David Ritter

What does it take to create value in the intensely competitive retail industry—especially if you’re not a big retailer? Our recent analysis of more than 280 publicly traded retailers reveals that, through bold action and disciplined execution, retailers of all sizes can become high-performing value creators—and can even move from the bottom quartile to the top quartile. Check out our latest article, "Retail’s outperformers: Lessons in value creation" for a blueprint on how retail executives can realize the full potential of their businesses, regardless of their starting point.

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What does it take to create value in the intensely competitive retail industry—especially if you’re not a big retailer? Our recent analysis of more than 280 publicly traded retailers reveals that, through bold action and disciplined execution, retailers of all sizes can become high-performing value creators—and can even move from the bottom quartile to the top quartile. Check out our latest article, "Retail’s outperformers: Lessons in value creation" for a blueprint on how retail executives can realize the full potential of their businesses, regardless of their starting point.

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In the intensely competitive world of retail, how can smaller players create value? We've analyzed over 280 publicly traded retailers and the clear takeaway from our analysis: scale is not destiny. Subsector dynamics notwithstanding, a retailer has ample control over its value creation trajectory. Retailers of any size, if they make bold moves, can become top-tier value creators—even if they’ve historically underperformed. Read our latest article, "Retail’s outperformers: Lessons in value creation," to learn how retail executives can unlock their businesses' full potential, no matter where they begin.

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In the intensely competitive world of retail, how can smaller players create value? We've analyzed over 280 publicly traded retailers and the clear takeaway from our analysis: scale is not destiny. Subsector dynamics notwithstanding, a retailer has ample control over its value creation trajectory. Retailers of any size, if they make bold moves, can become top-tier value creators—even if they’ve historically underperformed. Read our latest article, "Retail’s outperformers: Lessons in value creation," to learn how retail executives can unlock their businesses' full potential, no matter where they begin.

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Instacart continues to outperform with a double (top- & bottom-line beat). Rare for a tech company that IPOed only back in Sept 2023 Instacart also announced a new partnership with UBER for restaurant delivery 'that will have positive unit economics from day one' (Instacart CEO, Fidji Simo) It now counts >600,000 Instacart shoppers picking online orders in store. Impressive Stock price since IPO is now up 15% Time for all FMCG companies to craft their Instacart strategy & leverage its unique assets/ capabilities. Exciting times Full Q1 results in details: • NR: $820M (Transaction NR: $603M, +8% y-o-y | Advertising NR: $217M, +9% y-o-y ) • GMV: $8,319M, +11% y-o-y • NR OSG: 8.0% • GM%: 75%; -200 bps vs Q1 FY23 • A&P: 22.4%; +180 bps vs Q1 FY23 • Adj. EBIT%: 24.0% | $198M; +17% y-o-y abs. growth 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀/ 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y #fmcg #ecommerce #cpg The Coca-Cola Company Nestlé Procter & Gamble AB InBev Kraft Heinz Unilever L'Oréal General Mills Campbell's The HEINEKEN Company Diageo Pernod Ricard Mondelēz International Danone Bel Henkel PepsiCo Coty Reckitt The Estée Lauder Companies Inc. https://lnkd.in/e8RmhfCx

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Dollar General is enhancing its retail media program by teaming up with solutions provider Criteo. The commerce media platform will work with the retailer's Dollar General Media Network (DGMN) arm to support onsite sponsored ad offerings. Through this arrangement, brand partners can access inventory and campaign execution and utilize Criteo’s self-service demand-side platform. Among other capabilities, brands can leverage DGMN’s inventory within their private market through Criteo’s retailer monetization platform. In addition, the technology enables brands to reach Dollar General’s digital customers who often build lists online before making their weekly in-store purchases. Omnichannel insights will be available for marketers to see if sales are taking place online or in-store. | Progressive Grocer https://lnkd.in/gATgumgr #retail #retailmedia #grocery #shoppers #media #digital

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50% of retail executives expect significant change to their business model in 2024. It’s not surprising when you consider how the retail landscape is changing due to the digital revolution, consumer behavior change, geopolitical tensions, and economic pressures. To survive this new reality, retail leaders must take radical steps to refocus or completely transform their businesses. We've partnered with World Retail Congress on a report exploring 6 trends reshaping the industry, and what retailers can learn from the disruptive companies who are leading the way. Read the full report here:

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📺 Steve Liesman recently gave a good breakdown on the state of retail, the shopper, the economy on Squak Box. 📊 Full National Retail Federation report for March here: https://lnkd.in/eQS8Vm9a 🛍 In short, consumer spending has been surprisingly solid. There is a risk that it drops, but that is not a weakness as of the latest reporting. 💸 That said, one thing which is a struggle for retailers is MARGIN. Labor costs are up and inflation is hitting supply side hard. Consumers are hunting value right now more than usual, so there is a lot of pressure from both sides squeezing out the margin. This makes it most imperative to align limited resource to sources of value as a retailer. 🔎 I have been developing tools and implementing practices with my data team to empower small business retailers to be able to identify and label the diverse customers in their customer base and execute strategy which acquires, develops, and retains high-value. 💡 We can get through this - we've just got to use our data to focus our resources! #usretail #useconomy #retailbusiness #smallbusinessstrategy

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Provocative piece from EY Consumer / Retail thought leaders, Steven Bailey, Isaac Krakovsky and Tony Guerrero on the importance of retailers rethinking their omnichannel strategies, particularly in light of increasing expectations from consumers and the ability for those same consumers to interact with retailers in numerous ways. Connecting with consumers in real time with the right message to create moments that matter is critical for consumer products companies and retailers alike. When consumers are choosier about who they listen to, brands and retailers must strive to appeal to and engage them in new ways to stay relevant. Steven, Isaac and Tony lay out a number of core foundational imperatives for retailers to consider -- and while many have made strides in some of these areas more work remains. #EY #Consumer #Retail #ConsumerEngagement #BrandStrategy

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DTC/Digital Native Brands struggle to achieve scale. CPG portfolio's are stagnating. Consumers are trading down, and retailers owned brands are disproportionately growing. Target, Costco, Trader Joes, and Aldi owned brands are winning. Now Walmart has launched a formidable new elevated basics brand, BetterGoods. The best way to beat the Amazon/Temu/Shein/TikTok marketplaces is to sell products they don't have.

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Target continues to underperform arch-rival Walmart: 10 consecutive quarters of unfavorable comp store sales, as Walmart thrives. (See chart below.) Excuses about consumer buying pattern are getting tired. It is time for Target rethink its strategy to get competitive once more.

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The customer may always be right—but retailers who can’t keep pace with constantly changing expectations won’t hold on to their customers for long. Today’s consumer landscape is anything but predictable, and the AlixPartners 2024 Consumer Sentiment Index proves it. We surveyed 9,000 shoppers across nine major fashion sectors, and the message is clear: consumer preferences aren’t just evolving—they’re diverging dramatically across demographics. Consumers are back in stores but increasingly frustrated. Inconsistent pricing, poor service, and inventory shortages are undermining the experience, and they’re clear about what they want: reliable service, quality products, and seamless access. Are the brands stepping up? Take a sneak peek of the findings below, and you can download the full report here: https://lnkd.in/exZ4pQB4 A huge thanks to the AlixPartners team for making this possible, especially Sonia Lapinsky, Sabrina Shintani, Lisa B., and Abby Sattler.

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As I've shared previously, modern grocery stores must be purpose built (or remodeled) to: -Surprise and delight all 5 senses while shopping ---store fit out and merchandising matter more than ever -Enable efficient picking for delivery and curbside (back room)---MFC or other tech supported solution (think ai/cv like VusionGroup, Badger Technologies, TakeOff, Simbe, etc) -Enable both prepared foods for in-store concepts and ghost kitchen (back room) for day-part meal delivery (think Kitchens United) -Allow for a coffee moment in the store --local is ideal It sounds like Wonder may be part of that architecture, and remains to be seen whether Amazon has the vision to develop a truly delightful, tech-enabled, modern #grocery store. Eric Rimling Jonathan Goodman

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Rather than running headlong into the holiday season, consumers are showing more trepidation than usual, AlixPartners' 2024 Retail Holiday Outlook finds. Consumers say they will start their holiday shopping later than last year, spend less (for 2% to 5% growth over 2023), and look to promotions for over half their haul. For a look at the dynamics of a trimmer holiday season, read our September Retail Viewpoint or get in touch to find out more about the nitty gritty of a leaner consumer stance: https://lnkd.in/eGMdt6UW

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Rather than running headlong into the holiday season, consumers are showing more trepidation than usual, AlixPartners' 2024 Retail Holiday Outlook finds. Consumers say they will start their holiday shopping later than last year, spend less (for 2% to 5% growth over 2023), and look to promotions for over half their haul. For a look at the dynamics of a trimmer holiday season, read our September Retail Viewpoint or get in touch to find out more about the nitty gritty of a leaner consumer stance: https://lnkd.in/eg5WUShp

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‘What will it take for the consumer goods industry to turn its fortunes around?’, this podcast asks. 🛒    One interesting trend Jessica Moulton highlights is in the role of small brands. Pre-COVID, they were disproportionately capturing growth, but the pandemic made retailers and investors step back.     Now, the ‘explosion of small’ may come back – and it’s an opportunity that smart CPGs are looking to own in their categories.    This is a great discussion for retail and CPG leaders seeking to revive growth and reduce costs. Check it out. 👇    #CPG #B2B2C #Retail #Growth

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With Black Friday and Cyber Monday behind us, the holiday shopping season is in full swing. Which retailers will capture the hearts—and wallets—of consumers this year?   Our Fashion practice’s new Consumer Sentiment Index reveals fresh insights into what’s shaping consumer behavior right now.   Retailers, take note: delivering consistent, seamless experiences has never been more critical.   Dive into the full findings here: https://lnkd.in/exZ4pQB4

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Retailers, buckle up for an exciting yet challenging holiday season. BCG’s 2024 Holiday Outlook highlights a shorter shopping window, rising inflation, and evolving consumer behaviors that will make this year’s season highly competitive. Despite a modest growth forecast, there’s plenty of opportunity for brands to connect with consumers—especially through digital channels during the weekdays.​ Learn more in this @WWD article featuring @BCG on Consumer's insights on how to thrive this holiday season: https://lnkd.in/euJjpmbd  

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For a minute this headline reads as an industry threat. And it is, but only for big / legacy CPG brands. I see the increase in private label offerings as a warning sign to large strategics, and a win for premium and emerging companies. Private label options, yes, cut into share of legacy brands that aren’t that innovative, lack compelling attributes, and have been raising their prices steadily over the last 3 years purely to extract margin. Best example of this is Campbell's: at the time of their Sovos Brands purchase, Prego was growing just 1% annually. Rao's Specialty Foods, Inc. (prime Sovos asset) continues to grow 38% YoY after 20 years in market. Customers loyal to Rao's would never trade down to a private label sauce. And Campbell's isn’t worried about store brands pulling from premium, differentiated, beloved products like Rao’s. They’re worried about their cheap, commodity brands that have lost their luster. $2.7B worth worried. I think this bodes well for M&A in the coming years and growth among insurgents. Quality and brand affinity wins. Great piece, as always, from Jesse Newman and Stephanie Stamm. https://lnkd.in/ecB3wrQD

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