Space and category management solutions were prominently represented at NRF 2024. What do you think the future of retail solutions will look like, and how can providers stay ahead of the curve?
While grocers have earned credit for upgrading the quality and branding of their private labels, a new study finds store brands receive little marketing support. The study comes as reports indicate shoppers are trading down to store brands amid inflationary pressures.
James Daunt made Waterstones the largest bookstore chain in the UK and has brought about a turnaround at Barnes & Noble. How did he do it? Apparently, by getting rid of many of the “sensible retailing principles” that helped tank the business in the first place. Do you agree that sensible retailing principles lead to boring bookstores?
Food shopping options for downtowners can be downright dismal. Patricia Waldron is a center city dweller and feels fortunate to have a great Ralph’s in her neighborhood, but before the store opened, downtown San Diego was pretty much a food desert. Are grocers generally doing enough to serve urban consumers?
A university study finds telling online shoppers that grocery supplies are low can help retain them over the long term. How would you rate the pros and cons of letting online grocery shoppers know when inventories are low?
Shoppers believe grocers are making 14 times more profit than they actually are and also believe food-at-home inflation is about two times higher than reality, according to a new dunnhumby analysis. Are grocers in a “precarious position with their brand perception” in the face of rampant food inflation?
Walmart is known for its everyday low prices on products across the store, but a recent offer of a carton of 18 eggs for $2 at a store in Kentucky raises questions about how this particular location was able to offer a price so low. How much are Walmart and other large retailers able to influence pricing on commodities such as eggs?
At a virtual meeting in December, Whole Foods implored suppliers to lower costs on packaged groceries as inflation moderates. Do grocers have the leverage it takes to strong-arm their suppliers into reducing prices?
An Amazon Fresh is not coming to a neighborhood near you just yet. The company will delay opening new Fresh stores until it figures out how to differentiate the locations from established competitors in the market. How do you evaluate Amazon’s strengths and weaknesses in the grocery vertical?
Ron Margulis with Randy Edeker, executive chairman, and CEO Jeremy Gosch of Hy-Vee, at the recent FMI Midwinter conference in Orlando. Rather than ask about operations, competition or financials, he focused on tech and the customer experience. What are the biggest challenges and opportunities facing Hy-Vee and other regional supermarket chains?
Consumers are fed up with escalating inflation, prompting some companies to restrain their price hikes to offset cost pressures. Will consumer resistance to higher prices likely be the primary factor driving down inflation?
At the NRF Big Show, Jeff Gennette, Macy’s CEO, discussed how process changes and improved data science helped the retailer overhaul inventory disciplines over the pandemic. Are more retailers using data science to tailor markdowns by “door and channel” as Macy’s is doing?
American consumers continued to spend as prices rose steadily higher from 2021 to June 2022. Will they keep up the shopping pace as prices go in the opposite direction? How might a further easing of inflation affect consumer spending?
A new university study finds some retailers may be slower to reduce prices to stimulate sales due to “price frictions,” for example, reluctance to move away from prices that end in 99 cents. Are the pricing frictions cited in the article a major impediment to price optimization?
Inflation has become enough of an issue to rattle Walmart’s everyday low price positioning and the chain is considering taking a drastic move that may keep its customers happy, but likely have the opposite effect on some of its suppliers. How effective will Walmart’s threat of delisting products be in getting center store grocery suppliers to moderate prices?
Too many retailers had the bad habit of over-buying long before the pandemic created the supply chain chaos we are still living through. “Just in time” systems failed to prevent the overbuying problem. How will retailers digest this season’s sales, margin and inventory outcomes to arrive at better demand forecasts for Fall/Holiday 2023?
This holiday season has ushered in a period of peak price-sensitivity. Consumers continue to wonder whether or not we’re in a recession, and while spending is continuing on, there’s certainly an understanding that times are tougher. Do you think consumers trust that retailers are giving them good deals when they see fluctuating prices?
Walmart CEO Doug McMillon yesterday told CNBC that his company has a growing theft problem. Mr. McMillon said that theft has reached levels that are “higher than what’s historically been” the case for the retailer. “If that’s not corrected over time, prices will be higher, and/or stores will close,” he said. Do you see Walmart raising prices or closing stores in some areas in response to increasing theft?
2022 is shaping up as a breakout year for Publix’s Greenwise Market format. The Greenwise organic food and essentials specialty concept in Florida experienced higher year-over-year foot traffic growth in September than Publix’s mainstream stores, according to a Placer.ai study. What factors are key to making small format grocery stores work?
Inflation is a top concern for both businesses and consumers currently, and rightfully so as the U.S. trend continues to remain high. What do you see as the most effective tactics for retailers trying to hold the line on inflation for their customers?
A study finds online prices are on average 13 percent less expensive on Amazon.com than other leading U.S. retailers across 15 categories, narrowing from 14 percent lower in 2021 and 16 percent in 2020. Is price still the primary reason consumers choose to shop on Amazon?
With inventories elevated in many categories and the economy slowing amid inflationary pressures, larger retailers are using reclaimed leverage to cancel orders, fight price increases and seek out concessions from suppliers. Do you see indications that retailers regained leverage against their supplier base amid excess inventories and inflationary pressures?
Almost exactly three years after its last in-person conference, the Private Label Manufacturers Association met in Chicago this week to share the latest and greatest on store brands. With a few exceptions, there wasn’t anything really new. What should retailers be doing with their store brands right now to grow the segment?
Target’s same-store sales have been trending in the wrong direction. The retailer, which posted a 2.7 percent third quarter gain in its comps, saw its store traffic increase 1.4 percent on top of a gain of nearly 13 percent in 2021. Target’s average ticket also improved 1.3 percent. Are Target’s October and early November sales trends consistent with what’s taking place across retail?
Walmart’s savings message is resonating with Americans across income levels and helping the company dramatically reduce its inventory in the process. How likely is it that the new customers coming to Walmart for groceries will stick with the chain once inflation becomes less of a factor?
With its high-quality products, value proposition and knowledgeable and friendly staff, Trader Joe’s often finds itself at or near the top of various industry “best of” lists. However, the quirky chain may still face some challenges as it expands. What do you think Trader Joe’s needs to work on?
“The Customer-Base Audit,” co-authored by Wharton marketing professor Peter Fader, argues that firms cannot make fully informed decisions without first understanding their customers’ buying behavior and the actual health of their customer base. Do you believe a customer-base audit as proposed in the article is a good first step on the journey to customer centricity?
Aldi and Walmart are running Thanksgiving meal promotions that promise to help their customers save as though grocery prices haven’t spiked 13 percent in 2022. Are Americans significantly more price sensitive heading into this year’s Thanksgiving Day feasts than they were in 2021?
Freight demand is dropping, as reported by some of the biggest long haul freight companies in the U.S. The trucking firms say they have seen demand for their services wane somewhat at a time when they normally are at their busiest. What do declines in cargo imports and freight demand say about the sales outlook for retail over the next six months to a year?
Bed Bath & Beyond’s search for a CEO is over. The retailer yesterday said that it has named Sue Gove as president and chief executive officer of the company. Ms. Gove has been the retailer’s interim CEO since June when she replaced Mark Tritton. Does Sue Gove have the right plan in place to turn Bed Bath & Beyond Inc. around?
Nothing beats having an item in stock. New research shows that brick and mortar retailers that need to backorder items to meet customer demand are losing out in the longer run. How can retailers avoid and/or mitigate the negative effects associated with backorders?
With inflation driving grocery prices sky-high over the last year, the Canadian government is stepping in to determine whether or not grocers have been gouging. Do you think U.S. grocers will come under pressure similar to what is taking place in Canada should food inflation continue to rise?
With last year’s in-store Christmas shopping stifled, and supply chain disruptions preventing orders from hitting the shelves on time, retailers ended up sitting on a lot of seasonal inventory. They packed it away for a year and, now as a new Christmas season approaches, they are selling it again. Will shoppers buy 2021’s leftover Christmas inventory or react negatively to last year’s merchandise?
Grocers not known for rock-bottom prices can minimize the damage in competing against low-price leaders — and potentially strengthen bonds with customers — by keeping price gaps tight while using best practices in executing mass promotions, communications, personalization and private branding. How can traditional grocers best compete in inflationary periods against low-priced leaders?
CVS is slashing prices on its menstrual products and working to eliminate sales tax on such items across states as part of a broader push against the “pink tax,” a term referring to the premium women tend to pay versus men for personal health goods. What do you think of CVS’s moves to reduce prices on menstrual and other personal products?
New research forecasts that imports to American ports will fall to the lowest level in nearly two years by the end of 2022. How do you explain the forecasted drop in imports at the nation’s ports?
Major retail pharmacies are facing legal battles over placing homeopathic remedies in the medicine aisle with the rest of the pills. What should a retailer’s responsibility be when it comes to informing customers of the effectiveness or lack thereof of the products it sells?
Food prices are rising, no doubt, but apparently American consumers think they are paying way more than price tracking statistics show is the reality. Does the grocery industry have a price perception problem?
Dollar General says it is not abandoning the pricing on its selection of $1 products, even as inflation continues to drive retail prices up nationwide. How important is the $1 price point to Dollar General shoppers?
Kroger has updated its opening price point strategy in private label, winnowing 17 brands down to two: Heritage Farm for fresh and dairy product lines and a new brand, Smart Way, for nonperishable items. Do you see more benefits than drawbacks to Kroger’s move to consolidate its value-tier private labels to two brands?
A recent Morning Consult survey concludes that only 25 percent of U.S. adults have failed to notice “shrinkflation” in any grocery categories, and many that have are seeking alternatives. How open should retailers be to accepting shrinkflation moves from vendors?
Bed Bath & Beyond yesterday went public with the struggling retailer’s new plan to get its business on solid footing. What are the key challenges that Bed Bath & Beyond faces at this moment in time?
On Walmart’s second-quarter conference call, Doug McMillon, CEO, said the retailer’s merchants are focused on “holding prices down or rolling them back” across categories based on demand. Should retailers be doing more to publicize their efforts to selectively hold or reduce prices at this time?
In 2020, Schnucks opened EatWell, A Natural Food Store by Schnucks in Columbia, MO, with a focus on natural, organic, local and specialty products. Last week, the company opened a mini-Schnucks Express next door. Does Schnucks Express, featuring conventional food favorites, complement Schnucks’ EatWell concept?
Barnes & Noble’s CEO James Daunt has defended a new buying policy that some book industry insiders charge only leads to the chain stocking new releases of hardcovers from best-selling authors. What do you think of the moves by Barnes & Noble to focus on best-selling hardcovers and otherwise focus on paperback sales?
A new survey finds 76 percent of U.S. consumers saying their family has changed how they buy food with prices on the rise. Do you suspect grocery shopping behavior will follow patterns seen in recent downturns or do escalating food prices and other factors throw that out of alignment?
In an inflationary era when customers are increasingly strapped for cash and hunting for discounts, a category of ultra-low-priced grocers that sell the unsellable is growing in popularity. Do you expect mainstream grocers to change their protocols for “unsellable” CPG items if inflation persists?
Target is ready to get back to its more profitable ways. That was the message yesterday from CEO Brian Cornell on the chain’s second-quarter earnings call with analysts. What do you see as Target’s strengths and weaknesses as it moves into the back half of 2022?
The conventional wisdom has long been that you are financially better off making food at home than splurging on eating out. But the inflationary economy might be flipping that logic on its head. Will U.S. consumers shift more food dollars to restaurants through the balance of 2022?
Deloitte, KPMG and Mastercard all issued “Gold Star” back-to-school spending forecasts in the range of 7.5 percent to nine percent, attributing spending increases in part to inflation. Do you agree that back-to-school is largely an “essential category” and somewhat immune to inflationary pressures?
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