While many retailers are focused on delivering personalized promotions
and products as a way to break through the clutter, shoppers have been quietly
using the growing range of options to create
what we call personalized
supply chains. Heads up folks, this could be the next generation of shopper
marketing. Business that used to
go to traditional retail is being unbundled, and shoppers are shifting portions
of their spending to channels (and retailers) where they can get their highly
individualized needs met.
Every retailer wants a straightforward way to jumpstart the
sales of underperforming stores or maybe their entire chain. This 12-minute presentation is
an easy way to see if the growth platforms in The Playbook for Success
can be of value to your company.
Generating growth in today’s flat economy is one of the problems
that keep retailers up at night these days. Taking share from the competition is always expensive and frequently unprofitable, so where
else can they turn? Consider disruptive innovation. Here’s one example.
When management takes responsibility for the future of the
business the way Bill Marriott does, it’s worth a serious look. The Chairman of
the $19 billion dollar hotel management company is making bold moves to ensure
his business is ready for its next wave of customers – 60% of whom will be
Millennials in just four years.
Now we’re face-to-face with the question, “How do shoppers
decide whether or not to buy food and groceries online and have them delivered
to home?” Eventually, the answer will be obscured by habit, but for now it
generates a lot of insight into who will win in this emerging market and why.
Sometimes you need to look into the distance to bring into
focus what’s going on around you. This is especially true today for retailers who must think about what
could happen if Amazon and Google succeed even modestly in their future retail ambitions.
The success of Sprouts and other farmer’s market type stores
is a great example of disruptive innovation – at the same time, it illustrates
the vulnerability of disruptive innovation in today’s fast moving retail
Each year the management
consultancy Centigo AB produces, Centigo Retail Outlook, a major report on
seven new retailing trends they’re seeing across the world. The reports are always full of creative
insight and this year is no exception. Håkan Bengtsson, one of the report’s
authors, is also a BMC Black Belt. We talked with him recently about some of
the things they’ve learned during the work. Here’s a sample of what the team at
Centigo is seeing.
When enough people believe something, sometimes it doesn’t
matter if it’s true or not. Grocery customers now believe that their
supermarkets know enough about them to give them personal offers. Publix is
responding with a personalized offer program – and other food retailers
will need to think about following on. This is an increasingly common shopper expectation.
Aldi’s primary appeal to shoppers is low prices – 30% below the
supermarket – but that’s not the only reason they’re enjoying strong same store
sales growth in an otherwise flat market. Known originally as a limited
assortment store, Aldi has maintained most of those strengths while also
developing a more well-rounded shopper value proposition that’s proving hard to
beat, at least for now.
Putting the customer first is a winning strategy in today’s
intensely competitive market. Relay Foods and Whole Foods are ending a 5-year partnership in Virginia, and the positive and helpful way Relay has approached
helping its customers through the transition is worth learning from. Relay does six notable things in this email they sent to
customers in Charlottesville and Richmond.
Supermarkets need to find new ways to grow, but until now most of the
ideas haven't really taken off. First, it was Whole Health and meal
solutions - more recently in-store clinics looked like they had
potential. Kroger’s purchase of Vitacost.com shows where they are
placing their bets, i.e. in fast-growing categories such as healthy
living at a lower cost and new channels e.g. ecommerce.
Searching out new
visions for food retailing – and the business leaders who
champion them – is one of our passions. Lior Lavy is part of the team that launched
Artizone, the online marketplace that's connecting shoppers with a host of artisan food purveyors in parts of Dallas and
Chicago. We were impressed with their dedication to bringing customers quality, unique foods and by their
intense business focus. Lior seems like a person who will not be
denied. As you’ll see, Artizone
is already defining its unique role in the evolution of online food shopping.
The retail stats compiled in a recent Business Intelligence
report drive home the fact that “online retail is growing faster than offline
retail,” but closer interpretation is required if you want to really understand
what’s going on. For one thing, offline retailers probably have more
opportunity to capture business than the buzz suggests.
We know that it costs a lot more to acquire a customer than
to retain one and that customer turnover is a major expense for retailers. But are we putting enough resources and
thoughtfulness into customer retention? I was reminded of this challenge by a personal experience in
which a little more investment in customer retention could have resulted in a
big increase in the lifetime value of a customer.