Chronodrive: A Click and Collect Innovator

Introduction

As online retailing grows in popularity, the click and collect method of shoppers picking up their own products is achieving significant growth in the grocery retailing sector. Consumers don't have to spend time waiting at home for a delivery and can collect orders when its convenient for them. Auchan's Chronodrive is an innovator in this, operating exclusively as a click and collect grocer.

Features and benefits

* Enhance your website by gleaning ideas for engaging your click and collect customers and ensuring they have all the site functionality required.
* Develop your customer service proposition by understanding how Chronodrive operates its warehouses and what specific commitments staff must meet.
* Maximise promotion of your brand by using marketing channels that click and collect customers will be most exposed to.
* Target new consumer groups by uncovering how Chronodrive has attracted pedestrians, cyclists and those seeking complementary retail experiences.
* Develop a loyalty program which complements the click and collect format by learning more about how Chronodrive operates its Chrono+ scheme.

Highlights

Chronodrive has expanded rapidly, with the number of locations in France increasing from three to 28 in just three years. Stores can generally be found in out-of-town locations close to major suburban transport routes though the retailer has also opened a warehouse in a more central location where it caters for cyclists.
Chronodrive offers consumers a choice of over 7,500 SKUs online, as well as 500 items that do not have to be pre-ordered on the internet. These can be selected from computer terminals at the warehouse, providing a last minute option for those that have forgotten to order some items or for those who want to use it as a convenience retailer.
By operating a warehouse model, there is a high investment cost in the building. For Chronodrive this was in the region of €1.5m–2m. However, running costs have been kept to a minimum, especially as the number of employees is considerably lower than a traditional store, with a maximum of just 12 full-time staff required at any one time.

Your key questions answered

* What are the key barriers preventing consumers from shopping online for groceries and how can click and collect strategies overcome them?
* How has Chronodrive adapted its click and collect model to cater to pedestrians and those without access to the Internet?
* What products does Chronodrive offer consumers and what is its pricing strategy?
* How does Chronodrive encourage loyalty through its Chrono+ scheme and how can customers make use of any discounts or credits earned?
* What type of characteristics do Chronodrive's customers have and how many subscribers does it have in France?
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OVERVIEW
Summary
STRATEGY OVERVIEW
Chronodrive has proved itself to be an innovator in the online grocery retailing sector in France
STRATEGIC ACTION POINTS INSPIRED BY CHRONODRIVE
Chronodrive's strategy demonstrates initiatives that other retailers should consider
Offer click and collect services for free to differentiate your offering from home delivery
Offer consumers choice with regard to the payment of goods
Appeal to new consumer groups by altering the location and format of stores
Take care to advertize your company in all consumer-facing operations
Enhance your product offering to provide consumers with choice
Guarantee high levels of customer service
Make your website as user-friendly as possible
DRIVERS BEHIND THE STRATEGY
The growth in online shopping has made the click and collect model more attractive
Consumer attitudes toward online shopping are continually improving
Consumers are still worried about online fraud, and click and collect can overcome this
Click and collect models offer consumers speed and convenience
Where home delivery is not available, click and collect operations can still fulfill customer orders
Consumers want the convenience of home delivery without the cost
Click and collect grocery retailers enable consumers to carry out a top-up shop more easily
The use of the click and collect model is gaining traction as retailers reap its rewards
Retailers have introduced click and collect to reduce costs
Consumers often spend more when using click and collect models due to perceived value
Click and collect propositions help to serve more remote areas where home delivery is not feasible
Legislation can restrict the growth of traditional retail networks
STRATEGY IN FOCUS
Chronodrive began trading in 2002 and is owned by French retailer Auchan
Chronodrive has expanded rapidly, with further expansion set for 2011
The retailer offers a wide variety of products at similar prices to its competitors
A Chronodrive warehouse can be operated by just 12 full-time staff
The Chronodrive model is simple; however, the importance lies in strong customer service
The click and collect model lies at the heart of Chronodrive's operations
The click and collect model is primarily aimed at motorists who lead busy lives
Chronodrive's transactional website is at the core of its business model
Chronodrive has recently expanded its formats, aimed at new target audiences
Chronovillage provides consumers with the opportunity to purchase from complementary retailers
Chronodrive has launched a new urban format aimed at pedestrians
Chronodrive's loyalty scheme incentivizes customers to make repeat orders
Retailers are striving to emulate the success of Chronodrive by launching similar models
APPENDIX
Methodology
Further reading
Ask the analyst
Global Retail FreeView
Verdict consulting
Disclaimer
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