Seth Marks

Here are some interesting stories from the world of retail for Monday, May 13: 📱 The bargain app Temu, which has gained spectacular popularity with American consumers, is shifting business priorities beyond the US. Temu wants to limit risks and seek other sources of growth. 🚫 Last week, a merger between Neiman Marcus Group and Saks Fifth Avenue came closer to becoming a reality, but will a newly emboldened FTC try to block the deal? 🥗 Whole Paycheck, no longer? The CEO of Whole Foods Market says the upmarket grocery store chain will soon offer more affordable options in an attempt to minimize the impact of inflation on customers. 👰🏼 From the boardwalk to the altar: T-shirt, shorts, bikinis and boot sellers are now dressing brides: a string of affordable fashion brands have jumped into the weddings industry to appease thrifty shoppers with inexpensive bridal wear. 🇫🇷 Amazon plans to invest more than €1.2bn ($1.3bn) in its operations in France, creating more than 3,000 permanent jobs. The Amazon Web Services investment would increase cloud infrastructure in the Paris area. 👟 A'ja Wilson of the WNBA's Las Vegas Aces is getting her own Nike signature shoe. Wilson worked with Nike's team of innovation, product, and design experts to create a signature shoe collection inspired by her distinctive style. 🍏 Workers at the first Apple Store to unionize have now also authorized a first strike against the tech giant’s retail operations. Apple Store workers in Towson, MD, voted late Saturday to authorize a strike, according to a statement. ♻️ Starting next year, Patagonia’s wet suits won’t just be recycled — they’ll be reincarnated. This is the product of a years-long initiative by Patagonia to eliminate much of the waste that accumulates when a surfer buys a new suit. 👷🏼 An investigation by advocacy group Public Eye shows that staff working for some suppliers of SHEIN are working 75 hours a week, despite the Chinese fast fashion firm promising to improve conditions. 🍞 In the hope of boosting bread sales, which slow down during the hotter seasons, some specialty stores and manufacturers in Japan are focusing on selling "cold bread" that can be eaten like a dessert. 🍗 Chicken is reprising its role as the star of Americans’ dinner plates. Stung by the rising price of beef, diners are buying more wings at fast-food chains and frozen tenders at grocery stores. 📉 Inflation is moving a baby step in the right direction, though the trend toward lower inflation was interrupted in the first quarter. Wednesday’s release of the key April consumer price index will reveal the current path. 🥤 Investor interest in cleaner, healthier energy drinks shows no signs of fizzling out. After a number of lucrative exits, investors have proven eager to back new challengers in the energy drink category. #retail #retailnews #economy #DailyRetailNews

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Very comprehensive and well written analysis by Scott Moses at Solomon Partners as to why C&S Wholesale Grocers is well positioned to drive success in the updated Kroger & Albertsons Companies divested store plan. Two key things Scott fails to address: First, driving customer loyalty requires much more than a robust supply chain. While it is arguably the *most* important factor (if shoppers can't find their favorite products, they will leave the store), it certainly requires other key elements to not just maintain loyalty, but *drive* loyalty. Things like loyalty programs, digital and ecomm capabilities, retail media partners, targeted customized offerings etc. - This is how you drive success and long term shopper loyalty in todays CPG landscape. Which leads me to the second area: Data Retailers and vendors have to win through data, one way shape or form. As retail media networks continue to grow across the US, along with the expansion of digital capabilities and the ever increasing complexities of the consumers path-to-purchase, data is the key to driving long term success via loyalty. That's why retailers invest millions upon millions each year in loyalty data programs and digital capabilities. And how C&S will ensure their store operating partners will be successful in this arena is really yet to be addressed. Scott makes a strong case for C&S being strong wholesale operators, highlighting their 100+ year expertise in the grocery industry and vast distribution networks and capabilities. But he leaves the door wide open for debate on whether or not C&S will actually drive success with these divested stores in todays complex consumer/retail landscape that is becoming increasingly reliant on data and digital capabilities. My curiosity (and concern) is less around whether or not C&S will be exemplary distribution partners, but whether they have the ability help these banners be successful and continue to evolve into the future of grocery. https://lnkd.in/gV4QEPzH

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Retail sales rose significantly, showing strong increases both month-over-month and year-over-year, as consumers continued to spend and drive growth https://lnkd.in/ekHc4QcA Total retail sales (excluding automobiles and gasoline but including restaurants) rose 1.35% month-over-month in May and were up 3.03% year-over-year #retail Chain Store Age

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USDC Retail Sales data for April is out. Core Retail sales (retail xAuto and Restaurant ) in April were up 3.9%. Year to date core retail sales are up 3.8%. The historical average annual growth pre-pandemic is 3.9% so we're right at average growth. E-Commerce quarterly data comes out Friday. https://lnkd.in/eYwaVTC

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This week WM, Aldi and Target are just a few large box retailers announcing price cuts in an already ultra competitive space. Is this the new "race to the bottom" and if so, will this drive top line sales and get the much needed additional units out the door? How will the regional and or smaller independents keep pace? Will other retailers benefit from the large box retailers stance and gain additional trade to keep up or will CPG brands say these retailers are "self investing'' in this strategy? With that in mind and as retailers try to keep up with this strategy, there are other ways to stay competitive in this market. Several years ago, I was told we have to make sure the in store experience trumps online convenience---Service will always be KING in the grocery business. Price absolutely matters and fighting to remain competitive is tough but giving your customers something a lot of larger box retailers can't is very important. As chains are reevaluating self checkouts and putting more cashiers back in the stores, regional and smaller independents already have an advantage in this arena. Lean into your in store experience and make sure you are still offering all the service standards your competition can't and you will continue to make gains. Now, pricing, walk your aisles, look at the 80/20 rule and some of those items that customers don't know the price on and you will find ways to drop your retails while balancing margins. Price optimization is your best friend in today's market and all the tools you can use are great but the best tool is putting an eye on the shelves as often as you can. If you really walk your aisles, you will see hundreds of items you can pick up some pricing on and that will help cover the items you may lower to help stay competitive. If you sell 10M items annualized and you can pick up on average .10 an item, you just picked up an extra $100K penny profit to help reinvest to keep up with the strategies the larger chains are using in your markets. Now it may not be that simple, I understand but using whatever pricing tool you have along with putting a human eye on less sensitive items can absolutely help you gain some margin and put much needed penny profits on the bottom line.

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Solid insights from Carl Ford, CFO at Academy Sports + Outdoors. Managing in a tough economy requires focus on "value, assortment, and experience." Retail basics still make sense. Whether a leader in finance, merchandising, marketing, stores, digital, or supply chain, it's critical to keep the consumer in mind, especially with assortment, pricing, and service. #retail #assortment #pricing

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The June issue of NACS Magazine is out, including key insights from the association's SOI event earlier this year. Let's take a look. ⬇️ These six ideas for convenience retailers, highlighted by Jeff Lenard, could be advice to operate by for years to come. Once again, as these cycles seem to come, many themes show we're headed back to the basics. 🍕 Foodservice is the difference 🏬 Everyone is competition 👨‍🔧 It's all about the consumer ⛔ Be ruthless with efficiencies ❇️ AI is coming (and already here) 📳 It's time to get phygital As we head toward the midpoint of 2024, take time to assess your plans and how they've played out. We're just getting into summer – our industry's busiest time of year – so there's still opportunity to adjust your approach and capitalize on new ideas. But most of all, as Jeff reminds us in his closing, remember this: 𝘁𝗵𝗲𝗿𝗲 𝗶𝘀 𝗻𝗼 𝗼𝗻𝗲-𝘀𝗶𝘇𝗲-𝗳𝗶𝘁𝘀-𝗮𝗹𝗹 𝗮𝗻𝘀𝘄𝗲𝗿 𝗳𝗼𝗿 𝗿𝗲𝘁𝗮𝗶𝗹𝗲𝗿𝘀. Leverage your brand's strengths and focus on serving your customers as best 𝙮𝙤𝙪 can.

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Today’s results from Kohl's are dismal. They show a company that remains in freefall at a time when most other retailers are at least maintaining their elevation. A 5.3% decline in overall sales, underpinned by a 4.4% decline in comparables, is way worse than the market which, across the categories Kohl’s sells, grew by 2.9% over the quarter. This is the third year in which first quarter sales have declined. And, compared to the same period in 2019, sales are down by a sharp 16.8%. In cash terms, this means Kohl’s has lost $643 million in revenue. Unfortunately, the problems on the sales line are now filtering through to the bottom line where last year’s modest profit of $14 million has been replaced with a $27 million loss. Kohl’s management team says a lot of the right things around merchandising and the essentials of retail. However, not much has changed on the shop floor, which is one of the reason why Kohl's continues to lose customers on top of the 1.5 million it lost over the past five years. Thanks to The Wall Street Journal for including my comments in the article linked in the comments.... #retail #retailnews #departmentstores #trading #KSS

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As a lifelong retail merchant, I'm going to potentially have a stroke if the retail media continues to report sequential month-over-month results as an indicator of anything. Year-over-year results are indicative of true performance, with the caveat of a shift in a key seasonal event like...I don't know, perhaps Easter...that will impact the natural trends in consumer purchase behavior. In good news, inflation appears to continue to be cooling...good news unless you are trying to convince your buyer that a price increase you took previously should not now be reversed. Good luck with that, by the way... #retailmerchandising #retailsales #inflation

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Why Retail Needs Active Training and Impactful Coaching #RetailSuccess #EffectiveTraining https://hubs.ly/Q02D9FFv0

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In my experience as a buyer, I viewed brand-buyer relationships as collaborative, but it's crucial to recognize that not all collaborations are equal. When you seek a retail partner for growth - look for a retailer that is collaborative Understand that the retailer still operates as a for-profit business But, know that you play a role in helping them achieve their goals Here are some areas to consider when looking at collaboration with retailers Door Count Bigger does not necessarily mean better. If your original doors aren’t “ALL” that’s ok. Discuss a tiered plan for growth and expansion. Placement Every brand wants to be seen. Your shelf placement, or location in the store can determine how many consumer eyes see your product. Ask where you’re being placed. Marketing Yes, ask for support from the retailer in their advertising vehicles. But know this is the place where the brand does the heavy lifting. Be ready to shout to the rooftops where you are. Forecasts Work closely with buyers, planners, and your ops team to understand projections. Have a reserve stock to plan for overperformance. Sales Expectations Ask upfront about the retailer’s benchmarks. Consider how the category performs too. Check-Ins As a new brand, having regular check-ins with your buying teams is great. This could be quarterly, or monthly depending on the projected sales volume. A lot to cover, and I know you might not be there, yet. So save this for that future retail meeting - cheers! – 👋🏾 Hi, I’m Monique, your bridge from niche market to major retail. I’m a former retail buyer turned beauty industry advisor who helps emerging brands ready to scale. Ready to expand your reach? Book a discovery call and let’s explore how we can elevate your brand together.

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ICYMI….things are looking better at #retail YoY Specifics from key sectors are below. Online and other non-store sales were up 2.09% month-over-month and up 17.91% year-over-year. Health and personal care stores were up 1.29% month-over-month and up 6.86% year-over-year. Clothing and accessories stores were up 1.44% month-over-month and up 6.24% year-over-year. General merchandise stores were up 1.31% month-over-month and up 4.89% year-over-year. Grocery and beverage stores were up 1.97% month-over-month and up 2.53% year-over-year. https://lnkd.in/gYvd5CyC

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Article…”Store Closures Are Surging This Year”… CBS. Any HEALTHY Retailer should be closing +/- 5% of their store portfolio every year and redeploying the resources to new / better locations. An annual “Portfolio Review” that includes reps from Store Ops, Finance, the Leasing Team, Construction and even Mkting and Merchandise should annually review the P&L of EVERY LOCATION along with vacancy rate, $/ft, market demos, market rents, possible alternate and/or emerging markets, population trends of EVERY CENTER and potential new market. The goal is to develop an ACTION PLAN on each location… where can indiv. Depts. make a positive impact to improve business…and what locations need to “go away”… at the end of the lease or even sooner. These sessions can be tense and intense with some “gnashing of teeth” and soul searching but it ultimately results in a more profitable Retailer with resources available to redeploy to new, more productive locations. Crossroads can assist in executing Portfolio Reviews and even work with landlords on “early out” agreements…a sometimes contentious and complicated process that in-house leasing reps may not be equipped to navigate. Our track record on settlement agreements is OUTSTANDING. Contact us at mcortazzo@crossroadsretailadvisors.com

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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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Kroger’s results earlier this week showed a clear picture of a company that is struggling to generate meaningful growth. Notably, Kroger’s headline sales continue to fall below both the prevailing rate of inflation in grocery and below the overall growth of the market. So both volumes and market share are sliding, an indication Kroger is on the back foot. Some of the weakness is because Kroger customers continue to cut back as household incomes remain under pressure. Kroger is not the only food retailer suffering from this, but it has not been able to offset this erosion by picking up new customers. From our data, Kroger has been a net loser of customers over the past quarter. Admittedly, defections are driven by a small number who have moved to more value focused players like Walmart and Aldi, but this nevertheless has a material impact on growth. The dynamic also underlines that Kroger is perhaps not doing enough to push value for money and low-price messages to its shoppers. I chatted with Reuters about the issues that won’t, at least for some time, be disguised by a merger with Albertsons. Link to article in comments. #retail #retailnews #grocery #food #supermarkets #consumers

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”Major retailers like Walmart, Target and Dollar General are scrapping some self-checkout lanes due to a shoplifting surge. Even with higher wages and worker shortages, hiring more cashiers is proving more profitable than losing money due to self-checkout theft.” ”The vulnerability is often due to a combination of factors: Technical limitations: Self-checkout systems can be easily fooled by tactics like switching barcodes or exploiting weight discrepancies. Understaffing: With fewer employees monitoring self-checkout areas, opportunities for theft increase.” RFID has proven to be the most theft secure technology for automated retail. You still offer the benefits of self-service: quickness, convenience, no queuing. And on top of those: real-time inventory, smooth payment options, dynamic pricing. All with no staff on site or monitoring videos. https://lnkd.in/ddGUbhCJ

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Following a period of stellar growth, both Lowe's Companies, Inc. and The Home Depot are now being buffeted by a decline in home improvement spending. As the contraction is mostly among consumers, both brands are leaning more heavily into the professional segment. Home Depot is more established here, so is having relatively more success; whereas Lowe’s traction with professionals has stalled despite its marketing efforts.   One of the further reasons for the relative underperformance of Lowe’s compared to its larger rival, is that it is more exposed to a more casual and occasional DIYer. These consumers have reduced the number of small and medium projects they are undertaking more sharply than average, and so are spending less money on home improvement. Lowe’s greater reliance on home appliances has also been unhelpful as many consumers are postponing new purchases until they are essential, and the lower levels of kitchen remodeling work has also sapped demand. Ultimately, both Home Depot and Lowe’s are very solid retailers. However, Home Depot has the slight edge as it is more visible, more of a destination for home improvement, and plays better with professionals. When it comes to battling on price and managing inflation, Home Depot’s more significant economies of scale is also a benefit. Thanks to Ad Age for including my comments in this Brand Battles piece... https://lnkd.in/ejjk6m-A #retail #retailnews #homeimprovement #DIY

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