The New Point of Purchase for Food Retailers
Retailers’ parking lots have always played an important but underappreciated role in shaping perceptions of the brand. They are places where first impressions are made and expectations of quality and store experience are set. Nothing degrades a shopper’s perception of a retailer quite like an oil-stained parking lot, strewn with litter, untended shopping carts, bent signposts, broken curb stops or countless other visual cues that convey neglect.
Key Takeaways
- A retailer’s parking lot is a place where first impressions are made and expectations of quality and store experience are set.
- Retailers have entered a new optimization phase with regard to parking lots, including the addition of navigational aids and instructional signage to improve the increasingly common pickup experience.
- It’s now customary for marketing, store design and operations to be involved in parking lot signage, leading to innovations like FlexPost’s interactive tool enabling various parties to meet online to work on design elements.
Books may not be judged by their covers, but retailers are judged by their parking lots, and this is true more than ever, given the dramatic growth of curbside commerce.
“The dynamics of retailers’ parking lots over the past 12 to 18 months have changed dramatically,” affirms Dennis Thimm, national sales director with FlexPost, a Holland, Mich.-based supplier of parking lot navigational aids and sign technology. “Retailers are managing a lot of new traffic and new traffic patterns.”
That’s an understatement. Order-online-and-pickup-at-store trip volumes were already trending up in recent years as major retailers such as Walmart, Kroger, Ahold Delhaize USA and Albertsons, along with regional chains such as Meijer, H-E-B and Publix Super Markets, aggressively expanded their digital grocery offers. Then came the pandemic, and shoppers’ aversion to stepping inside physical stores led to a dramatic spike in grocery pickup usage.
Today, most pickup areas at large grocery store chains will range from two to six spaces, but that figure increases to eight to 12 spaces at larger, higher-volume stores such as a Walmart Supercenter. Those spaces are typically located close to the store’s entrance for the efficient fulfillment of orders. That means shopper traffic coming into the store is exposed to the increased vehicle traffic of those looking to pick up orders. While the incidence of vehicle and pedestrian accidents in parking lots is limited, and serious injuries are reduced because of slower speeds, property damage is a different story. The number of collisions involving cars and signs increased 375%, according to a survey by the Washington, D.C.-based National Parking Association (NPA) that was released in 2019.
While the NPA study documented a large increase in physical damages, the figure has likely increased further, given the tremendous surge in grocery pickup traffic volume, which saw numerous retailers report triple-digit rates of e-commerce growth in March and April 2020.
Sturdy Signs
It’s a challenge that caught retailers off guard because when site plans were approved for older stores, parking lots weren’t configured to accommodate large volumes of customers picking up orders. Now retailers have entered a new optimization phase that resembles the process that typically occurs inside a store, in which there is tremendous focus on the touchpoints of store experience. That’s been less of a focus outside the store, but things are changing, and there is recognition that parking lots are a unique environment that requires a special focus. One area attracting a lot of interest now involves navigational aids and instructional signage to improve the pickup experience for a still evolving and rapidly growing aspect of food retailing.