Francesca Pompiano

11 years at Walmart ☕️ You would think that after all these years at the same company, I’d have it figured out, and that things would become somewhat constant. Well, as they say, change is the only constant and year 11 was no exception. In year 11 I started a new role, focused on a different industry, am managing a team for the first time, and best of all, became a dad of 2. I continue to find myself with more questions than answers, but as before, wouldn’t have it any other way. 11 reflections from Year 11: 1. Your prime earnings years are also your prime “Daddy can you play with me” years. Choose wisely. 2. Work is designed to be infinite. Create boundaries or you’ll become consumed. *Shoutout to Ethan Evans for this one. 3. The risk of work becoming your identity is real. On the flip side, work also has the opportunity to positively shape your identity. 4. Life is unfair. Sometimes to our advantage, and sometimes to our disadvantage. What matters is how we steward the opportunities we do have, and how can we create opportunities for others. 5. Becoming a leader of a team is more like a career change than a promotion. “What got you here won’t get you there”. You can’t do what you’ve done, just better. Your responsibilities are different altogether. 6. Most people are more interested in what you can do for them than what they can do for you. Cherish the ones that are the opposite. Be like them. 7. Compensation and title aren’t a reflection of a person’s worth. They’re imperfect indicators of economic or societal value. Treat people based on their inherent, human value. 8. It is easier to dismiss than to understand. Keep this in mind when encountering differing views. 9. Being Effective > Being Right. It doesn’t really matter if you’re right about something if you don’t do anything about it. 10. So much of business can be categorized as efforts of value creation and efforts of value capture. When in doubt, focus on value creation. What you can capture is limited by what you create, whereas what you can create is unbounded. 11. Seek to understand the “why” & “how” instead of the “what”. The what/outputs may be plainly visible, but it doesn’t give any indication as to whether the “how” is replicable or risk-free or if the “why” is values or strategy-aligned. A lot of other thoughts bouncing around but these are some of the ones that I’ve been chewing on. What resonated? What additions or edits would you make?

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Today Dan Mack and I facilitated a discussion with key 5 senior retail merchants on the Mindset of Tomorrow Merchants. The business is evolving and requires the modern merchant to consider industry dynamcis thus impacting their role, focus and strategy. 1) 9-in-10 consumers expect more value, while 8-in-10 state price is critical to their decision. 2) 8-in-10 want personalized solutions, while 9-in-10 believe the brand experience is as important as the product. 3) e-comm has tripled over the last 4 years, and retail media will be a quarter of all media within 4 years. 4) Consumers expect us to be in stock; we must build resilient supply chains Some notable panel takeaways: -Partnership equals performance. Working with Cross-functional teams make a difference. -Real-Time Data Is a Currency for Innovation -Face to face interactions make a difference -Speed up innovation and focus on business agility -Listen to the younger merchants, they have prespective on today's digital marketplace -Supply chains work best with efficient assortments /focus on what the consumer wants -does your supply chain have a contingency plan -Culture x Communication - Have smart brevity and don't hide behind words -speak with meaning -Most are using AI to help with thier internal process but not using the tools in a co-colloborative way with thier vendor partners #mindset #retail #leaders #thoughtleadership #merchant

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Will JCPenney's loyalty and rewards program be the key to its turnaround? It's mind-boggling how many brands and retailers do NOT have a loyalty program. Without a loyalty program, customers are just individual transactions, and there's no way to connect the same person from marketing to physical store to e-commerce. First-party data is gold and shoppers have shown they are willing to share information in exchange for personalization and promotions. What keeps retailers and brands from rolling out a loyalty program? #ecommerce #loyaltyprograms #firstpartydata

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What impact does leadership have on organizations? How are you leading your organization? How are you adapting and changing your leadership style to match what your organization is looking for?

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In this new Wisdom With, I get a chance to garner valuable insights from James Jackson who leads strategic development efforts for the Category Management Association and his thoughts on better retailer and buyer engagement. 💡 Understand your Category Manager/Buyer ↗ Retailer Category Managers are charged with meeting P&L objectives and not YOUR specific brand goals. ↗ Each individual brand (and item) must clearly serve a purpose and contribute to achieving his/her objectives. ↗ Learn their how they like to receive information and tailor accordingly. Avoid off-the-shelf presentations that lack any customization for the specific customer in mind. Canned pitches have a low success rate. 💡 You Must Be Compelling ➡ Weave great insights and your product offering into a clear solution that helps address their specific category or business objectives. Compelling stories should have: 👉 A recognizable conflict (example: “50% of shoppers in this category are struggling to find an x product to relieve this symptom”) 💪 A “hero” (your brand) 👊 A believable and profitable resolution (example: “By solving the conflict, it would bring an incremental $1M in margin to the category”) 💡 Help Drive Execution ↗ Your Customer is buried with data, multiple projects, and is continuously putting out a fire. ↗ Your goal shouldn’t stop at getting distribution, it should be to STAY in distribution. 💡 Assist your Category by making effective implementation easy. ↗ Recommend the POG changes and do the work in advance ↗ Target a smart cluster of stores to launch for higher likelihood of success ↗ Create a strong promotional plan to drive immediate proof of performance ↗ Offer sales/broker support to get things rolling #wisdomwith #betterperformance #retail #merchandising #data #storytelling

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This interview with Walmart CEO Doug McMillon is a #retail #masterclass. A bit of context and perspective, combined with a lot of detail about every aspect of their business — #merchandising, #SupplyChain, #stores, #digital / #omnichannel, #international, #technology, #marketplaces, #RMNs, and more. And this will make an excellent base prompt for a retail #AI assistant — one of my #WeekendProjects

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Delighted to see my co written article with Deena Pitzele of The Partnering Group covered by Store Brands. As we look at Walmart launch of #bettergoods and unpick some of our view on the strategy behind the aspiration of achieving a $3b brand and ~300 lines. Is it to target new customers from competitive retailers such as Trader Joe's and Kroger or having seen how the #ukretailers and #australianretailers built their different strategies to combat the aggressive growth of Aldi UK and ALDI Stores Australia in the market, the start of their strategy focusing on the growth go ALDI USA #privatebrands #privatelabel #retail #usaretail #groceryretail #ownbrand #customerfocused #foodanddrink #growthstrategy #discounter #ukretail #australianretail #brandstrategy #productinnovation #consulting Greg Sleter Prof. Consulting Group Deena Pitzele (PLMA) Private Label Manufacturers Association Australia / New Zealand Food and Drink Exporters Association (FDEA) https://lnkd.in/e7gqA_HQ

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My partner Sri Rajagopalan and I discuss the key reasons why Walmart is growing unit volume by being focused on value, digital growth and cost controls. Not only they are delivering great financials but also taking significant market share from rivals!! #WalmartGrowth #UnitVolume #RetailStrategy #ValueDriven #DigitalTransformation #CostControl #MarketShare #RetailSuccess #BusinessStrategy #FinancialGrowth https://lnkd.in/eqv6_mxT

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What if genuine consumer reviews could be the game-changer your retail strategy needs? Two of Doing Business in Bentonville's regular hosts debate, as Scott Benedict and Andy Wilson unlock the secrets behind harnessing the true power of user-generated content in this episode of "Digital Front Door." Join the two retail veterans as they explore the journey of UGC from simple product ratings to becoming an invaluable feedback engine that influences both online and in-store retail environments. Discover how UGC not only boosts SEO and product visibility but also serves as a goldmine of insights for product managers, guiding them in making informed decisions about both current and future products. #ugc #dbbnwa #omnichannelretail #digitalmerchandising

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This is the new normal. With omni channel concept traditional store or supply chain facility/warehouse manager role has significantly evolved. Now from physical store replenishment, inventory and POS management, managers must also juggle with online order and inventory accordingly. Imaging these new leaders almost like franchisee business owners. Very strong ownership also create big challenges with larger workforce, a suite of process implementation and technology+data. Plus side in addition to higher compensation is the growth in skillset and overall leadership and process & business knowledge. Of course the compensation has changed and will continue as standard, small format or hyper scaled stores and supply chain facilities adopt omni channel distribution, delivery and POS concept. This is just the beginning!! #store #supplychain #management #leadership

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Great Bloomberg op-ed on why investing in retail store leaders is good for business. I love Andrea’s callout that big investments can raise eyebrows with analysts – like increasing our average Walmart store manager salary to $128,000/year with a new bonus program that gives store managers the potential to earn up to 200% of their base salary. But in the long run, she shows how these types of investments support retention, career growth, better run stores, strong stock value, and our ability to attract a broader range of customers.   Here are a couple of studies that stood out to me in Andrea’s piece: 💠 A 2012 study by Alex Edmans, Professor of Finance at the London Business School (then at Wharton School), found that firms on Fortune’s list of “100 Best Companies to Work for in America,” which have superior employee satisfaction scores on factors including pay and benefits, outperformed peers by 2.3-3.8% per year from 1984 through 2011. 💠 A follow-up study by Hamid Boustanifar, associate professor at the EDHEC Business School, and Young Dae Kang of the Bank of Korea found that the relationship still held: companies on the publication’s list earned an excess return of 2-2.7% per year through 2020, with particular outperformance during tough times.   At the end of the day, these investments also support the ability to build a pipeline of strong talent that stays and grows with a company. We want Walmart to be seen as an employer of choice and pay plays a big part in how we attract and retain talented people. #Compensation #TeamWalmart https://lnkd.in/gPVdAYG4

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Target Pulls Out of a Sales Rut. Macy's Doesn't Target and TJMaxx are seeing impressive gains as shoppers hunt for deals. Target’s strategic price cuts have driven more store visits, leading to a 13% jump in shares. T.J. Maxx also raised its profit goals, with shares up 5%. In contrast, Macy's continues to struggle, reporting another quarter of declining sales and a 14% drop in shares. Target’s CEO, Brian Cornell, highlighted the resilience of consumers despite high #inflation, noting a 2% rise in comparable sales and a 3% increase in shopper visits. This growth comes after a challenging year with four consecutive quarters of declines. Shoppers are spending more on nonfood items like #apparel, showing that Target’s efforts to lower prices and introduce new items are paying off. Meanwhile, Walmart reported a 4.2% rise in U.S. comparable sales, and Amazon noted a shift towards deals and lower-priced essentials. Macy’s CEO, Tony Spring, pointed out that consumers are now more value-conscious, focusing on exclusivity and service rather than just price. Despite years of price increases, U.S. consumer spending remains strong. However, retailers like The Home Depot and Lowe's Companies, Inc.’s are seeing stagnant sales as shoppers hold off on big projects. #Retail #SalesGrowth #Target #TJMaxx #Macy’s #ConsumerTrends #RetailNews #BusinessUpdate https://lnkd.in/eSM2uQ85

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Amazon.com has been successful with many unusual strategies over the years, but one of the company’s most recent wins has been convincing retailers to undervalue their physical assets and focus on trying to compete in the online sphere. This focus on digital commerce has successfully distracted retailers from fully monetizing the massive opportunity already within their control — real estate and in-person consumer audiences — and instead shifted them to try and battle with Amazon in an arena that the brown boxes already dominate. #omnichannelretail #retailstrategy

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The next two months of the year are pivotal for retailers🚦 November and December can account for 20-30% of a retailer's annual revenue 🛍🎄 So far, 2024 has seen noticeable shifts in customer behavior. With rising prices, consumers are prioritizing essentials and spending less on discretionary items. Christmas sales will reveal what truly resonates with consumers—and where they're willing to invest their hard-earned money 💰 In this season, understanding these choices will be key for retailers aiming to adapt, connect, and thrive. Are you prepared for what customers really want this holiday season? 🎯 #ChristmasRetail #Merchandiser #ConsumerSpending

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2 really big things here: 1) Sam's Club is testing online-only items in a remodeled Dallas area Store. 2) Shoppers must use their Scan & Go app in that store, allows shoppers to ring up purchases as they shop and then exit without waiting in line to check out. Walmart is using their Sam's Club stores as pilot spaces to test new technology, formats, and processes: - Online-only items - this embraces showrooming while reducing space and potentially inventory costs to house physical items in large quantities in a large number of stores. Shopper want to see items IRL but are also now comfortable with them being shipped-to-home. - Computer vision exit tech (similar to Amazon's Just Walk Out tech) that eliminates employees checking receipts. - The Dallas-area store requires customers to use the app to shop and check-out. - About 50% of prior Qtr's new members are millennials or Gen Z. - About 30% of members currently use Scan & Go. - New Clubs will have a pizza robot that can make as many as 100 pizzas an hour. Really great to see a 41 year-old retailer embracing new technology and thoughtfully testing and learning to improve their shopper's experience. Well done Chris Nicholas and team. My key thoughts: > Many thought that Amazon's Just Walk Out tech would never work, but they and others will continue to iterate until it does. > Physical retail space will continue to evolve to experiential spaces to interact with products and brands, and away from organized inventory warehouses to pick your items from. > Retailers will continue to automate tasks away from humans in order to elevate the functions they can perform for their customers. > Membership retail, like Costco Wholesale, Amazon, and Sam's Club will continue to be a thing, leveraging membership revenue and scale to deliver value and exclusivity.

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In ORC, we are typically dealing with one case at a time. But one time, my team tried to run two cases simultaneously. 1️⃣ An interstate case with Homeland Security where we were trying to stage the transportation of stolen goods from out of state back to Texas 2️⃣ A local case in Birmingham, Alabama, where a fence was redistributing to flea markets We were strapped for resources, so we figured why not take our confidential informant (CI) to Birmingham and ship stolen goods over state lines from there? We worked with the Birmingham District Attorney’s (DA) office and set up our operation in one of their old offices. We had two rooms set up side-by-side. In one room, we were working with local Birmingham police and the DA, prepping to sell to the local fence. In the other room, we were with Homeland Security (HSI) and our CI setting up products to ship back to Houston. Due to scheduling errors or things moving too fast, we end up moving the goods at the same time! I head off to FedEx with HSI and our informant to ship the stolen goods back to Houston. And the local team drove the local stolen goods to the fence. So I had to hurry at Fedex. In the rush, I faceplanted while running out of the store. I cut my knee badly and was bleeding everywhere. But I kept going - I get in the car with my investigator and head off to the other transaction - the in-person sale to the local fence. I was in so much pain I grabbed an Advil from the stolen goods - don’t worry, we had a garbage bag full of it! We get the prepped bag (with a tracker) to a different local informant and bring him to the fence's house. Seven minutes later, the tracker started moving. A buyer showed up and bought the bag immediately. Product trackers have a short battery life, so we had Birmingham PD make a traffic stop on the side of the freeway and put another tracker on the buyer's car. That car went 1.5 hours outside of Birmingham to a flea market to sell the goods. Eventually, we busted all the parties involved in Birmingham, and headed back to Houston to surveil the CI getting paid for the shipped goods to make that arrest. There was a lot going on during this operation!  This could not have been accomplished without partner retailers, law enforcement agencies, and prosecuting authorities.  ORC is a team sport. #organizedretailcrime #ORC

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Since 2019, Kohl's sales have shrunk by $2.3 billion. That’s a pretty terrible number given consumer spending on retail rose by a dramatic $1.3 trillion over the same period.     The Kohl’s losses are a combination of existing customers spending less and the complete defection of some shoppers. Over the past five years, Kohl’s has lost 1.3 million customers: people who used to visit Kohl’s, but now they don’t. Most of these folks still buy things so it’s interesting to see where they’re now shopping, or shopping more at, instead of Kohl’s. The diagram below traces the defections. The most notable thing is the gains being made by off-price retailers. TJX – with its TJMaxx, Marshalls, and HomeGoods banners – is picking up a lot of trade. Ross, Nordstrom Rack, and Burlington are also in the mix. It’s no wonder off-price is doing so well when it’s gaining so many customers from chains like Kohl’s. What’s also notable is that online specialists don’t dominate. Amazon has picked up some trade, as has Wayfair, but neither are the main beneficiaries of Kohl’s woes. This underscores that the very simplistic narrative of ‘online killed…” is often far from the truth. It is also significant that Costco makes an appearance. Costco is a silent assassin. Many retailers don’t have it on the radar for non-food; but the reality is that Costco has a formidable non-food business. Retailers like Kohl’s don’t underperform because one large enemy comes in and swoops away all the custom. Their substantial loss of trade comes from many players nibbling away at their sales and market share. #retail #retailnews #departmentstores #wholesale #shoppers

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