Much-loved Hagkaup is one of Iceland’s oldest retail brands. Selling food and non-food, it’s a bit like the UK’s John Lewis. We originally developed its flagship back in 2000 – an anchor store in Iceland’s biggest shopping mall in downtown Reykjavik. But 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.
The new format is a specialty department store with a curated product story in the smaller footprint. The buzzing and fashionable Smaralind Mall is the perfect location for this destination concept –a one-stop shop where customers can pick up a healthy evening meal to take home, buy their grocery essentials, try out the latest makeup trends, have a manicure, indulge in a Krispy Kreme doughnut treat, and more.
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 smaller more frequent visits by providing experience-led content, ideas, and events. So fresh food-to-go, deli counters, a sushi bar, and rotisserie chicken sit alongside beauty offers from trendy Urban Decay and MAC to classic favourites Chanel and Lancome.
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 are fluid – shoppers can immerse themselves in one world or dip in and out of many. The design language is understated – a neutral shell of clear, simple, honest materials. Hagkaup’s brand colours are used to accent and highlight, whilst wayfinding and graphics are integrated as the ambience for each world.
The opened up shopfront has a wide welcoming view from the shopping mall into the store’s four worlds: cosmetics alongside coffee and juice bar, in amongst a fresh food market, alongside fashion and gifts. Departments are linked by one main ‘avenue’ that’s flanked by mobile market stall-style tables. These provide Hagkaup and its brand partners with an endless array of flexible visual merchandising options and seasonal displays. It’s like a giant shop window with a strong brand presence directly onto the mall, from which customers can shop.
Special moments of activity in ‘hotspots’ throughout the customer journey ensure plenty of theatre: the Krispy Kreme Factory observation window where you can see doughnuts made in true Willie Wonka style, make up events, beauty promos, a fresh DIY Peanut Butter machine, and the Candy Land sweet corner.
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 is applying this concept for another anchor site, as well as creating a ‘module concept format’ for other stores.