The Biggest Retailers are Breaking Away
Here’s what it means for your business.
I took my kids to the new Toy Story Movie.
Aka, I spent 2 hours surfing Placer.ai.
Their data is unbeatable. 🥰
One particular article really pulled me in.
👉 A very few physical retailers are killing the rest.
This definitely isn’t something I like to see.
But that doesn’t make it any less true.
And there are serious implications for the Industry.
Here are some points from the article:
𝟏. 𝐑𝐞𝐭𝐚𝐢𝐥 𝐢𝐬 𝐂𝐨𝐧𝐬𝐨𝐥𝐢𝐝𝐚𝐭𝐢𝐧𝐠 𝐀𝐫𝐨𝐮𝐧𝐝 𝐭𝐡𝐞 𝐆𝐢𝐚𝐧𝐭𝐬.
Walmart, Costco, Target, Dollar General.
Winning in distribution is coming down to fewer channels.
𝟐. 𝐂𝐨𝐬𝐭𝐜𝐨 𝐚𝐧𝐝 𝐃𝐨𝐥𝐥𝐚𝐫 𝐆𝐞𝐧𝐞𝐫𝐚𝐥 𝐚𝐫𝐞 𝐋𝐨𝐨𝐤𝐢𝐧𝐠 𝐃𝐚𝐧𝐠𝐞𝐫𝐨𝐮𝐬.
Out-growing almost every other retail chain.
Small packs vs Club packs, both value!
Perceived value does NOT mean cheap.
𝟑. 𝐁𝐢𝐠 𝐂𝐡𝐚𝐢𝐧 𝐖𝐢𝐧𝐧𝐞𝐫𝐬 𝐕𝐚𝐫𝐲 𝐖𝐢𝐝𝐞𝐥𝐲 𝐛𝐲 𝐌𝐚𝐫𝐤𝐞𝐭.
Regions are not the same within a retailer.
Demographics and preferences vary by region.
Brands may fit in one region, but not the chain.
𝟒. 𝐖𝐚𝐥𝐦𝐚𝐫𝐭 𝐢𝐬 𝐆𝐫𝐨𝐰𝐢𝐧𝐠 𝐀𝐜𝐫𝐨𝐬𝐬 𝐀𝐋𝐋 𝐃𝐞𝐦𝐨𝐠𝐫𝐚𝐩𝐡𝐢𝐜𝐬.
Growth is slower, but it is coming across demographics.
Walmart continues improving in local merchandising.
𝟓. 𝐓𝐚𝐫𝐠𝐞𝐭 𝐒𝐡𝐨𝐰𝐢𝐧𝐠 𝐄𝐚𝐫𝐥𝐲 𝐒𝐢𝐠𝐧𝐬 𝐨𝐟 𝐓𝐮𝐫𝐧𝐚𝐫𝐨𝐮𝐧𝐝.
Q2 gave Target growth for the first time in a year.
Longer visits are creating more room for discovery.
Pushing hard into innovation ala Sprouts
𝟔. 𝐃𝐨𝐥𝐥𝐚𝐫 𝐆𝐞𝐧𝐞𝐫𝐚𝐥 𝐢𝐬 𝐚 𝐆𝐫𝐨𝐰𝐢𝐧𝐠 𝐓𝐡𝐫𝐞𝐚𝐭 𝐭𝐨 𝐆𝐫𝐨𝐜𝐞𝐫𝐲.
Frequent yield a high-velocity purchase environment.
Smaller pack sizes driving more grocery revenue.
Replenishment-focused products are well positioned.
𝟕. 𝐂𝐨𝐬𝐭𝐜𝐨 𝐏𝐫𝐨𝐯𝐞𝐬 𝐑𝐞𝐬𝐢𝐬𝐭𝐚𝐧𝐭 𝐭𝐨 𝐑𝐢𝐬𝐢𝐧𝐠 𝐌𝐞𝐦𝐛𝐞𝐫 𝐅𝐞𝐞𝐬.
Costco is reaching beyond affluent shoppers.
Fast growth despite membership fee increases.
My opinion: We’ll see merchandising get more diverse.
Personally, I hate seeing this consolidation.
Professionally, I know we need to be ready for it.
What do you think?
Are you frequenting these retailers more often?
How do Publix, Kroger, and Albertsons turn this around?
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🔹 We drive velocity in Target, Kroger, Whole Foods, Albertsons, Costco, Walmart, Sprouts, and More.
🔹 We grow Amazon Sales.
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