Finding fun (again) in the grocery store
In these inflationary times, it’s not surprising that many grocers have taken a stripped-back approach to business to enable better pricing. But, with less in-store sampling, fewer front-line staff for shoppers to interact with and displays that rarely change from week to week, it’s not surprising people are spending less time in their grocery stores as a result.
The State of Grocery Shopping 2024 report, based on an online survey of more than 1,000 U.S. consumers by Drive Research, showed that although most grocery shopping still happens in physical stores, use of grocery pick-up services has doubled from 2022 to 2024 (6% to 12%), and grocery delivery services have increased from 16% to 25%. In competing on price alone, industry experts say grocers are missing opportunities for discretionary purchases that could lead to higher basket sizes. Plus, there is little incentive for shoppers to come back if they’re finding better prices elsewhere.
Recognizing that price-chopping can be a losing battle—especially with the growing number of discount stores on the scene—some Canadian grocers are venturing back to in-store events in a big way, at levels on par with pre-pandemic times.
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“People really are using events to bring excitement back to stores post-COVID, and to drive up sales,” says Tammy Callahan, business development manager at The Look Company, which designs and manufactures a range of visual engagement solutions for grocers such as Loblaws and Walmart Canada. With the proliferation of self-checkouts, she stresses the importance of maintaining connections with customers via events and unique shopping experiences.
Callahan says these can entail VIP-style events where customers are invited in-store for a specific occasion, or pop-up shops and temporary displays that draw people in throughout the week. “Not every place is equipped to have a farmers market every week, but if you can have a pop-up shop with local vendors, you’re giving customers a reason to check it out,” she says, noting pop-ups are ideal for short-term experiments that allow retailers to get creative. Interactivity plays a key part, too, says Callahan, as it allows customers to feel as if they’re part of what’s happening in-store.
How to encourage returning customers
“We rebranded right after COVID where we are now Denninger’s Experience Great Food, and one of the pillars of our brand is events in-store to differentiate ourselves from other grocers out there,” says Nathalie Coutayar, the grocer’s merchandising and marketing senior manager. “It’s a way to make customers want to come back and discover something new—and they do.” While Denninger’s hosts a variety of events throughout the year, she says the goal is to host a major in-store event every single month.
Denninger’s holiday open house in mid-November to early December takes place in all five Ontario locations and has become a customer favourite across the board. The event showcases new, Christmas-inspired products from Europe, with multiple sampling stations manned by staff and suppliers. Last year’s event was the best attended yet, with a Christmas chalet structure in-store where people could walk in and take pictures. “You see all these big smiles from customers and it creates a lot of fun,” says Coutayar of the event. “Even our employees look forward to this every year because we all dress up and make our stores look so beautiful.”
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Other popular events at Denninger’s include wine tastings that happen after-hours and require tickets purchased online, and March break food sessions for kids that take place during the day. “We have a local dairy farm we are teaming up with next year and will be offering foods with high-quality dairy products such as grilled cheese sandwiches and poutine,” says Coutayar. “It’s going to be educational and fun for kids, too.”
Appealing to children (and their parents) is a formula that’s certainly working for Stew Leonard’s, a family-owned chain of eight supermarkets in Connecticut, New York and New Jersey that first opened in 1969. Often touted as the Disneyland of grocery stores, shoppers are welcomed by singing and dancing animatronic displays and costumed characters that keep children entertained while their parents shop.
Jenn Polaski is a store manager at Stew Leonard’s in Newington, Conn., who spearheads the in-store event programs. She says the Saturday buffet breakfasts for kids with costumed characters are big hits that always keep families coming back. Similarly, the breakfasts with Santa are so popular during the holiday season that there are four different seatings over a weekend that draw some 150 attendees each. Customers pay for breakfast and having a buffet helps keep costs in check, says Polaski.
The grocer recently held a “Touch-A-Truck” event, reaching out to various community organizations to get vehicles (e.g., school bus, garbage truck, etc.) in its parking lot on a Sunday morning so children could hop on and see them up close. “Kids love trucks and are amazed by even garbage trucks,” explains Polaski, noting it was such a success they’ll do it again this year. “It was very low maintenance on our part and the easiest event to put together yet,” she says.
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Meanwhile, at Eataly Toronto, a comprehensive offering of “hands-on” sessions that teach customers how to make (and sample) a variety of Italian pastas and desserts will sell out, even at fees of $128.51 per person. This September, the retailer is hosting a ticketed, adult-only farewell to summer celebration at its CF Sherway Gardens shopping centre location in Etobicoke, Ont., with hand-crafted cocktails, DJ and a menu offering allyou-can-eat Italian street food.
Grocers on a tighter budget don’t need to miss out on engaging in-store events. “It’s important to remember that events can be scaled to fit your needs, no matter the size of your store or budget,” says Victoria Cromie, managing director at Mars United Commerce in Toronto, part of a global marketing company offering solutions for grocers and other clients.
She says partnering with an experienced team can help grocers tailor a solution that works for their specific locations. “We focus on creating effective in-store events that drive success with the brands you carry, ensuring you get the most out of your investment,” says Cromie.
This article was first published in Canadian Grocer’s September/October 2024 issue.
