There has been a competition between food retailers for years. Due to the implementation of Amazon fresh and the delivery service of Rewe Lidl stands under pressure in the age of digitalisation. The company must therefore adapt to be able to withstand this due to the intensive use of smartphones and other devices by customers. For this reason, it is important that Lidl meets today's requirements for a modern Point of Sale (POS) and makes appropriate changes to create a Customer Experience (CE).
Through the sufficient assortment and the purchase cost benefits Lidl would have optimal conditions to invest in digitisation. But the courage is missing and Lidl is underestimating the threat of Electronic Commerce (E-Commerce). Customers will order articles online of their daily need like flour, butter or pasta of brands which they known and have trust. The core business of discounters is that the consumers have no preferences in brands and can select between no-name products for cheap prices.
If ten percent of the consumers decide to buy online Lidl will get a problem because of the low margin. If the trend with E-Commerce in the food sector will develope fast, the competitors which already had invested money and have efficient processes will take a leading role.
In order to remain competitive in the market in the future, CE is the most important factor.
Table of Contents
1 Introduction of Lidl and description of the research problem
1.1 About Lidl
1.2 Description of the research problem
1.3 Learning objectives
2 Analysis of the components of the customer experience model
2.1 Shopping atmosphere
2.2 Service design
3 Recommendations
4 Conclusion
Research Objectives and Topics
This report investigates how the discounter Lidl can enhance its competitive position in the era of digitalisation by improving the customer experience through the integration of new services and the optimization of the in-store shopping atmosphere.
- Analysis of the current customer experience model for retail.
- Evaluation of the existing shopping atmosphere at Lidl locations.
- Assessment of current service design and digital deficiencies.
- Strategic recommendations for omnichannel and in-store digital services.
- Mitigation strategies against the competitive pressure of E-Commerce.
Excerpt from the Book
2.2 Service design
For retailers the service culture is an unavoidable requirement (Goworek and McGoldrick, 2015). To protect themselves against the online competitors, it is important that traditional retailers introduce services to continue to be successful in the future (Heinemann, 2017). It has long been assumed in the stationary retail that advice and service are equated and that these are significant reasons for the visit at the POS (Heinemann, 2017). Examples are repair services and the home delivery (Heinemann, 2017).
In addition to the already mentioned traditional services, digitisation offers stationary retailers the opportunity to integrate new services. These services can be categorized in Web-to-Store services, Store-to-Web services and Digital-in-Store services. Typical examples for Web-to-Store services are the online availability check or the online reservation (Heinemann, 2017). Store-to-Web services are appropriate to keep undecided customers, if they cannot decide at the POS for the purchase (Heinemann, 2017). This service component offers the possibility to inform and to advise customers about goods before buying. Furthermore, it contains the trial of products at the POS or give customers the possibility to take the products home to try them out (Heinemann, 2017). Like mentioned before Digital-in-Store services represent another component of digital services. Examples of this are the navigation to the desired article or to obtain product information from smartphones or other mobile devices (Heinemann, 2017).
Summary of Chapters
1 Introduction of Lidl and description of the research problem: This chapter provides a brief company history and outlines the competitive challenges Lidl faces due to the rise of E-Commerce and digitalisation.
2 Analysis of the components of the customer experience model: This section examines the current state of Lidl's shopping environment and service offerings, focusing specifically on atmospheric factors and digital integration.
3 Recommendations: This chapter proposes actionable digital and service improvements, such as Click&Collect and in-store digital kiosks, to enhance the overall customer experience.
4 Conclusion: The final chapter summarizes the urgency for Lidl to modernize its retail approach to maintain market share and satisfy changing consumer needs.
Keywords
Customer Experience, Lidl, Retail, Digitalisation, E-Commerce, Point of Sale, Shopping Atmosphere, Service Design, Click&Collect, Digital-in-Store, Omnichannel, Retail Strategy, Discounter, Consumer Behaviour, Modern Retail
Frequently Asked Questions
What is the core subject of this study?
The study focuses on the challenges faced by the food discounter Lidl regarding digitalisation and the necessity to improve customer experience to stay competitive.
What are the primary thematic areas?
The work centers on the shopping atmosphere, service design, the impact of E-Commerce on traditional food retailing, and digital transformation.
What is the main objective of this report?
The objective is to analyze why and how Lidl should implement new services and optimize its shopping environment to meet modern customer expectations.
Which scientific method is utilized?
The author uses a case study approach, analyzing Lidl's current retail situation based on a structured customer experience model.
What is addressed in the main part of the document?
The main part covers an analysis of atmospheric factors (lighting, music, store design) and existing service design, followed by strategic recommendations.
Which keywords characterize this paper?
Key terms include Customer Experience (CE), Retail, Digitalisation, Point of Sale (POS), and E-Commerce.
How does the author evaluate Lidl’s current lighting and store design?
The author notes that current lighting is cool and insufficient, and the non-food presentation is often disordered, which fails to create a pleasant customer experience.
What specific digital service recommendations are provided?
Recommendations include the implementation of Click&Collect, an online availability check for non-food items, mobile payment options, and touchscreen-based recipe consultants.
Does Lidl currently offer a food collection service?
No, the study clarifies that Lidl does not currently offer a service to collect previously ordered food items in the store.
- Quote paper
- Nicole Urban (Author), 2019, How can Lidl create a customer experience by implementation of new services and creation of a new shopping atmosphere in the age of digitalisation?, Munich, GRIN Verlag, https://www.grin.com/document/593501
