PREVIEW Hybrid Food Retail: Rethinking Design for the Experiential Turn

BERNHARD

FRANKEN

ALINA

Hybrid Food Retail R E T H I N K I N G F O R

T H E

D E S I G N

E X P E R I E N T I A L

T U R N

CYMERA

BERNHARD

FRANKEN

ALINA

Hybrid Food Retail R E T H I N K I N G F O R

T H E

D E S I G N

E X P E R I E N T I A L

T U R N

CYMERA

CONTENTS

4

8 – 13

Preface

14 –43

Supply Chain

16

Logistics as an aesthetic principle

18

History

22

The supply chain and its definitions

26

Value chain

28

Logistics in the supply chain

41

Outlook

44 –71

Packaging

46

Wrapping things up

48

History

50

Packaging and its definitions

52

Types of packaging

56

Packaging functions

59

Emerging trends

70

Outlook

72 –113

Exterior Design

74

From big box to iconic building

80

The roof

90

The façade

103

The door

110

Outlook

114 –155

Scenography

116

Food retail design as scenography

118

Sales formats and their definitions

121

Store layout

137

Space management

148

Product presentation

154

Outlook

156 –195

The interior sets the stage

158

The floor

161

The wall

175

The ceiling

182

Outlook

194

Lighting

196 –237

Lighting as the guide in the customer journey

198

Light and its definitions

200

Terminology

203

Luminaires

206

Quality and effect of light

212

Light in food retail

216

Outlook

236

Signage

238 –257

Growing complexity

240

Efficiency and authenticity

243

Food retail signage

245

Merging of typography and space

247

Digital signage

249

Point of sale or point of experience?

252

Outlook

256

Gastronomy

258–297

Try it – buy it

260

History

262

Gastronomy and its formats

266

Hybridisation of supermarket and gastronomy

270

Outlook

294

Event Eventisation of the non-event supermarket

298–317 300

History

302

Event and its definitions

303

Event marketing

306

Hybridisation of supermarket and event

308

Outlook

CONTENTS

Interior Design

317

5

Rethinking design for the experiential turn

PREFACE

Today, e-commerce and changing consumer demands are transforming food retail as a trade sector with fast-moving consumer goods on the same massive scale as last occurred with the introduction of the supermarket in the 1930s. According to Florence Fabricant, the King Kullen supermarket that opened in Queens, New York, in 1930 is regarded as the first to fulfil all five criteria of the supermarket format: Separate departments, self-service, discount pricing, chain marketing and volume dealing.1 Since that time, the format has been optimised down to the last detail, but the basic principle has remained unchanged and adopted worldwide.

After decades of stagnation, since the turn of the millennium food retail has developed into one of the most creative fields of the entire retail sector.

New formats, such as organic supermarkets, to go outlets, street food markets and pop-ups, are springing up everywhere.

Food retail is one of the last retail segments not yet dominated by e-commerce. On the one hand, this is due to the fact that the logistics requirements for food products, some of which are perishable and need different refrigeration zones, are complex and can only be met at great expense. However, certain product groups, such as dry goods, are increasingly migrating to e-commerce. According to a study in 2017 by EY, 16 per cent of Germans already buy food products online.

However, this represented a market share of only one per cent. In the UK, food sales via the internet already amounted to â‚Ź 5.5 billion

1

Fabricant, Florence: Nation’s First Supermarket Attempts to Stay Competitive, in: The New York Times, 28.09.1997, [online] https://www.nytimes.com/1997/09/28/nyregion/nation-s-first-supermarket-attempts-to-stay-competitive.html [26.08.2018].

8

RETHINKING DESIGN FOR THE EXPERIENTIAL TURN

The world’s first Supermarket - King Kullen, New York, USA, 1930

Contemporary supermarket as iconic building – MPreis, Salzburg, Austria · Studio: Christof Hrdlovics, Julia Fügenschuh, 2018

9

14

SUPPLY CHAIN

Sup· ply· chain

Edited by Alina Cymera

15

SUPPLY CHAIN

Logistics as an aesthetic principle Between the 1980s and 2007, supply chain management was an essential contributor to value creation in retail, but it started to become a commodity as a result of similar growing efficiency among competitors and the smartphone disruption in 2007, which established a new distribution logic in general. Logistics remain not just important but essential for retail, but the sources of value creation have moved and changed. Food retail, however, is 10 years behind the trend. Hardly any area of retail is dominated by supply chain management as much as food retail. This is because commodities require a high turnover rate of small-size, and for the most part low-price articles to a large number of customers. The margin is not primarily determined by how the goods are presented but rather by swift, smooth turnover. As such, the sales area first and foremost serves neither the presentation of the goods nor the customer experience but rather is seen as an interface between two supply chains – that of the supplier and that of the customer. Retail accounts for only half of the supply chain from producer to end customer. The customer completes the chain from shelf to shopping cart to conveyor belt to parking space to car boot to home to fridge at their own expense and in their own time.

This is why a supermarket’s organisational form, layout and aesthetics are those of a warehouse and not those of a shoppers’ paradise.

In discounters, this metaphor even becomes the only form of presentation. The goods are taken directly from the transport vehicle and presented on the pallet in the sales area and even left in the packaging in which they were transported. This communicates to the customer that the price alone is the store’s unique selling proposition and that none of the customer’s money is wasted on presentation. The unveiling of the logistics becomes an aesthetic principle. This design strategy was not, however, consciously devised by designers but

16

unconsciously by logisticians. As such, it comes as no surprise that of 300,000 employees of a leading discounter worldwide only three have anything to do with retail design. The logisticians have unconsciously developed the perfect presentation of goods for the discount business model and optimised it even further in line with logistical parameters.

Because logistics are the basis of food retail and at the same time the driver of change, the first chapter is devoted to this particular topic.

LOGISTICS AS AN AESTHETIC PRINCIPLE

However, if a business model is so unilaterally dependent on the supply chain, it is extremely susceptible to disruption by a logistically superior business model. E-commerce has only just begun to revolutionise food retail. As such, supermarkets are losing their unique selling proposition of getting a product to the end customer’s home at the lowest price and with the least effort and costs. As its design strategy, food retail must therefore present other typologies than ‘warehouse’, without losing its logistical edge.

17

The supply chain and its definitions Even today, there is still no single definition of supply chain terms and functions. Instead, any number of other terms are encountered, such as value chain management and value-added management, etc. One reason for this is that on account of different sub-disciplines, entrepreneurs got to grips with different approaches, meaning that supply chain management was not developed in the framework of business management theory but instead evolved in entrepreneurial practice.

Despite the vagueness of the terms, the most widespread and commonest definitions found in literature were used for this chapter.

SUPPLY CHAIN

Supply chain Modern supply chains are complex, multi-tiered networks in which a large number of different companies are linked with one another. As such, they are also part of many different value chains. For this reason, the term ‘supply chain’ is often regarded as misleading, as the supply chain not only covers the supplier side but also the customer side. What is more, it is not exclusively a linear chain but instead a huge network comprising a wide range of companies and value chains, which especially over the past few years has gained in significance. This is due, in particular, to the fact that nowadays lots of goods are procured from abroad and therefore companies from many different countries have to work together in the supply chain, which in turn have various suppliers. As a consequence, supply chains have understandably also become more complex, which in turn makes the effective coordination of the flow of goods difficult.

To summarise, it can be said that a supply chain, from the source of supply to the point of consumption, represents all participants in the various processes. It should also be added that in a supply chain the goods always flow from the manufacturer to the consumer and the money from the consumer to the manufacturer. At the same time, information flows in both directions, i.e. initially from the consumer to the manufacturer (the order) and subsequently back from the manufacturer to the consumer (delivery slip).

22

THE SUPPLY CHAIN AND ITS DEFINTIONS Diagram of the supply chain in food retail: How do goods move from A to B and in which direction does the money flow?

23

SUPPLY CHAIN

An external container transshipment hub.

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37

LOGISTICS IN THE SUPPLY CHAIN

its goods such that they are passed on to the recipient unchanged across several cross-docking points, without having to be sorted again.

Ultimately, the function of the transshipment point is only for individual deliveries to be put together with a specific recipient in mind. However, in order for this process to function satisfactorily, the sender must label the goods beforehand with the recipient’s name.

SUPPLY CHAIN

In two-stage cross-docking (also known as transshipment or breakbulk cross-docking), the order relates to the cross-docking point. This means that unlike in single-stage cross-docking, the goods are not pre-picked with the recipient in mind but rather the transshipment point. As such, up until this point they remain unchanged and only after they have arrived at the cross-docking point are they transshipped to the new units, addressed to the recipient and then forwarded. This way, the order becomes a collective order for several branches.

Multi-stage cross-docking differs from the other two processes in that it involves further steps, for example the repacking and labelling of goods. The rest of the process remains the same.

The main difference between single-stage and two-stage cross-docking lies in the pre-picking.

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Warehousing

Once these storage functions have been completed and the customer has ordered the goods, they are removed from storage and become outgoing goods. This involves the ordered goods being put together in the picking process, the dispatch labels and delivery slips being printed, the goods packed, the shipments labelled, shipping costs calculated and the goods made available for transport. As such, storage is also very closely linked to the transport and transshipment process and explains why the intermeshing of all three processes is so important for logistics. The storage areas can be divided into a wide range of types.

By way of example, there are storage areas especially for incoming commodities, auxiliary and operating materials, interim storage areas for semi-finished products and storage areas for outgoing finished products.

LOGISTICS IN THE SUPPLY CHAIN

Warehousing primarily serves to ensure production and delivery within and outside a company and to guarantee continuity in its range of products. It does this by deliberately interrupting the flow of goods and keeping stock of, for example, commodities and finished products, auxiliary and operating materials in a warehouse in order to create a buffer. To be able, in turn, to maintain this stock at all, the goods have to undergo various sub-processes, known as warehousing processes, during storage. The first process begins when the goods arrive, are unloaded from the means of transport onto a loading ramp, registered, checked and prepared for storage (e.g. transshipped to loading aids).

In this sub-process, the task is to store the goods in the right place, taking storage conditions (expiry date, temperature, humidity, etc.) into consideration, and to monitor the stock and reorder if necessary.

Not least of all, retail is a type of storage operation that involves a sales warehouse and a reserve warehouse. Depending on its size, the sales area might only offer a limited number of goods, which is why they are mostly found in the direct vicinity of the reserve warehouse, which is also known as a units warehouse. It primarily serves the provision of goods that cannot be stored in the sales area and guarantees the swift replenishing of stocks when products sell out.

39

114

Sce· nog· ra· phy Edited by Alina Cymera Berhard Franken

115

SCENOGRAPHY

Food retail design as scenography Food is sold in many different formats. The oldest format is sale by the grower, i.e. sale from the producer to the consumer. We still find this format in farm shops or in sales directly from the field. It is only when a third party acts as an intermediary between producers and consumers that we talk about trade. Right up until modern times and even today in many parts of the world, markets have been the most widespread form of food retail. Such markets are temporary, informal and, as a rule, every individual point of sale belongs to one trader or grower. Food retail, at one time principally known as the corner shop, bought its products from a large number of middlemen or producers and offered them for sale to its customers. For the most part, all these formats managed without retail design. With the introduction of the supermarket in the 1930s, this format became dominant in modern societies’ grocery trade and a specific design was developed for the purpose. This design was optimised back in the 1930s, was extremely successful and has only been slightly modified over the past eighty years. As already described in the chapter Supply Chain, the dominant metaphor was that of the warehouse and this made supply chain managers the real retail designers. The disruption triggered by e-commerce has endangered this format. However, at the same time it also opens up opportunities for improving the format through retail design on the basis of new sales floor design.

Conventional supermarkets pursue a supply-oriented strategy as their presentation policy. In such cases, the focus, as far as the customer is concerned, is on satisfying basic needs and meeting daily requirements. Hybrid food retail favours an experience-oriented strategy as a presentation policy, with the aim of stimulating purchases by means of storytelling, using a store design which appeals to the senses. Store layout, product placement, product presentation, staff appearance and atmosphere (lighting, music, colours) together make up a holistic scenography that transforms shopping into an experience. When planning the layout, the designer decides how traffic should be routed and where highlights, themed sections, storage space, product groups and

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The sequence of experiences on the sales floor develops over time and follows the movement of the customer through the store. S ­ hoppers’ movements take place continuously over a linear path depending on time and space. Accordingly, the spatial arrangement results in a sequence of scenes.

The shopping experience is seen as a linear experience over a period of time in a similar fashion to other temporary arts, such as music, theatre and film.

FOOD RETAIL DESIGN AS SCENOGRAPHY

displays should be positioned within the space available. The currently predominant narrative of the supermarket as a warehouse accords the supply of goods or just-in-time delivery almost as much importance as the customer’s sales floor experience. In other words, the width of the aisles is determined by the size of the pallets and the location of fresh food counters by ease of access. At this point it should be said that we definitely favour the kind of experience-oriented design which makes customer centricity the measure of all design-related decisions.

This should not come at the price of the staff, who should, of course, find the conditions in which they work motivating, comfortable and, not least, appropriate. Nevertheless, basically speaking, these aspects relate to the back-of-house area. However, it is on the sales floor that the money is made, which is why its main function should be to service customer requirements.

The analogy with film is perhaps the most accurate reference in this case because film is a spatial form of art, with techniques such as cutting, montage, gaze and counter-gaze. If we see the shopping experience as a sequence of scenes, then designing this space becomes comparable to the work of a stage designer or scenographer. Thinking in scenographies is conditioned by narratives. Narratives should be seen as stories taking place over a period of time, involving a sequence of events and occurring within a spatial setting. Moreover, narratives connote the kind of references, traditions and other narratives which are tacitly associated, by both author and recipient, with narratives.

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Layout analysis: Jumbo Foodmarket

SCENOGRAPHY

ASSORTMENT BY PRODUCT GROUP

126

STORE LAYOUT

CUSTOMER FLOW AND EXPERIENCE POINTS

= CUSTOMER CUSTOMER FLOW FLOW =

= EXPERIENCE EXPERIENCE POINTS POINTS =

127

Layout analysis: Zurheide Feine Kost

SCENOGRAPHY

ASSORTMENT BY PRODUCT GROUP

128

STORE LAYOUT

CUSTOMER FLOW AND EXPERIENCE POINTS

129

134

SCENOGRAPHY

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STORE LAYOUT

SCENOGRAPHY

Arena layout The arena layout has tiered displays that radiate outwards and upwards, like an amphitheatre, either as customers come in or starting from a central point. This layout can be achieved by means of table displays, different shelf heights and pedestals. These allow customers to see a large percentage of the product range as soon as they enter the store. Attractors can be placed in the centre and on the rear walls.

This arrangement is more common in bookstores and boutiques. It is characterised by the way it gives customers a very clear overview, but shoppers need to walk further than they do with the star layout. The disadvantage is its loss of presentation space because of the way it is tiered upwards.

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Shop-in-shop layout With the shop-in shop layout, parts of the product range are accentuated as special departments or special offers through particular spatial and purchasing features. Arrangement and appearance are ­distinguished from their surroundings by means of an appropriate atmosphere and design. The operator may be the retailer himself (e.g. in the case of franchising) or a different party. Usually, shop-in-shops offer the product range of a single brand (monobrand). This concept originated in fashion retail in department stores. A distinction is made between shop concepts located in their own areas within the store and its core product range and the kind that are located around the core sales area in separate zones, e.g. in the entrance area or after the checkouts. These could, for example, be a bank shop in a hypermarket or a laundry, hairdresser or phone shop at a cash-and-carry. A further distinction is made between permanent and temporary shops, for instance for special offers over a certain period of time (see chapter Pop-up), like product tests or launches. As long as the shop-in-shop does not have its own cash registers with its own merchandise management, it is part of the main point of sale. If it has its own cash register system, it is considered a subtenant and an independent sales unit. The shop-in-shop principle is a popular form of hybridisation and, if it increases its floor space, it can mutate into a multi-shop principle.

Space management Space management is the result of an allocation of space based on both qualitative and quantitative criteria. It indicates how the goods in the product range are divided across the various displays on the sales floor. In this context, the allocation of space on the basis of qualitative criteria takes account of the attractiveness of the zone and the product range in relationship to the desired sequence of scenes.

The allocation of space on the basis of quantitative criteria determines the size of the area allocated to a product range or product group and the number of items.

A quantitative division of space describes the quantity of floor and shelving space allocated to the individual product groups and articles on the sales floor. The retailer’s objective is to design the sales area available in such a way that it maximises profit. Both acquisitive and cost-effective factors should be taken into account here. Sales of an article soar when it is allocated a greater sales or presentation area.

Seen from this angle, large quantities of pretty well every product need to be on display. However, this would not be possible for cost reasons. After all, a large sales space means higher overheads and the higher costs associated with a larger quantity of merchandise.

Accordingly, there is a tendency to display in large quantities those goods with a higher profit margin or the kind known to be associated with impulse purchases. Moreover, a quantitative division of space can also be used to underscore a narrative. Even if a certain product group, such as various expensive brands of gin, will not make vast profits, the quantity involved will make the customer presume that the retailer is competent.

SPACE MANAGEMENT

Quantitative division of space

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196

LIGHTING

Light¡ ing

Edited by Niklas Reiners

197

Lighting as the guide in the customer journey

LIGHTING

A holistically integrated and optimally planned lighting concept is a fundamental element of the scenography guiding the customer journey. Developments in food retail in recent years make it clear that availability and information are losing significance as critical factors that influence the purchase decision. Customers looking for a food product, however exotic, can obtain information quickly and easily on that product’s local, regional and national availability – generally coupled with a simple way to buy it directly online. In other words, today’s consumers do not really need to leave the comfort of their own homes to do their weekly shopping. So how can food retail get them up on their feet again?

To find the answer to this question, which is crucial to its future survival, food retail has to redefine its mission and broaden its horizons. It must establish itself as a trustworthy curator that presents information and availability in an authentic, inspiring and multi-sensory way. The key is to transform grocery shopping into a customer journey that sets the in-store experience apart from comparable e-commerce offerings and celebrates its uniqueness. There are effective ways for store operators to differentiate themselves from the increasingly homogeneous world of online shopping. What makes the customer feel welcome?

How does the customer perceive product presentation? Does the customer enjoy spending time in the store? The answers to all these questions depend to a great extent on the store’s lighting concept. Lighting plays a key role that will become even more significant in the future.

Before, food retail lighting concepts were based on the warehouse lighting principle of uniform brightness. Today, that principle no longer satisfies the requirements of food retail.

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Good lighting is the reason why customers perceive their local butcher’s eyes as twinkling and trustworthy, rather than see him blend together with his products in the same uniform pink shade. Good lighting preserves products, thereby promoting sustainability and improving cost effectiveness. Good lighting showcases products in coordinated colours and three-dimensionality, rather than immersing them in a homogeneous haze. A store’s lighting concept is the most important aspect of merchandise presentation from the customer’s perspective.

A sustainable and functional lighting solution must therefore always be developed by interdisciplinary experts and tailored to the specific application on the basis of a detailed analysis and a professional concept.

Good lighting is not just efficient – it is also effective.

LIGHTING AS THE GUIDE IN THE CUSTOMER JOURNEY

Technical progress over recent years has facilitated completely new light qualities that are difficult to measure in terms of classic factors such as bulb wattage. What is more, simply comparing the technical data of different luminaires without any physical assessment of actual lighting design quality is no longer in keeping with the times.

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LIGHTING

A deep reflector with a small cut-out opening focuses the light and directs it onto a smaller target surface more efficiently than a flat reflector with a large cut-out opening. Measured in terms of LOR, a flat reflector emits more light and is therefore more efficient. However, considerable efficiency is wasted because of the high proportion of direct light that is scattered throughout the room without having any effect. Luminaires with deep reflectors produce much less diffused direct light. The ratio of light that hits the target surface is also much higher. Thus from the LOR perspective, luminaires that illuminate the target surface less effectively are more efficient. This is as ridiculous as a new garden hose that sprays a big jet of water but without directing it, so it ends up watering the street, trees and bushes instead of the flower bed. A hose with a nozzle directing the water flow would allow much more precise irrigation and save water. It is therefore questionable whether LOR is still a valid technical parameter today. It may serve a purpose in the development and comparison of luminaires but not in an assessment of lighting quality.

Return of light (ROL) is gradually becoming established as a new performance indicator.

It provides information about the amount of light reaching the target surface, which is far more useful than the total amount of light emitted.

In the ROL approach, the light flux of a luminaire is divided into three areas. The core ROL zone is between the centre of the light cone and the beam spread.

The beam spread is the point where exactly 50 per cent of maximum luminous intensity can be measured. Further out, there is only 1/10 of maximum luminous intensity. The second ROL zone is between the field angle and the beam spread. Everything outside the field angle is inefficient scattered light, which is wasted light from an ROL perspective. ROL optimisation involves ensuring that the maximum amount of light generated (and paid for) is located in the core zone. An important

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part of this process involves changing the design of the luminaires and their reflectors.

QUALITY AND EFFECT OF LIGHT

The next milestone in the development of new key performance indicators (KPIs) would be an indicator that provides information about the amount of light perceived by the human eye and its wavelength.

Human vision is subjective, making it difficult to compare people’s perceptions. Developing measuring apparatus would be the first important step towards achieving objective information. If the spectral composition of the light source is compared with the light perceived by the human eye, this may well be the first substantiated analysis of typical wavelength displacements on certain product surfaces as the basis for the further optimisation of light for specific product groups.

All light outside the field angle is diffused light and wasted in the sense of ROL.

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238

SIGNAGE

Sig¡ nage

Edited by Rainer Zimmermann

239

need to differentiate its role restricted until now to standardisation and brand identity. However, purely descriptive product information, such as quantity and price, must now also stand out in a visual and material context from narratives of authenticity. The task of signage here is to make the factual efficiency of the warehouse logistics and goods handling of mass products disappear from view and replace it with a farmyard atmosphere.

SIGNAGE

The corner shop, ousted by industrialised food retail formats in the 1970s, is now returning to the hypermodern supermarket of the 21st century as a decorative finish. Efficiency is a necessity but not an experience. That is why the sign above the special product line ‘From local organic producers’ may not now be made with plastic foil lettering, even if this would be more efficient, but instead with materials that also do emotional justice to the theme, e.g. with letters woven from straw or laid out with nuts on wooden planks. The suggestion of authenticity places completely new demands on the conception and design of signage systems in food retail.

Neon lettering replacing standard fonts – bfresh, USA · Studio: BLINK Sweden

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Food retail signage Basic Requirements Information Orientation Guidance

Communicative Requirements before 2008

Integrating signage in space and assortment creating coherence and simplicity for consumers

FOOD RETAIL SIGNAGE

Expressing visual identity

Communicative Requirements After 2008 Expressing Product narratives Merging signage, architecture and displays creating disruption and journeys for consumers

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298

EVENT

Event

Edited by Alina Cymera Bernhard Franken

299

Eventisation of the non-event supermarket At the end of the second decade of the 21st century, events are regarded as an ideal counterpole to disembodied electronic communication and the virtual experiential world. In contrast to classic one-way communication, they strengthen brand loyalty by creating unique experiences and the possibility of multi-way interaction.

EVENT

Events thus offer, above all, high emotionalisation potential. In addition, customers nowadays scarcely notice classic advertising anymore because of an omnipresent information overload and it is therefore no longer particularly effective or efficient.

According to Hitzler, events can be described in cultural terms as ‘happenings that stand out from our everyday lives, are condensed in space and time, performative, interactive and appealing for a relatively large number of people. They are staged with the intention of creating sensations of community among the participants.’1 According to this definition, normal grocery shopping in the supermarket is a non-event: It takes place as part of regular everyday life and fosters sensations of isolation rather than of community.

The coupling of food retail with events can therefore be described as an eventisation strategy that is used to turn a trivial and worthless experience into one which is shared and meaningful.

According to Schulze, on the other hand, a disposition towards experience as a form of inner orientation is a ‘most direct form of the search for happiness’2, which inherently bears a risk of disappointment. Consequently, eventisation could be described as a strategy for promising

1

Hitzler, Roland: Eventisierung: Drei Fallstudien zum marketingstrategischen Massenspaß, Verlag für Sozialwissenschaften, Wiesbaden, 2011, p. 1.

2

Schulze, Gerhard: Die Erlebnisgesellschaft. Kultursoziologie der Gegenwart, Campus, 7th ed., Frankfurt am Main/ New York, 1992, p. 14.

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EVENTISATION OF THE NON-EVENT SUPERMARKET Circus Theater Roncalli visited the supermarket – real Markthalle, Braunschweig, Germany, 2018

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EVENT

devaluation of the format has even set in. The haute couture megabrands are currently endeavouring to add new charm by breaking with the runway format. The use of the supermarket narrative verifies our book’s initial hypothesis that the supermarket is a format accepted by all consumers with fixed behavioural patterns that are assumed to be known. Ladies who are ready to spend over € 10,000 on a Chanel suit apparently also have some experience with the supermarket format. In the hybridisation of runway and supermarket, an event format from the luxury segment is juxtaposed with a non-event format from the commodity segment, which creates surprise through the charming breach of high and low. In addition, as was usual with Karl Lagerfeld, the scale and perfection of his fashion show’s orchestration at the Grand Palais were overwhelming. However, hybridisation ultimately also worked because even the supermarket has become part of public space in which society observes and experiences itself. The non-event supermarket thus perhaps contains elements of eventisation after all.

Event in the shape of a supermarket – Chanel’s fashion show autumn/winter collection, Grand Palais, Paris, France, 2014

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OUTLOOK

As we have shown, eventisation of the non-event supermarket is already in full swing. Alongside the obviously trivial types of eventisation, which mostly have something to do with food itself, unusual event formats in particular seem to have high mobilisation and emotionalisation potential. Those connections with the supermarket are successful which, despite all contrasts, establish a link to the supermarket format, which indeed makes the combination surprising but also plausible. In this way, new forms of social action and interaction are tested.

If the combination becomes implausible, it will disappoint consumers. Retail designers have the chance to discover, test and construct plausible combinations.

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On· line/ Off· line Edited by Alina Cymera

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ONLINE/OFFLINE

Pure players have only one distribution channel.

By contrast, multichannel means the use of several distribution channels at the same time.

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and existing warehousing structure, the remaining challenge is to coordinate operations with brick-and-mortar retail, for example in order to avoid overselling.

Cross-channel facilitates a buying process across various distribution channels, allowing customers to combine different ones without a loss of information. The additional costs for food retailers with an existing branch structure are far lower than with multichannel. Customers are able, for example, to order goods in the online shop and then collect them from the brick-and-mortar store (click-and-collect or in-store pickup). This means they save shipping costs and are more flexible regarding collection times. For example, customers can collect their orders quickly from the supermarket on the way home from work without immersing themselves in the purchasing process in the store.

This system can be used successfully in stores with a particularly dense network of branches and where the nearest supermarket is reached within an average of 5 to 7 minutes. In addition, consumers can examine products, exchanging them is quick and free of charge and customers can already see in real time when placing an order whether their desired products are in stock in the store of their choice. In return, this means for retail that the notoriously expensive last mile can be avoided through click-and-collect. The disadvantage is that pickers in the store obstruct the aisles and the stock on the shelf can no longer be calculated accurately, meaning that staff have to replenish shelves during opening hours at peak times too in order even to meet immediate demand.

DISTRIBUTION CHANNELS

Cross-channel ‘From the consumer’s perspective, distribution channels do not exist in parallel but are instead combined in the buying decision process as desired. Consumers therefore seek different distribution channels to satisfy their needs: While personal advice, service and the possibility to actually touch a product are unique to stationary retail, in the internet, obtaining other consumers’ opinions is simple and prices can be compared quickly and easily.’1

1

Stüber, Eva: Von Multi-Channel zu Cross-Channel: Eine Herausforderung für den Handel, in: Estrategy Magazin, 2012, [online] https://www.estrategy-magazin.de/ von-multi-channel-zu-cross-channel-eine-herausforderung-fuer-den-handel.html [16.11.2018].

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Another example of cross-channel distribution is click-and-reserve.

In contrast to click-and-collect, with click-and-reserve the desired product is only reserved online and then paid for in the store if the customer likes it. This system is not yet found in food retail.

ONLINE/OFFLINE

A further example of cross-channel distribution is drive-ins or the drive-through concept. With the drive-through concept, food is not collected in a branch but instead delivered to the customer’s car at a pickup station. In March 2017, Amazon launched its AmazonFresh Pickup store first of all as a pilot project in the US, where customers were recognised on the basis of their car number plates and their orders delivered straight to their cars. The product range included 1000 items and deliveries were completed within a 2-hour time slot, while Fresh members could even collect their shopping just 15 minutes after placing an order. Similar concepts are being tested or already put into practice by Migros in Switzerland, real in Germany as well as Tesco and Sainsbury’s in England.

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Omnichannel Omnichannel, as a further extension of cross-channel, allows for the integration of all physical and digital channels intended to offer a seamless and holistic customer experience. The difference to cross-channel lies here above all in simultaneity. This is because smartphones and mobile end devices make a major contribution to the merging of distribution channels. With them, consumers can now retrieve information online about products while they are in a brick-and-mortar store or even purchase them from another supplier on the internet for a lower price.

A further difference is that special offers, for example discount on a certain product group, apply equally for all channels. With omnichannel, the customer is king – with no exception.

DISTRIBUTION CHANNELS

In cross-channel distribution, the channels are not parallel but combined.

In omnichannel distribution, all channels can be used at the same time without loss of information.

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ABOUT THE AUTHORS

Prof. Bernhard Franken

Alina Cymera

Bernhard Franken completed his studies in 1996 as Dipl.-Ing. Architect at the TU Darmstadt and was Artist in Residence at the Städelschule Academy of Fine Arts in Frankfurt, Institute for New Media from 1995-1996. He worked with ABB Architekten, Frankfurt for 5 years as a freelancer and from 2000-2002 in a joint venture. He founded Franken Architekten in 2002.

Alina Cymera studied communication design at HSD University of Applied Sciences, Düsseldorf, at PBSA Peter Behrens School of Arts. She graduated as Bachelor of Arts in communication design in 2016. In 2019 she finished her master thesis with the book Hybrid Food Retail – Rethink Design for the Experiential Turn. Since the beginning of 2017 she is working freelance as a visual communication designer.

In 2015 he was appointed as professor for 3D communication at HSD University of Applied Sciences, Düsseldorf, and since then lectures at PBSA Peter Behrens School of Arts, Faculty of Design. From 2010-2013 he was professor at the Frankfurt University of Applied Science for Digital Design. He was assistant professor at TU Darmstadt and visiting professor at the Southern California Institute of Architecture in Los Angeles, the University of Kassel and the Stuttgart State Academy of Art and Design.

Professor Franken is internationally known since the Bubble, one of the first built Blobmaster buildings. Since 1998 he realized projects with a narrative design approach in the fields of corporate architecture, trade fair presentations, brandspaces, gastronomy, residential buildings, office buildings, retail outlets, hotels and urban design projects.

His projects have been widely published and have won more than 66 awards. He has been featured in various exhibitions and has given over 200 lectures worldwide.

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Hybrid Food Retail Rethinking Design for the Experiential Turn Publisher Frame Publishers Authors 01 Supply Chain: Alina Cymera 02 Packaging: Alina Cymera 03 Exterior Design: Bernhard Franken 04 Scenography: Alina Cymera, Bernhard Franken 05 Interior Design: Bernhard Franken 06 Lighting: Niklas Reiners 07 Signage: Rainer Zimmermann 08 Gastronomy: Alina Cymera, Bernhard Franken 09 Event: Alina Cymera, Bernhard Franken 10 Pop-Up: Philipp Siegel, Ronja Mölder, Johanna Wiechert, Bernhard Franken 11 Co-Living: Carolin Lunge, Yvonne Schreiter, Bernhard Franken 12 Online/Offline: Alina Cymera Art Direction and Production Jens Müller [www.studiovista.de] Design Alina Cymera Proof Reading Rainer Zimmermann, Sharon Oranski

Research Team HSD Philipp Teufel, Anna Gura, Dominik Behrels, Marius Dick, Birte Perkuhn, Maike Schievenbusch, Ekatherini Tsepou, Viola Kaduk, Tabea Singendonk, Leoni Reinders, Hannah Schulz, Cara Shikura, Svenja Huth, Franziska Elf, Nora Boehm, RD, Chiara Nervo, Nina-Sue Beer, Viola Caspari, Saskia Rehmet, Pascal Mangrich, Anna Stähler, Frauke Hollmann, Anna Pfältzer, Philipp Siegel Gastronomy Consultant Christian Kutschera

IMPRINT

English Translation Sharon Oranski

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Online shopping and changing consumer demands radically transform the food retail industry for the first time since the introduction of the supermarket in the 1930s. After decades of stagnation, food retail is currently one of the most creative and fastest developing typologies in spatial design.

As a result of a 3-year research project with over 100 students of retail design at PBSA Peter Behrens School Of Arts, University of Applied Sciences Dßsseldorf, Hybrid Food Retail offers an overview of the history, presents an encyclopaedic analysis of the elements, and highlights the emerging trends in the food retail industry. As new formats are being developed, this handbook prescribes hybridisation – a fusion of supermarket and gastronomy, co-working, hospitality and performative formats – as a powerful tool against digital disruption.