Steve Dennis

BRILLIANT RESEARCH: Five 2024 Holiday Shopping Predictions https://lnkd.in/emwXStw7  Holiday shopping will look different for retailers this year.  After remaining largely resilient throughout four years of economic uncertainty, consumers are finally feeling the pinch.  Nearly a third of global shoppers (32%) reported using alternative credit services like buy now, pay later (BNPL) more frequently this year #retail Digital Commerce 360

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"We thought, ‘We can do more with a lot less,’ and that didn’t work out for us.” On the back of #TerribleHorribleNoGoodVeryBad quarterly results, it's quite refreshing to hear Kohl's (outgoing) CEO speak so openly about the current state of the business and the decisions they / he made that did not work out. The full transcript (link in the comments) is worth a read. CEO Tom Kingsbury started with ... "Over the last several quarters, we have implemented a significant amount of change across our assortment, value strategies, and in-store experience. We believe these actions will make us more competitive over the long term. However, we undervalued the short-term impact this change could have on our sales performance." And then went into details on the three areas that drove performance: "a decline in traffic, especially early in the quarter, during the back-to-school season; a reduction in receipts in our private apparel brands, which impacted our ability to drive sales in our key value items; and categories where we have lost traction that represented opportunities for us going forward such as fine jewelry, petites and intimate apparel, and legacy home products." He didn't blame the macro environment or the weather, despite both playing a factor. Frankly, the only thing not addressed -- in the narrative nor in the Q&A -- was how to overcome the challenge of operating in the department store sector as a whole (for those not following closely, department stores have been in a 30-year decline). And yes, I imagine that knowing you're no longer in charge is part of why he was able to "own" the issues, effectively "cleaning the plate" for incoming CEO Ashley Buchanan. But still a welcome change from the "corporate speak" of most quarterly calls. https://lnkd.in/ez8PJ2t7

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AI in Retail: Bridging the Gap Between Ambition & Readiness for Generative AI I recently spoke with Michelle Pacynski, Ulta Beauty & Mike Dupuis, SPARC Group LLC about this topic. Before diving in, I find it helpful to ground the conversation in recent data: 1. According to a recent Forbes estimate, the AI market size is expected to reach $407 billion by 2027. 2. A global Accenture study (July) highlights that: - Companies with strong digital capabilities (data, cloud, security, etc.) are reinventing 2x as many functions with AI & are expected to drive 2x the value creation. - 50% of executives believe they can scale generative AI across their enterprise within 6-12 months, but only 13% are confident they have the right data strategies & digital capabilities to fully leverage GenAI. Why the gap? These insights set the stage for a deeper conversation. Here are some key themes we explored: 1. AI integration frameworks they've adopted: - Assist, Augment, Automate – This framework has helped categorize the 15-20 AI pilots running at any given time. It has especially reduced the pressure to automate everything right away, allowing teams to focus on assistive & augmentative use cases first. 2. Real-world AI implementation examples that required process changes & KPI definition: - Leverage GenAI from your SMS partner to create new audiences & test custom messaging. Process changes included: new workflows for both internal & external teams. KPIs: # of new customers acquired & conversion rates. - Launch a GenAI conversational experience during peak sales to manage case loads, while ensuring real humans are available for more complex queries. Process changes included: customer query routing & escalation procedures, with KPIs focused on # of cases resolved to satisfaction, incremental revenue from case resolutions etc. 3. Keeping up with the evolving world of AI: a) Follow key professors like Ethan Mollick & Stefano Puntoni b) Stay close to the VC community to learn about emerging applications & how people are thinking about the future c) Access to product engineers & innovation through involvement on Boards (e.g., Cordial) d) Attend key tech events like CES and SXSW. 4. How AI can transform retail, from customer experience to back-end operations: - Use weather data to inform inventory buying & planning, ensuring customers get the products they want in the channel they prefer. - The retailer that best uses GenAI applications to develop personalized & on-brand communication with customer segments will create the most value. c) Empower consumers to virtually try on products & learn more about them, both online & in-store. Finally, some questions to consider: - I wish consumers knew AI… - I wish regulations did… - I hope someone develops… There’s no doubt that AI is omnipresent, but achieving meaningful impact requires strong digital strategies, partnerships, and a sharp focus on data governance. #AI #Innovation #Transformation #Leadership

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As we look toward the retail holiday season and planning for the year ahead, MOHR Retail will be hosting a panel discussion that explores the landscape of retail store environments today, focusing on a range of topics, including the dynamic roles of store teams, the rise and fall of self-checkout systems, how stores are increasingly becoming fulfillment centers, and how successful retailers are addressing issues related to mental health, safety, and burnout amid preparations for the holiday season. Here’s a quick overview of some of these hot-button retail store trends and issues and what we’ll be focusing on during the webinar: ↪The Evolution of Store Roles With the surge of Buy Online, Pick Up In-Store (BOPIS) options and stores doubling as fulfillment centers, retail teams are adapting to new responsibilities. The traditional role of a store employee has shifted from managing in-store tasks to balancing online orders and managing stock all while building loyalty by ensuring a seamless customer experience, both online and offline. ↪The Rise and Fall of Self-Checkout Self-checkout was once hailed as a revolutionary step forward in retail efficiency, offering customers a quicker way to check out while reducing the need for staff. However, recent concerns over security, increased theft, and the impersonal nature of the experience have led some retailers to reconsider their reliance on self-checkout systems. ↪Doing More with Less As staffing challenges continue to rise, retailers are finding themselves needing to do more with fewer employees. Retailers need to rethink scheduling, training, and multi-role positions while looking for best practices that help streamline operations. If you’re interested in joining this panel discussion, reach out to me! We’re looking for your experiences, insights, ideas, and/or other lessons you might be able to share to add to a lively, thought-provoking discussion #LearnMOHR #RetailTrends #Retail

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"Really good retailers are re-thinking the purpose of the store." And it's about time! In 2018, I co-authored an IBM Institute for Business Value white paper on how #retailers needed to reTHINK their stores. It started with the idea that #stores still matter, but they need to play different roles than they had in the past. Six years (and one pandemic) later, we're seeing the difference between stores that "sell stuff" and stores that create a "treasure hunt," offer "experiences [customers] can't find online," fulfill online orders for pickup (BOPIS), shipping (BOSS), and local delivery (BOLD), and provide a place to see, touch, and feel products before making a purchase. The framework we developed (in the comments) is as relevant today as it was then.

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On a jet plane on my way to NYC for #NRF! ✈️ I'd wager a billon dollars that: 😂 AI will be a hot topic 💻 Data will be cited as the #1 issue 👩‍💼 There will be only some who talk about the people side of the AI equation to get results 💰 That many will inflate their successes and down play slow adoption and expected ROI 💸 Reality is: retailers and brands are leaving significant revenue opportunities on the table by treating AI as a stair-step innovation instead of embracing its transformational potential. Similarly, vendors lack the change management resources necessary to drive sustainable adoption, despite their success depending on it, leaving them stuck. 🤔 Do you know of any retailers and/or vendors who are feeling this way? I'd love to connect with them at NRF to discuss how my services will help them achieve the results they seek. 🙏 Thank you to RetailWire for the opportunity to talk about what's not being talked about enough. 👇 Want to learn more about this topic and what I'm seeing in the industry?

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US department stores' business model is broken. Do you agree? In my conversation with Steve Dennis we talked about why transformations fail and what happens when businesses don't transform and we talked about the example of US department stores. With Macy's announcing the closure of 150 stores and Kohl's shares down almost 15% YTD and almost 50% within the last 5 years. Is there a way out? #retail #retailtransformation #leadersleap

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Stores Closing In 2024 - Rue 21 closing all 540 remaining stores after filing for chapter 11 bankruptcy - Foot Locker is closing a total of 400 stores in mall locations (20% of their locations) - Rite Aid has already closed 231 locations this year (13.5% of their total locations) - Best Buy are closing 15 of their locations - Family Dollar is closing 600 stores - CVS is closing 900 stores by the end of the year (10% of their locations) - Bed Bath & Beyond closing all 360 remaining stores after filing for bankruptcy - Christmas tree shops is closing all 73 of its remaining stores - Charters closing all stores as part of a shift to online retail - The 99 Cent Store all 371 locations makes sense considering the economy - Express closes 95 of its stores as part of its bankruptcy restructuring (20% of store locations) - Walgreens is closing 150 stores by August - H&M is planning to close 240 stores globally - David’s Bridal closing all locations - Tuesday Morning closing all locations - Party City was closing all 45 of their remaining stores after restricting bankruptcy they will remain open but still be forced to close down 33 stores Additional closures and layoffs: - Big Lots closing dozens of stores in California - Outback Steakhouse has already closed 40 of its restaurants - UPS is cutting 12,000 jobs in 2024 - Citigroup cutting 20,000 positions as well - EBay, Thousand jobs lost there - Microsoft, cutting 1900 positions - Expedia, cutting 1500 - Cisco, cutting 4,000 - Apple, cutting 600. - Regal Cinemas closing 429 locations - Kroger's grocery store chain shutting down 413 stores - Foot Locker closing 400 stores by 2026 - Macy's will close a 150 locations by 2026 - Walmart, already this year, has closed 6 of its super centers

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As we enter Q2 of 2024, I have been asked about key trends relative to the current strength of the consumer in the U.S. Despite headlines showing endless resiliency, we have seen some softness in purchasing behavior on the consumer front, especially in January and February, with a rebound since March.   Q1 also brought dynamic changes in the consumer goods sector's M&A landscape. Key highlights include:   Health Focus: Significant deals like Medbase's acquisition of Zur Rose Group reflect a growing emphasis on health and wellness. Luxury and Efficiency: Firms like Tapestry are strategically acquiring to enhance luxury portfolios and operational efficiency. Tech Integration: Investments in AI and digital capabilities are driving better consumer engagement and operational agility. Strategic Consolidations: Companies are optimizing their portfolios by focusing on core areas and divesting non-core assets. Global Investments: Cross-border M&A remains strong, targeting regions with high growth potential.   Despite economic uncertainties, these trends show the sector's resilience and strategic focus on long-term growth.   #ConsumerGoods #MnA #BusinessStrategy #HealthAndWellness #DigitalTransformation

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Nearly three-quarters of U.S. consumers are embracing the omnichannel shopping journey https://lnkd.in/ewKkHy3G 73% of consumers blend online research, physical store visits and options such as buy-online-pickup-in-store or in-store returns before making purchase decisions #retail #TRI Chain Store Age

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"It’s about extending our ability to find incredible brands we believe our customers will love and introducing them to those brands at a bigger scale, without the cost of a #wholesale model.” A lot to applaud in Nordstrom's #marketplace launch (#TLDR their vision is to become "The Spotify of #Fashion") ... enabling broader, deeper assortments; building out extended sizes; making marketplace items accessible to in-store #stylists; offering tailoring and alterations; and perhaps most importantly, allowing in-store #returns for marketplace purchases. In addition, I think they should use this as an opportunity to extend beyond "#gifting, #home, and #outdoor" and build share of wallet across a broader range of products and services. For some retailers, a marketplace is a chance to try and become #TheEverythingStore. For most, however, it's an opportunity to curate a range of goods and services that are tailored to your target customer(s), without the requisite costs of setting up #fullstack teams., processes, and #OTB to support. https://lnkd.in/g9aR6sjE

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In my experience as a buyer, I viewed brand-buyer relationships as collaborative, but it's crucial to recognize that not all collaborations are equal. When you seek a retail partner for growth - look for a retailer that is collaborative Understand that the retailer still operates as a for-profit business But, know that you play a role in helping them achieve their goals Here are some areas to consider when looking at collaboration with retailers Door Count Bigger does not necessarily mean better. If your original doors aren’t “ALL” that’s ok. Discuss a tiered plan for growth and expansion. Placement Every brand wants to be seen. Your shelf placement, or location in the store can determine how many consumer eyes see your product. Ask where you’re being placed. Marketing Yes, ask for support from the retailer in their advertising vehicles. But know this is the place where the brand does the heavy lifting. Be ready to shout to the rooftops where you are. Forecasts Work closely with buyers, planners, and your ops team to understand projections. Have a reserve stock to plan for overperformance. Sales Expectations Ask upfront about the retailer’s benchmarks. Consider how the category performs too. Check-Ins As a new brand, having regular check-ins with your buying teams is great. This could be quarterly, or monthly depending on the projected sales volume. A lot to cover, and I know you might not be there, yet. So save this for that future retail meeting - cheers! – 👋🏾 Hi, I’m Monique, your bridge from niche market to major retail. I’m a former retail buyer turned beauty industry advisor who helps emerging brands ready to scale. Ready to expand your reach? Book a discovery call and let’s explore how we can elevate your brand together.

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😴 Kohl's is at it again—stumbling through the retail landscape like a sleepwalker. 😴 With a bigger-than-expected drop in annual sales on the horizon and CEO Tom Kingsbury stepping down after less than two years, it’s clear that this department store is struggling to stand out in a crowded market. Enter Ashley Buchanan from Michaels, who’s set to take the reins on January 15. While he comes with a solid reputation and board affiliations, let’s be real: he might not be the savior Kohl's desperately needs. 🚨 Here’s the deal: Kohl's has been playing it safe and boring for too long, and that’s not going to cut it anymore. With stock prices down 36% this year, they’re losing ground to deal-hungry competitors like Amazon and Walmart. 🛒💸 It’s not just about who has the best prices; it’s about who can create an engaging shopping experience that draws customers in and keeps them coming back. So, what can business owners learn from this? 🤔 1️⃣ Innovation Over Tradition: Sticking to the same old playbook isn’t going to revive Kohl's. They need fresh ideas and bold strategies to capture attention. Are you innovating in your business or just going through the motions? 🔄✨ 2️⃣ Leadership Matters: While Buchanan has a strong background, he lacks deep expertise in fashion—the very arena where Kohl's needs to pivot. This is a reminder that having the right leader is crucial for navigating industry-specific challenges. Do you have the right people in place to drive your vision forward? 🧑‍💼🔍 3️⃣ Customer Experience Is King: As consumers tighten their belts, creating an unforgettable shopping experience is essential. If you’re not making your customers feel valued, they’ll take their dollars elsewhere. How are you enhancing your customer interactions? 🌟💬 4️⃣ Be Ready for Change: The retail game is shifting, and those who don’t adapt will be left behind. Are you staying ahead of trends and ready to pivot when necessary? 📊🚀 5️⃣ Don’t Fear Controversy: Sometimes, shaking things up can create buzz and attract attention. Are you willing to take calculated risks to stand out from the competition? ⚡️🔥 Kohl's needs more than just a change in leadership; they need a complete overhaul of their approach. Let’s hope Buchanan can bring some much-needed energy to a brand that’s been stuck in neutral for far too long! Remember, in business as in life, standing out is non-negotiable! 🔥 P.S. When was the last time you went to Kohl’s? #RetailStrategy #BusinessLeadership #CustomerExperience #InnovationInBusiness #CashFlowManagement #EntrepreneurMindset ___________________________________ ♻️ Repost for other founders wanting to run their business smoothly so it can thrive! ➡️ Follow @Kerry-Ann Powell for more on scaling, increasing revenue, team efficiency, and founder burnout and quality of life.

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DTC/Digital Native Brands struggle to achieve scale. CPG portfolio's are stagnating. Consumers are trading down, and retailers owned brands are disproportionately growing. Target, Costco, Trader Joes, and Aldi owned brands are winning. Now Walmart has launched a formidable new elevated basics brand, BetterGoods. The best way to beat the Amazon/Temu/Shein/TikTok marketplaces is to sell products they don't have.

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In today's rapidly evolving digital landscape, retailers like Walmart and Ulta Beauty are embracing innovative technologies, even when the path to success may not be immediately clear. Walmart's "Walmart Realm" and Ulta's "House of Joy" on Roblox demonstrate a forward-thinking approach to engaging with younger audiences who are increasingly active in virtual spaces. These initiatives highlight the importance of staying ahead of consumer behavior trends and exploring new platforms, such as the metaverse, to build lasting connections with future customers. For retailers and consumer brands, prioritizing strategic initiatives in emerging technologies requires a focus on understanding where their audience is headed and being willing to experiment. While the ROI may not be immediate, these efforts can provide valuable insights into customer preferences and behaviors. Companies should consider aligning these initiatives with their broader brand goals, investing in partnerships with influencers and creators who resonate with their target demographics, and remaining agile to adapt as new opportunities arise. By doing so, they position themselves as leaders in innovation and ensure they are ready to meet the demands of tomorrow's consumers. #RetailInnovation #FutureTrends #DigitalTransformation #MetaverseMarketing #CustomerEngagement #StrategicInitiatives #InnovationLeadership #GenZConsumers #EmergingTechnologies #BrandStrategy

https://lnkd.in/e_SBj6gX This article perfectly highlights the frustrations many shoppers face today, and I saw it firsthand during a recent visit to a big-box mass retailer. A ton of the product in this store was locked up, requiring customers to hunt down an employee to unlock cases. I watched as an associate finally opened a case, only to hand the item directly to the customer—so, what problem was that supposed to solve? To make matters worse, the store had only one cashier with a line of seven people, all with overflowing carts. Given I only had a few small items, I headed to the self-checkout—only to find all six stations closed. What’s happening to customer experience in retail? Are operational challenges and loss prevention efforts making it harder for retailers to put the shopper first?

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An article in The Business of Fashion on "Fashion's Golden Opportunity With Older Shoppers"... Is total and complete BS. There is an opportunity across ALL shoppers. Dividing them up by descriptors that have been used for decades is just not going to cut it anymore. While teaching fashion marketing at Fashion Institute of Technology last Fall, there were modules on generations and how they spend, how they consume information, etc. I had to add caveats to each statement in the textbook because you can't make these types of assumptions anymore. This is an old school way of marketing. We can't put customers into these buckets anymore as there are so many other data points to consider. The affluent customer shops at Walmart, Target and Costco Wholesale. The tech boom will go through another cycle and you will have more younger customers with disposable income. Resale luxury is bought by Gen Z to the boomer. Generalizing is a wasted effort and it's what gets retailers in trouble with excess inventory to irrelevant product assortments. The customer has evolved across generations and we need to stop generalizing to avoid marketers look at the data in just 1 way. #retail #retailnews #fashion #fashionmarketing #bof

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Kohl’s said Friday it was closing 27 underperforming locations in 15 states by April — a fraction of its 1,150 store base — as the struggling department store chain aims to boost profitability and improve sagging sales.

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In the ever-changing and competitive world of retail, understanding customer preferences isn’t enough anymore https://lnkd.in/e2veSdKs As more and more shoppers return to stores, retailers are shifting their attention to analyzing in-store traffic #retail Chain Store Age

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