Mars Redesigns Checkout at Jewel-Osco

Alberstsons Cos.' Jewel-Osco tried remodeling its checkout lanes to resemble those at Best Buy, using theater ropes to direct people to the shortest lanes. Yet the plan failed when neither store employees nor shoppers could figure out how to navigate the new system. When the chain looked for a better approach, Mars Chocolate and Wrigley had a solution."We really didn't have the data and research to help us make the right decisions," Jeff Hancock, Jewel-Osco's assistant sales manager of confection and beverage, said during a May 24 panel discussion at the Sweets & Snacks Expo in Chicago. "Mars came to me with presentations outlining ... data from other retailers with similar configurations and had great insights on those queuing lines to meet our shoppers needs."Mars Chocolate and Wrigley had finished a massive research project in 2016 that explored how shoppers think about, research and buy confectionery. While they found that consumers love the category, the manufacturer also learned that they hated shopping for it."It's not fun," said fellow panelist Tiffany Menyhart, director, U.S. category management for Mars' Wrigley division. "They can't find what they want. It's a chaotic mess. Through truly understanding what they want, we've come up with essentials to bring the joy back and make it fun again."At Jewel-Osco, Mars focused on keeping shoppers occupied while they waited to check out, developing a more curved line that removed the anxiety of not knowing how to proceed while also providing more space to merchandise product for impulse buys.That included not just Mars confectionery but an expanded selection of other grab-and-go products shoppers were looking for, including coolers stocked with energy and coffee drinks, and shelves stocked with granola bars, single-serve cereal and oatmeal. An insight that print magazine readership has declined led the chain to convert some of the space previously devoted to print magazines to stocking still more packaged food such as snack mixes and jerky."My expectation of a vendor is that you're the marketing experts," Hancock said. "You need to bring the insights to me. There's a certain trust level that I have to believe that the data is accurate and not biased. The whole category has to do well. I can't just have one brand do well. When you have that type of trust, it makes my job a lot easier."The change was a huge success, increasing conversion rates from 15% to 55%. Jewel rolled out the remodeled checkout lanes to all of its stores in February as part of a set of banner-wide changes meant to improve the shopper experience. The updated Chicago stores particularly emphasize fresh products, offering expanded produce, bakery and meat departments and more convenience items including ready-to-eat meals, salad kits and pre-cut fruits.Not all of the suggestions Mars brought to Jewel worked. The partners tested using LED lights to illuminate displays within the confectionery aisle at 15 stores, but saw no sales lift. However, that same technology applied to the checkout section increased sales by 8%, so the lights were integrated into the line remodels."We'll test stuff at Jewel-Osco," Hancock said. "If the idea isn't working, we'll walk away. You have to keep evolving and stay on trend."Finding new ways to appeal to impulse shoppers is important for Mars as the manufacturer evolves to a rapidly changing retail environment. They are already considering how to sell in a world of Amazon Go, where shoppers aren't grabbing product while waiting in line to pay."We’re taking transaction zone to transition zone," Menhart said. "Leading on the front end is also leading when the front ends change drastically or goes away completely."Mars is also working on ways to appeal to shoppers who don't set foot in stores at all based on the results of a study they conducted that found impulse purchases are actually twice as significant online as they are in a conventional retailer."Impulse exists both online and in line," said panelist Shaf Lalani, vice president, customer experience for Mars Chocolate North America. "We are working with a number of retailers to help them understand the digital path to purchase and how people are deciding what they want to buy and when they want to buy it, and how to get them to put items in their digital basket."

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