Shelley Bransten

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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Retail's next big growth play is hiding in plain sight - right on store shelves. Coresight Research data shows that smart retailers are doubling down on in-store tech. As of Q2, about 50% have invested in solutions targeting: - Addressable out-of-stocks - Pricing and promo execution - Planogram compliance - Allocation and assortment optimization Over 80% of the remaining retailers plan to invest in these areas by Q2 2025. Nailing just ONE of these can boost sales up to 6% and operating margin by 5%. The future of retail is not just digital-first. It's data-first, store-centric, and powered by intelligent automation.

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💡Amazon invests in consolidation of Saks Fifth Avenue & Neiman Marcus Group … Why? 💬 Lot of chatter in the last day about Amazon backing the consolidation of LUXURY retailers Saks and Neiman Marcus….theres a lot to be said about tech that helps traditional retailers win and I think Forbes and Suzanne Kapner at The Wall Street Journal have a great take. That being said, I think the crown jewel they are going after here is interesting…. I think the big nut to crack for Amazon is a CRM play of owning the super high end customers…dominating that top spender market. That luxury shopper. Not as a transactional relationship, but owning that luxury shopper segment—both online and offline. I think the crown jewel Amazon is going after here is…. 💵 Prime for the 0.1%ers. The big picture here is a massive opportunity for Amazon to unlock — think of the spending they could own. 💥 Amazon Ultra Prime. No wonder Salesforce also invested… CRM play. https://lnkd.in/gy_r7jMQ https://lnkd.in/gmk-ZqSU

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Returns cost retailers an estimated $743 billion in revenue last year, according to the National Retail Federation. That was actually an improvement from 2022, when retailers lost $816 billion on returns. But there's a smarter way forward with returns. By integrating returned products into the resale market, we can simultaneously recover value and reduce waste. This approach does require some investment in: • meticulous inspection • refurbishment • repackaging Advanced tracking systems and data analytics can make all the difference here. Technological innovations like these make the process of putting returns back on the shelf swift and efficient. Fortunately, new third-party vendors offer turnkey resale platforms for retailers. One great example is Recurate (acquired by Trove Recommerce), a startup in XRC Ventures’ portfolio. They provide seamless resale solutions for top brands like Michael Kors, Steve Madden, and The Frye Company. It’s exciting to see the innovation and investment going into this space. By transforming returns into resale opportunities, we not only minimize waste but also maximize value. Which means shoppers, retailers and the planet come out ahead.

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Every moment is an opportunity for growth and transformation. As we reflect on the evolution of merchandising, it’s inspiring to see how far we’ve come from bustling bazaars of ancient civilizations to today’s dynamic eCommerce landscape. In ancient markets, merchants showcased their goods with creativity and skill, building relationships through engaging displays and personal interactions. Fast forward to the digital revolution, and we’re leveraging technology to craft tailored shopping experiences for consumers across the globe. The agility and innovation that businesses display today echo the adaptability of those early traders. As we embrace the future of merchandising, let’s remember the importance of connecting with our customers authentically while utilizing cutting-edge strategies like personalized recommendations and data analytics. What’s your story about how merchandising has impacted your journey? Share your experiences in the comments below! 😊🌟 https://lnkd.in/ezyRW-Y2

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"We thought, ‘We can do more with a lot less,’ and that didn’t work out for us.” On the back of #TerribleHorribleNoGoodVeryBad quarterly results, it's quite refreshing to hear Kohl's (outgoing) CEO speak so openly about the current state of the business and the decisions they / he made that did not work out. The full transcript (link in the comments) is worth a read. CEO Tom Kingsbury started with ... "Over the last several quarters, we have implemented a significant amount of change across our assortment, value strategies, and in-store experience. We believe these actions will make us more competitive over the long term. However, we undervalued the short-term impact this change could have on our sales performance." And then went into details on the three areas that drove performance: "a decline in traffic, especially early in the quarter, during the back-to-school season; a reduction in receipts in our private apparel brands, which impacted our ability to drive sales in our key value items; and categories where we have lost traction that represented opportunities for us going forward such as fine jewelry, petites and intimate apparel, and legacy home products." He didn't blame the macro environment or the weather, despite both playing a factor. Frankly, the only thing not addressed -- in the narrative nor in the Q&A -- was how to overcome the challenge of operating in the department store sector as a whole (for those not following closely, department stores have been in a 30-year decline). And yes, I imagine that knowing you're no longer in charge is part of why he was able to "own" the issues, effectively "cleaning the plate" for incoming CEO Ashley Buchanan. But still a welcome change from the "corporate speak" of most quarterly calls. https://lnkd.in/ez8PJ2t7

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Key EMARKETER stat: US ecommerce resale volume will hit $80.60 billion this year, a growth of 3.4% YoY, per our December 2023 forecast. Beyond the chart: Ecommerce resale volume is returning to growth after a 6.9% dip YoY in 2022 and a 2.5% one in 2023, per eMarketer forecast. But it still hasn’t returned to its pandemic high of $85.87 billion in 2021. Growth in the number of online fashion buyers has slowed, leading platforms to search for strategies to boost order values by offering luxury goods and courting wealthy shoppers. #ecommerce #resale #retailsales

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CEO's rarely admit when they are wrong. However, Kohl's outgoing CEO, Tom Kingsbury , this week acknowledged mistakes that caused a steep drop in the retailer’s quarterly sales.   Kohl’s scaled back popular private-label brands, fine jewelry, and petite clothing sizes—moves that turned off shoppers and contributed to a 9.3% drop in quarterly sales.   Without the lift from SEPHORA, which has shops inside Kohl’s stores, sales would have dropped even more.   While #inflation and other macroeconomic events played a role, many problems were self-inflicted. “It’s up to us to fix it,” Kingsbury said.   Or rather, it will be up to Kingsbury’s successor. A day before Kohl’s reported its disappointing earnings, the company announced a leadership change: Ashley Buchanan, a former Walmart executive currently the chief executive of Michaels Stores, will take over in January. Kingsbury will remain in an advisory role and retain his board seat until he retires in May.    Kohl’s was in trouble before Kingsbury, a retail veteran, took the reins, first as interim CEO in late 2022 and then as permanent CEO a couple of months later.   Sales have declined for 11 consecutive quarters, and more than half a billion in sales have evaporated. Kohl’s shares are down 52% over the past two years.    It is a surprising outcome given Kingsbury’s pedigree and the fact that he was installed on Kohl’s board at the behest of activist investors, who had pushed for the company to run itself more efficiently. A former May Department Stores executive, Kingsbury worked briefly at Kohl’s before becoming CEO at Burlington Stores, Inc., where he led a turnaround from 2008 to 2019.   His priorities at Kohl’s included making its stores and website better places to shop, offering clearer value, improving inventory management, and strengthening the balance sheet. Many of the moves backfired.    Kohl’s scaled back its fine jewelry departments to make room for Sephora shops in its stores, which upset customers. In an effort to carry less inventory, it reduced its selection of clothing in petite sizes—a decision Kingsbury called “shortsighted.”    And in another attempt at reducing inventory, it cut back on private label brands like Sonoma and FLX, as it stocked more national brands such as Nike and Eddie Bauer. The retailer’s private-label inventory dropped on average by more than 20% and even more sharply for several key brands.   “We thought, ‘We can do more with a lot less,’ and that didn’t work out for us,” Kingsbury said.    Now, Kohl’s is reversing those moves. It has reintroduced jewelry to 200 stores. It is expanding its petite offerings and is stocking more private-label goods. Kingsbury said he expects those efforts to translate into better sales late this year and early next year. Many of Kingsbury’s initiatives are works in progress and are gaining momentum.  https://lnkd.in/e6sRiukq

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Kudos to Macy's for their navigation of this challenge to how the company should operate in the future benefitting Shareholders and satisfying Stakeholders, including customers, during "A Bold New Chapter”. Excerpts: Dive Brief: Macy’s Inc.’s board of directors has unanimously voted to end talks with Arkhouse Management and Brigade Capital Management, which in March had offered $6.6 billion or $24 per share to take over the company, the department store said on Monday. The firms in June raised their bid to $24.80 per share but failed to deliver “a definitive, fully financed and actionable proposal,” the department store also said. Macy’s had requested the best price the firms were willing to pay, plus “fully negotiated commitment papers for all the debt and equity needed to finance the revised proposal.” Dive Insight: Given Arkhouse’s focus on real estate, its bid in conjunction with Brigade Capital — now close to $6.9 billion — was widely seen as a play to monetize Macy’s property assets rather than transform its retail operations. For many analysts that called to mind the slow deterioration of Sears. More recently, since Arkhouse’s overture, Macy’s has fortified its board’s real estate expertise — including adding nominees favored by Arkhouse — and said that property value will be a factor in deciding which 150 stores will shutter over the next three years. “Macy’s has played a good game in patiently furnishing the activist investors with information and allowing their nominees to take some seats on the board,” GlobalData Managing Director Neil Saunders said in emailed comments. “As such, it has shown itself to be a willing participant in discussions and has taken the bid seriously, which it must do in the interests of shareholders. However, Macy’s is also right to terminate dealings that were not proving to be fruitful or serious in terms of financing.” Meanwhile, the firms didn’t offer much beyond squeezing money from Macy’s real estate, according to GlobalData’s Saunders. “Indeed, many of the activist investor proposals would have significantly weakened Macy’s and hampered its ability to survive as a retail operation,” he said. On Monday Macy’s made clear that, with these negotiations in its rear-view mirror, its turnaround, dubbed “A Bold New Chapter,” is now sharply in focus. The turnaround is helmed by Macy’s Inc. CEO Tony Spring, previously Bloomingdale’s CEO, who took over from Jeff Gennette in February. Saunders credited Spring with having “a much clearer sense of vision and purpose in working to turn the business around.” “While Macy’s has a lot of work to do, it must be allowed the breathing space and time to enact changes that will put it on a path to growth and add value for investors,” he said. “Arkhouse and Brigade were never part of that long-term vision and the distraction of a sideshow they created must now end.” #macys #retail #takeover #realestate

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It’s not just about price—that was the headline that reporters from Retail Dive, Footwear News, and other outlets took from the AlixPartners U.S. Consumer Footwear Survey for the back-to-school season. We found that price ranked below quality and value for 1,000 parents preparing to shop for shoes, and that one-third of consumers start their footwear search on Amazon.com, but nearly two-thirds intend to purchase shoes in-store—armed with deep knowledge of differing price points for the same shoe, product qualities, and ranges between brands. These topline findings have big implications for how footwear brands and retailers coordinate their online and offline business. Find out more in our discussion of how leaders in the footwear industry are meeting the moment. https://lnkd.in/ddiNXGvw

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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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As we look toward the retail holiday season and planning for the year ahead, MOHR Retail will be hosting a panel discussion that explores the landscape of retail store environments today, focusing on a range of topics, including the dynamic roles of store teams, the rise and fall of self-checkout systems, how stores are increasingly becoming fulfillment centers, and how successful retailers are addressing issues related to mental health, safety, and burnout amid preparations for the holiday season. Here’s a quick overview of some of these hot-button retail store trends and issues and what we’ll be focusing on during the webinar: ↪The Evolution of Store Roles With the surge of Buy Online, Pick Up In-Store (BOPIS) options and stores doubling as fulfillment centers, retail teams are adapting to new responsibilities. The traditional role of a store employee has shifted from managing in-store tasks to balancing online orders and managing stock all while building loyalty by ensuring a seamless customer experience, both online and offline. ↪The Rise and Fall of Self-Checkout Self-checkout was once hailed as a revolutionary step forward in retail efficiency, offering customers a quicker way to check out while reducing the need for staff. However, recent concerns over security, increased theft, and the impersonal nature of the experience have led some retailers to reconsider their reliance on self-checkout systems. ↪Doing More with Less As staffing challenges continue to rise, retailers are finding themselves needing to do more with fewer employees. Retailers need to rethink scheduling, training, and multi-role positions while looking for best practices that help streamline operations. If you’re interested in joining this panel discussion, reach out to me! We’re looking for your experiences, insights, ideas, and/or other lessons you might be able to share to add to a lively, thought-provoking discussion #LearnMOHR #RetailTrends #Retail

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Highlights from last week's NYC #RetailSafari -- focus was the intersection of #technology, #customers, and #operations, primarily in specialty apparel and fashion. Key themes: 1. Technology goes backstage – Brand new formats / concepts at H&M, Banana Republic, Zara, AMERICAN EAGLE OUTFITTERS INC., lululemon, and J.Crew and none come across as tech-forward w/ regard to customers. On the other hand, associates were all mobile enabled and doing most of their work leveraging phones / tablets. 2. Old tech; new tricks – Widespread use of #RFID and #QR codes (both generally on the price ticket), with a mix of internal and external use cases -- self-checkout, RFID-assisted full-service checkout, inventory counts, inventory finding, #BOPIS, etc. 3. Apps are an entry point – #Retailers without a clienteling / selling culture are using apps to drive customer capture. #Lulu uses app-based membership to enable exchanges on sale items; UNIQLO offers special discounts to app members. 4. Unified is still a unicorn – Despite a decade of focus on #omnichannel and unified commerce, many gaps exist. Very few #retail apps recognize when you’re in store, send a notification, and/or assist in the shopping experience. Many didn’t even have their newest stores listed as an option for #BOPIS (despite in-store signage).  5. Video is the new visual – ultra-large format (8-10ft x 12-16ft) video screens were a common feature of many new stores, and really helped to bring the brand lifestyle to life.  6. It’s hard to (re)teach people how to shop – Across all stores except Bonobos, Glossier, Inc., and Reformation, the shopping process is the same as it’s been for the past 50+ years. The ones that don't are focused on a niche customer with a unique product offering. IMO, the product is the driver and consumers "accept" the experience. 7. The "future" is not here yet, but you can start to see the shape of it – Demoing the Apple #VisionPro, we could think of multiple use cases (mostly internal / operational), and while it’s too early (and too expensive) to fully commit, it’s certainly worth considering a pilot as part of an #innovation lab. It's also worth noting there was no apparent use of #AI by customers or associates. Curious to hear comments, feedback from other markets. #ibmretail

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Everyone knows product returns are a problem, but now the National Retail Federation (NRF), in research with Appriss, has spelled it out in stark terms: total returns for the retail industry amounted to $743 billion in merchandise in 2023. In addition, the total return rate as a percentage of sales in 2023 was 14.5 percent. Of that figure, the research shows that $101 billion are fraudulent returns, or 13.7 percent of total returns. #returnsmanagement #retail

I am so honored and humbled.  "AI-powered solutions will also play a pivotal role in lowering returns by enabling more accurate product descriptions, personalized recommendations, and efficient reverse logistics."   Thanks Shelley E. Kohan for including my thoughts in Forbes on how brands can reduce returns this holiday season. Zeta Global leads retailers in digital transformation! #retailnews #retailmarketing #retail

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The psychology of shopping for fashionable swimwear is fraught with challenges. See my comments in this Huffington Post article for key retail insights. https://lnkd.in/emKjq5rh #fashion #swimwear #fashionbusiness #fashionretail #fashionconsumer

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Kudos to Macy's for increasing customer engagement, and embracing a partner with technology to get the most out of the Macy's Media Network. Excerpts: Dive Brief: Macy’s Media Network, the department store’s in-house advertising platform, has expanded its partnership with Rokt, an e-commerce company that uses AI and machine learning to personalize shopping experiences, according to a Thursday press release sent to Retail Dive. The partnership allows Macy’s online shoppers to receive offers from nonendemic advertisers during the transaction stage. Macy’s Media Network has seen increased customer engagement since the partnership with Rokt launched last summer. Dive Insight: As a result of increased customer engagement, Macy’s is working to expand its partnership with Rokt across new advertising use cases, including its credit card enrollment efforts and loyalty rewards program. “Rokt’s unique AI-powered technology enables us to use our first-party data to provide our customers with high quality, premium offers from non-endemic advertisers post-purchase, communicating the right message at the right time,” Michael Krans, vice president of Macy’s Media Network, said in a statement. Krans joined the retailer in March. He came to the department store with previous experience at Walmart Connect, Hearst and Condé Nast. Macy’s Media Network creates customized media strategies utilizing the retailer’s analytics, and an effort to scale the network has been underway in recent years. The network launched in the summer of 2020 as a way to generate an additional revenue stream for the retailer. By February 2021, it had already generated $35 million. For its first full year, the platform brought in $105 million in net revenue. #macys #medianetwork #customerengagement

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🚨 Amazon’s Bold Move into Luxury Fashion: What It Means for the Industry 🚀 The retail landscape is buzzing with the news of Saks Fifth Avenue and Neiman Marcus Group merging, creating a luxury retail powerhouse backed by Amazon. This $2.65 billion deal, forming Saks Global, is set to revolutionize the luxury fashion industry in ways we’ve never seen before. Why This Matters: Amazon, a titan in e-commerce, logistics and technology, is now officially stepping into the luxury fashion arena. This move could drastically reshape their business model and the luxury market. Here’s why: 1️⃣ Logistics and Efficiency: Amazon’s logistical expertise is unparalleled. By integrating its advanced logistics with Saks Global’s operations, we can expect significant improvements in supply chain efficiency. Faster delivery times and better inventory management will enhance customer satisfaction and reduce costs. This synergy could mean that customers will soon be able to purchase luxury items like a Chanel bag with the same ease as everyday essentials. 2️⃣ The Power of AI and Data: Amazon and Salesforce bring cutting-edge AI and data analytics to the table. AI can personalize the shopping experience, predicting customer preferences and tailoring recommendations. This level of personalization is crucial in luxury retail, where customer experience is paramount. With Amazon’s data prowess, Saks Global can better understand their customers, optimize pricing strategies, and manage inventory more effectively, ensuring high-end pieces don’t end up in discount bins. 3️⃣ Technology Integration: Amazon’s involvement means more than just financial backing; it’s about leveraging technology to future-proof the luxury brands. As Marc Metrick, CEO of Saks Fifth Avenue’s online operations, mentioned, the aim is to gather high-quality customer data and offer more personalized options. Enhanced tech capabilities will streamline operations from the warehouse to the customer’s doorstep, making luxury shopping seamless. 4️⃣ Market Reach and Customer Base: Amazon’s vast customer base is a goldmine for Saks Global. This deal allows Amazon to penetrate the high-end market, catering to a demographic that values exclusivity and quality. For luxury brands, having access to Amazon’s broad customer reach means new growth opportunities and expanded market presence. Conclusion: This merger isn’t just about consolidating two luxury giants; it’s about transforming how luxury retail operates in the digital age. While some may fear that this could dilute the exclusivity of luxury brands, it’s an opportunity to innovate and adapt. The luxury sector has been cautious about embracing e-commerce fully, but this merger signals a shift towards a more tech-driven future. As consumers, we stand to benefit from improved services, personalized experiences, and greater accessibility to luxury products. #LuxuryFashion #Ecommerce #BusinessStrategy #Amazon #SaksGlobal #RetailInnovation

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The latest census data revealed a surprising trend: consumers are still selectively spending money on discretionary items despite inflationary pressures. Notably, purchases of toys – such as building sets, plush toys, and outdoor games – fall into this discretionary spending category, with 43% of adults reporting a toy purchase for themselves in the past year. #consumerinsights #retailsales #toys

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