Ladies and Gentleman, It’s Grocery Showtime!

A study identifying America’s top-100 brands delivering the best customer experience found four retailers in the top 10 — Wegmans, Publix, Trader Joe’s and H-E-B — landed there largely due to their ability to create a "sense of theater" around in-store experiences.

According to the Customer Experience Excellence study from Nunwood, Wegmans, which placed fourth, and Trader Joe’s, sixth, epitomize a "custom experience revolution" taking place at retail with their focus on service, atmospherics and décor.

Nunwood noted that since the 1960’s, grocery stores have "largely followed the mantra of uniformity" in layouts, displays and shopping "got a little dull." Internet competition as well as a "more time poor, cash rich shopper" emboldened Wegmans and Trader Joe’s to make food shopping "fun" again.

"Theme parks rather than retail spaces, adventure rather than chores — both have found different ways of removing Internet’s inherent advantages," Nunwood wrote.

Trader Joe’s was praised for its fun tropical theme, curated product selections, "intriguing" store designs, and "gregarious" and free-spirited staff. Wrote Nunwood, "Trader Joe’s customers talk out how they find their 30-minute weekly shopping chore transformed into a 30-minute tropical bastion."

Wegmans was praised for its vast assortments organized by different cuisine groups to encourage discovery, its live demonstrations and staff. Wrote Nunwood, "They rely on smart deeply trained employees to create a ‘theatre of food’ and it all adds up to what the company calls ‘telepathic levels of customer service.’"

H-E-B, which ranked tenth, distinguishes itself by its innovation, environmental responsibility, community service and associates. Nunwood wrote, "It doesn’t have employees or staff — it has partners — people who participate in company and personal success."

Publix, at six, likewise stands out for its "fantastically friendly" employees and supportive working environment.

The Customer Experience Excellence study analyzed more than 100,000 customer comments on every major brand in the U.S. Scores were based on six criteria: valuing a customer’s time, demonstrating empathy, resolving issues, matching the customers’ expectations, personalizing service and demonstrating corporate ethics.

BrainTrust

Discussion Questions

Discussion Questions: To what degree does the ’theater’ metaphor explain the success of chains such as Trader Joe’s, Wegmans, Publix and H-E-B? What attribute is most important in bringing a theatrical experience to grocery store environment?

Poll

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Dr. Stephen Needel
Dr. Stephen Needel
11 years ago

I’m not buying the metaphor — they may have taken it a little too far. And their criteria seem to be pre-chosen rather than driven by the customers.

David Livingston
David Livingston
11 years ago

All successful grocers have on thing in common: they make people feel better about themselves for coming in. “Theater”? I suppose shopping some of these stores is like watching an inspirational movie.

One thing we can certainly praise these grocers for is choosing to remain privately held; out of debt and not dancing to Wall Street or worrying about next quarter’s earnings. They always put the customer first, instead of investors. This drives those sterile publicly held competitors crazy because there is no way they can compete with that.

Paula Rosenblum
Paula Rosenblum
11 years ago

I don’t know that I would call any of the satisfactory grocery experiences I had “theater.” I would just characterize them as convenient, with the products I want to buy at a reasonable price.

For example, for years Trader Joe’s had the most inefficient checkout lanes ever. I think they were meant to be charming and retro, but in a store with that kind of volume, it was just chaotic and confusing. I was really happy when it went to a more traditional approach.

There’s also not a lot of theater at Publix (unless you count the beer displays in football season).

So, bottom line for me is — Trader Joe’s has unique products at great prices, Publix has an excellent assortment and strong private label, and none of that has anything to do with theater. Zero.

Frank Riso
Frank Riso
11 years ago

The expression “if it walks like a duck and talks like a duck” applies here. I do not think it is so much the theater aspect as it is customer service. These four retailers (and there are a few missing from my list of great grocers) are known for their customer service. It is not price, location, or (IMO) theatrics; it is customer service, so let’s call it so.

Max Goldberg
Max Goldberg
11 years ago

The idea that retailers that create a more entertaining environment generate higher sales, “retail-tainment,” has been discussed for years. The success of Stew Leonard’s begot the discussion. TJ’s, Wegmans, et al, moved it forward to present day.

A consumer’s time is precious. He/she for the most part dislikes grocery shopping. By making their stores more entertaining, retailers can build loyalty and generate sales, especially when coupled with competitive pricing and great customer service. And that’s where the charm in some retailers lies: offering an entertaining shopping experience without making the consumer feel that he/she is paying extra for it.

Al McClain
Al McClain
11 years ago

Speaking from the perspective of a regular Publix shopper, I think the study may have gotten a little carried away. What makes Publix successful, I think, is that their stores are by and large clean, well-maintained, updated, roomy, and easy to shop. Publix also typically has plenty of staff on hand, enough cash registers available, and takes care of the little things like helping a shopper find something, bagging groceries, smiling, and offering to help get groceries to their cars. None of what Publix does is really “theater,” it’s just the basics, executed very well.

David Biernbaum
David Biernbaum
11 years ago

The mantra of uniformity in supermarkets and drug stores reflects sameness, boredom, and lack of vision across the board. Even the logos and theme colors have all gone just about the same. Not only do most have the same taupe-colored look inside but SKU rationalization has resulted in most carrying the same product assortment, the same deals, same promotions, and all have the same mentality. The only differences from day to day are prices.

Retailers need to differentiate themselves with assortment, specialty items, color, interior, exterior, and with more surprises in what is stocked on the shelves. It’s time to get less rational and make more money!

Zel Bianco
Zel Bianco
11 years ago

The theatricality is the largest contributor to the success for these chains. The live interaction between the retailer and customer is something that is lost on the internet shopping experience and, I believe, is truly important to the customer. When shopping on the internet, there’s usually an automatic suggestion of similar items purchased by other shoppers; with the in-store theatrical experience, a personal relationship between the retailer and customer is created through food sampling, serving suggestions as well as the friendly and well informed staff. Sure, shopping on the internet has its time-savings advantages, but I believe consumers desire a “human touch” and this will always triumph over the internet.

Kenneth Leung
Kenneth Leung
11 years ago

Theater is visual entertainment. I think customer satisfaction is the key and theater is secondary. I shop at Trader Joe’s and it is location, price, assortment, display, cleanliness, speed of checkout, etc that drives me to repeat. Yes, I have seen the musical performances and it is a conversation piece, but one doesn’t go shopping for the music. 🙂

Joan Treistman
Joan Treistman
11 years ago

Respect is the most important attribute related to the theatrical experience. It’s not about sending in the clowns. It’s about moving the customer through the store on her own terms, with a sense of adventure, and discovery while maintaining expectations of product choice and good value pricing.

Marge Laney
Marge Laney
11 years ago

Out of this list, the only one I’ve personally experienced is H-E-B. Not much theater going on, but they do have a huge assortment of products including organics organized by cuisine. Houston is a very diverse city and H-E-B caters to all cultures in a big way. They offer a depth of product found only in specialty stores elsewhere.

It’s easy to experiment with unfamiliar cuisines because the products are available. The sense of camaraderie among the staff and the customers makes the store friendly and fun to shop.

The big payoff is that you get all that selection at the cheapest prices in town!

Ryan Mathews
Ryan Mathews
11 years ago

To no degree.

People don’t want theater when they shop — they want great products, merchandized in a thoughtful way that demonstrates the retailer knows, understands and respects their customer.

I’m a huge fan of these companies — especially Trader Joe’s, Wegmans and H-E-B — but I think of all four of them as exemplars of sophisticated retailing, not theater.

People go to the store to shop, not to be entertained. Build an environment conducive to the target shopper and you’ll succeed.

If you need to call that theater, you’re working too hard on the labeling and are likely to miss what really makes all four of these companies great.

Gene Detroyer
Gene Detroyer
11 years ago

OK–Wegman’s is theater. But, Trader Joe’s .. .as far as I know, Trader Joe’s fans talk only about one thing … the products.

Cathy Hotka
Cathy Hotka
11 years ago

Like other respondents, I’m not buying the theater comparison. But these brands do change grocery shopping from a soul-sucking chore into an adventure.

Bill Bittner
Bill Bittner
11 years ago

Anyone wanting to succeed in the grocery business must start from the premise: “Grocery shopping is a chore.” This does not mean it has to be an unpleasant chore. All it really means is that grocers have a huge opportunity to make their brick and mortar presence pay off. Sure, there will be some people who will buy online and pick up in-store or even opt for delivery, but getting customers to browse the offerings and participate in the in-aisle promotions is a great way to increase sales and offer vendors a “stage” for their new products.

Over the past few weeks there have been a lot of articles about “showrooming” and I have no doubt it exists in certain product categories, but I think the grocery category is still primarily an in-store purchase. But grocers need to think of the impact on other categories as a warning. This means they need to think of their store location as the way to establish and maintain a relationship with their customer. This could be as simple as having consistent front-end schedules so the frequent shopper can find her favorite cashier at the same time each week. It can also mean emphasizing the in-store demonstrations.

It is inevitable that the online options will hit the grocery category. The difference will be online will be used for convenience rather than price savings. The really neat thing about this for grocers is that it gives them a whole new opportunity to branch into categories they may have never before offered. Instead of carrying extensive physical inventory, retailers can use online offers to support the long-tail of many categories that cannot be supported at each location.

Ed Dennis
Ed Dennis
11 years ago

Take these same retailers and increase their pricing 10% and you have empty buildings. All of these retailers are great, but it’s because they work at their craft. No one is creating theater, what they are doing is creating an environment that their families would enjoy going into. Clean, with friendly knowledgeable employees, good products, prices and service. If one has to create “theater” to achieve this, then God help retail. None of this is rocket science, but does require a great deal of work, which seems to be a word not in the lexicon of many, many retailers. And WORK is the one and only attribute that can make this happen!

Camille P. Schuster, Ph.D.
Camille P. Schuster, Ph.D.
11 years ago

What is there in the data that led researchers to the theater metaphor? I think there must be a better metaphor because I do not see how it fits — are we talking about a lavish production, a dramatic reveal, amazing costumes, a surprise ending? I do not think this metaphor holds.

Shoppers need to be engaged in an experience that makes a dull task interesting, convenient, and/or engaging.

David Slavick
David Slavick
11 years ago

Hyperbole … pure and simple. No theater majors at these chains. If you aspire to create a lasting impression that leaves the customer truly enthralled as if they just saw their favorite actor on stage, then make it so. Music, live cooking demonstrations, wine tastings with cheese and knowledgeable advisors, home entertaining experts on how to set the table and home for the seasonal holidays, etc. The data informs the chain in so many ways. Preparation in advance of the shopping experience with information custom tailored to your needs delivered via e-mail and phone plus engagement upon arrival with true clientelling or personalized service — now we are talking customer engagement. Who comes close, anyone?

Ed Rosenbaum
Ed Rosenbaum
11 years ago

I am not in to the “theater” concept. To me it is all about CUSTOMER SERVICE and knowing how to deliver it. I want that clerk stocking the shelf to be able to tell me where the product I can’t find on my own is located. I go where my business is appreciated. Don’t we want that as the customer?

Craig Sundstrom
Craig Sundstrom
11 years ago

Wow! Poor Nunwood; I don’t think I’ve ever seen RW’s readership so completely reject an article — or at least its rhetorical flourishes. I don’t think the metaphor is all that bad; maybe not completely convincing, but not deserving of this much piling on (must be the heat getting to people).

Warren Thayer
Warren Thayer
11 years ago

I think we’ve put an end to people ever describing supermarkets as “theater” again. (Never did like the analogy; surprised to find I was far from alone.) For me, David Livingston spiked it. At the roots, these are privately held companies, not beholden to Wall Street. Any of them could be ruined almost at once if they went public. These stores also come across as sincere customer advocates.

Jonathan Marek
Jonathan Marek
11 years ago

A 30-minute tropical bastion? Come on… I love TJ’s and shop there weekly, but it’s a shopping trip, not paradise!

Dave Wendland
Dave Wendland
11 years ago

I’m not sure that Nunwood was literally describing shopping as theater as much as he was expressing through the study that consumers want a good experience and emotional bonds — at all levels … every time they shop. I agree with many of my colleagues that customer service must be exceptional, and that products need to be organized, merchandised, and in-stock at good prices.

Nunwood underscored some excellent points: 1) it’s all about the crew; 2) differentiation is a key; 3) passion is paramount; and 4) details show.

Tom Storeck
Tom Storeck
11 years ago

It is interesting you mention showrooming. I think the a difference is that in theater you are not allowed to record what you are watching, generally. These supermarkets probably do not allow your cell phone to work inside; I know Wegmans’ wireless only works in their cafe seating. It is much harder to get information on what you want to buy and that is where these stores’ employees come in.

Craig Ryder
Craig Ryder
11 years ago

Some great comments from the Brainstrust et al! My take on ‘theatre’ is that it’s ‘Customer Service Squared’. We are doing a series of webinars on this subject, in case anyone is interested.