Jason Brenner

Hello Retail Friends, I am pleased to announce the release of our latest Pricing and Promotions research report, developed with Incisiv. This report, surveying 179 retail executives across the US and EMEA, will be presented at Groceryshop in Las Vegas this week - be sure to come see us at booth #A610 to learn more.    Key findings include:   🔹 93% of shoppers demand more value: With 84% citing price as critical, 87% of retailers have adopted aggressive discounting strategies to sustain sales and loyalty.   🔹 $1 trillion in sales driven by promotions in 2023: Amid economic uncertainty, promotions are essential. 87% of retailers plan to maintain or increase promotional efforts in 2024.   🔹 Low adoption of advanced analytics: Only 12% of retailers use real-time data, advanced algorithms, and AI, impacting their agility.   🔹 Critical challenges in data quality and integration: Effective promotional strategies require accurate, unified data, yet cultural resistance also hinders progress.   🔹 Reliance on outdated systems: 37% of retailers still use spreadsheets, lacking the agility needed for dynamic market conditions.   The report highlights the need for integrated pricing and promotional capabilities. By leveraging advanced technology, retailers could achieve an additional $450 billion in incremental sales.   I encourage industry leaders to explore this report for strategic insights to drive growth and innovation.   #RetailLeadership #PricingStrategy #Promotions #MarketResearch #RetailInnovation #Groceryshop #GroceryForum #RELEXSolutions   https://lnkd.in/eSjYKxqC

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Retail Media Network Basics At A Glance At the Path to Purchase Institute, we've curated all the essential retail media intel, terms, and definitions you need to know. Whether you're new to retail media or looking to refresh your knowledge, this article is packed with valuable resources to help you stay ahead of the curve. Take a look and get up to speed on the latest in retail media. #RetailMedia #Marketing #P2PI #membership #MediaTrends https://lnkd.in/eS4Jnid8

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Kohl's is partnering with Instacart for same day delivery. This latest initiative is part of a wider pattern at Kohl’s of doing things with third parties. Amazon returns came first. Then Sephora. Then Babies-R-Us. Now same day delivery with Instacart. The partnerships don’t hurt Kohl’s in any way and some, like Sephora, do help generate revenue. But they also don’t fix the many issues with the core business. In the case of same day delivery, I doubt it will move the dial much at all. Why? Well, from our data, among Kohl’s existing customers fast online delivery currently ranks 20th in the list of reasons why people opt to shop at Kohl’s. Kohl’s doesn’t score badly here, it’s just not that important to shoppers. This is most likely because a lot of the things Kohl’s sells are not needed urgently, and people are broadly satisfied with current delivery speeds. Among those who do not use Kohl’s, online delivery being too slow is 26th in the list of reasons people don’t shop the chain. Only 5% of non-shoppers identify it as a reason for not shopping at Kohl’s; and less than 1% say it is the main reason. In other words, faster delivery will not activate many new customers and will not drive existing ones to spend more. It's a distraction - albeit not a deeply unhelpful one - from the main problems. Thanks to Modern Retail for including my thoughts in the article linked in the comments. #retail #retailnews #fastdelivery #samedaydelivery #ecommerce

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Hello Retail Friends,   It’s no secret that supply chains have faced unprecedented disruption and volatility in recent years, underscoring the need to address vulnerabilities, improve preparedness, and create innovative strategies.   We surveyed 285 retail, CPG, and wholesale leaders globally in February 2024, exploring the challenges, strategic investment areas, and opportunities for retailers and CPGs over the next 3-5 years.   See how retail and CPG executives are tackling these challenges and planning for the future in our report, State of Supply Chain 2024: Retail and CPG Dynamics.     https://lnkd.in/eQQVdNmN     #supplychain #businesstransformation #supplychainplanning

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Reaching customers wherever they are along their shopping journeys is increasingly more complex. Brands also need to be able to effectively reach relevant targets and measure their impact in ways that matter. That’s why we’re incredibly excited to make that easier to accomplish with Disney+ and Hulu’s premium streaming content through this first-to-market collaboration with Disney Advertising. This winning combination will be another powerful way for advertisers to tap into Walmart Connect’s full-funnel, omnichannel capabilities to create integrated campaigns across offsite media like CTV, Walmart digital properties, and in our stores. In fact, Walmart Connect campaigns that ran both CTV and Onsite Display ads saw a 10% higher conversion rate on average vs.campaigns used Onsite Display ads alone (Walmart first-party data, Feb. 2023-Jan. 2024.) Disney Advertising, welcome to Walmart Connect’s Partner Lab – we’re excited to unlock new capabilities for marketers together!

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Assortment decisions are complex and critical for any retailer success. Analyzing billions of baskets a year has enabled us to build the most effective and customer-centric assortment solution in the market. We are proud to partner with Family Dollar and dozens of other retailers in this journey! #dunnhumby #customerfirst

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🚀 Big News Alert: Saks Buys Neiman Marcus with a Boost from Amazon! 🚀 Hey everyone! Just had to share this HUGE update in the luxury retail world. Saks Fifth Avenue’s parent company is dropping $2.65 billion to scoop up Neiman Marcus, and guess what? Amazon’s in on the action, bringing their tech and logistics game. 🛍️✨ Here’s the Tea: • Power Move: Merging two luxury legends to create a mega retail powerhouse. • Tech Boost: With Amazon on board, expect next-level tech integration for a seamless shopping experience, both online and offline. • Big Bucks: Financed by top-tier investors like Rhône Capital and the Abu Dhabi Investment Council, plus $1.15 billion in debt from Apollo Global Management. • Market Shakeup: The new combo will hit around $10 billion in annual sales, giving them major leverage with suppliers and streamlining costs. Why It’s a Big Deal: This merger shows how vital tech and partnerships are in today’s retail scene. It’s proof that luxury retail is evolving and adapting, even when times are tough. For investors, this move is a clear sign of confidence in the luxury sector’s future and the potential for new opportunities. Big things are coming, and I am excited to be part of this evolving industry. Stay tuned for more updates as we keep pushing the boundaries in luxury retail!

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Retail is powered by data. The future of retail is digital. Retail success is dependent on positive customer engagement (digital and physical). If you believe the above statements, why - if you are a retailer - would you deliberately hand over to a third-party your customer engagement, a growing revenue stream, and a source of ever more important first-party data? Yet that’s just what retailers and wholesalers have done by signing on to Instacart’s retail media network. If I’m a retailer or wholesaler, I get it. Instacart is the ‘Easy Button’. A one-stop shop for outsourcing online shopping, digital shopper engagement, and retail media. Choosing a third-party like Instacart removes major headaches and resource commitments for retailers. So I don’t blame retailers and wholesalers for partnering with third-parties like Instacart. But at what cost? As Instacart and other third-party marketplaces grow their influence, traditional retailers will increasingly be delegated to simply putting products on the shelf. CPG marketing funds are rapidly evolving towards digital solutions. How long do you think it will be before traditional trade promotion dollars will be dependent on digital capabilities like sophisticated targeting, digital engagement in the store, and digital offer delivery managed across a growing number of channels? All things Instacart is able to provide. So I get it. Grocery retail is incredibly tactical, the need to obsessively control operating expenses to eke out a profit. Thinking strategically and longer-term is a luxury that many retailers and wholesalers do not have. And I have to give Instacart credit. They saw a market opportunity and went after it, pivoting along the way to provide a growing array of tech solutions to retailers in addition to creating and growing their retail media network. Yet as we accelerate up and out technology’s exponential growth curve, that historical tactical focus, putting out the brush fires to survive another day, becomes increasingly dangerous. And understanding that we now live in a world that has never before existed, a world of exponential change, is now imperative for survival. That’s why I wrote Bionic Retail, my latest book. To help the retail industry understand that it is now in a new world and many of the old rules no longer apply. Succeeding in the exponential world requires new thinking and deliberately letting go of many past practices, processes, and beliefs that increasingly constrain retail and innovation. Maybe the ‘Easy Button’ isn’t going to be so easy after all. The Shelby Report ROFDA Instacart #grocery #groceryretail #grocerystrategy #grocerytech #groceryinnovation #retail #retailtech #retailstrategy #retailinnovation #CPG #CPGinnovation #retailmedianetworks #RMN #supermarket Center for Advancing Retail & Technology (CART) https://lnkd.in/gH93nm3A

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You have to give credit to Walmart. Many large companies have struggled to keep up with market change. Sears, with their legacy catalog, was uniquely positioned to transition to the e-commerce space but failed to adapt. Blockbuster, once the king of home entertainment, couldn't pivot fast enough in the face of Netflix's streaming revolution. Many companies are too entrenched in their legacy operations to embrace the speed of change. Walmart, on the other hand, has not only recognized these shifts but is actively leaning into them. From expanding their Marketplace to building out Walmart Fulfillment Services (WFS), they are rewriting what it means to be a big-box retailer in a digital-first world. Bringing in top talent from Amazon—arguably the leading pioneer in e-commerce and supply chain innovation—demonstrates a clear commitment to accelerating this shift and a willingness to change. While there’s still work to be done to catch up in areas like last-mile delivery and seamless omni-channel experiences, Walmart’s recent results show they are doing something that few companies of their size can: evolving their business model to stay ahead of the curve. It will be fascinating to see how this leadership change will accelerate Walmart’s journey into advertising.

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Amazon has conditioned all of us to think we should not have to pay for shipping. In order to compete, smaller e-commerce companies had to match Amazon's free shipping. (So much for the #internet being the great equalizer) The company that didn't need to show a profit for its first 20 years also had a secret weapon...#AWS. #Amazon has a $100B division that subsidized Amazon's #freeshipping. A huge obstacle for #ecommerce was that people are expected to buy an item sight unseen. How do you know if these shoes are comfortable or if this shirt fits or if this color looks good on me? So #consumers buy variations of an item with the intent to return them. My family is no exception. My wife will buy 6 of the same top in multiple colors and sizes, find the one that fits best and #returns the rest. That cost businesses $220B in 2023. On average the cost of returning an item is 59% of the original sale price - eliminating all margins. That is why sometimes retailers will tell you to keep it and they will ship another one. The US requires an additional 1 billion square feet of #warehouse space. So there is no where to actually return these items to. If a business is selling short sleeve golf shirts in August - if that shirt is returned, the odds are that it wont go back on to the shelf as it needs to make room for the new fall line. Those returns may wind up at #TJMax, or maybe donated, or 25% of all returned items wind up in a #landfill. The problem is growing - in 2020, 33% of all returns were from e-commerce, by 2026 it will be 35.5% #Fedex #ups #usps #retail #returns #warehouse #logistics #delivery #lastmile #margins #malls https://lnkd.in/gYW2bY48

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Will Amazon (and other retailers) lose constituents due to stricter return rules? The answer is not straightforward. As highlighted in a recent #RetailWire commentary, stricter return policies must be tailored to different product categories (e.g., hard goods vs. apparel) and customer segments (e.g., abusers vs. 'borrowers' vs. straight forward purchasers) to drive profitability effectively. Implementing reasonable return rules can not only enhance profitability but also potentially boost foot traffic in stores. By identifying and addressing chronic abusers through dynamic return rules based on their purchase/return history, retailers can maintain profitability without alienating loyal customers. Check out more insights on how Amazon's revised return policy and similar strategies could impact the retail landscape: https://lnkd.in/eSKddCUZ

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Posting a client letter we sent out to our Commerce Canal clients about 2024 Prime Day reminders. One point to note: 2023 Prime Days accounted for only 1.16% of the total annual 2023 retail sales. 🤯 Don’t get caught up in the hype. Achieving long-term success on Amazon requires consistent and sustained effort every single day. Remember, Prime Day is just a small part of your overall journey to success. https://lnkd.in/eMJNY3Yp

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Instacart reported what Chairman CEO Fidji Simo called “strong” Q2 2024 results, including including 10% year-over-year growth in GTV (gross transaction value), its third straight quarter of positive GAAP net income, and considerable gains in adjusted EBITDA and operating cash flow. “Our performance reinforces our leading position as the largest online grocery marketplace in North America and highlights our best-in-class customer experience underpinned by industry-leading delivery speed and order quality,” noted Simo in an Aug. 6 earnings call. CFO Emily Reuter expanded on this topline information, noting that the GTV growth comprised order growth of 7% and average order value growth of 3%. Reuter attributed the quarters higher basket size – the key driver of Instacart’s outperformance – to such factors as new customer cohorts reaching bigger basket sizes faster, existing customers making larger purchases over time, and a higher mix of club orders. | Progressive Grocer https://lnkd.in/gCqAX3Gc #retail #ecommerce #grocery #supermarkets #technology #Instacart

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A quick read that hits some key elements of effective loyalty programs.... Ultimately, the business goal of driving incremental trips profitably, requires a level of personalized and relevant messaging that deepens customers' affinity with the offering. Many try, but only few loyalty programs get it right, finding a true collaboration across ... 1.Data science teams (e.g., MLops, CRM, customer analytics, etc.), 2.Business acumen teams (e.g., merchant promo/offers, fp&a/mp&a, etc.), and, 3.Customer engagement teams (e.g., branding/creative, marketing channel, etc.).

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Who's winning in retail?? - It is all coming out in our AlixPartners 2024 Consumer Sentiment Index. I had the pleasure of discussing major findings with CNBC's Gabrielle Fonrouge. See link below for Gabrielle's article, as well as link to our full report. Ask me about it - there's even more behind the report. We surveyed 9000 consumers and asked what makes them shop (and buy!) across Fashion Sectors, and who's winning according to the consumers (Walmart, American Eagle Outfitters Inc., Nike, Macy's, Kohl's and others)! (Full report here: https://lnkd.in/ejyutg7v)

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I tried to get rid of ROAS this week. Just end it as a viable metric. In dramatic LinkedIn post fashion to get you to expand … I failed. At the Ascendant Network #retailmedia event this week in Palo Alto Andrew Lipsman and Jaiah Kamara, MBA. and I led a conversation on ROAS vs. iROAS. We polled the room and asked, “how do you feel about ROAS – 5 means you love it, 1 is you hate it and hope to never see it again.” The room was less divided than I thought. In a group of Brands, Retail Media Networks, and Tech partners, no one had higher than a 3, with most of the group at a 2. 💡 Turns out, we’re all in alignment that ROAS isn’t a great metric! 💡 We all know that it’s overly correlated to brand sales. We all know it’s easy to manipulate. We all are aware that if we try to present a ROAS that is more conservative and more transparent, we can loose out to our competitors who have a ROAS calculation which is more of a black box. So, what do we do? The obvious statement is we need to move towards #incrementality. But because #math we can’t always get to statistical significance for every campaign. I’m going to propose we think about Retail Media Measurement in a different way. What became obvious during our conversation is the power of closed-loop measurement comes when Retail Media Measurement is combined with measurement that is owned by the Brands. As Retail Media moves towards maturity, Retail Media Networks need to find ways to support Brands own internal measurement. This means providing the right data for measurement in the ways the brands want it, when they want it, and how they want it. We're moving towards what's next at Albertsons Media Collective - are you?

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Our team talked through the differences in physical retail vs. digital this week. Cole Walker presented some great insight in the differences in Instacart behaviors and typical store patterns. The big underlying theme? Visibility means something entirely different when you’re talking digital vs. physical in retail. One of my favorite things to do in store is tidy up the shelf (most CPG folks I’ve found do this 😆). The physical shelf requires price tags, inventory, some decent packaging, and merchandising to look good. It also is seen by the human eye, which has a wide lens and can capture a lot of info at once. The digital shelf largely relies on inventory, reviews, and an algorithm paired with searches. It has a very narrow lens for viewership (1 listing per 1 inch of screen essentially) and is noisy in its own way. As the two worlds grow more intermingled, it’s imperative to remember the core ingredients that fuel each medium, and the recipe need for success.

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Retail Today / Retail Renaissance: Last week Wayfair opened their new store in the Chicago suburbs, creating a stunning physical store, focused on the experience of furniture/home shopping. #wayfair Not just any store but a spectacular two story 150,000 sq ft destination place, creating an emotional, entertaining atmosphere. With 19 departments from home decor, housewares, appliances, furniture and home improvement. #homedecor #furniture #appliances #homeimprovement Wayfair’s joins many E-commerce retailers, now becoming a omnichannel retailer but offering value, selection, service , fast shipping in an physical store. #ecommerce #omnichannelretail #brickmortar This $12 Billion Dollar Furniture Industry disruptor has been on a roller coaster ride for years, obviously a Wall Street darling and a personal “piñata” for me. Many questions remain but are rarely asked. What happens after the ballon drop and the excitement of opening? #sales #profitability #wallstreet What does Wayfair’s hope to accomplish with this fantastic store? What is your sales projection for the first year? 5-year? What is the projected ROI of this project? What are your expectations for customers in Chicago relative to the digital experience? How do you see them blending? How many locations could support a store of this magnitude? How will this effect your total company expenses and profitability? Again congratulations!! #retail #retailtrends #retailindustry #shoppingexperience #brandexperience #furnitureindustry #TopRetailExperts

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Wayfair's shares have surged by a shade over 16%. And the Wall Street Journal has a piece (link in comments) saying how the company is now showing signs of great promise. Optimism abounds! But is no one looking at the fundamentals? Yes, losses were cut. But the company still lost $248 million in a single quarter. That's almost a quarter of a billion lost after the company has been slashing costs left, right and center. Debt of over $3 billion sits on the balance sheet. A balance sheet where liabilities exceed assets to the tune of $2.8 billion. Sales are anemic and while this might recover once consumer sentiment and the housing market pick back up, Wayfair is unlikely to get back to its heady growth rates of old as competition is intensifying. I'm all for optimism, but this is a company that, since 2019, has made collective losses of $3.2 billion and has only ever turned a profit during the exceptional period of the pandemic. The business model has not yet proved itself. Perhaps it never will. #retail #retailnews #furniture #home

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