The Woolworths virtual store is not the future of retail. But it is a good PR stunt
So last night I dropped by my local neighbourhood Virtual Woolworths.
It’s located at Sydney Town Hall station – conveniently enough, almost directly underneath my local neighborhood Real Woolworths.
As you’ll see from the wobbly iPhone video I shot, it was a relatively lonely experience. But it was Sunday night.
The concept is that the consumer downloads the Woolworths iPhone or Android app, then scans the barcodes on the pictures of the products they want before later having their order delivered at home.
First, let’s get the cynical side of this out of the way.
As anyone who was at the Cannes Lions will tell you, it’s a direct borrowing from Cheil Worldwide’s South Korean work for Tesco.
But, that’s fair enough. Creative agency M&C Saatchi and media agency Mitchells aren’t attempting to claim any glory here – they weren’t even mentioned in the initial Woolies press release.
The release only describes it as an Australian first, by the way.
My bigger reservation about the concept – which I also had with the Korean original – is simply that it’s not a genuine business innovation. The choice is too limited for it to accommodate consumers’ normal shopping habits. With just a handful of panels at Town Hall, that’s even more the case.
After going out of my way to look at this last night, it was still easier to go upstairs to do my shopping in the real Woolworths (well, Coles, if truth be told) afterwards.
Also when it’s busy, it’ll be too packed to make use of. And when it’s quiet, there are no customers.
Nonetheless, this was still a worthwhile exercise.
First, when was the last time you saw Woolworths rather than Coles setting the marketing agenda?
Second – and this we’ll only know about if Woolworths later releases data – it may tempt a few more people to download the brand’s shopping app.
But mostly, this works as a pure play PR stunt. A handful of out of home panels does not usually get media coverage, yet this is already doing so.
The Seven News bulletin is not to be sneezed at.
And I’m sure there’s been plenty more coverage I’ve not yet seen.
This is not the future of shopping. But it is a nifty bit of PR.
Tim Burrowes
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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Who knows if Woolworths were demanding this or the agency suggested it. That said, a classic example of using technology for the sake of it. Perhaps more thought about context could have been had.
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you could also use your legs occasionally and walk to the shops and carry the groceries home instead of being a phone zombie.
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just what we needed to help an already overweight country
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I think it works as a good exercise to get people to download their app and triallng it, however, I think they should save their money and focus their attention on developing/improving the app so you can actually order from the app. The current commerce-less functionality of the app is a bit like the bible forgetting to include jesus or Foxtel without sport.
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Sportsgirl have just launched the same thing, I wonder how many other brands will claim the ‘Australian first’?
http://www.theage.com.au/techn.....1t6qa.html
I like the fact that it’s on a store that is closed for renovation, and for this audience it could work (but would say it’s mostly good PR).
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The magic of the Tesco exercise was that the food was delivered, that evening, timed to your door.
Without that, it’s missing a lot of purpose against Sportsgirl’s Paddo shop for instance.
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The idea is good in theory, but that swhy we have on-line shopping. Whats the point of going out to ‘virtually shop’.
The big ridere on all of this would be if it could help a Wool worths deliver for example CostCo prices (or similar) due to less staff, less rental, less utilities ect ect. But i guess that means a loss of jobs for probably 10 of thousands of mostly young Australians.
The article makes the point of Woolies setting the agendy for the first time in a long time against Coles. While this is true only Woolies gives you the option of shopping at a supermarket, then at Big W, then buying your petrol without ever interacting with a single employee of Woolworths
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How quickly things change. We looked at the Korean initiative last year and thought it was a wonderful idea, in particular given the story built around it, and thought seriously about doing it here, but didn’t have all our ducks lined up – right client at the right time with the right budget.
As noted above, I don’t think this execution has the depth of story behind it that the Korean example did, but agree it IS a great PR stunt. If it’s successful, we’ll hear about it, as the agency &/or the client will trumpet the benefits somewhere soon (insert award ceremony of your choice here); if not, it will pass away quietly. But I would like to think that with the incredible momentum of smartphones, it is a stepping stone to smarter shopping and the continuation of our behaviour changing journey as consumers.
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It’s not a first, but it’s good to see a local retailer trying to address the technology gap between Australia and the rest of the world.
It’s not about replacing online shopping, or real world shopping. These interactive walls are about convenience shopping – here and now. We’ll be seeing a whole lot more of it in the future.
It’s not about replicating the entire supermarket experience. It (should be) about the usual daily grocery list being available. This type of mobile shopping will only ever work for quick, short transactions.
And it’s not about technology winning hearts. I agree with @AdGrunt – it all comes down to the experience. If delivery fails – experience fails.
It’s about creating new sustainable business models where increased convenience, cost-efficiency and consumer-driven interaction lead to greater engagement and profitability. I doubt this will be a roaring success for Woollies simply due to the uptake of QR Code and IR technology in Australia, but the more consumers trial, the more it will become standard practice.
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Are they refurbishing Woolworth’s Town Hall? – at last!
Any innovation is welcome here.
To quote Monocle in November – http://www.monocle.com/ – usually big fans of everything Australian:
“On our frequent visits to Australia we have often wondered how a nation that has one of the best restaurant cultures in the world has some of the most boring supermarkets: Coles is like a 1970s throwback.”
“For a country that prides itself on fresh food, Australia seems fresh out of ideas when it comes to innovative supermarket space. Dominated by the Coles and Woolworths supermarket chains that have stifled competition with an estimated 75% market share between them, the focus Down Under is on satisfying customers’ wallets and not their in-store experience.”
I’m not sure they are satisfying our wallets but the rest is true.
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I’ll admit this is initiative is flawed , but it would be an interesting Outdoor opportunity for AdShel/JCD. Especially if they could promote specials and then you could add the everyday essentials to your list in the app yourself. Closing the loop and making the app mobile commerce enabled would need to happen first as fraser points out.
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if an adequate range of everyday needs isn’t displayed the whole exercise is pointless and just leads to consumer frustration
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I agree with Fraser. How can a company launch a retail app and not include eCommerce – when they have a eCommerce offering.
And nice idea rip off of the Tesco… ahhh nothings original these days!
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Theres a key insight that the Korean idea was based on that is not present in the other examples: There were not as many of the Tesco stores as their competitors and Koreans are incredibly time poor.
Therefore, by bringing the shopping experience to the subway (a high dwell time area) Tesco were able to gain market share on their rivals and make shopping much easier for the Korean population. This is why it won Cannes.
A few copy cats kicking about now – but anything that (potentially) reduces the steps from awareness to purchase is alright by me
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I second that Devil’s Advocaat.
Supermarket shopping in the States was a revelation – I found myself surprised to experience supermarket environments I actually enjoyed being in.
While I wouldn’t personally use the virtual service, I quite like the experiential/interactive element of the order wall versus on-line shopping.
I accept that this type of activation is still in its infancy, but a simple tweak that might transform it from a stunt to a genuine sales channel would be placing it where people are actually killing time and want a distraction; e.g. on the platform, bus stops etc, rather than a corner of a ticketing hall where people blast through.
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Ugh shut up you whingers.
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Oh I see, Woolies can spend who knows how much money on marketing, yet they can’t pay me out for slipping on a bag, where I lost the use of my arm and lost my cleaning businesss. Thanks again Woolies for that slap in the face, I’m glad you have your priorites right.
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If only the majority of commentators here took the time to actually read the article properly, viewed the embedded clip from 7 or read any of the other write ups in the media today. Or failing that (as you all seem ohh so tech savvy) even tried the app, maybe you then you’d realise that :
1. Fraser and Ferg – the app is fully transactional – that’s the whole point!
2. Price Check Aisle Three – look at Tims video, or the vegemite screen shot – there’s not a QR code in sight – the app is barcode enabled. So no worries on the ability to interact.
Yollydolly you appear to have been googling for “Bryden’s Compensation lawyers” but found mumbrella by mistake.
Shop on people
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Fair go guys, you can’t knock WW for leading the Oz market here and looking at new ways to communicate with their audience, isn’t that the essence of being innovative? If it’s something everyone is doing or has done before then would this article or coverage ever happened? Probably not.
I think it should be a breathe of fresh air that a retailer as big as WW is actually having a crack and testing ways digital especially mobile can represent a massive opportunity to their business.
Lastly Tim, your comment on this is not the future of shopping – this speicifc tactic, maybe not, but if you’ve seen what we’ve seen in the last fortnight from some of our partners you’re in for a shock but you’ll see this soon enough.
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… but the Homeplus execution was engineered for Cannes. It wasn’t even up for a day: http://english.hani.co.kr/arti.....89884.html
That said, it was still a great idea and has created worthwhile conversation with clients…
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Geez, hate to be a company that tries things these days. The amount of negativity in the comments for Woolies trying something new, you’d wonder why they bothered. ‘Oh the Korean’s did it first’, ‘just what we need when we’re all overweight’, ‘what a waste of money’.
Whinge harder.
Why shouldn’t Woolworths try something like this? What’s the harm, seriously? Why are we so afraid to try, and innovate, and give things a go and if necessary, fail fast?
Even if it does turn out to be only a PR stunt and a way of getting people to download their app, this is an excellent example of tangibly valuable interaction and scalable social experience.
It doesn’t turn out to be a success, at least then they’ll know, and can move on. The bigger question though is: What do they do if it does turn out to be a success?
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Retail needs serious help. What I’m pondering though is if that innovation needs to be in the way we shop? Or is it in the way we advertise what’s on offer?
Does this industry take any responsibility in the falling retail numbers?
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I have no problem with Woolies trying this but wouldn’t they be better off dramatically improving their online shopping?
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I wonder what the contract/premium is for the brands that are chosen for the wall? I imagine that would be something of an earner in and of itself.
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