Meijer makes move into e-commerce on its own terms

GRAND RAPIDS, MICH. —Meijer has revamped its web site and added an e-commerce function for its general merchandising business. The regional supercenter retailer may be coming late to the e-commerce game, but it is trying to take advantage of the benefits that come with a cautious entry into a new operation, learning from the mistakes of others and developing online operations as an element of its established strategy.

Sources who were involved in the Web site development acknowledged that many mass market retailers who are considered e-commerce successes endured bumpy rides. JCPenney, which seemed to hit few snags, and Target, which rode the online registry business to web advantage, are more exceptions to the rule. Kmart had to retool its e-commerce operation more than once, and Wal-Mart had some tactical problems dealing with demand and technical issues.

And many missed an early opportunity to blow out their assortments online, concerned that bricks customers would resent expanded e-commerce assortments.

Two points Meijer is emphasizing in its e-commerce effort is technical compatibility and expanded assortments. A major reason Meijer delayed in rolling out comprehensive e-commerce—it did provide a limited specialty food shopping function to web visitors—was to ensure online operations would be consistent with new marketing, merchandising and technical systems it was introducing company-wide.

Dawn Bronkema, Meijer’s director of e-commerce marketing, said that, in its efforts to develop new prototypes and the systems to serve them effectively, Meijer has had to put e-commerce on the back burner. That’s not to say web operations weren’t viewed as important. Rather, Meijer wanted to have the initiatives it was launching across the board up and operating first, to ensure e-commerce would fit smoothly into the broader effort.

Not only that, but Meijer wanted to research just what its customers wanted from the retailer online. “The people involved wanted to understand customer needs for the dot.com site, so it took time until they were ready for us to launch,” Bronkema said.

The retailer determined that complementing the in-store assortment was a major opportunity as many product segments that no longer move with sufficient velocity to justify a place in inventory and on the shelves, still have shoppers who ask for them. So, Meijer is using the Web site as a means of fulfilling the steady, if lower, volume demand. Meijer recognized that, even with the e-commerce aside, it needed to upgrade its existing Web operations. Bronkema noted that the Meijer Web site’s primary function always had been driving customers to the stores. The company has upgraded informational aspects of the site and is developing systems to more effectively personalize its approach to customers.

The Web site also will become a more entertaining loyalty-building engine. The company recently completed an effort in which consumers sent in video and digital recordings as part of a lawn and garden promotion that the retailer posted online. Meijer will build on such interactive initiatives.

Reaching out to customers will encompass promotions that cover in-store and online sales in various ways and with shifting emphasis, depending upon where Meijer wants to drive revenues. One reason the site launched now is that Meijer was determined that it be up and running for the holiday period. Meijer will use its in-house behavioral research to hone promotions, even as it has begun offering variations on the basics, including free shipping for customers who use its credit card.

“A lot of the promotions are going to be tested on a smaller scale before we roll out, to keep things simple, but exciting, for the holiday season,” Bronkema said. “The goal is to run very targeted promotions.”

Meijer already uses technology in reaching out to its customers, offering a wireless system to alert customers to gasoline price increases via their cell phones, for example. Other actionable considerations include the fact that, as a grocery and food retailer, Meijer gets several shopping visits a week from many consumers and its food shoppers tend to be more affluent than its general merchandise customers. Those considerations will play into future promotions.

Meijer partnered with Fry Inc. to redevelop its Web site and add the e-commerce function. The site rebuild took advantage of Fry’s Open Commerce Platform, an e-commerce solution designed to allow retailers to quickly develop an online store.

Corbin de Rubertis, a Fry’s principle, said Meijer benefited from having its general strategy and integrated plan to extend it in place when, with Fry’s support, it developed the e-commerce operation. As a result, he said, the new Web site suits the business in general. “They came late to the party, but well dressed,” de Rubertis quipped.

Getting the Meijer site and sales element up and running entailed the development and integration of a new order management system, a customer contact center application, and a supplier-direct distribution network created for Meijer by Pinnacle Rock Associates, a Fry subsidiary.

Site features Fry helped Meijer develop include a persistent shopping cart that can be viewed at all times without leaving the page.

Additionally, product previews and recently viewed products remain visible without shoppers having to load a new page. Interactive promotional spaces use AJAX and Flash technologies to make it easier for Meijer to manage content, showcase products and engage shoppers in a manner that doesn’t require clicking through multiple pages.

In addition to an order management system and call center application that work with the site, to say nothing of design and development, Fry also will host the site, providing managed services and enhancements on an on-going basis. Meijer plans for its e-commerce Web site to include new elements that will be added almost immediately and expand the operational scope.

Comprehensive grocery sales aren’t part of the package now, but sources say Meijer is cooking up a few initiatives in edibles that, if not comprehensive, will build on the company’s established strengths in food. Healthy living initiatives are also being readied.

Even if the company wasn’t an early e-commerce enthusiast, today Meijer is confident it can excite customers with a variety of initiatives that approach them online in a familiar, but fresh, manner.