Kevin Hofmann

"Just about every U.S. household purchased a private label item in the past year." Private label is here to stay and is only growing! Numerator's private label tracker provides an ongoing look at private label performance across product sectors, channels, and retailers, as well as consumer sentiment from verified buyers of store-brand products. Check out some of these highlights below:

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Private Label Growth: A Game Changer for Retailers? It’s impressive to see private label spending now accounting for 20% of the U.S. grocery market, with projections to reach 24% by 2030. As the report highlights, private label brands are becoming key drivers of customer loyalty and differentiation, which is crucial for retailers looking to build strong, profitable connections with their consumers. The rise of private label is a trend to watch closely, especially as major players like Kroger and Amazon Fresh continue to expand their private-label offerings. How will this shift impact the broader retail landscape?

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The proposed merger between Kroger and Albertsons is a prime example of how large-scale consolidations bring both opportunities and challenges. From antitrust concerns to regulatory scrutiny, the legal aspects of this merger will be pivotal in determining its success and impact on the market as these two companies attempt to profoundly reshape an industry that is so pivotal to the average consumer. https://lnkd.in/ez-8ikzH #MergersAndAcquisitions #AntitrustLaw #RegulatoryCompliance

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Target’s inventory levels increased faster than sales in the third quarter, but the retail giant reassured shareholders in its latest earnings call that it’s employing new metrics to balance inventory across in-store and digital channels. #supplychain #inventorymanagement #omnichannelretail #target

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This is an interesting article about "grocery" competition. This thought process also applies to brands and how you define competition. Time to think beyond how your product solution has always been defined and get into the mind of the consumer and their "job to be done"

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Our very own Steve Zurek, VP, Thought Leadership, was featured in a recent The Wall Street Journal article on the changing dynamics of grocery shelves. Steve provided key insights on the "tremendous amount of stress on shelves" in today's stores noting key trends such as reduced store space, increased presence of store brands and shifting consumer preferences. Our data is helping quantify these significant changes. Read the full article here: https://lnkd.in/e6C-jGfM #RetailTrends #ConsumerInsights #WSJ

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As the FTC challenges Kroger’s $24.6 billion acquisition of Albertson’s, arguing that it would reduce competition between the two largest traditional grocery chains, a core question of the debate is how to define a “grocery store” in today’s market.   In a “MULO + omnichannel” world – an industry term that describes consumers’ desire to shop at multiple outlets, methods or channels—Alvarez & Marsal Consumer and Retail Group's John Clear shares in Bloomberg ‘s recent article that “most grocery executives in the country are hyper-focused on what non-traditional segments are doing to take share from them” .   For CRG’s take on the merger see our latest thought leadership piece here: https://lnkd.in/epmfcfn7   Bloomberg news: https://lnkd.in/eAeUcNTB    #AMCRG #CRGTeam #Grocery

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Great article by McKinsey & Company! Adding my two cents, inorder to thrive in this challenging landscape, CPG/FMCG companies must break down data silos and foster a collaborative, data-driven culture. Investing in integrated data platforms and advanced analytics will unlock actionable insights, fueling innovation and growth. #CPG #FMCG #DataDriven #Innovation #Analytics https://lnkd.in/gBCgtgwi

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What Strategic Moves do Retail Suppliers need to make regarding the Walgreens Store Closures??? Here's a clip from the latest episode of "The Savvy Supplier Podcast"...

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Last month, Walmart reached its highest stock price ever. This accomplishment solidifies Walmart’s position as the leading retailer in the U.S., especially impressive in an era of high inflation and rising interest rates when consumers are tightening their wallets. How does Walmart manage its supply chain to handle such surging demand? Let’s dive into how Walmart successfully manages over 10,000 stores.

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Tariffs are one of the biggest issues on the agenda for 2025. As retailers report their results, we are hearing more about the potential impact. Walmart has said that there is no doubt tariffs will be inflationary and will lead to higher prices for customers. Home Depot is doing deep analysis by SKU level to look at the impact, though it sources more than half of its products from North America so it feels it can manage the shift. TJX took a more upbeat view. It admitted that tariffs could cause chaos in the supply chain, but felt this would help create some good buying opportunities for off-price stock. The important thing to remember - which does not seem to be appreciated - is that the importer pays the tariffs. That largely means it is a cost for American retailer and firms. I chatted with CNN about the impact and TJX's glass half full view. Link to article in the comments. #retail #retailnews #tariffs #inflation #prices #offprice #sourcing

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Groceryshop tech to watch bulletin#1: A lot being discussed at Groceryshop regarding in-store tech, and not just in the supply chain / inventory / fulfillment space but front of house, in-store experience. For me, the grocery shop has changed little since the days of Piggly Wiggly (and that was 1916!) with of course the exception of online shopping. But I wonder if all that is about to change? With that in mind, I'm focusing on the tech at Groceryshop which could transform our grocery shopping habits. Beginning with Instacart. I've encountered Instacart on several occasions before and always wondered how the shopping trolley would fare being dumped in a ditch? (maybe that doesn't happen in the US but it sure does in the UK!). But for some reason, this time around, it has caught my eye. Because at Groceryshop, Instacart unveiled its latest generation Caper Cart, including three new capabilities: * Gamification through in-store “quests” * Location-based coupons * New advertising options, including “aisle-aware” opportunities As reported by Groceryshop's Ben Miller: "All speak to the confluence of three major trends in grocery retailing; driving volume through next generation demand creation, digitizing the physical grocery store, and the development of Retail Media" Instacart said it will be rolling out these new capabilities to retailer partners Schnucks and Wakefern Food Corp., and is working with CPG brands PepsiCo and General Mills, at launch. Now, I find the prospect of gamifying the weekly grocery shop rather intriguing, not to say exciting. Of course, the new Caper cart is the physical manifestation of what is essentially a software development company, but is perhaps the thing that attracts the most interest, together with their Connected Store proposition. Definitely one to watch. Full details in the release 👇 https://lnkd.in/ed8sJrRN

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We are still using cash and this article indicates that retailers are resigned to continue to accept cash for the long term. What are the industry-wide options to eliminate the need to continue to use cash for retail transactions? Why do we want to get rid of cash? · It’s legal tender and anyone that has it owns it, even if it’s not theirs. There is no protection against loss. · Retail stores are exposed to hold ups and internal theft. Cash is the first to disappear from cash drawers. · Cash purchases are used by criminal entities to ‘cleanse’ illegally obtained cash. Who needs cash, anyway? There are two groups; those who only have access to cash and those who would like to not need cash at all. · Those who have not established a checking or a credit card account, also referred to as ‘the underbanked.’ · Those ‘fully banked’ who would like to tip the doorman, parking lot attendant, or crew at the carwash. What optional payment types are available to deal with the question? There are several ‘instruments’ that obviate the use of cash, if not the occasional need for cash. · Credit cards · Debit cards · Gift cards · Electronic payment instruments backed by Debit/Credit cards such as Venmo, Zell, Google Pay, Apple Pay, etc. For the occasional cash tip, alternatives exist but are not widely embraced. In some segments (think carwash), customers could add a tip electronically. But the employees entitled to the tips, would rather count the cash at the end of a shift than rely upon their employer to add the electronic tips, divide them proportionately, and include that amount in the employee’s paycheck. In parking garages, the customer could leave an electronic tip for the group using a smartphone and, again, the garage management would divide the tips proportionately. What to do about the consumer demographic with no checking or credit card account? For many retail stores, this is not an issue. Its customers don’t use cash, or could be persuaded to not use cash without relying on credit e.g., use a debit card. For a significant many other establishments, whose customer is the underbanked demographic with little or no access to credit, the elimination of cash today would be a big problem. One solution could be a stored-value card, that this demographic would purchase at no cost, with cash, at a kiosk or at a bank, and use as then-accepted tender at all No-Cash retail stores.  The challenge, of course, is for the banking institutions issuing these cards to make money without charging for the card, or maybe charging a minimal, nominal fee. The banks are not there yet. The retailers forced to accept cash are not there yet, although they might want to be. The technology is available but not implemented. Conclusion As with many changes and evolution we have witnessed in relatively few decades, the financial and payment-systems businesses will figure out the solution to having a truly cashless society, aided by retail trade groups.

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🍊 Supply chain friends, join me Monday on the Blueberry 🫐 stage at Groceryshop 2024 for the track keynote, "Building Flexible and Efficient Supply Chains". This discussion features industry leaders who are reshaping the future of supply chain management:  🫐Nitin Murali, VP, Supply Chain Excellence, Gallo   🫐Bret Celmer, COO, The Rounds    We will discuss insights on creating agile and responsive supply chains that can meet the demands of today’s dynamic market. This session will provide valuable perspectives on leveraging technology and innovation for enhanced efficiency.   📅 7th Oct, 2024  📍Location: 🫐 Blueberry Stage at #Groceryshop2024   Don’t miss out on this opportunity to learn from the best in the business!   #SupplyChain #Innovation #RetailExcellence #Capgemini

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Great article about total retail store layout and shopper experience. Some Key Themes: -Know your shopper -Consider flow and shopping rhythm -Product placement/accessibility -Cross merchandising and adjacencies -Functional/Engaging/Interactive merchandising -Consider ways to add incremental value to the shopping experience #shoppermarketing #consumerbehavior #consumerinsights #omnichannelretail #innovation #consumergoods #shopperinsights #shopperexperience #futuremarketing #retail #retailmarketing #retailexperience #brandbuilding #branddesign #branddevelopment #brandidentity #brandimage #retailexperience #retailmarketing #shoppingexperience https://lnkd.in/gXR9g6fn

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It was great to chat with CFO Brew about the latest US retail sales numbers. As I note in the article, the March numbers were solid; but they fall short of being spectacular. That’s still a win for retail, but there are some underlying signs of a modest slowdown: 📉 Over the past year, retail sales have grown by an average of 2.8% a month. In March they grew by 2.4%. That doesn’t sound too bad, but as March was boosted by an early Easter growth should have been a lot higher to keep track with the trend. Indeed, once the impact of Easter is stripped out, sales grew by 1.3%. And that’s the number that should really be compared to the 2.4% average growth. 💄 Beauty and personal care stores saw sales decline by 0.3% which is unusual for a sector that has traditionally been one of the best performing in retail. From our consumer data, we see there was a pullback on beauty spending in March as consumers tried to budget more effectively and to balance their spending on apparel and dining out with cuts elsewhere. 🏠 Unsurprisingly, home related categories continue to fare badly. Sales at furniture and home furnishings stores fell by 8.0%, while home improvement retailer revenue slipped by 7.3%. Even electronics stores, which usually get a boost during tax refund season, saw sales decline by 1.5%. The sluggish housing market is still sapping demand, as is weaker confidence in making big-ticket purchases. We are still early in the year, so we need to see how these things trend over the next quarter. It’s also worth noting that none of this spells disaster; indeed, with everything going on, the consumer has been remarkably resilient. However, we are moving to an environment where doing more budgeting and making more choices about what they spend their money on. More in this article... https://lnkd.in/eBi65sZi? #retail #retailnews #retailsales #economy #consumers

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A new survey provides insight into retailer supply chain concerns for the upcoming holiday season https://lnkd.in/efcnK5C2 More than one-third of the retailers surveyed will be implementing the latest automation technologies to manage last-minute order surges (42%) and hedge against rising costs (35%) #retail Chain Store Age

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Walmart is introducing electronic self edge labels across its stores. The roll out will be complete by 2026. Of course, rumors are now flying that Walmart will introduce some kind of dynamic or surge pricing. Personally, I don't buy it. Walmart has spent years and years building up trust with the consumer on pricing. Indeed, low prices are one of Walmart's key points of differentiation. Why on earth would it put all that at risk? No, this is about one thing: reducing the amount of time and money spent on changing tickets manually. Across all of its stores, Walmart can save a heck of a lot by making this switch. I chatted with CBS News about the move... https://lnkd.in/eFmwmjGp #retail #retailnews #pricing #digital #Walmart #grocery

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