Randall Schmidt

Given that retailers often ask how they should approach the wild west of AI, I jumped at the opportunity to provide my perspective on how C-stores should utilize AI to accelerate their marketing campaigns. This article, published in CStore Decisions, demonstrates how retailers can leverage their own customer data to create campaigns that, “positively impact open rates, click-through rates and conversions.” ❕ Breaking through the hype of AI and getting to the core of how C-store marketing teams can utilize this capability to drive greater connectivity with their customers, at scale, is a discussion that more retailers should be having. 𝘛𝘩𝘢𝘯𝘬𝘴 𝘵𝘰 Emily Boes 𝘢𝘯𝘥 Erin Del Conte 𝘧𝘰𝘳 𝘵𝘩𝘦 𝘱𝘢𝘳𝘵𝘯𝘦𝘳𝘴𝘩𝘪𝘱 𝘰𝘯 𝘵𝘩𝘪𝘴 𝘢𝘳𝘵𝘪𝘤𝘭𝘦. ⏩ At NexChapter I'm helping clients leverage customer data they possess to drive stronger engagements. 📩 Reach out if you'd like to discuss: matt@nexchapterinc.com #digital #loyalty #convenience #cstores #ai

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Very interesting interview highlighting the impact of macroeconomic factors on shopper behavior and the importance of digital capabilities in retaining affluent customers. Bill Simon points out that Walmart's current appeal to more affluent shoppers during the inflationary period may not last if they are required to shop in-store once the inflationary period slows. This underscores the necessity for strong digital strategies to cater to high-end customers effectively. For me as a shopper/consumer nerd, it reemphasizes why retailers must focus on their core shoppers and provide them with the right incentives for purchasing. Will Walmart retain these new more affluent shoppers over time? Check out the interview for more details:

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“U.S. consumer sentiment fell to its lowest reading in about five months in May.” “The University of Michigan’s Index of Consumer Sentiment dropped to 69.1 in May from 77.2 in April. The reading, however, was slightly higher than the preliminary estimate of 67.4.” “Sentiment also remains almost 20% above a year ago and about 40% above the all-time historic low in June 2022, “reflecting how much consumer views have improved as inflation eased,” noted Joanne Hsu, director, surveys of consumers, University of Michigan.” “The prospect of continued high interest rates also weighed down consumer views, she added.” “”These deteriorating expectations suggest that multiple factors pose downside risk for consumer spending,” she said. Still, sentiment remains almost 20% above a year ago and about 40% above the all-time historic low in June 2022, reflecting how much consumer views have improved as inflation eased.”

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🎉 Another amazing achievement unlocked: Transforming Guest Engagement with Target Circle! 🚀 I am incredibly proud to share that our Target Circle loyalty program continues to evolve and is now more personalized than ever! Members can enjoy spend-based offers called Target Circle Bonus (TCB), thanks to CORE (Contextual Offer Recommendation Engine), our cutting-edge AI-driven engine. These customized offers encourage higher engagement and reward consistent shopping behavior. 🎯 Our Goal: To boost guest engagement and drive more trips to Target by offering the most effective deals tailored to each guest. I am so proud of our team’s dedication and hard work in making this a reality. Our journey to enhance guest experiences has been remarkable, and CORE's success is a testament to our commitment to innovation and excellence. Join us on this exciting journey to make shopping with Target more engaging and rewarding! 🛒 Utsav Mishra Suba Palani Raghav Rastogi Melissa Ludack Greta Hanson E. Grace Glenny Pat Rouleau #AI #MachineLearning #Personalization #TargetCircle #CustomerEngagement #Innovation #RetailTech #DataScience #Target

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How do you stay connected? Every Wednesday many folks in the Best Buy office wear their "blue shirts" to show their connection to the company as a whole. Since I am not in the Minnesota office every day I thought it would be good today to do the same. I also brought back from my last trip a banner advertising the data strategy we are developing called the "Data Store". As a visual person these reminders give me perspective, connecting the dots between the many meetings I lead/attend and the vision of my work to help Best Buy grow. However, I believe the challenge of staying connected to the vision is not just one for "remote workers". When I was at Ford I went to the office every day, and was in a building surrounded by people working only in data and analytics. To keep my perspective, I would regularly visit the World Headquarters where you were greeted by a historic Model A and many other cars from Ford's great legacy. At McDonald's Headquarters we regularly ate lunch at the restaurant downstairs. In the world of data and analytics we can get so focused on the minutiae of the numbers and challenges in data quality, pipelines, analyses or models that we forget the point of what we do - to help our companies improve their performance (whether it is making cars, selling electronics, or marketing the "best burgers"). Whether you are remote, hybrid, or full-time in the office what are some ways you help yourself remember the main purpose of why you do what you do? #remotework #vision #dataanalytics #ford #bestbuy #mcdonalds #cdo #career #datascience #datagovernance #datastrategy

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“The mood of U.S. consumers turned negative in May as their expectations for inflation moved upward.” “The University of Michigan Index of Consumer Sentiment posted a preliminary reading of 67.4 for May, down from 77.2 in April and its lowest reading in six months. The move represented a one-month decline of 12.7% but a year-over-year gain of 14.2%.” “Consumers’ view of current economic conditions fell 12.9% to 68.8 in May, down from 79.0 in April. The expectations index decreased 12.5% to 66.5, down from 69.4 the previous month.” “The trend in sentiment is characterized by a broad consensus across consumers, with decreases across age, income, and education groups, she added. Consumers in Western states exhibited a particularly steep drop.” “Year-ahead inflation expectations rose from 3.2% last month to 3.5% this month, remaining above the 2.3-3.0% range seen in the two years prior to the pandemic. Long-run inflation expectations inched up, from 3.0% last month to 3.1% this month.” “Although they have been within the narrow 2.9-3.1% range for 30 of the last 34 months, long-run inflation expectations remain elevated relative to the 2.2-2.6% range seen in the two years pre-pandemic.”

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To transform successfully in today's digital and AI landscape, CPG companies must focus on key areas where significant value can be achieved quickly. The highest returns are often found in consumer insights, demand creation, customer and channel management, and direct-to-consumer strategies, especially within the beauty industry. Embracing new technologies can revolutionize interactions, e-commerce processes, and fulfillment management, leading to enhanced customer experiences and operational efficiencies. Understanding the impact of "gen AI" is crucial for CPG companies looking to drive value. McKinsey's research highlights four key areas—customer operations, marketing and sales, software engineering, and research and development—that could contribute up to 75% of the total annual value from gen AI use cases. Enhanced productivity, personalized communications, and better issue resolution are just a few examples of the benefits that gen AI can bring to businesses. For instance, one consumer company leveraged a gen AI large language model to streamline financial planning and analysis research, resulting in a 30% reduction in research time. Educating leadership about gen AI's potential and applications is essential, with many companies conducting immersion sessions for C-level executives. By prioritizing transformation in these key domains and embracing the power of gen AI, CPG companies can unlock new levels of efficiency, innovation, and success. #CPG #AI #DigitalTransformation #GenAI #Innovation

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Are you leveraging the full potential of your customer data to foster loyalty and enhance engagement? How can integrating a smart Customer Data Platform (CDP) transform your retail or CPG brand's relationship with its customers? Read more. #CII #CDP #Loyalty #Retail #CPG

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Walmart exceeded expectations for quarterly earnings and revenue. The company experienced significant e-commerce growth, with a 22% increase in its U.S. business. Walmart's grocery business benefited from the widening gap between the price of cooking at home and eating out. The convenience offered by Walmart attracted more high-income shoppers, with its delivery business surpassing store pickup in terms of volume. Walmart reported earnings per share of 60 cents (adjusted) compared to the expected 52 cents, and revenue of $161.51 billion compared to the expected $159.50 billion. Net income for Walmart increased to $5.10 billion, or 63 cents per share, compared to $1.67 billion, or 21 cents per share, in the previous year. Walmart's same-store sales for Walmart U.S. increased by 3.8%, excluding fuel, and same-store sales for Sam's Club rose 4.4% year over year, excluding fuel. E-commerce sales for Walmart U.S. grew by 22% year over year, driven by store pickup, delivery of online orders, and the company's third-party marketplace. Walmart's profits were boosted by newer businesses like advertising and its subscription-based membership program, Walmart+. The company's global advertising business grew by 24% during the quarter, with 26% growth in the U.S. segment. #walmart #earnings #retail #ecommerce

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Putting yourself in the shoes of your dream retailer can yield an understanding for their priorities. Each year, major U.S. retailers open a crucial window to evaluate new and established brands. This is your golden opportunity to pitch to buying teams. Retail Insight: Product resets in retail are both time-consuming and costly for retailers. Store teams continue to do the things they always do: – Restocking shelves – Serving customers – Maintaining store cleanliness Buying teams are also inundated with extra work: – Creating new blueprints for stores to lay out the new items – Meeting with 100+ brands that all have exciting newness to share – Landing on a strategy that will yield growth Major resets also involve: – Printing new shelf labels – Rearranging product placements – Managing discontinued items – Communicating big bets and strategy from corporate to stores These resets can evoke mixed feelings among retail teams: • Excitement about new products and the potential growth they bring. • Anxieties over the additional workload. Why am I sharing this? Because timing is important, you get one window annually to pitch your brand at big retail. So when you approach the retailers treat it like this is your one shot. Prepare your pitch → Nail it. Share your brand purpose → Inspire them. Understand what it takes to be successful →  Make them believe in you. Take this opportunity to show buyers all of the things your brand has done. Shine bright. PS - Have you pitched to a retailer? Share your experience in the comments. – 👋🏾 Hi, I’m Monique, a former retail buyer turned beauty industry advisor who helps emerging brands ready to scale at big retail. If you are ready to scale and invest, book a discovery call, and let’s see if we can work together.

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“Investors are scouring U.S. credit card spending patterns to size up which, if any, trends could give specialty retailers a boost in the summer months.” “Recent quarterly results from retailers show shoppers are selectively buying non-essential, nice-to-have products - forgoing electronics, but not being shy about plunking down cash on those wide-legged jeans they've been coveting.” “Demand for on-trend products boosted sales growth in clothing by 3.2%, sports goods by 1.9% and footwear by 0.4% in the first quarter of 2024, compared to a year earlier, according to market research firm GlobalData.” “But big-ticket items, particularly related to living spaces, fell off consumers' shopping lists. Sales of electronics fell 1.9% for the quarter, while homeware purchases dropped 4.2% during the first quarter, versus the year earlier period.” “Across the U.S. retail landscape, "some of the stronger retailers are doing well. And then some of the brands that are putting out innovative products are doing well. And then others like department stores (are) just consistently trying to find a way to be relevant," Morningstar analyst David Swartz said.” “After the mixed start to the year for retailers, credit card data is offering investors clues on which products and brands were hot or not as summer got underway.” “Consumer Edge, a New York-based research firm with hedge fund and private equity clients, said it analyzed data of about 40 million U.S. credit card transactions to find winners and losers in the retail landscape.” “In clothing and shoes, "newer, more niche companies are doing better and we see that they are taking share from the more established players," Consumer Edge Head of Insights Michael Gunther said.” - Ananya Mariam Rajesh

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Putting powerful tech in the hands of consumers changes expectations. My latest Retail Week column explores the new GenAI releases and the implications for retail. https://lnkd.in/e-AaDdcf

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“Many retailers, restaurants and other consumer companies have seen sales fall as shoppers pull back their spending. Businesses are now trying to convince customers that they offer the best deals, fueling a rise in discounts, promotions and value meals.” “Consumers are fed up with deceptive pricing, said Jean-Pierre Dubé, a professor of marketing at the University of Chicago Booth School of Business. They've seen smaller items on shelves, paid tacked-on fees and felt pressure to tip workers for things they didn't tip for in the past.” “Grocery prices have risen just 1% in the past year, according to data from the U.S. Bureau of Labor Statistics. But food at home prices have climbed more than 24% since May 2019, stretching consumers' wallets and stoking anger with companies.” “Consumers' buying power has also increased as inflation cools and the job market remains strong, boosting real hourly earnings for the average private sector worker, according to the BLS data.” “Other key costs are raising Americans' expenses, such as electricity and rent, which have climbed over the last 12 months.” “In a Pew Research Center survey from May, 62% of U.S. adults said inflation was "a very big problem in the country today," a higher percentage than any other issues they were asked about including illegal immigration, gun violence, violent crime and the federal budget deficit.” “That percentage has held roughly steady, even as inflation cools. In the year-ago survey by Pew, 65% of Americans said inflation was a very big problem.” - Melissa Repko, Amelia Lucas

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“Online retail sales in the U.S. rose about 7% from January to April this year, an Adobe Analytics report showed on Thursday, driven by strong demand for groceries and cheaper discretionary items.” “Consumer discretionary spending has been in focus over the past several months, as sticky inflation has forced shoppers in various categories to trade down to more affordable products.” “According to Adobe's data, the share of the cheapest units sold in categories like grocery and personal care has increased during the first four months of the year, while the share of the most expensive products has come down, indicating consumers are looking for cheaper alternatives.” “"We are seeing consumers down-shift and spend more on the cheapest goods within a degree, that is helping categories stay resilient and see continued spending, but it also showcases that consumers are having to manage the inflation they're experiencing in housing, gas and food," said Vivek Pandya, Lead Insights Analyst for Adobe.” “Total online spending in the period from January to April 2024 grew to $331.6 billion, compared to $309.8 billion in the same period last year. Grocery spending saw highest growth of 15.7%, according to the report.” “Adobe expects the first half of 2024 to rake in over $500 billion in online spending, representing a 6.8% year-over-year growth.” - Anuja Mistry

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It's the Consumer & Jobs for the win!! Great summary by RetailStat of the March #RetailSales report As long as the consumer feels comfortable with job security (and the #jobs market), they will spend...and this is despite increased #creditcarddebt and lower #savingsrate. Oh...let's not forget that 81% of homeowners with mortgages have rates at 4% or under... #economy #cre #retailrealestate #housingtrends

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“Despite a rising cost of living, a majority of holiday shoppers plan to maintain their spending levels from previous years.” “That's according to Salsify’s inaugural 2024 Consumer Holiday Shopping Report in which 65% of survey respondents said they plan to spend the same as last year, while an additional 15% anticipate increasing their holiday spending. Sixty-one percent of respondents, a majority of whom are millennials, said they plan on making personal purchases while shopping for gifts.” “Salsify says its surveyed reveals a prominent “Treat Yourself”’ trend: More than half (61%) of shoppers, particularly millennials (73%) and Gen Z (68%), are inclined to purchase items for themselves while engaging in holiday shopping.” “Salsify’s holiday report reveals that physical retail stores emerged as Gen Z's top choice (58%), surpassing Amazon (55%) and TikTok and Instagram (54%), while mirroring Gen X's preference, with 62% turning to stores for holiday gift inspiration. However, Amazon remains the go-to for other demographics, with 53% of millennials and 54% of baby boomers relying on online marketplaces.” “When it comes to holiday gift purchases this year, October emerges as the beginning month, with 27% of all shoppers making their first moves, led by Gen X (30%) and followed closely by millennials (29%). As November approaches, 26% of shoppers will begin shopping, with Gen Z (32%) and Millennials (29%) taking the lead. Cyber Week is anticipating to capture 19% of shoppers, while 16% plan to wait until December. Fewer than one-in-10 shoppers (7%) are adopting a year-round approach to holiday shopping.” “According to the Salsify report, 62% are gearing up for Black Friday, with Gen Z leading at 75% and millennials close behind at 69%, followed by Gen X (62%) and baby boomers (43%). Looking ahead to Cyber Monday, 45% of shoppers are ready to hit the virtual aisles, with Gen Z (52%) and millennials (49%) showing the most excitement. Gen X (45%) and baby boomers (33%) are also planning to shop online on the e-commerce holiday.” “Fashion and apparel gifts are expected to take the lead when it comes to gift choices, grabbing the attention of 57% of shoppers, with personal care and beauty gifts close behind at 53%. Electronics also came in strong at 49%, while food and beverage gifts are on the radar for 44% of folks.” - Zachary Russell

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