5 minutes
In times when pressure on margins is skyrocketing, retailers worldwide are on the outlook for new revenue streams. They are investing in media platforms and the advertising industry, to boost personalization and media monetization. Next to new income areas, retailers are merging online and offline channels or expanding into new ones to serve a broader range of shoppers. In this edition of ‘Things we see in retail and loyalty’ you’ll discover how retailers realize new revenue streams through expansion, diversification, and by putting loyalty at the heart of the business.
Kroger to buy Albertsons in $24.6 billion deal
Kroger has announced that it has agreed to purchase Albertsons, a deal of approximately $24.6 billion. The deal is likely to close in 2024, subject to regulatory approval. Consolidating to one company will give a combined Kroger and Albertsons more power to negotiate lower prices with suppliers and take advantage of operational efficiencies. Currently, Kroger and Albertsons employ more than 710,000 associates and operate 4,996 stores, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies, and 2,015 fuel centers.
Source: grocerydive.com
Deliveroo tweaks ‘dark store’ model to let grocery shoppers in the door
Deliveroo has opened a new type of ‘dark store’ in Central London called “Deliveroo HOP”. As well as functioning as a mini-warehouse where Deliveroo staff pick orders for couriers operating on its platform to collect and deliver locally to app users, it also serves as a pickup point for shoppers who’ve ordered groceries in Deliveroo’s app. Non-app users can also walk into a reception area to use a digital kiosk and make an order for groceries directly in-store. They then wait “minutes” to be handed a bag containing their chosen groceries, rather than picking the items off the shelves themselves.
Source: techcrunch.com
Retail giants invest in retail media to bolster operations
7-Eleven and HelloFresh are the latest retailers to announce they will be venturing into retail media platforms as a way to optimize shopper engagement and build an additional revenue stream. HelloFresh will partner with owned media platform Brandcrush to digitize and streamline its media partnership processes. Meanwhile, convenience store leader 7-Eleven has launched the Gulp Media Network, which will focus on off-site marketing across third-party platforms and properties, leveraging first-party data from 7-Eleven’s 80 million members in a bid to engage shoppers on convenience and impulse missions. In addition, Ahold Delhaize has unveiled plans to transition its retail media business, AD Retail Media, to a fully in-house operation by 2023. The plans will see the launch of a unified advertising platform, a single dashboard for measuring campaign performance, and the rollout of a new data collaboration tool enabling brands to improve return on advertising spend.
Source: Multiple
Auchan rolls out new loyalty program
Auchan Retail Portugal has launched Clube Auchan, a new loyalty program designed to strengthen the relationship between the brand and its shoppers. The new program will focus on providing savings to shoppers, offering more personalized communication and special bonuses. There are three levels (Fan, Super Fan, and Hyper Fan), and each one comes with a variety of different benefits. To go up a level, shoppers must accumulate points, which are earned through purchases.
Source: esmmagazine.com
Salling Group opens first 'Basalt' discount store
Danish retailer Salling Group has opened the first store under its new discount chain, Basalt, in Kastrup, south of Copenhagen. The new chain, which will specialize in ambient, everyday products, will feature goods largely presented on pallets, reducing handling costs, while refrigerated and frozen items are also absent, reducing the store's energy footprint.
Source: sallinggroup.com
Petrol Group joins forces with Fontignac, introduces digital loyalty program
To write a new culinary story and reward their visitors, the Petrol Group, the largest Slovenian energy company active in south-east Europe, has joined forces with Fontignac. In the promotion, shoppers collect stamps. Collected stamps bring a discount of as much as 82 % on selected Fontignac knives. Petrol Club members have even additional benefits – by collecting a smaller number of stamps, they get to the knives faster.
The promotion is available at more than 500 Petrol gas stations in Slovenia and Croatia, as well as at all Crodux gas stations in Croatia, which are a part of the Petrol group - bringing the total number of Croatian locations offering the Fontignac loyalty program to 202. The stamps can also be collected with Petrol's app digitally. "By enabling visitors to collect stamps automatically, in our app, we are introducing a digital approach to the loyalty programs we offer, ushering an already established promotional activity into the modern age," comments Jože Smolič, Petrol's Member of the Management Board. Even more, digital and physical stamps can be combined, offering shoppers an even quicker way to earn a discount.
