Rich McMahon’s Post

Big Lots recent SEC filing reveals significant challenges, including the planned closure of 35 to 40 stores in 2024, driven by elevated inflation and reduced consumer buying power. With net losses and operating cash usage in 2022, 2023, and Q1 2024, the company faces potential covenant violations, casting doubt on its viability as a going concern. Despite these hurdles, Big Lots is actively pursuing strategies to enhance liquidity and business performance. Here are some thoughts: Short-Term/Immediate: Immediate actions should include executing real estate sale-leaseback transactions to generate cash, aggressively managing inventory, and implementing strict cost control measures. Mediumium-term: Enhancing the customer experience through better training and store redesigns, accelerating the digital transformation with a robust e-commerce platform, and diversifying our product offerings would be key priorities. Longer-term: Strategies involve debt restructuring, forming strategic partnerships, launching a rebranding campaign, and adopting lean management principles to improve operational efficiency. Investing in technology and fostering a culture of innovation and accountability would drive continuous improvement, while transparent communication with stakeholders and leadership development could help ensures sustained success. #RetailTransformation #Leadership #CustomerExperience #DigitalTransformation #OperationalExcellence #Innovation #BigLotsTurnaround

Does the back half of 2024 look like dense fog....hard to find the right path? We have 176 days left in 2024 and it's crucial to set a clear and actionable strategy to close out the year on a high note. Whether you're focusing on business goals, advancing your career, or personal growth, a strong finish requires intentional planning and decisive action. For my business, cda Ventures LLC, I'm re-evaluating my goals and ensure they align with the current market dynamics. I'm doubling down on customer engagement, streamlining operations to maximize efficiency and reduce costs, and exploring new revenue streams through innovation and strategic partnerships. I'll continue to Invest time in professional development, networking, and mentorship. And create a routine that supports both my professional ambitions and well-being. What is your strategy to finish the back half of 2024 stronger than you started? If you haven't reflected and revisited your strategies, nows the time! #Leadership #Strategy #PersonalGrowth #BusinessSuccess

Staying ahead of the curve is not just an advantage—it's a necessity! Recognizing and capitalizing on emerging trends can be the difference between thriving and merely surviving, especially in the retail, consumer, and wholesale sectors. So, what are some key trends shaping the landscape as we at cda Ventures LLC work with clients across mutltiple segments: Shoppable Content:  This trend is transforming the shopping experience, seamlessly blending content and commerce. Brands are integrating shopping functionalities directly into their digital content, making it easier for consumers to purchase products without leaving the platform. This approach not only boosts sales but also enhances customer engagement and loyalty. Endless Aisle Capabilities:  Retailers are increasingly adopting endless aisle solutions, allowing customers to access a broader range of products than what is physically available in-store. My recent visit to a Harbor Freight Tools store highlighted the effectiveness of this strategy, showcasing a well-stocked and organized store that leveraged technology to provide an expansive product selection. Enhanced Customer Services:  Pottery Barn's Free Design Services, which include in-home consultations, virtual design sessions, and in-store classes, are a prime example of how brands can add value beyond the product itself. This approach mirrors Best Buy’s strategy with Geek Squad and Magnolia, focusing on services to build deeper customer relationships and drive loyalty. Sustainability and Ethical Practices:  Consumers are increasingly prioritizing sustainability and ethical practices when making purchasing decisions. Brands like Boll & Branch that commit to eco-friendly initiatives, transparent supply chains, and ethical sourcing are gaining a competitive edge. Artificial Intelligence and Generative AI:  The integration of AI into business operations is revolutionizing the retail and wholesale sectors. From personalized shopping experiences to efficient supply chain management, AI-driven solutions are enhancing efficiency and driving growth. Newmine (analytics platform with focus on returns reduction), Pathr.ai (spatial intelligence solution to drive instore improvements) and Tymely (AI customer service agent that handles retailers' most complex tickets) are a few examples worth looking at! By staying attuned to these trends and strategically incorporating them into our business models, we can not only meet evolving consumer expectations but also set new benchmarks for success. #RetailTrends #ConsumerBehavior #ShoppableContent #EndlessAisle #CustomerExperience #Sustainability #AI #BusinessStrategy #CorporateCulture

In today’s competitive online marketplace, knowing what drives consumer behavior is crucial. A recent survey by Wunderkind, involving nearly 1,500 respondents from the US and UK, offers valuable insights: * Price Competitiveness: 57% of consumers prioritize competitive pricing when purchasing online. * Product Quality & Shipping Options: 53% value product quality, while 45% consider shipping options important. * Communication Channels: Email is the preferred channel for 39% of consumers, followed by the brand’s website at 33%. * Incentives: Free shipping is a top incentive, with 70% of consumers favoring it, alongside loyalty points (50%) and one-time discounts (38%). * Purchasing Channels: 48% prefer buying directly from the brand’s website or app. * Travel Plans: 39% plan to travel as frequently as last year, with 26% intending to travel more. So, what are the key takeaways for Brands? First, ensure competitive pricing to attract price-sensitive consumers. Offering free shipping can be a powerful incentive. Leverage email marketing for direct communication and maintain a strong online presence through your website or app. Understanding these preferences can help brands enhance customer satisfaction and drive growth in an evolving marketplace. #ConsumerBehavior #DigitalMarketing #Ecommerce #CustomerInsights

Opportunity!!

Do Brick & Mortar stores make sense in your growth strategy? If they do, prepare for more challenges finding space as the competition for brick-and-mortar space is fiercer than ever, driven by a decade-long decline in available shopping center space and the post-pandemic retail boom. As retailers announce ambitious growth plans, they face unprecedented challenges in securing prime locations, resulting in higher rents and quicker lease agreements. Nearly 80% of available spaces are leased within six months. IMO, this scarcity highlights the ongoing importance of physical stores in the retail strategy, even as landlords explore alternative uses such as Urgent Care centers and entertainment-based tenants such as Pickleball facilities. Retailers cannot adopt a passive approach but must engage in creative leasing strategies and be prepared to invest significantly to secure top locations. What are your expansion plans? We are heading into the 2nd half of 2024....whats your strategy? #RetailExpansion #RealEstate #BrickAndMortar #RetailTrends #CommercialRealEstate #RetailStrategy #RetailInnovation

Happy Fourth of July! Today, we celebrate the spirit of independence, innovation, and community that defines America. As fireworks light up the sky, it's a perfect reminder of how retail is lighting up the consumer experience with shoppable content and omnichannel strategies. Much like the diverse and dynamic American landscape, the retail sector is evolving rapidly, embracing technology to offer personalized and seamless interactions. From augmented reality fitting rooms to endless aisles, retailers are sparking joy and convenience for shoppers everywhere. As we enjoy this festive day, let's also appreciate the innovative strides in retail that continue to shape our everyday lives. Happy Independence Day! #FourthOfJuly #IndependenceDay #RetailInnovation #Omnichannel #ShoppableContent #CustomerExperience #RetailTrends #TechnologyInRetail #HappyFourth #RetailTransformation

Opportunity!!

As we gear up for the back-to-school season, it's clear that physical stores and interactive experiences play a pivotal role in consumer spending. Retailers offering a variety of options and engaging shopping experiences will lead the way in capturing this year's back-to-school market. According to JLL's Back-to-School Shopping survey, parents are planning to spend 21.8% more this year with spending per child increasing from $390 to $475. Shopping begins in now (July) and physical stores are key, with 90% of parents planning in-store visits and allocating 63% of their budgets to brick-and-mortar shopping. Malls are gaining popularity, with a significant increase in parents planning to shop there and these parents tend to have higher budgets and visit multiple stores, enhancing their overall spend. Sales, deals, and coupons remain crucial, but many parents are also opting for fewer or second-hand products to save. During my tenure at Bed Bath & Beyond (old), we had a thriving Back-to-College business. Beyon having the right product assortment, our stores executed and were a differentiator. From Checklists to "How-to-Build-A-Bed" to Pack-&-Hold to Move-In Events (massive) to On Campus Partnerships (with bookstores, last minute items, etc), our stores drove the business by being the experts for your college experience!!! Walmart, Amazon, and Target remain top choices this year, while Costco Wholesale, Old Navy, and Dollar General also rank highly according to the study.. How are you catering to the Back-to-College market? Let me know if you'd like ideas. #Retail #BackToSchool #ConsumerTrends #Shopping #PhysicalStores #RetailStrategy

I know.....we are now into July and heading into a long, Fourth of July Weekend! But we are also halfway through the year and I know many of us in Retail are thinking about Holiday Season 2024. So, here are a few thoughts to keep in mind as you finalize and execute your plans for the upcoming season. This year presents an added challenge with a shortened shopping period of only 27 days between Thanksgiving and Christmas, the shortest since 2019. To navigate this compressed timeframe, retailers should consider launching their campaigns early and extending store hours during peak shopping days. By proactively adapting to these time constraints, businesses can maximize their holiday season success. And, as we approach the 2024 holiday season, the retail landscape is set for a dynamic shift. The National Retail Federation predicts a 3% to 4% year-over-year increase in sales for November and December, signaling a return to pre-pandemic levels. This growth is driven by holiday shoppers' eagerness for value and hunger for deals. Retailers should prioritize offering competitive prices and attractive promotions to capture market share. Additionally, enhancing the omnichannel experience, from seamless online shopping to efficient in-store services, will be crucial. Embracing technologies like AI-driven personalization and shoppable content can further boost customer engagement and drive sales. Are you ready? If you are looking for ideas, let cda Ventures LLC help. Send a message to schedule some time. #RetailTrends #HolidayShopping #Omnichannel #CustomerExperience #AI #Personalization #ShoppableContent #RetailStrategy #Holiday2024 #RetailInnovation