#55 Simone Krah (MMM Club) live on Nearconomy, Empathy & Grocery Loyalty
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In this episode of The Retail Reality Show we dive into the nearconomy in retail, asking why – despite relentless e-commerce hype – 97% of German shoppers still pick up their bread and broccoli in-store.
Broadcasting from the 75th International Retail Summit at the Gottlieb Duttweiler Institute, hosts Nino Bergfeld and Nicolas Kröger welcomed Simone Krah, President of the MMM-Club e.V., to decipher the forces keeping corner shops indispensable.
The 75th International Retail Summit of the Gottlieb Duttweiler Institute
Set in GDI’s park sessions overlooking Lake Zurich, the conversation unpacks the near economy in retail as the strategic interplay of physical, digital, and emotional proximity. We explore how proximity builds trust, footfall, and frequency in Switzerland and Germany, and why community-anchored formats outperform in uncertain times.
The state of German food retail
The German food retail market trends toward resilience under pressure, with discounters intensifying competition while full-line grocers adapt through sharper value, fresh leadership, and operational rigor. Retail adaptation to inflation dominates board agendas: cost spikes in commodities, energy, and labor force merchants to rebalance price architecture, promotions, and private label strategy in food retail.
Why e‑grocery lags in DACH
E‑grocery penetration in Germany remains low compared to the UK or Netherlands. Reasons for low online grocery adoption in Germany include:
– Price sensitivity around last-mile fees
– Strong independent merchants with compelling stores
– Outstanding in-store experience that reduces the need for delivery
Digital influence on physical retail is nevertheless significant, with shoppers researching online and completing missions in-store.
Proximity playbook: local, human, curated
Proximity means:
– local sourcing that reflects regional taste,
– community engagement retail through clubs, events and co-creation,
– and emotionally resonant experiences that counter consumer loneliness and build frequency.
A standout example are community wine clubs where customers co-select the shelf assortment, turning visitors into contributors.
Nino Bergfeld, Simone Krah (MMM-Club e.V.) and Nicolas Kröger live on stage
Convenience and supermarket gastronomy
Convenience food retail trends accelerate as time-poor households seek quality, healthier, ready-to-eat options. Supermarket gastronomy trends fill the affordability gap created by restaurant price inflation: fresh counters, bundles across appetizer–main–dessert, and shop-in-shop concepts raise basket size without sacrificing speed. Small format retail trends and fresh-convenience hubs extend proximity into dense urban catchments.
Data, AI, and the reality check
AI and data-driven personalization in retail is still underleveraged relative to its potential. Most grocers activate barely 10% of the data they collect. This is an execution gap that turns ‘proximity’ into a human advantage rather than a tech one. AI customer service in grocery retail can automate high-volume FAQs and triage, while human experts handle complex, health-adjacent needs. ChatGPT AI marketing FMCG is emerging as brands shift from classic SEO to conversational discovery, prompting “LLM optimization” to influence product recommendations at the digital shelf.
Omnichannel integration that works
Omnichannel retail strategy is presented as the durable operating model. Omnichannel integration in food retail links app, store, and web so that discovery and purchase can start anywhere and finish anywhere. Retail innovation in the food industry is most effective when it blends tech-enabled efficiency with human-led service, guarding EBIT in the 1–3 percent range without eroding the customer promise.
Formats are plural, not singular
Retail store formats evolution continues:
– Classic supermarkets as social hubs and service counters where advice and trust matter
– Autonomous stores for rural or off-hours coverage
– Pop-ups for test-and-learn and storytelling
Cashierless store concepts will expand where shrink risk and economics are managed, while staffed fresh and service counters rebound where advice, trust, and experience matter.
Health, wellness, and aisle strategy
Health and wellness trends in retail show up as growing space for protein supplements retail trend, functional foods, and better-for-you snacks. The impact of wearable health devices on retail nudges demand for guidance and personalization. Expect retail food advisor concepts to emerge in-store and in-app, pairing data signals with curated choices. Retail price entry organic products offer an accessible bridge for cost-conscious shoppers returning to bio.
Sustainability and circularity
Circular economy retail trends increasingly intersect with proximity: local sourcing reduces miles, repair/refill drives loyalty, and waste reduction programs align with neighborhood values. Proximity plus circularity strengthens brand salience at the geo level and drives repeat behavior.
Leadership takeaway: empathy at the core
Retail customer empathy importance is the through-line. Store walks, conversations with teams and shoppers, and local decision rights translate near economy in retail into action. Use technology for what it does best – efficiency, availability, and safety – while humans deliver emotional closeness retail, advice, and trust.
