How can stores replicate the success of the Aldi middle aisle?
As the retail industry continues to attract negative headlines with reduction in footfall and questions over the viability of the high street, stores are now turning to bolder USPs in order to attract consumers. The ongoing battle with internet retailers is fast becoming a war of uniqueness, and high-street stores are using bargain aisles as a means of attracting footfall towards a specific section of the store and engender a positive feeling of serendipitous bargain hunting.
Whilst there is a possibility that this attracts customers to purchase only singular items, the likelihood is that it will actually attract consumers towards the wider store thus increasing the chances of multiple purchases as they journey through.
In recent years, German supermarket Aldi has become well-known for its middle aisle. This specific section of the store hosts a range of seasonal, exclusive or downright random items that any demographic may be interested in, and which becomes a focus for visitors. Aldi has seen a tremendous spike in popularity since then, competing with massive brands such as Morrisons and Tesco.
But how can businesses discover what their Aldi middle aisle should be?
E-commerce and internet retailers have the advantage of onsite analytics. With this, they’re able to map out a customers journey from initial entry on to the site, to the specific sections and categories they’re attracted to. Similarly, there may be a specific banner/sale notification which customers are interacting particularly well with, which will inform the decisions they make in terms of personalising the experience of customers.
Up until recently, the high-street has had no response to this analysis other than the observations of staff and sales figures delivered a little too late to enable the store to be really agile. However, the advancement of video analysis in this space has seen in-store analytics fast become a staple of technologically innovative high-street stores, as part of an integrated approach to regularly gain insights into customer flow and areas of interest/interaction, POS placement and staff allocation.
Customer flow is a particularly important measurement for stores to take advantage of, video technology providing live access and historic data that outlines where customers are spending their time. This dwell time and location can help inform where retailers place their most popular offerings.
The reason Aldi’s placement for their bargain aisle is so important is multifaceted. Whilst providing an interest point for consumers to browse, it is also positioned in the middle of the store acting as a focal point in which consumers can further browse as part of the natural journey. This not only increases customer flow, it also increases the likelihood they will purchase alternative items from around the store.
This analysis is also a great way of recognising which products customers are interacting with, and thus putting these in a more central place to encourage sales and further exploration of the store. These insights can also have a positive effect on security in stores.
Often, in-store thefts stem from staff blind spots, something which is impossible online. However, with the presence of video analysis, this will allow bricks and mortar store managers and franchise owners to recognise the areas that are potentially vulnerable. This can optimise the placement of staff across certain areas and see more customers treated quickly and effectively as their needs are better met.
There has been a notable downturn in the numbers of people visiting retail stores, and thus the number of people staffing these stores has reduced. However, an increase in staff based on these insights will help stores take advantage of ‘the confused customer’: The well-known character often seen dawdling around aisles, picking up random objects before becoming aware of their behaviour and fleeing the store like a rabbit in headlights rather than making a choice.
There seems to be an influx of these characters during seasonal periods, often looking for gifts for friends and family. Video analytics has the potential to identify these customers, those whose dwell time or journey is erratic and alert store workers to support them. This will result in a higher likelihood of sales, increased staff performance and better-treated, happier customers in the process – well handled with empathy.
Whilst there is no way of combating the overall dominance of online retailers, the largest demographic of UK shoppers being digital natives, there is a way that customer experience can look to level the playing field for ‘bricks’ retailers. Consumers are becoming more and more open to personalised styles of shopping. The technologies used by the e-commerce brands prevailing over legacy brands such as Woolworth’s and BHS, can work in favour of high street retailers, if the right lessons are learnt and the experience can evolve.
The use of data analytics, particularly video, using the way that humans primarily experience the world, allows a more personalised approach to day-to-day retail, providing a multifaceted approach and bringing the enjoyment and welcome surprise back to high-street shopping.
Nigel Ashman, president, ONVU Retail
