Paul Fluhr

In my new Retail Insights column I look at what #Amazon Prime Day can teach about discount pricing, mobile commerce and promotions:

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Another AVN season in the books (exhale). Not surprisingly, 72% of brands faced some level of challenges within their negotiations compared to 15% citing collaborative or efficient AVNs. 14% haven’t resolved their AVNs yet. According to our benchmarking, negotiating favorable terms is the #1 challenge brands face during AVNs. What challenges did you face within your AVN? And are you curious how your Amazon AVN experience, terms, and profitability compare your peers? Join me and Martin Heubel next Tuesday 6/25 where we’ll dig into the full results from our AVN Wrap-Up survey of 250+ brands. Register here: https://lnkd.in/eAD48b_g We’ll be covering: ✅ AVN intensity ✅ 2024 trade term %s ✅ AVN impact to brands’ margins ✅ Key profit levers for the year ahead ✅ and a chance to ask ALL your AVN questions! A must-attend for 1P vendors. See you there!

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Creative thinking around the $620b in excess inventory that occurs annually in the US is great to see. It's almost 9% of all retail commerce. Kudos to Target to find off retail, and importantly "digital commerce" channels to move more of this excess inventory in a way that works for the brand as well as the habits of the consumer. https://lnkd.in/g4GhGghJ

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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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📺 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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She Biology Pop-Up at Anthropologie: A Case Study Target Audience Validation The women who shop at Anthropologie are typically 35 years and older. Anthropologie's price point begins at $108, making She Biology skincare a perfect fit with its mid-luxury skincare offerings with highest price point of $75. Given that Anthropologie is a luxury brand concept store, I decided to adopt a clean, minimalist aesthetic, highlighting the brand's packaging and incorporating plant-based wooden shelves for a cohesive look. Best Sellers Surprise, surprise—the Repair Hemp Retinol Face Cream was the standout favorite! On that chilly day in Charleston, women were seeking products to deeply moisturize their skin or to help them age gracefully. I chose not to offer any holiday discounts. Instead, we focused on the quality of our products, provided samples that demonstrated immediate results, and shared our compelling brand story. This approach proved effective—when the product is good, people will buy. Product Display Narcisa did a phenomenal job setting up the product display. The minimalist approach was key: less is more. We strategically placed the products near the fragrance shelves, where the soft pink gloss boxes and glass bottles with gold tops stood out beautifully. An iPad played "how-to" product videos on loop, adding an engaging touch. Next Time: Bring more samples. Bring more informational cards. I had a great time!! Definitely will do it again.

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The game is on. Web sites for giant corporations and your local autobody shop appear at the same size on all of your screens. In the brick and mortar world the difference can be tremendous. That difference is what Wayfair is shouting. "But Niraj Shah, CEO and co-founder, that stores are a critical part of Wayfair’s strategy. “Depending on what purchases someone’s making, they may prefer the in-store experience and getting to work with an associate.” And while Wayfair offers design and financing assistance online, “sometimes, in-store can be either more pleasurable or more effective.” The insightful Warren Shoulberg takes us through Wayfair's destination showroom and helps us gain an understanding of how this showroom was merchandised to help us all add just the right everything for our homes. Who are you betting on? The GIANT that is counting on a rising tide to raise all its boats or the coming swarm of nimble, laser focused stores that appear in this shadows. https://lnkd.in/gt-G8tAZ

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We all know that selling at the wholesale level is changing. With more and more retailers shopping on line platforms like Faire there is a need to drive retailers back to in person shows and working with local reps. There is so much that retailers are missing when both of these are skipped over. Movements like the #repsarelocaltoo are starting that conversation. It was my pleasure to interview Kelly P Bristol and talk about this important movement. https://lnkd.in/gxtUHCsp #retail #retailpodcast #design #display #merchandising #repsarelocaltoo

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An interesting report about the future of retail with Macy's, Nordstrom and Kohl's in the spotlight. The key to growth? Targeting Gen Z and Millennials without neglecting the original retail warriors, Baby Boomers. Nordstrom has been quicker to sign deals with hot brands and direct-to-consumer names, such as Skims, Kim Kardashian’s shapewear company and timed the debut of millennial-focused fashion brand Nasty Gal with an activation in Los Angeles coinciding with the Coachella music and arts festival. Kohl's has Sephora and Macy's has Blue Mercury. It will be interesting to see how department stores stay relevant to offset the convenience of online shopping.

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Here’s my own top 3 reasons more DTC brands are moving to Amazon. 1. New customers - Amazon has its own set of shoppers that don’t even consider things that aren’t sold on Amazon. I’ve seen very little overlap of .com and Amazon for my clients 2. Diversification - Having fewer channels means your more susceptible to disruption, a Google SEO algo change, a new buyer that doesn’t like your brand, etc- just limiting risk 3. Traffic costs- it’s not 2014 anymore where Facebook and Instagram ads can print money with even kind of decent creative. Google search is so saturated. CPCs are far higher now. Amazon has traffic flowing to it already, yes you need ads there too, but Organic rank is achievable for an established brand with a good product and proper strategy. Two of my most recent clients have DTCs that are multiples larger than Amazon but they understand they need to win on Amazon hence doubling down. #ecommerce #amazonfba #digitalmarketing https://lnkd.in/e77YmySW

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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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I've just published a new blog on the DIGITS site, where we delve into the recent Target Circle relaunch and its significant impact on the retail landscape. In this post, we explore:   - 1M New Signups since the relaunch  - A 20% increase in weekly offers  - 2.5X higher offer utilization with auto-apply  - Key insights on promotional spend and incrementality Plus, I share strategic tips on how to leverage these changes for maximum success. https://lnkd.in/g9PwNCMx

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Why do some brands that are BIG on Amazon end up FAILING at brick & mortar retail... while others end up SUCCEEDING? I'll tell you what I believe is the best way to tell whether a brand is likely to work on shelf or not... BRANDED SEARCH. First of all... what is branded search? Branded search is how many people are searching for a brand on a platform by name—e.g., searching on Amazon/Google/etc. for "Cheers pills" as opposed to "DHM pills". "Cheers pills", "Cheers restore", etc. = branded search "DHM pills", "hangover cure", etc. = non-branded search Non-branded search represents people who already know a brand they want to buy and are specifically searching for that brand so they can make a purchase. I was just at an Amazon seller conference and one of the presenters showed a chart of how "Magic Moo" (a colostrum supplement going viral on TikTok) is getting more branded searches than the entirety of "colostrum"-related keyword searches on Amazon. In other words, more people want to buy the brand than the entire category combined! Who do you think is driving all the awareness for the category? Clearly Magic Moo! They are almost single-handedly building the colostrum supplement market. They are the rising tide lifting all boats. You see this in history with people calling all bandages, "bandaids"... or internet searches, "googling"... or all sodas, "coke". Eventually other brands get into the category—but it's clear to who made the category in the first place. Branded search is the most representative proxy metric for understanding the awareness/demand of a brand that exists in the consumer consciousness prior to walking into a store. So you may see demand for a category growing... but then as a merchant/investor/etc. you need to pick which brands in that category to partner with. I would argue that the MOST IMPORTANT metric to look at is branded search. Packaging, price, etc. all matters too... but in context of demand. Many merchants have seen brands with TONS of Amazon sales fail on retail shelves. Why is this? Well, it's because some brands have become EXCELLENT leaches on Amazon. They exist to steal share of a growing category pie... but do not do anything to grow the pie themselves. So they may have half the sales of another brand on Amazon, but drive 1/10the the branded search. Or... if it's a big category. They could be the BIGGEST brand on Amazon, but they could actually have LESS branded search on Amazon than smaller competitors. In other words, they so effectively steal demand generated by others that they have become the biggest brand without even having to drive demand themselves. Branded search represents OFF-AMAZON demand. It's the key to understanding why some brands that do on Amazon fail at brick & mortar and vice versa. If you're looking to build a category on your shelves. Or if you're looking for traffic drivers. Then you need to look at branded search of the brands in the categories that you're considering!

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Who (and what) is hot in Commerce? 🔥 The National Retail Federation's annual Hot 25 Retailers list is an interesting peek into the retail landscape. As the article calls out “the thrill of discovery in real time” is a bit of a theme for 2024. Omnichannel is winning. eComm category disruptors are largely absent. And not surprisingly “never-know-what-you’ll-find” discount stores like Daiso USA, Five Below, ALDI USA, Burlington Stores, Inc. and Ollie's Bargain Outlet, Inc. continue to thrive in the current economic climate. Just for fun I went back and reviewed the past 5 years of lists, and the relative consistency was surprising. There are noticeable shifts aligned with macro economic and societal trends, but frankly less variation than I expected. Strong business models deliver consistent results. For me, the most intriguing trend is the entry of international companies and brands: Fast Retailing (No. 3, from Japan, with brands such as UNIQLO, Theory and HELMUT LANG); Primark (No. 4, with headquarters in Dublin); Cencosud S.A. (No. 18, from Chile); Inditex (No. 21, from Spain, including brands such as Zara); Daiso Japan UAE (No. 14, founded in Japan); and ALDI USA (No. 5, with headquarters in Germany). Combined with growth and success of Temu and SHEIN, it’s absolutely a space to watch. https://lnkd.in/epJkdgzD #NRF #Hot25 #Retail #Ecommerce #ConsumerTrends

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Building the capacity, namely the team, is a unique challenge to tackle for fast growing organizations like Emily McCarthy + Co. Did you get to listen to the conversation with Emily McCarthy ? https://lnkd.in/ev8GZAJr #retailgrowth #retailpodcast #scaleyourbusiness #smallbusinesspodcast

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"Demand can drop by 70-75% in a search channel without direct mail." The direct mail halo effect is real, and I've seen it ALL my brands, too. Steen and I chatted with Tim, CEO of CohereOne, arguably the leading catalog agency, about direct mail on the latest Nerd Marketing Podcast. Tim shared some incredible data around the power of direct mail, and it further confirms everything we see at PostPilot. Direct mail doesn't just crush it by itself, it makes everything else crushier. Check out the latest NerdPod to learn more from Tim and watch 3 direct mail nerds nerd out, link in the comments👇

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