David Abrahams

Kroger’s results earlier this week showed a clear picture of a company that is struggling to generate meaningful growth. Notably, Kroger’s headline sales continue to fall below both the prevailing rate of inflation in grocery and below the overall growth of the market. So both volumes and market share are sliding, an indication Kroger is on the back foot. Some of the weakness is because Kroger customers continue to cut back as household incomes remain under pressure. Kroger is not the only food retailer suffering from this, but it has not been able to offset this erosion by picking up new customers. From our data, Kroger has been a net loser of customers over the past quarter. Admittedly, defections are driven by a small number who have moved to more value focused players like Walmart and Aldi, but this nevertheless has a material impact on growth. The dynamic also underlines that Kroger is perhaps not doing enough to push value for money and low-price messages to its shoppers. I chatted with Reuters about the issues that won’t, at least for some time, be disguised by a merger with Albertsons. Link to article in comments. #retail #retailnews #grocery #food #supermarkets #consumers

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Compliance isn't sexy Quality isn't sexy We aren't superheroes But what we do drives so much value and impact in the CPG market Qualitas Executive Group helps protect you from: -demand letters -angry customers -regulatory action -product rejections -angry retail partners -class action nonsense -those gosh darn auditors And that's pretty sexy tbh #quality #compliance #consulting #qualitas #cpgindustry #dietarysupplements #food #foodandbeverage #cosmetics #beautyindustry #qualitymanagement #regulatoryaffairs

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🚨 Insightful DEA Report: Illicit marijuana flowers average a THC potency of 16%. 🌿💨 This statistic underscores a significant advantage of purchasing from licensed dispensaries—quality and safety. Unlike the unregulated market, dispensaries offer products that are tested, compliant, and consistent in their THC content. This not only ensures a safer consumer experience but also supports the legal cannabis industry committed to high standards. Why risk the unknown? Choose quality, safety, and reliability every time with dispensary-bought cannabis. Let's advocate for more informed consumer choices and support regulations that emphasize these benefits. Stay informed and choose wisely. #CannabisIndustry #ConsumerSafety #DispensaryQuality #THCPotency #RegulatedCannabis

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Following a successful pilot at one of its stores in Texas, Walmart is laying out plans to introduce digital shelf labels (DSLs) at 2,300 of its stores over the next two years. The labels, developed by VusionGroup, will allow the retailer to update prices at the shelf using a mobile app. Key benefits of the Vusion Group shelf labels include: 1️⃣ 𝗦𝗶𝗺𝗽𝗹𝗶𝗳𝗶𝗲𝗱 𝘀𝘁𝗼𝗰𝗸 𝗿𝗲𝗽𝗹𝗲𝗻𝗶𝘀𝗵𝗺𝗲𝗻𝘁: With the “Stock to Light” feature, an associate can flash an LED light on the shelf tag using their mobile device, signaling locations that require attention. This feature makes it easier for associates to identify shelf location when stocking shelves. 2️⃣ 𝗙𝗮𝘀𝘁𝗲𝗿 𝗼𝗿𝗱𝗲𝗿 𝗽𝗶𝗰𝗸𝗶𝗻𝗴 𝗮𝗻𝗱 𝗳𝘂𝗹𝗳𝗶𝗹𝗹𝗺𝗲𝗻𝘁: The “Pick to Light” feature guides us directly to the products needed for online orders, speeding up the picking process and improving order accuracy. 3️⃣ 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝘃𝗶𝘁𝘆 𝗮𝗻𝗱 𝗿𝗲𝗱𝘂𝗰𝗲𝗱 𝘄𝗮𝗹𝗸𝗶𝗻𝗴 𝘁𝗶𝗺𝗲: DSLs allow us to update prices with a few clicks. A price change that used to take an associate two days to update now takes only minutes with the new DSL system. This efficiency means we can spend more time assisting customers and less time on repetitive tasks. | Progressive Grocer https://lnkd.in/g4jv4UxE #retail #grocery #digital #Walmart #prices #digitalshelflabels #supermarkets

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Rapid grocer Gopuff launches B2B offering for DTC players, as reported by George Nott for The Grocer. In a strategic move to diversify its revenue streams and drive profitable order volume, Gopuff has unveiled "Powered by Gopuff," a groundbreaking platform enabling brands to utilize the rapid grocer's dark store and courier network for deliveries ordered through their own websites. With "Powered by Gopuff," shoppers can seamlessly make purchases on a brand's direct-to-consumer website, with orders automatically directed to the nearest Gopuff micro-fulfilment center. Here, orders are swiftly picked, packed, and delivered to customers, promising delivery times as fast as 15 minutes. Over the past six months, the platform has undergone rigorous testing with 20 FMCG brands, including industry giants like Ben & Jerry’s, Unilever, Mondelez International, and Nestlé. This initiative marks a significant shift for Gopuff, extending its proprietary fulfillment and logistics capabilities beyond its own app for the first time. Daniel Folkman, Senior Vice President of Business at Gopuff, emphasized the company's commitment to meeting customer demands for fast, reliable delivery. "With the launch of Powered by Gopuff, we're also becoming the fabric of instant commerce, empowering brands to deliver seamless experiences to their customers," Folkman stated. As part of the launch, Gopuff introduces "Storefronts," a Shopify-based online store theme integrated with Gopuff APIs. This allows brands to swiftly launch DTC sites, streamlining the process from weeks or months to a matter of days. Jay Tandan, Global Head of Digital Marketing at Ben & Jerry's, expressed enthusiasm for the partnership, highlighting the simplicity and convenience of Gopuff's micro-fulfillment centers. "Storefronts Powered by Gopuff solves that struggle for us and for Ben & Jerry’s fans across the country," Tandan remarked. Currently available across the US, Gopuff is considering a UK launch for its Powered by Gopuff offering. Additionally, the company plans to roll out "Fulfillment Powered by Gopuff" in Q2, a standalone warehousing and logistics service enabling brands to integrate and promote instant delivery on their existing DTC websites. While Gopuff is not the first to offer such services, with Deliveroo and Jiffy exploring similar models, its move signifies a significant advancement in the quick-commerce sector. As brands increasingly seek efficient delivery solutions, Gopuff's "Powered by Gopuff" platform emerges as a transformative force in the industry, poised to redefine the future of e-commerce fulfillment. Stay ahead with the latest in food delivery news from the weekly Boolanga Business Bites newsletter, brought to you by Wear Your Brand. Sign up for our LinkedIn newsletter now to receive weekly updates directly to your inbox every Monday.

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The title of Timothy Inklebarger's article in Supermarket News should cause supermarket retailers to take notice for a few reasons. First, the actions taken by Instacart and Walmart have the potential effect of locking in more of their existing customers. This is because of the deep discounts associated with the respective offers and the increased benefits new members will now receive as a result. If that occurs, which we believe it has, it will also help boost order volumes as the most likely sub-group of customers to enroll are those only completing one order per month today. Second, the deals likely aided in converting more frequent customers who hadn't yet become a member for whatever reason. Realize that anyone completing just two orders per month already is rewarded right away essentially simply by enrolling without any need to change their buying patterns. This should result in stronger retention rates overall and more importantly with the more frequent and valuable customers. Third, this will create headwinds for most grocers who are attempting to grow their first-party business and Delivery in particular. Consider that one in five customers who buy online from Supermarkets also do so from Walmart during the same month. This means it will be more challenging to build order frequency with that customer cohort, depending on how many are now enrolled. Lastly, Walmart is just finishing another promotional push with the same offer as before, which only makes the above points more pertinent to Supermarkets. Either way, both membership programs - especially the limited time offer - have a compelling value prop. Otherwise, these collective activities addressed in part the higher cost of Delivery vs. Pickup or even vs. in-store, which continues to be a headwind for Delivery. What's your take on these moves and how it will impact the eGrocery business going forward? Special thanks to Mercatus Technologies Inc, who sponsor this ongoing research created and conducted by Brick Meets Click/

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Retail Today / Retail Renaissance: Tractor Supply’s run has finally cooled off, why? Tractor Supply Company What’s causing flat same store sales? DEI? Competition? Merchandising? Leadership? #DEI #competition #merchandising #leadership #growthstrategy With +2,400 stores, many of the easy rural locations have been built, so much of their new growth is in more city or suburban neighborhoods. A much tougher competitive environment, #homedepot #lowes #acehardware etc… #rural #city #suburbs How is merchandising adapting to this environment? 🧑🏻‍🌾 “Green Acres vs City Life” #shoppingexperience Here’s the opportunity, revist your growth strategy? Adjust your merchandising to reflect the new reality? Look at sales production by category and department. Change out your end caps to reflect a more promotional picture, driving “value”. Reduce salesfloor on rural feed items, expand dog/cat. Get out of Garden Retail, you don’t understand that business, “Coconuts vs Bananas”. #sales “Cookie Cutter merchandising is holding you back”. This week I visited two stores in the market. “Grab the opportunity, stop waiting on sales, drive them”! #opportunity #salesfloor Where are the “MERCHANTS”? #merchants The good news, most of your issues are in your control, it’s a matter of “4-wall mentality”. #retail #retailtrends #retailindustry #TopRetailExpert

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What if genuine consumer reviews could be the game-changer your retail strategy needs? Two of Doing Business in Bentonville's regular hosts debate, as Scott Benedict and Andy Wilson unlock the secrets behind harnessing the true power of user-generated content in this episode of "Digital Front Door." Join the two retail veterans as they explore the journey of UGC from simple product ratings to becoming an invaluable feedback engine that influences both online and in-store retail environments. Discover how UGC not only boosts SEO and product visibility but also serves as a goldmine of insights for product managers, guiding them in making informed decisions about both current and future products. #ugc #dbbnwa #omnichannelretail #digitalmerchandising

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People are missing the one key stat in all this Cali vs MI talk: Sales per retailer…. This stat not only shows how viable cannabis retailers in a given state are relative to eachother, but it gives us important perspective when we look at other data points. Cali: $1b / 1,224 = $803,858 per retailer Michigan $786m / 994 = $790,744 per retailer Yes, Michigan is selling a LOT more per capita, but we also have a LOT more stores per capita. California has about 4x the population of Michigan, but only 1.2x as many dispensaries. To me, this only further evidences Michigan’s claim to the top spot. We have almost 4x as many dispensaries per person here in Michigan, and despite this, those stores are doing roughly the same annual sales as those in California. Michiganders love weed. A couple years ago, when the price per lb dropped 50% almost overnight, a lot of people thought it was the end. But what did consumers do? They bought THREE TIMES the cannabis in the following year, growing the overall market 1.5x. Michigan to the Moon!

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As a consumer insights professional, you have to accept you will never understand all of your consumers' behaviors all of the time. For example, there is NEVER ANY REASON TO REACH OVER THE SNEEZE GUARD AT CHIPOTLE. EVER! Even if you are Barack Obama, I can assure you that the worker knows what "pico" or "no corn" or "yes, I know guac is extra" means without your grubby hands reaching into the food area. There is no data or research or analysis that will ever make this understandable or acceptable. #ConsumerInsights #MRX #MarketResearch #Chipotle

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Winning shelf space for your brand is hard, but keeping it can be even harder. 📈 Here’s my checklist of 5 key tactics to help ensure you stay listed for the long term: 🔍 1. DEEP Category Understanding ↳ Retailer Objectives: Understand your Buyer’s category strategy, focus (sales or margin), key growth drivers & expectations for segments in which your brand plays ↳ ADDED VALUE Analysis: Assess category performance vs. these objectives. Identify growth opportunities & YOUR brand’s role in delivering them. Always bring new insights which add value whenever you meet your Buyer 📊 2. Relentless Focus on Performance Benchmarks  ↳ Sales Performance: Agree realistic hurdle rates with your Buyer, supported by solid category insights. Aim to under-promise & over-deliver ↳ Category impact: Beyond the hurdle rate, do the analysis to understand what impact your brand is having on total category. Is it driving growth or a drag on performance? ↳ Proactive Solutions: Identify & address any issues BEFORE your Buyer does 🎯 3. Operational Excellence ↳ Supply Chain: Monitor lead times, fulfilment rates, stockholding & availability. Analyse to minimize out-of-stocks & ensure timely deliveries ↳ Quality Control: Maintain the highest standards. Address issues promptly to prevent disruptions & maintain retailer trust ↳ In-Store Execution: Do store audits to check how your brand is displayed & identify performance drivers / issues. Raise any issues with your Buyer & see how you may help address 🛍️ 4. Targeted Shopper Engagement ↳ Consumer / Shopper Insights: Research preferences & behaviours. Use insight to build a DATA-DRIVEN activation plan to boost engagement & sales ↳ Promotion Effectiveness: Analyse promotions. Track redemption rates, sales uplifts & ROI to optimise ↳ Loyalty Card Data: Understand repeat purchase behaviour. Develop targeted initiatives to retain & attract customers 🤝 5. Maintain Strong Retailer Relationships ↳ Buyer Meetings: Respect their time - increase meeting frequency by adding value in each meeting you do have.  Listen carefully & address any concerns promptly ↳ Joint Business Planning: Use data-driven insights to co-create strategies for shared success A word on Data Without quality data you are trying to fight a battle with 1 or both arms tied behind your back. Yes it’s expensive, but there ARE lower cost options so it's crucial to be strategic about where to invest. We can help to identify priority areas for your brand so if you need any advice please do get in touch Summary - Getting listed is one thing. Staying there is something different altogether - Maintaining distribution requires a deep understanding of brand AND total category performance - Always be 1 step ahead of your Buyer: coming with added value insights & pre-emptive solutions will give your brand the best chance ♻️ If you enjoyed this post, please consider liking it & reposting to your network too #CategoryManagement #FMCG #CPG #SalesGrowth

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#Walmart shares rocked today+ 5% in premarket trading. #Samestore sales for #Walmart U.S. climbed by 3.8%, excluding fuel. #Sam’sClub, #samestore sales rose 4.4% year over year, excluding fuel. #Ecommerce sales shot up by #22% year over year for Walmart U.S., fueled by store pickup and delivery of online orders, as well as the company’s growing third-party marketplace. 

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The most interesting shelf in an entire retail store? The clearance section. The clearance section is full of learnings. Brands don't want to end up here—which means that something went wrong. It could be... ...an issue with the supply chain (it’s going bad soon) ...or with the product (it’s just not good) ...or with the positioning (there’s not a need, or the need isn’t articulated) ...or in the pricing (priced too high, or priced so low that customers think it's a red flag in quality) The clearance shelf motivates a major goal of mine at Product & Prosper: to help brands get on-shelf...but also make it off. To do that, we need to realize: retail is not *just* about sales and connections. It’s also about the foundation of your brand — your product, your positioning, your pricing, your packaging, your pitch, your plan — and this is the part that most brands skip in a rushed effort to get on-shelf. That’s how we win at retail. And that’s why we built our Go-To-Retail Program: We build brands to sell off shelves — then support them in getting first placements.

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Shein has been repeatedly rejected in its attempts to become a member of the National Retail Federation, the largest trade association in the industry. The NRF's acceptance could provide validation for Shein and help legitimize the company in the eyes of U.S. lawmakers. Shein is facing scrutiny over its supply chain, use of a tariff law loophole, and geopolitical concerns related to China. The NRF's approval could be a positive catalyst for Shein, although the organization has not completely shut the door on Shein's membership application. The NRF's board leadership team and executive committee play a significant role in membership discussions, with key industry insiders involved in the decision-making process. #shein #nrf #ipo

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Great Value is great... but Walmart hopes Bettergoods will be even better. (Better for the bottom line, that is.) "Already the country’s largest grocer, the company is introducing a line of premium food called Bettergoods this year, aiming to attract new, often higher income shoppers more frequently and to encourage current shoppers to spend more." Is it silly for a retailer to have two private labels? No, it's actually quite smart. In my Retail Marketing Strategies course, I include an article in the syllabus awkwardly called “Two Tier Brands: The Benefic Impact of a Value Brand on Perceptions of a Premium Brand”, originally published by the Journal of Retailing in 2011. The article contains three interesting findings: 💡 When a retailer offers ONE private label store brand, consumers expect it to be of lower quality even when it's described as a premium brand. 💡 But the quality perception of a PREMIUM store brand increases in the presence of a VALUE store brand! AND... 💡 Quality perceptions of a VALUE store brand are not affected by the presence of a premium store brand. In English? "Great Value" should continue to be perceived as great value for Walmart shoppers AND should help the new Bettergoods brand be seen as more premium -- win-win! I'm excited to try Bettergoods when the brand launches in Canada... are you? #grocery #retail #privatelabel #storebrand P.S. You can read the full article using my WSJ Subscriber Gift Link below. P.P.S. If you're thinking, "Wait a second, what about Sam's Choice?", here's a quote from The Wall Street Journal article that answers that question... "consumers [were] confused about how Great Value products differed from Walmart’s other brand, Sam’s Choice. That brand—named after Walmart’s founder—was created in 2013 as a more premium range. Over the years it became too similar to Great Value and its packaging didn’t stand out to shoppers... Current Sam’s Choice products—about 200 items—will shift to Great Value or Bettergoods or disappear"

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Walmart is offering half off Walmart+ memberships until July 18, ahead of Amazon's Prime Day on July 16 and 17. Until July 18, Walmart is offering Walmart+ memberships for $49 a year, or half off the usual $98 fee. The rivalry between Walmart and Amazon continues, with Walmart aiming to attract customers from the e-commerce giant. Walmart's CFO mentioned that delivery orders surpassed in-store pickup orders, and Walmart+ members are ordering more frequently with fewer items, resembling Amazon shoppers. Walmart has been expanding its marketplace of third-party sellers and utilizing its physical locations to fulfill online orders. The company is implementing upgrades in its stores to boost sales, both in-store and online. Walmart is adopting strategies similar to Target and Amazon to attract and retain customers. #walmart #amazon #primeday #usretail

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Another reading from the monthly retail sales report. I've probably looked at this report 100+ times in the past few years, but just recently realized how unrealistic Nonstore and Restaurant projections have been coming in. Nonstore Retailers are mostly comprised of eComm-like retailers today. Case in point, Amazon falls under this setting. Additionally, there are certain aspects of some businesses also considered nonstore - those sales can be submitted in a separate survey from the same business. The survey is literally just that - about 4 questions. What's the tax id, how many locations, what are the sales (and is that actual or an estimate), then an open-ended response section. The survey goes out to about 4800 businesses monthly. I put a link to one in the comments because its almost hard to believe. I think its important to put that in perspective (this is a survey of business owners' responses, not actual data) because Online and Restaurants have historically been two of the most challenging channels to track. Now these figures aren't inflation adjusted, so there's a little skew there. One could also make the "Restaurants are close to the trend line" comments...ok, I'll give you that. But doesn't Nonstore look a bit excessive? Don't get me wrong, it's clear eComm has been growing, but it's also clear it was slowing down before the end of last year. More, this projects Nonstore retailers generate MORE dollars overall than restaurants, grocery stores, and gen merch stores (Walmart and Target included in there). That's really what drove my interest here. This line item has been showing massive gains since I've started looking at the report. It has always outpaced the other sectors, and now given its size, is having a significant influence on the larger projections. Imagine this sector has (inadvertently) been over projected, skewing the monthly reads. The impact would be significant. Maybe survey takers haven't been filling the forms out right between store/nonstore. Maybe they've been overstating their eComm businesses. Maybe more Nonstore retailers are getting sampled than before. Maybe none of those... I don't know if there's an issue...it just seems like something's off. Oh well...guess I'll just wait and see how today's reading impacts the market. 🙃 #retailsales #consumerbehavior

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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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James and I are interviewing Rachel Peters (Clean Age) this Friday for our pod, BrandBusters. CleanAge has been laser-focused on serving Gen Z, and they bucked the traditional 2010s CPG launch by going RETAIL FIRST instead of DTC FIRST. They have an awesome brand aesthetic and make products with better ingredients (and sustainable packaging). What should we ask Rachel? #CPG #podcasts #brandbusters

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