Selling food and non-food, Hagkaup is one of Iceland’s oldest retail brands, with a special place in the hearts of shoppers – a bit like the UK’s John Lewis. Its flagship concept was developed back in 2000 – a 7,500 sqm anchor store in Iceland’s biggest mall.
Changing shopper behaviours, development/upgrade plans by the mall’s landlord, and reducing the store’s footprint by 50% meant it was time to revisit the flagship proposition, experience, and environment. Activating Hagkaup’s ‘Happy Shopping’ brand promise was critical, especially for female shoppers – it’s a positive, compelling retail philosophy that encourages greater dwell time and frequent repeat visits by providing experience-led content, ideas, and events.
Four distinct worlds co-exist across one shopping floor: Express/Food for Now; Non-food (cosmetics, home, clothing, beauty, toys); Food for Later (deli, fresh, sushi, rotisserie chicken); and Grocery. Customer journeys through the four main zones are fluid – shoppers can immerse themselves in one or dip in and out of many. Visits evolve to become ‘Friction Free’ or ‘Friction Fall’ (or a combination). Traditional supermarket principles are swapped with the best of department store showrooming. ‘Happy Shopping’ moments are integrated into key journeys including the cosmetics/makeover area, Krispy Kreme ‘factory’ and café, and sushi bar. Third party brands such as Mac, Urban Decay, and F&F Clothing play a bigger role to generate compelling content.
At its core, traditional supermarket principles are swapped with the best of department store showrooming. And it’s working – the store is 50% smaller but sales are at the same as they were when the store was double the size! Comments from customers include: “The store looks bigger” and “I feel like I’m abroad”. Hagkaup’s considering this concept for another anchor site, as well as creating a ‘module concept format’ for other stores.
“Our customers are happy and pleased with the store and the feedback is great! We are happy as well as our sales are 3 times greater than last year so far.”
Sigurður Reynaldsson, Development Manager, Hagar Hf.