1A Service

DRIVE FORMAT, 2013A drive into the unknown

February 2013GILDAS AITAMERAssociate Analyst

MAGALI DUBREILRetail Analyst

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1. The broader picture

2. Picking the right model

3. Challenges

4. Where does Drive go next?

5. How can stores adapt?

6. Conclusions and Implications

Contents

1. The broader picture

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As with every change, the emerging Drive format is raising numerous questions for customers, retailers and manufacturers.

1. The broader picture

Can it ever be profitable?

What’s the impact on bricks and

mortar stores?

How do I sell my products there? What’s the real

benefit?

Who are the Drive users?

Are there alternatives to

Drives?

Does Drive raise legal issues?

How can I see how fresh the

produce is?

Do I still need to go instore for

top-up shopping?

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Drive is a type of click & collect:

Where a retailer prepares customer orders placed online;

With or without order fee;

Shoppers collect the goods at a time of their choosing at a pick-up point with a dedicated car parking area;

Orders can be pre-paid online or paid for at the collection point.*

Definition

1. The broader picture

@Ah

old

At Ahold’s Albert Heijn in the Netherlands, orders are delivered directly to the trunk.

Drive is a new form of click & collect and is sometimes referred to as drive & collect.

* This broader definition varies from the definition used in Planet Retail’s database: Items purchased online but collected later instore. The definition used in this report includes on-site payments.

At Auchan’s Chronodrive, shoppers need to identify them-selves to pick up their goods.