Smartphone shopping can often be more of an experience than shopping from a laptop that can feel like work, just given the traditional usage of those devices. Consumers "live" on their phones and it is much easier to make impulse purchases in moments of relaxation. Ads, and especially ones that are personalized, hit consumers as they go through their social media, and there can be an attraction and desire to be a part of a community. Major purchases are more likely to be made on a laptop. For example the J.D. Power Appliance Satisfaction Study finds that 59% of appliances purchased online are done through a laptop/desktop computer vs. 35% on a smartphone/app, and 7% on a tablet.

Sam's Club members will be okay with the increase. No one likes an increase, but when you consider it's been 9 years, they've increased the value of the membership through their products and services, and the current macro environment, the membership base will be very understanding for the most part. At J.D. Power, our research shows that consumers judge price based on the value for the products and services received. As long as Sam's Club continues to deliver on that for their customers, they will be able to continue to raise the membership fee over time with little negative reaction from their base.

Nuuly is providing a unique experience that helps it differentiate against other rental clothing, clothing retailer/app, and clothing subscription services. Customers love options and depending on their different stages of life or even throughout the year, the thrift or rental opportunities may have more appeal. Then, on top of that, to have the relationship with Urban Outfitters, really provides the company an excellent opportunity to increase share of wallet within the Urban Outfitters ecosystem. The company's ability to drive awareness of the Urban Outfitters and Nuuly brands, relationship, and benefits will drive consideration and increase the customer base and spend over time. This is a great opportunity for driving profitable growth for Urban Outfitters.

Organic grocery stores can largely benefit by merging with a conventional food store offering. Though there is absolutely a niche of customers who will be drawn to organic grocery stores, there's a much larger target market in catering to customers who are desire to purchase healthy and organic foods while recognizing that those same customers will need additional groceries that can't always be found in organic grocery stores. Providing convenience and a robust selection of offerings is a recipe for success. The less customers have to run around to shop for the things they want and need, the happier they will be, and then all that spend is taking place at few locations which is definitely a win-win!

Since the pandemic there has absolutely been a shift in how many employees view their responsibilities as a worker. Retailers need to worry about "quiet quitting" as it will have a direct impact on the customer experience, and ultimately the bottom line. We see this correlation very clearly across the dozen + industries we cover at J.D. Power. It is in the retailer's best interest to keep a pulse on the intent to quit and engagement levels. There is definitely a balance to be found between the the required business outcomes (sales), and how to achieve those outcomes through a flexible and adaptable work environment that supports the employees' greater needs, but also makes them feel like they are a part of the path to success for the company, for themselves, and for the customers they serve.

e-Grocery adoption will continue to rise. Those who have already started ordering groceries online will continue to do so. As more grocery stores roll out the offering and have services and subscription programs, consumer awareness, consideration, and usage will grow. There are many reasons why consumers are attracted to ordering groceries online. During the pandemic, it was a safety benefit, but in addition, it is a huge time saver, very convenient for meal planning, and likely attracts a customer base that might not have shopped at that particular grocery store otherwise. J.D. Power conducted a survey on this topic in early 2021 and at that time, among those who had used curb-side pickup or delivery services, 51% had done so for groceries, while 83% were still/also shopping for groceries in-store. People are likely to fall into a blended mix of wanting a grocery store they can run into to grab what they need while having the convenient option to order online and have it delivered.

Though customers definitely want to do the right things regarding the environment and brands can differentiate accordingly, J.D. Power still finds that other drivers will trump environmental friendliness in driving purchase decisions. For example, in the J.D. Power Paint Satisfaction Study, only 6% of customers indicated they purchased their interior paint because it was environmentally friendly. The largest drivers remain past experience with a brand, color desired, price, good reviews, and recommendations. Music absolutely has an impact in the retail environment, and any environment for that matter. In the J.D. Power Home Improvement Retailer Study, the Store Experience is the largest driver of Customer Satisfaction, even over Merchandise and Pricing. Retailers set the tone for their shoppers and with music that can have an external-internal-external effect. Customers hear the music, it affects their emotions and how they are thinking about that shopping experience, and then that impacts how they approach the products they are shopping for. I believe music can affect merchandise selections, quantity, time spent in the store, and how the customer engages with the staff and other shoppers. Creating a unique environment with music can definitely be a differentiator.

I've been a fan of Walmart+ from the beginning, but I'm not sure if I want Walmart, or any retailer, entering my house to put my groceries away for me. However, there is definitely a large group of customers that can benefit greatly from this service! Already providing so much convenience in delivering groceries to your door, this service takes it up a notch with a Walmart employee (instead of a delivery service) coming into your home, putting groceries away, and taking back any returns you have. For many, I would think this will be a very welcomed service. In addition, the price isn't much different than what I pay for the current Walmart+ and a huge reason for that is there's no tipping. It's not currently offered where I live, but I will be closely watching the continued rollout. I do believe Walmart is focused on building trust with its customers by having their specially trained employees delivering for this program and wearing cameras. I can see customers building relationships with these deliveries over time, similar to their mail person. In the end, to get it right, Walmart has to deliver on what's most important to their customers and that starts with hiring, training, and execution of the workforce, timeliness, accuracy, and consistency.

Best Buy has a strong brand and continues to be innovative in how it serves its customers and attracts new ones. They've been successful at this by proving themselves to be very focused on the customer experience and recognizing what is most important to satisfying their customer base. Staying true to a customer-focused strategy will always present opportunities for growth.

Pricing is only one piece of the value equation. Satisfaction is all about performance minus expectations. There are retailers known for their low prices, sales and promotions, that do well at satisfying their customers from all angles. However, even with low prices, retailers and brands can fall into the trap of "you get what you pay for," and the value to the customer and the experience it offers becomes subpar. Without considering the rest of the experience such as the store layout, ease of shopping, merchandise quality/availability/variety, and staff/service, pricing alone won't be enough to satisfy and delight customers. Walmart will continue to do well based on convenience and price, but there are significant opportunities to differentiate and increase the awareness, consideration, and draw of customers to all the ways Walmart can serve them.

There are rockstar employees at all ages. It starts with hiring, and then providing the necessary training so the employee knows clearly what the expectations of their role is and how they impact the bigger picture for the company as a whole. Leadership will keep the employee on the path, and needs to foster an environment of continual learning, development, and recognition of how their contributions are impacting the business' success. Providing a context for how important the store experience is to satisfying customers, driving repeat purchases, and advocacy is critical. Retail employees need to see their key role as being helpful to customers, which includes being available to help customers find the merchandise the are looking for, being courteous, being knowledge about the company and its merchandise, and listening to and offering guidance when customers have questions. There's no need to overcomplicate what's being asked of employees; it's simply delivering on the foundations of an outstanding customer experience.

Any product information that is easily accessible and clearly details what customers would want to know most about product features, benefits, and pricing provides significant value. Digital IDs definitely provide a fantastic opportunity for products to highlight this key information, while providing a great service to their customers. However, there is never a replacement for human-to-human interaction, so where possible and where it makes sense, having sales reps available to engage with customers to educate and advise will always have the largest impact on the customer shopping and purchase experience.