Neil Stern

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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Walmart is benefiting from a flywheel effect driven by three major trends. Firstly, inflation is attracting more customers to the retailer as they seek refuge from high prices elsewhere. Walmart aims to remain a low-price option for customers during inflationary periods. Secondly, the growing number of customers shopping online allows Walmart to lower the relative cost of offering goods and services, particularly through densification and efficient delivery. Additionally, customers who order online and pick up in-store often make additional purchases, resulting in negligible fulfillment costs. Lastly, Walmart reinvests the savings from lower costs into price cuts, with around 7,000 items currently being offered at reduced prices. These strategies, combined with improvements in the store fleet and merchandising, attract more customers and create a cycle of success. This approach is particularly effective during uncertain times in the consumer economy. #walmart #flywheeleffect #inflation #onlinebusiness #reducedprices

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With sustained inflationary pressures into early 2024, the consensus in the convenience store industry is that the consumer is looking for value with nearly every dollar they spend, according to the Convenience Distribution Association (CDA). Convenience stores typically do not have the lowest price on consumables such as candy, milk, soda, or various sundries. The trade-off on prices is the quick in and out parking at the door. #convenienceretail #consumerinsights

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Here are some interesting stories from the world of retail for Wednesday, August 7: 🥕 Shares of Instacart  jumped in extended trading Tuesday after the company forecast gross transaction value above Wall Street expectations, and as it looks to partner with bigger retailers and banks on more restaurant orders. ✂️ Kohl's has announced changes to its credit and customer service departments, resulting in job changes and eliminations. It has informed a few dozen employees in customer service that their jobs are being eliminated. 👟Under Armour is acquiring Unless Collective, a zero-plastic regenerative fashion brand founded and led by Eric Liedtke, a former Adidas executive. The deal is expected to be completed later this week and Liedtke will join UA. 🥫 Ahold Delhaize has reported a net second-quarter profit of €499m ($545.5m), up from €468m a year earlier, boosted by an underlying operating margin of 4.2%, beating the 3.9% expected. 🍕 Yum! Brands has reported a mixed quarter as both Pizza Hut and KFC reported declining same-store sales. But sales trends have improved in the U.S. compared with the prior quarter thanks to a focus on value meals. 💵 Pop culture toy maker Funko has agreed to pay over $2.1 million in plaintiff legal fees to resolve litigation alleging that former Funko CEO Brian Mariotti and others leading the company breached their fiduciary duties. 💳 Americans are increasingly turning to their credit cards to cover everyday expenses, with debt hitting a new record high at the end of June. Americans now owe a record $1.14 trillion. 📺 The Walt Disney Company said it would raise prices for nearly all of its streaming plans and introduce “continuous playlists” — channels showing a steady stream of curated content — on Disney+ later this year. 👚 Joining a wave of other retailers implementing AI technology, ThredUp has launched multiple new artificial intelligence-driven shopping tools to improve product discovery on its platform. 🍔 White Castle slashed the price of its famed sliders to the lowest level in more than a decade, becoming the latest fast food chain to offer a discount in a bid to entice financially strapped customers. 🏬 Simon Property Group has reported increases in leasing volumes, occupancy, shopper traffic and retail sales volumes, resulting in the highest level of Q2 real estate net operating income in its history. 🇪🇺 Eurozone retail sales were 0.3% lower in June than in May, figures from the European Union's statistics agency showed Tuesday, bucking economists’ expectations for a continued rise in sales. 🇧🇩 H&M has told its suppliers in Bangladesh that it won’t seek discounts due to delays that might occur after factories were shut down by protests involving supporters of ousted leader Sheikh Hasina. 🍎 Apple retail store workers in Towson, Maryland, the company's first in the nation to unionize, have ratified a three-year contract. #retail #retailnews #economy #DailyRetailNews

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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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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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Walmart Delivers Strong Q3 Results Fueled by E-Commerce Growth and Operational Efficiency • Walmart U.S. e-commerce sales grew 22% in Q3, driven by store-fulfilled pickup, delivery, and marketplace purchases. • Total revenue for the quarter increased by 5.5%, while comparable sales rose 5.3% year-over-year. • Operating income surged 9.1%, boosted by higher gross margins, membership income, and lower e-commerce losses. • AI technology streamlined catalog enhancements, improving over 850 million pieces of data and significantly reducing labor needs. • Walmart Connect’s advertising business saw a 28% global increase, with U.S. growth at 26%. • Sam’s Club e-commerce sales rose 26%, with gains in grocery, food, health, and general merchandise categories. • Walmart has raised its FY25 guidance, forecasting 4.8%-5.1% net sales growth and 8.5%-9.25% adjusted operating income growth. What it Means: ✅ Walmart’s investments in e-commerce and technology continue to drive growth, underscoring the importance of convenience and digital innovation. ✅ Increased use of AI demonstrates a commitment to efficiency and scalability in retail operations. ✅ Strong growth in advertising and membership income highlights the diversification of Walmart’s revenue streams. ✅ The performance of Sam’s Club indicates the resilience of warehouse formats and strong demand in grocery and health categories. ✅ With an upgraded FY25 outlook, Walmart signals confidence in sustaining its momentum into 2024. Progressive Grocer | https://lnkd.in/g-NjeJ92 #retail #supermarkets #ecommerce #Walmart #supplychain #businessgrowth #earnings

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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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While May eGrocery results slipped slightly YOY, it could've been down more. Strong promotional efforts, designed to lock-in Delivery customers drove a surge in MAUs for the method. However, lower order frequency muted the impact of users on sales. The latter suggest that cost considerations have become more important for some, who generally fall in the lower income groups, as their share of spending online has declined for three straight years now. Also, looking back at over three years from Brick Meets Click monthly sales results shows that May consistently is the slowest period of the year in terms of sales, likely due to schools ending for the summer and daily routines adjusting to a different tempo. And, based on the sales patterns since '21, we'd expect - baring some unexpected event - sales to hover around the $7B level through July. Lastly, with interest rates likely to remain elevated for some time, it's vital that grocers continue to unlock and highlight more ways they're helping customers save money when shopping online. Empowering customers to make trade-off decisions is one way that is under-utilized today by grocers, which in turn enables the retailers to improve operational efficiencies. Another to consider designing subscription/membership programs that include or focus on Pickup as most supermarkets charge a service fee for this service. And, to the last point, Mark Fairhurst, from Mercatus Technologies Inc, who sponsors this ongoing research, touched on another important opportunity in the release. He mentioned, "While digital deals are a good start, it's crucial to focus on more targeted, personalized, contextual offers based on past purchases . . ." This not only helps customers save money, but it also helps to provide more meaningful engagement, which will help retain existing customers.

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Here are some interesting stories from the world of retail for Wednesday, June 26: 🎯 Target has made C-suite changes to support profitable growth. Christina Hennington will become chief strategy and growth officer. Rick Gomez will become chief commercial officer. Both roles are new and are effective July 7. 🛍️ July is shaping up to be a hot month for shopping. Target Circle Weeks joins Amazon Prime Day and Walmart Deals as events for bargains on electronics, clothing, back to school items and more. 👩🏽‍⚖️ A class action lawsuit claims Nike CEO John Donahoe misled investors about the success of its DTC strategy. The complaint was filed on behalf of investors who bought Nike stock between March 19, 2021, and March 21, 2024. 💳 A federal judge on Tuesday rejected a $30 billion settlement that would have capped the fees Visa and Mastercard charge to merchants for credit and debit card purchases. 👖 Gap Inc. stands to gain from the back-to-school season, increasing relevance at its namesake stores, a product refresh at its Old Navy stores and early signs of improvement at its fitness brand Athleta, analysts say. 👨🏻‍💻 Hackers have been attempting to sell Neiman Marcus Group shopper data stolen in a recent database attack. The data breach impacted 64,472 people and the types of personal information affected varied by individual. 🧴 Stripes Beauty, the wellness lifestyle brand founded by actress and women’s health advocate Naomi Watts, has been acquired by private equity firm L Catterton. 🪁 Toys"R"Us premiered a short promo film at the 2024 Cannes Lions Festival in France that was created almost entirely by using OpenAI’s new text-to-video tool. 📉 US consumer confidence teetered slightly in June as Americans grew a little warier about the future, new data released Tuesday showed. The Conference Board’s latest consumer confidence index dipped to 100.4. 🥤Starbucks has launched a drink called Iced Energy, which has up to 205 milligrams of caffeine in it — the equivalent of six cans of Coke. It debuts less than two months after Panera dropped similar drink because of health dangers. 🚘 CDK Global, the retail software provider behind the massive auto dealer outage, says it doesn’t believe its systems will be back online before June 30, a major blow to car buyers and sellers. 🍟 Fast-food jobs have increased in California since the state implemented a $20 minimum wage across the industry despite claims by trade groups that say the hike has hurt franchisees and their employees, according to BLS data. 🚙 June new-car sales are expected to come in slightly higher than May, wrapping up a first half of the year that is also forecast to be a bit better than a year ago, even as interest rates and prices keep some buyers sidelined. 🚚 Grubhub has partnered with Albertsons to offer grocery delivery services. This partnership marks Grubhub's first national grocery partner.  #retail #retailnews #economy #DailyRetailNews

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“Widespread adoption of digital price tags appears poised to enable large grocery stores to squeeze consumers to increase profits.” Having just returned from Paris, I can report that virtually every grocery chain has “widespread adoption” of #ESLs. And no signs of price squeezing. This is the sequel to the #WendysSurgePricing uproar from earlier this year. And hopefully will fizzle out just as quickly. https://lnkd.in/ec9V8sha

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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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Here are some interesting stories from the world of retail for Saturday, May 18: 🛋️ Dallas-based At Home Group Inc. has a new CEO with plans to grow the 266-store chain. The retailer’s store count has stalled in the past three years since it was taken private. 💰 Higher-income consumers may be creating a frothy situation at Walmart. Even though affluent shoppers helped drive the retailer’s latest beat, former Walmart US CEO Bill Simon warns they’ll be hard to keep. 💳 Shoppers are taking on credit-card debt to buy groceries. A new report from the Urban Institute found that 20% of adults who paid for groceries with a credit card in 2023 didn’t pay off their full balance. 🥗 The UK's Asda reported a 6.6% rise in revenue to £5.3bn in the first three months of the year. Food sales rose by 1.3% after the launch of a price match scheme against Aldi and Lidl. 🪑 Furniture sales, which hinge largely on the housing industry, are still down this year. The furniture industry’s recovery partly relies on customers getting used to paying more. 🚴🏽‍♀️ The pandemic bike boom is now a bust for local shops. Bicycle makers are now slashing prices to clear out excess inventory. In 2023, bike sales totaled $4.1 million, up 23% from 2019, but down 24% from 2020. 🎮 GameStop’s stock fell 19% early Friday, after the video game retailer and key meme stock issued a profit and sales warning for the first quarter and also filed to sell more shares. 🚚 The latest shipping data is beginning to reveal what US retailers expect from shoppers during peak season — a discerning American consumer looking for deals and discounts in the mid-range price category. 🌈 LGBTQ leaders who not long ago considered Target one of their greatest corporate allies have begun to question the retailer's values after the announcement it would no longer sell Pride merchandise in all stores. 📈 Chinese online retailer JD.COM has reported first-quarter revenue that exceeded market estimates, thanks to deep price cuts that boosted sales. The company's net revenue rose 7% to 260bn yuan ($36.02bn 🇮🇳 Reliance Retail has announced a partnership with British online retailer ASOS.com to sell its products in India. The collaboration is part of Reliance's strategy to bring international brands to the Indian market. 👨🏻‍⚖️ A customer has filed a class-action lawsuit against Dolce & Gabbana USA, claiming that the non-fungible tokens (NFTs) he purchased for $6,000 lost 97% of their value due to delayed delivery. 🇨🇳 The Made-in-Russia Goods Mall has opened in Harbin, China, attracting over 80 Russian manufacturing enterprises. #retail #retailnews #economy #DailyRetailNews

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Aloha Friday! 🤙🏼 Here are some interesting stories from the world of retail for Friday, May 10: 👨🏽‍⚖️ Former retailer Bed Bath & Beyond has filed a lawsuit against Hudson Bay Capital Management, seeking to recover over $300m in trading profits from the hedge fund. 🥕 Instacart reported strong first-quarter results, as the company’s total revenue, number of orders and gross transaction volume were all up sharply year over year. On the bottom line, net income came in at $130,000. 👜 Tapestry, the parent company of Coach, Kate Spade New York and Stuart Weitzman, has expanded its outlet strategy and overall marketing spending in response to evolving consumer behaviors. 👠 Salvatore Ferragamo booked lower revenue for the first quarter, weighed by a weak consumer environment in China and the soft performance of its wholesale channel. Revenues totaled €227m in the first three months. 👓 Warby Parker’s revenue jumped 16% in the first quarter of the year as other brands in the sector struggle to grow sales. The eyewear seller expects full year sales to climb as much as 13 percent to $761 million in 2024. 👨🏻‍💻 Online retail sales in the US have increased by 7% from January to April 2024, driven by strong demand for groceries and cheaper discretionary items, according to an Adobe Analytics report. 🏋🏼‍♂️ The Planet Fitness $10-a-month membership plan is a powerful marketing tool and a central part of its strategy. But the largest gym chain in the United States is hiking that monthly fee for the first time in more than two decades. 🌈 Target has Pride merchandise in fewer stores this year after backlash it received caused it to pull some items from last year's collection. Last year collections went into all stores; this year they will go into select locations. 🍷 More Americans are making lifestyle changes, consuming fewer alcoholic beverages and switching to non-alcoholic brands that resemble booze-filled cans and bottles. 🍏 Apple has apologised for an ad for the new iPad Pro, following criticism for its depiction of an industrial compressor flattening tools for art, music and creativity. 🍓 ALDI USA plans to pass along $100m in savings to customers by reducing prices on over 250 items. The company aims to help customers save money amid concerns of persistent inflation. 🍔 Many consumers are expressing frustration at the surge in fast-food prices, which are starting to scare off budget-conscious customers: about 25% of people who make under $50,000 are cutting back on fast food due to costs. 🧸 Funko taps former Hasbro executive as CEO: Cynthia Williams served as president of Hasbro’s Wizards of the Coast and Hasbro Gaming units until she resigned last month. 🚛 DoorDash and Uber are pushing back against measures that set a minimum pay standard for delivery drivers in Seattle. NYC and Seattle are the first two cities in the US to pass a minimum wage law for food gig delivery workers. #retail #retailnews #economy #DailyRetailNews

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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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