Grocery Industry: Smart shopping for the future Grocery Industry Leading Professionals Shannon Snaden, Kathleen Boskill, Ale Bermudez, Morgan Harper Montreal, Quebec – January, 2018 Haskayne Consulting

Root factors CONVENIENCE AND OPTIONS Busy lifestyle, smaller families Access to internet and mobile widely available Changing structures of jobs (less 9-5, more gig economy) Less employment stability, economic uncertainty High stress and instant gratification Need for double income families Access to internet and changes in consumer’s behavior were key to the disruption Haskayne Consulting Convenience and customization are important as there is less time for preparing meals

Grocery- As-A-Service Disruption Grocery industry E-grocery Technology Grocery- As-A-Service Haskayne Consulting To stay competitive, grocery must be agile and proactive in response to changes

Trends in grocery Loyalty programs becoming consolidated Recognizing changing preferences of baby boomers Supply change challenges ex. Global warming - unpredictable weather such as California fires, droughts, floods impacting ability to get just-in-time supply chain Industry consolidation – Ex. Safeway purchase of Sobeys to grow market share Haskayne Consulting

A budding industry Kathleen Haskayne Consulting

How might we have reacted? Do nothing – it won’t affect me just a trend Invest heavily in tech and data analytics Merge/Acquire another grocery chain Horizontal Integration (rooftop greenhouse for fresh foods) Haskayne Consulting There were four choices as to how we could have reacted

Grocery’s reaction to the changing needs of consumers Changed store layout – having ready meals near frontGyms, cooking classes, meals to go in-store Gyms, cooking classes, meals to go in-store Marketing on importance of buy local – which encourages customers to shop at their locations Self checkouts, pick and scan, cashier-less stores In-store Haskayne Consulting Traditional grocers have made in-store environment more appealing and convenient

Grocery’s reaction to the changing needs of consumers Home deliveries Click and Collect Options Recipes on the websites, blogs Product recommendations E-Commerce Haskayne Consulting Traditional grocers have embraced an omni-channel model

Grocery’s reaction to the changing needs of consumers Subscription models from traditional grocers, such as Superstore’s President’s Choice box “As A Service” models Haskayne Consulting Traditional grocers are evolving and embracing new trends

New competitive landscape Subscription services: full meals or ingredients Good Food Hello Fresh Skip the Dishes Tech companies interacting with grocery stores: Amazon & Whole Foods Mergers and Acquisitions Safeway and Sobeys Automatic checkout Amazon and pay Haskayne Consulting

Into the future…… Shannon & Kathleen Haskayne Consulting

Profitability and maintaining market share will be key Reasons for our choice Embracing generational preferences and changing demographics Understanding that our customers have busy lives, longer work days, or working from home with flexible hours Recognizing trends of convenience, sustainability, higher quality, healthier foods Increasing importance for data analytics Haskayne Consulting Profitability and maintaining market share will be key

Making the store a beautiful destination, with the freshest produce Roof-top garden Greenhouse production of hydroponic lettuce, herbs, tomatoes Allows for horizontal integration of supply chain Reduces friction in getting perishable foods to store and reduces concerns regarding food safety from highly controlled conditions Haskayne Consulting Making the store a beautiful destination, with the freshest produce

Smart Cart is your ‘personal’ grocery shopping expert Smart Shopping Cart Personalization and customization is huge What if you could have a ‘personal’ shopper when choosing your groceries? Smart cart: Plug in your smartphone to the handle of the cart, as you put in ingredients a notification will let you know: What else might pair with your food choices Advise on healthy alternatives Check you list and remind you if you forgot something Calculate your bill as you move along Haskayne Consulting Smart Cart is your ‘personal’ grocery shopping expert

Robotics and AI Warehouse Instore Haskayne Consulting

A budding industry Kathleen Haskayne Consulting

How might we have reacted? Do nothing – it won’t affect me just a trend Invest heavily in tech and data analytics Merge/Acquire another grocery chain Horizontal Integration (rooftop greenhouse for fresh foods) Haskayne Consulting There were four choices as to how we could have reacted – if

Grocery’s reaction to the changing needs of consumers Changed store layout – having ready meals near frontGyms, cooking classes, meals to go in-store Gyms, cooking classes, meals to go in-store Marketing on importance of buy local – which encourages customers to shop at their locations Self checkouts, pick and scan, cashier-less stores In-store Haskayne Consulting Traditional grocers have made in-store environment more appealing and convenient

Grocery’s reaction to the changing needs of consumers Home deliveries Click and Collect Options Recipes on the websites, blogs Product recommendations E-Commerce Haskayne Consulting Traditional grocers have embraced an omni-channel model

Grocery’s reaction to the changing needs of consumers Subscription models from traditional grocers, such as Superstore’s President’s Choice box “As A Service” models Haskayne Consulting Traditional grocers are evolving and embracing new trends