| Austria

Nespresso signals omni-channel strategy with flagship store concept

Boutique coffee pod maker launches new flagship store concept in a bid to engage new coffee consumption patterns after Covid-19

Nespresso's new flagship store in Vienna, Austria, will seek to 'bridge the gap' between online and offline retail |
Photo credit: Nespresso 



Nespresso has cast a vote of confidence in its out-of-home channels, unveiling a new flagship store concept in Vienna, Austria. In a press release, the boutique coffee pod manufacturer said it intended to ‘bridge the gap between offline and online retail’ to cater to customers’ varying shopping needs both in-store and in the home.
 
“Our boutiques play a key role in engaging consumers in the Nespresso brand universe. Even in the current context we strongly believe in the relevance and power of retail as a brand building channel, working in tandem with other channels such as e-commerce,” said Jean-Christophe Jaunin, Global B2C Head at Nespresso.
 
The concept store will showcase the Nespresso brand across tasting, sustainability, design and hospitality, with further stores expected open over the next five years. Nespresso said the new format seeks to unify customer experience across digital channels, call centres and in-person, to enable greater customisation and service. 
 
App-based technology and e-commerce is playing a greater role in augmenting customer experience across the global coffee shop industry in the wake of Covid-19, enabling enhanced data capture, personalised shopping and seamless transactions.
 
Nespresso’s omni-channel strategy highlights how retail businesses of all kinds have rapidly adopted digitally enabled transactions in-store and online during the pandemic, with click & collect, beverage delivery and online retail coffee sales all surging over the last 12 months.
 
Like many retail coffee brands, Nespresso has emerged from Covid-19 in a strong position amid a sharp increase in at-home coffee consumption globally. In 2020 Nespresso sales reached CHF5.9bn ($6.6bn), with organic growth of 7% – the highest in six years – according to parent company Nestlé, with North America becoming the premium coffee capsule brand’s largest market.

 

Meanwhile, Nespresso's e-commerce sales and Vertuo capsule system enjoyed ‘strong double-digit growth’ to ‘more than offset’ out-of-home channels sales declines, the company said in February 2021.
 

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