Sarah Rivers

Still shocked that most large retailers haven't implemented this to date. The potential for expansion of in-store retail media ad units and revenue (profit) is significant. It's a financial investment, but the opportunities are somewhat endless... think beyond pricing. #Retail #Marketing #BusinessOpportunities

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The latest twist in the Kroger-Albertsons merger saga is fueling more uncertainty about whether this deal will ever get done. On July 25, the retailers and the state of Colorado all agreed to an order to again delay the proposed $24.6 billion merger between The Kroger Co. and Albertsons Cos. The order grants a temporary injunction, and Kroger and Albertsons now must wait until a September trial to see whether they can move forward with their plans to merge. #groceryretail #mergersandacquisitions

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Hello Retail Friends,   I cannot stress enough how important fresh products are to grocery retailers. When it comes to inventory planning, “point solutions” that lack end-to-end integration and only address store-level planning simply are not enough!   Retailers need proven, multi-echelon planning solutions that extend beyond the store - unifying, automating, and optimizing planning in stores, DCs, and omnichannel. This is the only way to get crucial visibility and insight across the end-to-end value chain.   https://lnkd.in/ej53RsFV #supplychain #grocery #freshproduce How to improve retail fresh food inventory management | RELEX Solutions Tackle fresh food inventory management challenges head-on with the right strategies and robust planning software. www.relexsolutions.comhas context menuCompose

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Target announced its Q1 earnings, revealing a decline of 3.7% in comparable sales as well as a 4.8% decline in store comparable sales. Despite this, digital comparable sales saw a 1.4% growth. A highlight of the quarter was the introduction of Target Circle, which was bolstered by the popular "Target Lady" campaign, becoming the most talked about campaign on social media. Target also launched "Deal Worthy", offering items starting at $1 and most priced under $10. Additionally, Target expanded its footprint in Q1 with the opening of 7 new stores. #retail #digitalgrowth #value #earningscall #Target https://lnkd.in/gxkRsXVk

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According to a Progressive Grocer article that published this week “Majority of Shoppers Won't Buy Nonfood Items at Grocery Stores” Acosta SVP Shannon Hodock states “We believe grocery retailers have an exciting and expansive opportunity to capture and grow HBC and GM sales. "Strategically, retailers need to create a targeted 'get on the grocery list' campaign for their shoppers, incorporating a holistic omnichannel strategy and a customized marketing plan as they tackle the three key challenges to overcoming current perceptions and shopping habits." For these retailers looking to capitalize on “gateway” categories and seek growth and grow share of impulse sales than ECRM should be in your playbook. You can check out our GM/Non-Food solutions programming in link below. We have also seen a great uptick in new items within our RangeMe discovery platform within these categories. https://lnkd.in/eCuH9gVJ #nonfoods #generalmerchandise #impulse #seasonal #grocery

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A wonderful article on Costco is able to continue to surprise customers with value in prices and in its focussed offereings and make the customers as its most loyal shoppers. Costco's "treasure hunt" strategy, offering unexpected and unique finds, contributes to customer loyalty. Costco attracts affluent shoppers, with an average household income of $100,000 for U.S. members. Costco strategically places orders with suppliers to prioritize their products and offer lower prices. Costco offers a narrower assortment of products compared to competitors, reducing the tyranny of choice for shoppers. Despite its reputation for bargains, Costco also offers high-end items to appeal to upper-middle-class shoppers. The Costco formula of offering value for money and a unique shopping experience has cultivated loyalty among its customers. Costco Wholesale warehouses are designed to overwhelm first-time visitors with sensory overload and a lack of signage. Despite the initial challenges, Costco has a loyal customer base with 128 million members worldwide. Costco's warehouses are run with military precision, and every detail of merchandise selection, store layout, and pricing is designed to turn first-timers into loyalists. The Kirkland Signature line is a key part of Costco's merchandising strategy, generating a significant portion of their revenue. Membership fees drive most of Costco's profits, and membership growth is vital for sustaining their low prices and supplier clout. Costco has nailed the science, and art, of retail like virtually no competitor. #costco #modernretail #winningstrategies #customerloyality #customerexperience

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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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This. Also, important to note their relative absolute size.

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Second quarter sales at Natural Grocers by Vitamin Cottage were up driven in part by increases in transaction counts along with growth in the number of items per transaction. For the quarter that ended March 31, net sales were $308.1, million, an 8.8% increase over the second quarter of the prior fiscal year. Comparable store sales were up $21.1 million with new store sales accounting for an additional $5.2 million increase. Both were partially offset by a $1.5 million decrease in net sales related to store closures. Daily average comparable store sales increased 7.5% in the second quarter of fiscal 2024, comprised of a 3.9% increase in daily average transaction size and a 3.5% increase in daily average transaction count. The increase in net sales was driven by increases in transaction counts, items per transaction, retail prices, and new store sales. Marketing initiatives, including the (N)power rewards program offers and market-specific campaigns, enhanced customer engagement, and also contributed to sales growth. Net income for the second quarter of fiscal 2024 was $8 million, or $0.35 diluted earnings per share, compared to net income of $5.9 million, or $0.26 diluted earnings per share, for the second quarter of fiscal 2023. | Progressive Grocer https://lnkd.in/eqvpbmP3 #retail #supermarkets #grocery #retailers #earnings

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Walmart: exceeding expectations & winning consumers at both end of the spectrum (low- & high-end consumers) Walmart benefits from: 1) Its scale & low price to gain low-end consumers 2) The introduction of a high quality private label brand (BetterGoods) 2) Investments in tech & ecommerce (+21%! ecommerce growth this quarter - boosted by store pickup and delivery as well as its online marketplace, its subscription business Walmart+ grew double digit last quarter) to win convenience seeker consumers (that are also often high-end consumers) 3) Its continuous investment in stores renovation ($9bn for 1400 stores starting last year & expected to run up to 2025) 4) Its multi-format footprint with Sam's Club that continues to outperform other formats 5) The scale-up of its ad/ retail media business (with revenue up 24% globally with a high double digit margin contribution) Stock price was up 7% last week post release & up 13% YTD Impressive. Not good news for other grocery retailers that are often 'stuck in the middle' (with no scale advantage & without a differentiated enough positioning). As predicted, three types of players will prevail in US CPG retail: i) Hyper-scale grocers (Walmart) ii) Highly differentiated grocers (high-quality/ premium like Publix) iii) Value retailers (Dollar channel, Clubs) iv) Specialty (r)etailers on emotionally involving and/ or ecom friendly categories (On beauty: Ulta Beauty/ SEPHORA, on Pet: Chewy...) v) Hyper-scale Ecom players (Amazon) on ecom friendly categories that do not have to follow the grocery basket (everything except fresh & most of F&B) Tough times for the rest. Exciting times for CPG in the US Walmart results in details: Walmart Q1 FY25 (as they refer to it) results summary • Net sales: $ 161.5Bn; Y-o-Y growth: +6.0% • Adj. Operating Income%: 5.1%; +25bps vs Q1 FY 2024 (Q1 CL FY 2023) Results by divisions • Walmart US: o Net sales: $ 108.7Bn; Y-o-Y growth: +4.6% o Gross Profit: +46bps vs Q1 FY 2024 (Q1 CL FY 2023) o Adj. Operating Income%: 4.4%; +32.5bps vs Q1 FY 2024 (Q1 CL FY 2023) o Walmart advertising sale growth: +26% • Walmart International: o Net sales: $ 29.4Bn; Y-o-Y growth: +10.7% (growth led by Walmex, China and Flipkart) o Adj. Operating Income%: 5.0%; +52bps vs Q1 FY 2024 (Q1 CL FY 2023) • Sam’s club US: o Net sales: $ 21.4Bn; Y-o-Y growth: +4.6% o Operating Income%: 2.8%; +36bps vs Q1 FY 2024 (Q1 CL FY 2023) 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀/ 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y #fmcg #ecommerce #cpg The Coca-Cola Company Nestlé Procter & Gamble AB InBev Kraft Heinz Unilever L'Oréal General Mills Campbell's The HEINEKEN Company Diageo Pernod Ricard Mondelēz International Danone Bel Henkel PepsiCo Coty Reckitt The Estée Lauder Companies Inc. https://lnkd.in/ePzNuAMf

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As Walgreens prepares to shut more stores, it is coming out with a stack of excuses. Weak consumer spending and changing consumer habits being among them. There is a grain of truth in these statements. However, there's a more salient truth - and that is that Walgreens isn't very good at retail. That's why the current 4% slide in retail sales is just the latest in a long line of poor numbers. The problems in the company's retail business go back years, they're not just a function of current market conditions. Meanwhile, over at Boots UK, comparable retail sales are up by 6.4% off the back of a 13.4% increase in the prior year. And these numbers were produced in an equally challenging consumer economy. The difference? Boots actually understands retail and is run with focus. Among other things, it has been investing in value in essential lines and has been amping up more premium beauty at the other. Walgreens version of retail usually consists of nasty grey carpet tiles, clinical strip lighting, inflated prices, and a lack of inspiration. Why doesn’t Walgreens learn from Boots and make more effective use of Boots’ assets, such as a powerful array of private labels, to bolster its performance? The answer is probably a mix of arrogance, intransigence, apathy, and sheer muddle-headedness. The price for this is now being paid. More of my comments in the CNN article linked in the comments. #retail #retailnews #stores #pharmacy #drugstores #realestate

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Private brands are on 🔥. Great way for #retailers to differentiate themselves at great prices. Some of my favorite items have been new sparkling water flavors, gummy vitamins and value add mix items such as veggies and bowls. Suppliers can use private label as an opportunity to test, learn and grow their business while complimenting their own brands. #grocery #privatebrands #innovation Mana Foods

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Amazon Fresh focused on technology-driven features but overlooked basic grocery retailing principles. The grocery brand is integrating traditional grocery merchandising practices into its stores. Amazon Fresh is adding 3,000 grocery products to address assortment gaps. The company plans to update stores across eight states and Washington, D.C., and open new stores next year. The store refresh effort aims to prioritize the grocery shopping experience and balance technology with merchandising. Amazon is determined to succeed in grocery retail despite challenges faced by its physical retail efforts. The updated Amazon Fresh stores have a softer aesthetic, enhanced lighting, and more prepared foods. Amazon Fresh aims to become a frequent grocery destination for consumers. The updated stores have received positive feedback for their visual merchandising and welcoming environment. Some consumers may be hesitant to trust Amazon as a grocer due to lack of cohesion between its physical stores, online shopping, and third-party services. Amazon is working on improving its online services and developing a "unified cart" initiative. #amazonfresh #grocery #technology #customerexperience

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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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A timely follow-up to yesterday's post on Dollar General's assortment initiative, today's The Wall Street Journal article confirms more retailers and brands are also reviewing and rationalizing their assortments. Some of this is to curtail inventories, while some of it is simply overdue assortment management. Seasonal and annual assortment strategies should continuously review trends, revenue/margin, and store/channel assortment goals, and plan the the SKU breadth and depth appropriately. Some retailers let the SKU count expand a bit in hopes it will drive revenue, while others lack the appropriate processes and tools. Sometimes less is more. #assortment #planning #inventorymanagement

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Target has recently released its Q1 2024 earnings report, revealing a 3.7% decline in comparable sales. Despite this, Target remains optimistic and is focused on delivering value to its customers through lower prices, a relevant assortment, and convenience. According to Sam Becker, Fast Company, the company's leadership believes that their performance aligns with expectations. When comparing Target to its competitors such as Walmart, Costco Wholesale, and Amazon, it's interesting to note that Target's stock growth this year has been relatively slower. Walmart and Costco have seen significant increases in their stock prices, up almost 23% year-to-date, while Amazon shares have risen by 22% since the beginning of 2024. Some analysts believe Target's strategy of focusing on a more affluent customer base might be influencing consumer behavior. This is because price continues to be a significant factor in people's purchasing decisions. So, while Target aims to attract a wealthier clientele, it's important to consider how this strategy may impact the overall consumer landscape. #HalifaxWest #WinTogether #capitaladvisory #MandA #restructuring #operatingadvisory https://lnkd.in/d9QkxcfZ

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Consumers continue to reward Amazon with consistent monthly purchases but the landscape of digital continues to expand. I along with several others hypothesized earlier in the year on Temu and SHEINs ability to grab market share of the digital 💵. It appears (for now) their strategy is working. Walmart continues their own relentless pace of matching Amazons logistics and advertising capabilities to grow. 💡Consumers are still loyal to Amazon but the shift to being open to alternate retailers is real. 💡The pressure to diversify on Brands will continue. Balancing the delicate act of “investing too early vs rewards of early adoption”. Retail Media spend needs to be optimized across retailers with org aligned goals of growth vs investment. 💡Yes, Amazon is mature and crowded but with the right strategy and tools Brands will find growth. SKU rationalization is a great place to start your 2025 end to end Amazon strategy.

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Target plans to cut prices on about 5,000 popular items across its assortment, with 1,500 items already reduced and more reductions to come. The price cuts are focused on nondiscretionary grocery, household, and health and beauty items, including national labels and Target's owned brands. The initiative is launched ahead of Target's Q1 earnings report and Memorial Day, aiming to provide additional savings to consumers. Target is using red tags in its app, stores, and online to signal the price cuts. The retailer has implemented various initiatives this year, such as the low-priced private-label brand Dealworthy and the loyalty program Target Circle 360. Target's price reductions are a response to consumers shopping around for essentials and everyday grocery items, with some customers migrating to value retailers like Walmart and Aldi. Other retailers, including Walmart, have also made similar price cuts to stay competitive. Target's price cuts aim to strengthen its value perception, but their effectiveness in attracting customers remains uncertain in an uncertain economy. #target #retail #pricecuts #grocery #walmart

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