As part of their ongoing mission to help clients stay ahead of the competition in a fast-paced, constantly evolving marketplace, Mars UnitedSM Commerce’s Customer Development team closely monitors the strategic activity taking place across all key retailers and channels.
Each month, the teams compile Marketplace Assessment reports on the retailers (including Walmart, Target, Amazon, and Kroger) and channels (such as Regional Grocery, C-Store, Club, Pet, Beauty, and On-Demand Delivery) that are most important to the business success of our clients. The following report outlines noteworthy events across five key retailers from the team’s most recent round of assessments. (To receive copies of the full reports, contact EVP-Customer Development Kandi Arrington at [email protected].)
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New CVS App Literally Unlocks Shopper Benefits
CVS Health introduced a rebranded mobile app this month with a variety of new features and functions that include a test of the ability to open locked display cabinets in stores. The upgraded app’s primary goal is to provide a central destination for CVS customers to find and manage their healthcare needs in a single, personalized environment.
Photo source: Path to Purchase Institute
One key update from the former CVS Pharmacy app is an enhanced, AI-powered search function that helps users locate products, services, and information from both CVS and “select third-party content providers,” according to the company’s official announcement. Another is faster prescription checkout using personalized barcodes.
Relevance: The upgrades are designed to increase the time shoppers spend on the app and decrease their waiting time inside stores for assistance. But they also present a variety of services “that help consumers find the holistic care and support they need for their health and wellness journey” while potentially strengthening shopper engagement and loyalty.
Opportunity: The official announcement briefly mentions “savings offers” as another in-store solution being delivered through the app, which suggests there will be opportunities for targeted brand engagement. Relevant brands should also investigate the potential to join the “select” group of content providers helping app users find the answers they need.
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Stop & Shop Rolls Out ‘Savings Stations’
Ahold Delhaize USA’s Stop & Shop is installing “Savings Station” digital kiosks in all 350+ stores. Initially piloted in late 2023, the kiosks let shoppers input their loyalty card information to activate all available digital coupons and personalized offers. They also present additional content including recipes and printable activities for children.
Sister chain Food Lion already carries similar kiosks branded as “MVP Savings Centers” near the front entrance of all its 1,110 stores.
Source: Stop & Shop
Relevance: This new in-store feature is intended to improve customer engagement and increase offer redemptions by providing an easier, in-the-moment way to access deals — while also collecting more data on in-store shoppers. It also gives Stop & Shop (and Food Lion) a legitimate vehicle for providing in-store retail media opportunities to potential advertisers. Stop & Shop is using local broadcast TV spots to promote the service.
Opportunity: The kiosks will let brand partners target shopper segments and even individual customers with relevant offers based on specific campaign objectives such as new households or loyal buyers.
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Walmart Dives Deeper into the Metaverse
Walmart is strengthening its partnership with avatar-based social networking app Zepeto by integrating ecommerce capabilities into its environment. Zepeto users now can buy apparel from the retailer’s No Boundaries private label for themselves in the real world as well as for their avatars. (They previously could only try on virtual recreations of items from the brand.)
Relevance: While smaller than metaverse giants like Roblox, Fortnite, and Minecraft, the Zepeto platform hosts 20 million active monthly users. But the more prominent use of clothing, accessories, and makeup for avatars sets it apart from those larger platforms and better positions Zepeto for ecommerce tie-ins that easily connect the virtual and physical worlds.
Opportunity: Although the launch is currently limited to No Boundaries, the move signals Walmart’s commitment to developing virtual commerce experiences that will appeal to Gen Z/Gen Alpha consumers like the one’s in Zepeto’s user base. Brands looking to reach Gen Z consumers must have a general understanding of who they are and where they shop as they reach adulthood and form what could become lifelong brand affinities. Gen Z members of Mars United’s Strategic Planning team recently assembled a unique playbook of insights and guidelines for brands looking to connect with this critical generation.
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Albertsons Makes a Place for Digital Cookbooks
A new capability on Albertsons.com encourages shoppers to upload pictures of family recipes to create a digital cookbook. Once a recipe is added, shoppers can click “add to cart” to instantly shop for the necessary ingredients. Shoppers also can import recipes from other websites and build a central location to house their favorite recipes.
Relevance: According to Chicory’s 2024 “State of Online Recipes” report, nearly half of consumers (47%) say they “often” or “always” use online recipes to prepare for grocery shopping. And three-quarters of consumers have looked at recipes on their mobile devices while in a grocery store. Through this new offering, Albertsons gives shoppers another reason to consult its own app rather than looking elsewhere for inspiration.
Opportunity: Online recipes serve as a moment of inspiration within the purchase journey. This new feature offers brands an opportunity to engage with shoppers as they create shopping lists and seek meal inspiration in a way that can lead directly to sales. This kind of mindset-focused approach to activation is outlined in a recent report Mars United’s Strategic Planning team.
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DoorDash Adds Three New Retail Partners
DoorDash continued expanding its retail partner ranks recently by adding Five Below, David’s Bridal, and Sports Basement to the fold. Orders from these new partners will be eligible for DashPass, the membership program that provides free delivery, among other benefits.
Relevance: DoorDash now boasts on-demand delivery from more than 115,000 North American retail stores with a collected inventory of 2 million products. The more product categories it offers, the more shoppers and trips it will attract — and the better it can compete against Amazon and other on-demand delivery companies.
Opportunity: As DoorDash continues to broaden its partner inventory with new options for shoppers, brands working with these retailers should verify that their product information (including ratings & reviews) are accurate and up-to-date. Brands in all channels should also explore potential cross-promotional opportunities on the DoorDash platform.
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Walmart, Aira Team Up to Support Blind Shoppers
Walmart has entered into a pilot program with Aira, a subscription-based mobile app that connects blind and low-vision people with professionally trained sighted interpreters who communicate visual information in real time.
Through the program, Walmart shoppers either in-store or online can access the Aira app to instantly connect with one of the visual interpreters, who are trained to provide objective feedback on surroundings without attempting to influence the user’s decision making. The service is free at Walmart, which eliminates the standard need to have a paid subscription with Aira or be limited to free five-minute calls. Shoppers can also receive navigational assistance for getting to and from their local Walmart store.
Relevance: Since 2023, Walmart has introduced or piloted a range of programs aimed at making the online and in-store experiences more accessible for various consumer groups. Other initiatives have included Caroline’s Carts and sensory-friendly hours. By identifying ways to remove barriers for consumers of all types, Walmart is looking to strengthen loyalty and attract new customers by improving the shopping experience.
Opportunity: Brands should find ways of working with Walmart in its efforts to make the shopping experience more accessible for all consumers. In this case, consider if the messaging on product packaging, wayfinding signage, and in-store displays can be clearly communicated verbally.
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Mars United’s Customer Development practice is an unrivaled team of in-market commerce experts who simplify the complexity of retail for our clients. Located in Bentonville, Minneapolis, Cincinnati, Chicago, Tampa, and the “backyards” of other key retailers, they provide deep knowledge of the retailer, expertise in key business areas (like strategy, retail media, and creative), and door-opening personal relationships with key executives to deliver an unmatched level of business success for clients across accounts, channels, and shopper engagement platforms. For more information, contact EVP-Customer Development Kandi Arrington at [email protected].
