Viv Craske

#newpodcast Sunday April 28th 2024 Supermarket Secrets - The Eye Opening Truth Behind Pricing Tactics Revealed" is a captivating 30-minute podcast episode delving into the fascinating world of pricing strategies and consumer behavior in supermarkets. Hosted by Mark Lack, this episode explores the groundbreaking work of Hermann Simon on the Psychology of Pricing and Consumer Behavior and unraveling how retailers strategically influence purchasing decisions. this is teaser number 1 https://lnkd.in/eSq3U3m8

14

Profits Bounce Back At Boots After Year Of Strong Sales Growth. Where next? Latest accounts filed at Companies House confirm that the performance of Boots UK continued to improve last year, supported by the overhaul of its store estate and product offering. Pre-tax profit up from £4m to £60m, 12 months to 31 August 2023, revenue up 8.3% to £7.05bn. Operating profit up 60% to £88m i.e higher gross margin, driven by strong retail sales, offset increased operating costs. Boots’ core retail division: Revenue up 12.2% to £4.72bn, L-F-L growth of 12.5%, improved footfall, increased online capacity, and strong performance of its revamped beauty ranges. Heavily investment in own-label offering + expanded branded ranges in new beauty halls. Improved price competitiveness (Advantage Card scheme), membership up 1m to 13m 2023. Pharmacy ops revenue up 1.3% to £2.34bn, with L-F-L growth 4.0% via “favourable” NHS drug reimbursement rates reducing impact of lower prescription volumes and reduced demand for Covid and flu vaccinations. Boots closed 55 stores during 2022/23 as part of its reorganisation programme, ending the year with 2,177 sites. They announced plans to consolidate by a further 300 stores “to concentrate team members where they are needed and focus investment more acutely across the store portfolio, with the ambition of consistently delivering an excellent and reliable service”. Boots has been owned by Walgreens Boots Alliance since 2014, and has been the subject of sale speculation over the last couple of years, with new Chief Executive Tim Wentworth saying in January that the US firm was “evaluating all strategic options to drive sustainable long-term shareholder value”. Earlier this month, it was reported that WBA was renewing its efforts to offload Boots, reaching out to potential buyers and hiring advisors to hold early-stage discussions with interested parties. Figures released last month show retail sales at Boots rose 5.9% during the three months to 29 February 2024, helped by increased footfall in its store and increased demand online. NamNews Implications: * Excellent results. * But best keep in mind that WBA want to remove Boots from their equation in order to focus on US opportunities, without UK distractions. * The issue then becomes: - A: Have WBA the patience to wait for the five years of good Boots results required to warrant a successful re-flotation? - B: Or will WBA compromise on their expectation of Boots value in order to obtain an acceptable but lower sale price? * Each option requires suppliers to handle their Boots’ business differently. * i.e. Option A: Supplier employs a finance based 5-year strategy or B: Supplier prepares shorter-term strategy, anticipating a PE-based takeover. * (not forgetting that Amazon may be dusting down its option of using Boots as a basis for buying its way into comprehensive healthcare provision?) #Boots

7

My views - and that of my KPMG RTT colleagues - below.

7

Interesting moves Colin Lewis. This is great for Ocado Retail and I'm interested to see how the customer experience will play out - especially given the existing sophisticated checkout journey of offers, completion, cross-promotion, substitution etc. Exhaustive and exhausting ;) Any insight on how/whether this links with Ocado Group and Ocado Technology so that the capability can be deployed for their global clients? If offered to their clients, will the service integrate or extend to InStore #retailmedia too?

9

Accelerating Retail & F&B Growth in the UK: A Strategic Playbook for Market Leaders The UK’s retail and food & beverage sectors are fast-paced and highly competitive. Scaling in these industries demands more than just ambition—it requires a targeted strategy that balances consumer demands, operational efficiency, and market foresight. Here's how we help retail and F&B businesses dominate the UK market: 1. Hyper-Localised Market Strategies. Understanding the UK’s diverse consumer base is critical. We use advanced data analytics to identify hyper-local trends, ensuring your retail or F&B offering hits the mark in every region, from high streets to suburban communities. 2. Innovative In-Store & Digital Integration. Today’s retail and F&B businesses thrive on seamless experiences. We craft strategies that blend physical and digital touchpoints, from enhancing in-store technology to building frictionless e-commerce platforms—ensuring your customers enjoy a consistent, engaging journey across all channels. 3. Sustainable Growth Through Supply Chain Optimisation. For F&B, your supply chain can make or break your scaling efforts. We optimise your operations to reduce waste, improve efficiency, and adapt to the increasing demand for sustainable sourcing, creating a supply chain that supports both rapid growth and environmental responsibility. 4. Customer-Centric Menu & Product Development. In the F&B industry, innovation is key. We work with your team to analyse consumer preferences, translating those insights into new products, menu items, and seasonal offerings that keep customers excited and loyal. 5. Strategic Partnerships for Market Expansion. Whether it's partnering with local farmers for fresh ingredients or forming alliances with delivery services for faster logistics, we specialise in building partnerships that fuel growth and enhance your market presence. Scaling in the retail or F&B industry is not just about selling more—it's about building a brand that can adapt, innovate, and lead. Ready to take your business to the next level? #RetailGrowth #F&BStrategy #MarketExpansion #SustainableBusiness #CustomerExperience #DigitalTransformation

6

1 Comment

If you have an interest in seeing the retail sector thrive, then you must be invested in how the 3m people working in the sector feel. Increasing levels of churn, absence and presenteeism are serious challenges to the health of the industry. This is our biggest ever study of what is really happening in our workforces and the strategies needed to ensure retail remains the great people first sector it always aspires to be. The link between happy, healthy people and profits has never been clearer, as is the path to leveraging that link. Please download, share and comment.

30

AI is no longer just an intriguing concept - it has become an integral part for retailers looking to gain an advantage. The impact of AI is crystal clear from the plethora of recent news stories (Nike, Marks and Spencer, Boots UK, Zalando etc) and the associated profit growth, didn't happen by chance - they prioritised digital innovation.  As we move towards peak trading, retailers who have been slow to embrace AI need to learn from those ahead of them in AI adoption. First is to ensure data integrity, the cliched mantra, rubbish in, rubbish out is worth noting. At the heart of any retail operation is data, alongside core systems, handling everything from supply chain and stock management to sales and HR. These systems churn out massive amounts of data that AI tools need to access. But that data must be accurate for AI to deliver trustworthy insights. Ultimately, retailers should view IT as an engine for growth rather than a cost-centre. Isn't it time to integrate commercially minded IT Managers within leadership teams and Board rooms? Data is an asset. Understanding data is profit opportunity. #ai #retail #ecommerce

8

1 Comment

One of our clients is running a webinar on 4th July for UK retailers and consumer goods companies on whats real now for AI in retail and consumer goods manufacturing and distribution, what is likely to be real in two years time and what you need to do beforehand to be ready to implement AI. This is a webinar for line of business executives and managers plus their IT support staffs. If you would like more details of the webinar send me a message via LinkedIn or use this page https://lnkd.in/e37N77AC. Not all fields need be completed. #Retail, #ConsumerGoods, #Ecommerce, #SupplyChain, #RetailTech, #InventoryManagement, #Retail Trends

2

1 Comment

What a click bait title... and it's simply misleading. If retailers really were jacking up prices to squeeze consumers, we would have seen gross margins going up - they haven't been. Most public filings and data shows that retailers have been passing on their own increased costs. Most retailers can’t control pricing upstream, and it’s painful for them to see the results of shrinkflation, inflation, and other supply chain disruptions driving prices up for their customers. In this article, Ikea is mentioned as one of the retailers that’s slashing prices on discretionary items. That’s great that they have the control to do that because of their vertical integration, but most retailers aren't vertically integrated. However, I do agree that looking beyond 'press release style' price cuts at other ways to boost sales is a great idea! Retailers should focus on understanding their customer's holistic shopping needs (through loyalty programs and more) and highly tailored offers to differentiate themselves. And retailers who use data intelligently know how to target specific offers to win customers over the long haul. #retailnews #economy #retailing #retailindustry #shopping 

9

1 Comment

And they're off.... https://lnkd.in/e74eSHYs I tell people that in a couple of years time they'll be scanning QR codes at the checkout instead of barcodes and at first they look sceptical - the barcode is so ubiquitous. But QR Codes are so much more flexible and powerful, but the key is going to be standardization. Not all qr codes are created equal! Thanks to GS1 Digital Link standard - this is will transform everything from on pack information to supply chains - and Smartlinks by Prove Anything is at the forefront of that. I must admit - there's going to be a confusing period where people are not sure WHICH barcode to scan - as especially for brands that currently put random marketing QR codes on packs. But if you're a brand, manufacturer or retailer who wants to keep up with what Tesco's are doing - come talk to us!

31

5 Comments

The first quarter of 2024 showed positive growth for retailers despite initial setbacks due to cold weather in January. March saw a significant 6.1% year-over-year visit boost, driven by increased retail activity leading up to Easter Sunday. Retail prices remain high, but consumer confidence is slowly improving. Value-priced, essential, and wellness-related categories performed well in Q1, with Discount & Dollar Stores leading with 11.2% YoY quarterly visit growth. Grocery Stores, Fitness, Superstores, and Dining also outperformed Overall Retail in terms of quarterly visit growth. Home Improvement & Furnishings maintained a minor year-over-year visit gap despite challenges in the housing market. #retailsales #grocery #superstores #dining #homeimprovement #placerai #emarketer

4

A year or so ago, rumors swirled that Walgreens wanted to sell Boots UK, the UK-based retailer it owns. Walgreens bought Boots across two transactions in 2012 and 2014. In total, it paid $22 billion for the business. Notably, Walgreens’ market capitalization is now just $10.2 billion – so the whole company is worth way less than it paid for Boots. That, in itself, is an indictment of the way Walgreens has been managed. The original rationale for selling was to raise cash which could be returned to investors and pumped into the US business as Walgreens pursued its healthcare dreams. However, partly due to softness in the capital markets, modest interest never translated into a sale. Today, the mood music has changed. Walgreens wants to hold on to Boots. With the US business in a tailspin, and with healthcare ambitions not having paid off, Boots is one of the few parts of the group that’s actually performing. On the retail side, Walgreens in the US has seen comparable sales decline in 6 out of the past 7 quarters. Comparatively, Boots’ comparable retail sales have risen consistently and by very solid levels. Why this difference? At a basic level, it is simply because Boots is a better run business, and it is a way better retailer than Walgreens. It always has been. Sadly, Walgreens hasn’t really learned much from Boots and has not fully capitalized on the brands that Boots owns, like No 7, in its stores in the US. It has also failed to capitalize on the premium beauty boom, whereas Boots in the UK has taken full advantage of that growth spot. The good news is that Walgreens says it wants to invest in Boots to retain its number one position in the UK health and beauty market. That includes improving some stores that have been neglected. Cynically, however, this could be a tactic to keep the cash flowing and keep the valuation up for when a sale can be made. What Walgreens really should be doing, of course, is learning more from Boots and applying some of the thinking in the US. I chatted with the Sunday Times about Boots; the article also contains some very interesting observations from the management of Boots and Walgreens. Link in the comments. #retail #retailnews #beauty #personalcare #healthandbeauty #pharmacy #drugstores

65

12 Comments

Aldi’s market share slips as sales growth slows ldi’s market share has fallen behind where it was a year ago as shoppers head back to the traditional supermarkets for their groceries. The latest data from NIQ shows sales at the discounter rose just 1.3% in the 12 weeks to April 20, in comparison to the 6.6% jump in sales at Sainsbury’s and 5.8% at Tesco. As a result, Aldi’s share of the grocery sector slipped from 10.8% to 10.4%. Meanwhile, sales at rival discounter Lidl surged 9.5% during the three months, pushing its market share up to 8.2%. NIQ said the sales boost was helped by additional investment in media campaigns by the retailer highlighting new ranges and seasonal events to help drive visits to stores. #aldi #retail #grocery #supermarket #sales #growth #tesco #sainsbury

5

We are pleased to announce the release of the Lumina Intelligence Convenience Market Report 2024, which gives a comprehensive overview of the market, competitive landscape, shopper metrics and future forecasts. This report also features a section focused on a bespoke research with over 400 retailers on their attitudes and behaviours for readers to understand the full scope of the market.   The report covers: - Convenience market context & performance - Convenience competitive landscape - Convenience shopper overview & demographics - Convenience shopper trends and opportunities - Retail market landscape and retailer behaviours & attitudes Learn more about the depth of our data and download the report here: https://lnkd.in/e9RGNPvN #retail #convenience #conveniencemarket #convenienceconsumer #retailer #marketinsights #marketresearch #marketoverview #consumerinsights #retailoperator #retaildata #conveniencedata

7

The reports of the slow death of physical retail are greatly exaggerated! Following the recent news of big name ecommerce, pure play retailers collapsing into administration, in my latest article, I ask the question ‘Is the Epocalypse coming?’ Pure-Play retailers continue to see their margins squeezed by the triple challenges of escalating Google costs, the need for faster and more efficient deliveries and the noose around their neck of returns. To avoid the Epocalypse, there are four very clear recommendations for online-only businesses. Read the full article I wrote for The Hardware Journal here - https://lnkd.in/eDzFnVfn #commerce #commerce #retailnews #retail

81

28 Comments

Asda Unveils Revamped Retail Media Unit Asda has officially launched its revamped retail media business called LS Eleven Media Services, formerly known as Asda Media Partnerships (AMP). Following reports of its creation back in January, LS Eleven, named after the postcode of Asda’s headquarters in Leeds, has now been introduced to key suppliers. It follows the earlier appointment of London-based retail media agency SMG (Shopper Media Group) to manage the supermarket’s retail media planning and operations. LS Eleven will build on the offerings AMP developed over the past decade. It will leverage data and technology to drive “more relevant, customer-centric” media planning for brand partners and a more connected omnichannel experience for Asda customers as part of the retailer’s growth strategy. SMG proprietary software product Plan-Apps – which handles millions of pounds of media spend every day – will be embedded into Asda’s technology stack to enable end-to-end planning, management and measurement cycles for brand campaigns. SMG will leverage Asda’s first-party data, derived from its Asda Rewards loyalty programme, to create targeted omnichannel campaigns and help brands reach consumers across various touchpoints, including in-store, online, TV, social media and other digital channels. “We are proud of what we have achieved [with] Asda Media Partnerships over the last decade, but our partnership with SMG and the launch of LS Eleven Media Services is a step-change in our media offering for our brand partners,” said Matt McLellan, vice president, customer, Asda. Sam Knights, CEO at SMG, added: “Asda has a clear strategy for growth, and the combination of our growing proposition across large stores, convenience and food partnerships, alongside our leading rewards program, offers us an incredibly exciting opportunity to work with brands to deliver even more relevant campaigns for our customers. “The launch of LS Eleven Media Services comes at an exciting time in our journey with Asda. Asda’s strong brand partnerships and loyal customer base offer us the opportunity to develop a sophisticated, innovative retail media network at scale. Using Asda’s rich first-party data and our innovative Plan-Apps technology, brands will be able to connect with customers across every stage of the customer journey in a way that always puts the customer first.” NamNews Implications: *. The appeal of Retail Media revenues at up to 70% gross margins to Asda is obvious. *. So anticipate actions that will optimise their first-party data. *. The issues will be the extent to which they will use the incremental revenues to invest in price cuts or pay down deb *. Watch this space… #RetailMedia #RMN

9

2 Comments

Good fun to be quoted in this article on the recent Sainsbury's Meal Deal price rise. Our view, based on the Uncrowd empirical objective observed data and with various customer scenarios modelled over it; is that Sainos have earnt the right to make this change given the great work they've done elsewhere on reducing prices via the Nectar card. Matching and sometimes exceeding Tesco clubcard in deals, offers, and communication and clarity in store, has been a big performance upgrade at Sainsbury's. #retail #experienceanalytics #eggandcress

24

6 Comments

Retailers Under Fire For Restricting Access To Loyalty Prices Consumer watchdog Which? has raised concerns that some groups of people are being “excluded” from accessing lower prices offered to members of retailer loyalty schemes. In the last couple of years, mults plus Boots & Superdrug have used loyalty pricing and promotions as a key tool to attract consumers to their stores and accumulate shopper data. But Which? has highlighted millions of people can’t sign up for the schemes because of minimum age requirements, they don’t have UK residency or an address, or they don’t have an email address or access to an app. As a result, they are missing out on significant discounts, with some of the most vulnerable in society being affected the most. Which?: 18+ for Lidl, Sainsbury, Tesco and Waitrose, & Co-op and Morrisons 16yrs, the minimum age is 16, Boots and Superdrug, minimum age 13. Also found big differences in address requirements and whether or not digital access is needed. Earlier this year, Which? called for action to tackle “murky and confusing loyalty pricing practices” after research found that some deals may not be as good as they appear. This came after the Competition and Markets Authority (CMA) released the initial findings from its review of loyalty pricing, saying it found little evidence that supermarkets were misleading shoppers. Commenting on its latest investigation, Harry Rose, Which? magazine editor, said: “All retailers should prioritise making their best deals accessible to all customers by implementing changes to their conditions for signing up.” Responding to the findings, Boots and Superdrug stated that they were committed to value for all customers. Boots noted that it has many deals available to non-members, and customers need a UK address to get relevant communications. Superdrug also said its residency requirements are in line with where it delivers. Meanwhile, Lidl said it offers non-member promotions and that its age restriction is industry standard and in line with legal requirements relating to its app, including where adult consent is needed. Sainsbury’s claimed it wants to make it easy for customers to join Nectar and they don’t need email or a phone number. Tesco said customers hadn’t raised concerns over age eligibility criteria and didn’t need an email to sign up. Waitrose noted that its age and address requirements are in line with some other retailers and reflect store locations. NamNews Implications: * Time for a charitable gesture via a low-level industry standard. * i.e. low/no age limit-in-common, no email etc. * Still a win for retailers in that loyalty shoppers are spending in-store. * Absolute numbers of resultant new-users low vs regular loyalty customers. * i.e. sacrificing some data harvesting *. For anyone that feels we deserve their loyalty! * But what a gesture!

17

7 Comments

'📈 Waitrose sales up 5% as shopper numbers hit record high 🛒 🎉 #RetailGrowth #Waitrose #RecordSales 🙌🏼. Dig deeper into retail news with reliable public data 📊 at databoutique.com 💻🔍 #DataAnalysis #RetailData' by The Grocer about Waitrose & Partners

1