New hypermarkets have a more modular and spacious layout

The new Carrefour Planet stores feature segmentation by category

The refurbished Tesco Extra store in Wembley features a departmentalized non-food area

German grocer Edeka has adapted the layout of selected stores in response to the aging population

Retailers have been rationalizing their product counts to reduce operational costs

Underperforming SKUs are being cut down to reduce inventories and simplify the supply chain

The SKU count across food categories in Carrefour hypermarkets has been rationalized

Supervalu plans to complete the roll out of its SKU rationalization strategy by spring 2011

Hypermarket retailers are complementing instore services with their online channel

Online shopping is on the rise as consumers seek convenience and price transparency

Auchan has formed the E-Drive subsidiary to manage the click and collect business

Casino is increasingly selling the bulk of its non-food items via Cdiscount

Extra services and events are being added to utilize space in hypermarkets

Retailers are promoting their expertise in a few chosen categories through complementary services

Additional services and events have been introduced to Carrefour Planet

Kmart's instore services focus on healthcare and everyday chores

Loblaw has diversified into mobile phone stores and continues to expand its cookery courses

Retailers are strengthening their non-food sales by focusing on high performing categories

Curbed spending across non-food has prompted retailers to concentrate on the best performing categories

Carrefour has segmented its Planet store format to concentrate on a rationalized selection of non-food categories

Casino is drastically rationalizing its non-food offer at Gant Casino to enhance margins

Albert Heijn only recently introduced comprehensive non-food ranges in its large format stores

APPENDIX

For more information visit http://www.researchandmarkets.com/research/e9ca7c/global_hypermarket

Source: Verdict Research Limited

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