Shannon Letts

In this new Wisdom With, I get a chance to garner valuable insights from James Jackson who leads strategic development efforts for the Category Management Association and his thoughts on better retailer and buyer engagement. 💡 Understand your Category Manager/Buyer ↗ Retailer Category Managers are charged with meeting P&L objectives and not YOUR specific brand goals. ↗ Each individual brand (and item) must clearly serve a purpose and contribute to achieving his/her objectives. ↗ Learn their how they like to receive information and tailor accordingly. Avoid off-the-shelf presentations that lack any customization for the specific customer in mind. Canned pitches have a low success rate. 💡 You Must Be Compelling ➡ Weave great insights and your product offering into a clear solution that helps address their specific category or business objectives. Compelling stories should have: 👉 A recognizable conflict (example: “50% of shoppers in this category are struggling to find an x product to relieve this symptom”) 💪 A “hero” (your brand) 👊 A believable and profitable resolution (example: “By solving the conflict, it would bring an incremental $1M in margin to the category”) 💡 Help Drive Execution ↗ Your Customer is buried with data, multiple projects, and is continuously putting out a fire. ↗ Your goal shouldn’t stop at getting distribution, it should be to STAY in distribution. 💡 Assist your Category by making effective implementation easy. ↗ Recommend the POG changes and do the work in advance ↗ Target a smart cluster of stores to launch for higher likelihood of success ↗ Create a strong promotional plan to drive immediate proof of performance ↗ Offer sales/broker support to get things rolling #wisdomwith #betterperformance #retail #merchandising #data #storytelling

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Since 2019, Kohl's sales have shrunk by $2.3 billion. That’s a pretty terrible number given consumer spending on retail rose by a dramatic $1.3 trillion over the same period.     The Kohl’s losses are a combination of existing customers spending less and the complete defection of some shoppers. Over the past five years, Kohl’s has lost 1.3 million customers: people who used to visit Kohl’s, but now they don’t. Most of these folks still buy things so it’s interesting to see where they’re now shopping, or shopping more at, instead of Kohl’s. The diagram below traces the defections. The most notable thing is the gains being made by off-price retailers. TJX – with its TJMaxx, Marshalls, and HomeGoods banners – is picking up a lot of trade. Ross, Nordstrom Rack, and Burlington are also in the mix. It’s no wonder off-price is doing so well when it’s gaining so many customers from chains like Kohl’s. What’s also notable is that online specialists don’t dominate. Amazon has picked up some trade, as has Wayfair, but neither are the main beneficiaries of Kohl’s woes. This underscores that the very simplistic narrative of ‘online killed…” is often far from the truth. It is also significant that Costco makes an appearance. Costco is a silent assassin. Many retailers don’t have it on the radar for non-food; but the reality is that Costco has a formidable non-food business. Retailers like Kohl’s don’t underperform because one large enemy comes in and swoops away all the custom. Their substantial loss of trade comes from many players nibbling away at their sales and market share. #retail #retailnews #departmentstores #wholesale #shoppers

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As a lifelong retail merchant, I'm going to potentially have a stroke if the retail media continues to report sequential month-over-month results as an indicator of anything. Year-over-year results are indicative of true performance, with the caveat of a shift in a key seasonal event like...I don't know, perhaps Easter...that will impact the natural trends in consumer purchase behavior. In good news, inflation appears to continue to be cooling...good news unless you are trying to convince your buyer that a price increase you took previously should not now be reversed. Good luck with that, by the way... #retailmerchandising #retailsales #inflation

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Hello Retail Friends, convenience retailers face unique challenges. Small footprints and limited storage space require highly accurate and scalable supply chain planning – especially when charged with supporting aggressive growth targets. We’re proud to announce that OXXO, the largest convenience retail chain in the Americas, recently chose RELEX to optimize forecasting and replenishment as they focus on international growth.    https://lnkd.in/ebaedkfH   #supplychainplanning #supplychainoptimization #supplychain OXXO Internacional Enhances Retail Operations with RELEX Solutions for Forecasting and Replenishment | RELEX Solutions Focused on international growth, OXXO adopts RELEX AI-driven forecasting and replenishment solutions for smarter supply chain and inventory management.

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Today’s results from Kohl's are dismal. They show a company that remains in freefall at a time when most other retailers are at least maintaining their elevation. A 5.3% decline in overall sales, underpinned by a 4.4% decline in comparables, is way worse than the market which, across the categories Kohl’s sells, grew by 2.9% over the quarter. This is the third year in which first quarter sales have declined. And, compared to the same period in 2019, sales are down by a sharp 16.8%. In cash terms, this means Kohl’s has lost $643 million in revenue. Unfortunately, the problems on the sales line are now filtering through to the bottom line where last year’s modest profit of $14 million has been replaced with a $27 million loss. Kohl’s management team says a lot of the right things around merchandising and the essentials of retail. However, not much has changed on the shop floor, which is one of the reason why Kohl's continues to lose customers on top of the 1.5 million it lost over the past five years. Thanks to The Wall Street Journal for including my comments in the article linked in the comments.... #retail #retailnews #departmentstores #trading #KSS

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Here are some interesting stories from the world of retail for Saturday, May 18: 🛋️ Dallas-based At Home Group Inc. has a new CEO with plans to grow the 266-store chain. The retailer’s store count has stalled in the past three years since it was taken private. 💰 Higher-income consumers may be creating a frothy situation at Walmart. Even though affluent shoppers helped drive the retailer’s latest beat, former Walmart US CEO Bill Simon warns they’ll be hard to keep. 💳 Shoppers are taking on credit-card debt to buy groceries. A new report from the Urban Institute found that 20% of adults who paid for groceries with a credit card in 2023 didn’t pay off their full balance. 🥗 The UK's Asda reported a 6.6% rise in revenue to £5.3bn in the first three months of the year. Food sales rose by 1.3% after the launch of a price match scheme against Aldi and Lidl. 🪑 Furniture sales, which hinge largely on the housing industry, are still down this year. The furniture industry’s recovery partly relies on customers getting used to paying more. 🚴🏽‍♀️ The pandemic bike boom is now a bust for local shops. Bicycle makers are now slashing prices to clear out excess inventory. In 2023, bike sales totaled $4.1 million, up 23% from 2019, but down 24% from 2020. 🎮 GameStop’s stock fell 19% early Friday, after the video game retailer and key meme stock issued a profit and sales warning for the first quarter and also filed to sell more shares. 🚚 The latest shipping data is beginning to reveal what US retailers expect from shoppers during peak season — a discerning American consumer looking for deals and discounts in the mid-range price category. 🌈 LGBTQ leaders who not long ago considered Target one of their greatest corporate allies have begun to question the retailer's values after the announcement it would no longer sell Pride merchandise in all stores. 📈 Chinese online retailer JD.COM has reported first-quarter revenue that exceeded market estimates, thanks to deep price cuts that boosted sales. The company's net revenue rose 7% to 260bn yuan ($36.02bn 🇮🇳 Reliance Retail has announced a partnership with British online retailer ASOS.com to sell its products in India. The collaboration is part of Reliance's strategy to bring international brands to the Indian market. 👨🏻‍⚖️ A customer has filed a class-action lawsuit against Dolce & Gabbana USA, claiming that the non-fungible tokens (NFTs) he purchased for $6,000 lost 97% of their value due to delayed delivery. 🇨🇳 The Made-in-Russia Goods Mall has opened in Harbin, China, attracting over 80 Russian manufacturing enterprises. #retail #retailnews #economy #DailyRetailNews

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Target reported a rather soft first quarter, with declines in sales and revenue that reflect overall shopping habits. Although the retailer didn’t open the year with a bang, it is setting up for growth later in the year through new initiatives and, hopefully, in a more conducive selling environment. #retailsales #target

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The state of the consumer in 2024 is already taking shape — even before the country’s major retailers begin to report first-quarter earnings, starting with Home Depot and Walmart next week. There are signs that the U.S. consumer is still spending, especially on experiences. But stubbornly high prices are squeezing consumers with lower incomes, pressuring everyday purchases and corporate profits. #retailsales #consumerinsights

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Hello Retail friends, “Phantom inventory” sounds like a scary term – and for good reason. It refers to goods that appear available in inventory systems but are physically missing from the shelves. The result? Lost sales, frustrated customers, and distorted demand forecasts. The good news is there is a better way, by using predictive inventory. This is a technology that leverages machine learning to identify inventory inaccuracies, improving the accuracy of automatic replenishment. It also helps retailers identify inventory gaps and their impacts on the business. It’s a powerful way to leverage modern AI and machine learning in the retail supply chain. We’ve got an entire webinar coming up about this - in the meantime read all about it, and sign up for the webinar, here: #machinelearning #ai #retail #futureofretail

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Looking for some visual merchandising tips? Here are some thoughts on the virtues of mass merchandising from the Specialty Shop Retailing blog. #independentretailers #shoplocal #visualmerchandising #retailing #smallbusiness

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CNBC reports that Joel Anderson, CEO of discount retailer Five Below noted that the company sees underperformance particularly in the lower-income demographic who are stretched in the present US economy. Shares of the company dropped 11% on the news. #value #retailnews #inflation #economy #retailtrends

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RETAILERS LOWERING PRICES… CNN Article 5/5/24. It’s been my contention that retailers have been increasing sales the last 2 years by increasing prices in the face of falling total transactions and falling customer counts… no one wanted to report falling $ comp. sales and profits after the “pandemic spending effect” when customer traffic slowed down so prices were jacked up (and in many cases, quantity and quality reduced) to compensate for falling traffic… this is a bubble that eventually bursts…ie. once my Cheetos reached $10 a bag, I stopped buying them! Month after month I’ve been reading articles saying “consumer spending remains strong…sales were up x% over last year”… followed by the significant disclaimer “NOT ADJUSTED FOR INFLATION.” Anyone taking a statistics 101 class will tell you that not adjusting the sales number for inflation is bogus… it gives a false sense of optimism. Basic math tells you that if inflation (prices) are up 3.5% and retail sales are only up .7% then LESS PEOPLE are buying LESS STUFF! I would like to see reports not only adjusted for inflation but also include +/- customer counts to Last Year, +/- UPT’s (units per transaction) to Last Year and +/- AUR (avg. unit retail) to Last Year… THEN we’d get a truer picture of what’s REALLY going on.

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The retail landscape is evolving as Direct to Consumer (DTC) brands increasingly lean into physical store expansions. Recent data from Placer.ai shows that major retailers like Walmart, Sam’s Club, Target, and Costco saw notable increases in store visits during Q1, highlighting the enduring appeal of in-person shopping. Amidst this trend, DTC pioneers like Warby Parker, Allbirds, Glossier, Inc., Rothy's, and Casper are making strategic moves to grow their brick-and-mortar footprints. Warby Parker is expanding to close to 275 stores by the end of 2024, Allbirds is opening new locations globally, and Glossier is re-establishing its physical presence with flagship stores. Similarly, Rothy's and Casper are expanding their physical locations to offer immersive, hands-on customer experiences. As consumer behaviors evolve, DTC brands are recognizing the value of brick-and-mortar stores in building stronger customer connections and enhancing brand loyalty. By offering personalized service and engaging, in-store experiences, these brands are not just selling products but also creating meaningful interactions with their customers. This blend of online convenience and physical engagement is setting a new standard in the retail industry, paving the way for a more integrated and customer-centric future. cda Ventures LLC has deep experience in omni-channel capabilities and is here to help as you develop your strategies!! #DTC #RetailExpansion #WarbyParker #Allbirds #Glossier #Rothys #Casper #CustomerExperience #RetailTrends

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This interview with Walmart CEO Doug McMillon is a #retail #masterclass. A bit of context and perspective, combined with a lot of detail about every aspect of their business — #merchandising, #SupplyChain, #stores, #digital / #omnichannel, #international, #technology, #marketplaces, #RMNs, and more. And this will make an excellent base prompt for a retail #AI assistant — one of my #WeekendProjects

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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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Foot Locker's newly redesigned store doesn’t solve all of its problems, but it is a very good start at remedying some of the ills that have plagued the brand.   Most of the estate looks tired and shops are not conducive to driving sales as they are too functional and don’t always allow Foot Locker to showcase product effectively. This deters customers, especially younger ones who like modern and exciting environments. However, it is also a turn-off for brands like Nike which are conscious about how their products are displayed.    The refresh also brings Foot Locker into line with other retailers. The bar for store design has been set far higher thanks to companies like Lululemon or Vuori, and even Dick’s is investing more in its stores – especially the new House of Sport locations. Its commitment to updating 900 shops shows that Foot Locker does not want to be left behind.    In my view, the plans will also help CEO Mary Dillon, as they are solid evidence to investors that things are changing. Foot Locker has had a string of very bad numbers so Wall Street is now keen to see signs of material change.   However, new stores also need to be accompanied by better sales numbers. This might be more difficult to deliver quickly in a sneaker market that is still very soft and where several brands are still trying to push direct to consumer sales. Thanks to Insider Retail for including more of my thoughts in this piece... https://lnkd.in/eYNiB5vM #retail #retailnews #sneakers #stores #design #sportinggoods

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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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