LAS VEGAS — In his first time speaking on the stage at Groceryshop, Erewhon’s Chief Growth Officer, Kabir Jain, discussed the upscale specialty chain’s plans to enter new markets and how digital innovation is fueling its premium shopping experience for customers.
The Los Angeles-area specialty grocer’s mission to provide a best-in-class retail experience includes “building out what we think are some of the most beautiful grocery stores in the country … [in which customers] feel that sense of premium the minute they walk in the door,” Jain said Monday during a session at the conference. To that end, the grocer has also found ways to tap into technology as an extension of its in-store shopping experience, he said.
While some grocers like Trader Joe’s have shied away from e-commerce and digital frills to focus solely on in-store experiences, Erewhon is finding ways to successfully blend in-store technology and e-commerce with its brick-and-mortar locations — and looking to evolve its digital offerings to boost consumer spend.
“It’s really catering technology to the shopping journey, focusing on a digital app that emulates our retail experience to ensure someone feels as good as they do walking into the store as they do on our app,” Jain said.
Expanding beyond Los Angeles
Erewhon has made a name for itself with its 10 stores in the Los Angeles area. Over the next three years, the “small but mighty chain” plans to build five stores. It aims to not only expand across Southern California but also venture into new markets like Northern California and then “further east across the country,” Jain said, without providing specifics.
Earlier this month, Erewhon confirmed on Instagram that it is opening a tonic bar at an incoming private members club in New York City’s West Village neighborhood. The club will let members order in person at the Erewhon tonic bar, while nonmembers will be able to access the smoothies and juices via the Uber and Postmates delivery apps, according to the club’s website.
Evolving the digital experience
Earlier this year, Erewhon added ordering kiosks to all of its stores that offer personalized recommendations to store members. The way customers use the digital tools has been different than what the grocer expected, Jain said.
“We thought our members would come to our kiosk to skip the lines and order that Hailey Bieber smoothie. … The result was actually the complete opposite,” Jain said. “Our guests are coming to our kiosk to take the time to explore the menu. They love the visual layout. We're getting a wider variety of products ordered.”
The kiosks quickly captured 30% of in-store transactions — a shift that was “mind-blowing for us,” Jain said. Now, Erewhon is thinking about how prepared food ordering, membership sign-up and full-basket grocery shopping could work on the kiosks, he added.
Additionally, Erewhon has spent “a lot of time” building an in-app experience that mimics the in-store experience, Jain said. Mobile point-of-sale transactions through the app have surged recently.
“Our Erewhon stores are beautiful. Our mobile app was not. It was an embarrassment relative to our stores,” Jain said.
Currently, the app provides AI-generated recommendations based on customers’ preferences, highlights customers’ favorite items and pushes reminders for previously bought items that a customer might have forgotten to add to their digital cart.
“When someone opens that Erewhon app versus when they walk in the store, that e-commerce journey should be one in the same,” Jain said.
Boosting the member experience
Jain said the app has also become a key touchpoint for Erewhon’s members, who can pay $100 annually for a Cafe Membership or $200 annually for the “Plus” membership.
“We’ve used the Erewhon app to become the hub of both e-commerce and membership,” Jain said. “We have our members opening our app every day or every time they walk into a store to scan and associate the transaction with their profile, and that's allowed us to get them on the app more often than they would have been.”
Looking ahead, Jain said Erewhon is exploring how to create an in-store experience that is as differentiated for members as the app is. Offerings could include a VIP service area, members-only checkout lanes or exclusive usage of the mobile POS.
Erewhon is also considering offering more tiers and layering on more benefits to increase the amounts customers spend and boost their engagement, Jain said.
“There’s other ideas that we’re sort of tinkering with to allow members to feel even more elevated the minute they walk in the store, which then only enhances the funnel of acquiring more of our member customers to become members,” he said.
