Sam Dickson

With some significant growth aspirations announced those week by ALDI USA a great article from Dan Butler thats starts to delve into the growth strategies and customer focused initatives that will provide the pathway to growth over the next 5 years, creating opportunities for suppliers that can innovate and meet the #aldi supplier standards with customer focused product solutions #foodanddrink #customerfocused #growthstrategy #privatelabel #ownbrand #groceryretail #retail #ukretail #australianretail #contractmanufacturing Prof. Consulting Group

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Plenty of results from the retail races this morning! Target has invested more in value which is helping to build an advantage. But it is also lapping soft prior year numbers. Target is still not in the winners’ enclosure, but it’s firmly in the race send has reasonable odds of advancing. 🐎 Q2 sales: 2.6% (comps: 2.0%) The TJX thoroughbred remains well out ahead. Conditions are in its favor, but a lot of discipline and hard work are ensuring it retains a lead. The international business is a potential stumble, but not to any significant degree. 🐎 Q2 sales: 5.6% (comps: 4.0%) The Macy’s horse is receiving a lot more care from its trainers, but it is still somewhat lame. Some even think Macy’s is running a donkey. The challenge is to show all the extra effort is paying off. If Macy’s fails to do this, the final destination might be the glue factory. 🐎 Q2 sales: -3.8% (comps -4.0%) #retail #retailnews #earnings #economy #consumers

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Profits Bounce Back At Boots After Year Of Strong Sales Growth. Where next? Latest accounts filed at Companies House confirm that the performance of Boots UK continued to improve last year, supported by the overhaul of its store estate and product offering. Pre-tax profit up from £4m to £60m, 12 months to 31 August 2023, revenue up 8.3% to £7.05bn. Operating profit up 60% to £88m i.e higher gross margin, driven by strong retail sales, offset increased operating costs. Boots’ core retail division: Revenue up 12.2% to £4.72bn, L-F-L growth of 12.5%, improved footfall, increased online capacity, and strong performance of its revamped beauty ranges. Heavily investment in own-label offering expanded branded ranges in new beauty halls. Improved price competitiveness (Advantage Card scheme), membership up 1m to 13m 2023. Pharmacy ops revenue up 1.3% to £2.34bn, with L-F-L growth 4.0% via “favourable” NHS drug reimbursement rates reducing impact of lower prescription volumes and reduced demand for Covid and flu vaccinations. Boots closed 55 stores during 2022/23 as part of its reorganisation programme, ending the year with 2,177 sites. They announced plans to consolidate by a further 300 stores “to concentrate team members where they are needed and focus investment more acutely across the store portfolio, with the ambition of consistently delivering an excellent and reliable service”. Boots has been owned by Walgreens Boots Alliance since 2014, and has been the subject of sale speculation over the last couple of years, with new Chief Executive Tim Wentworth saying in January that the US firm was “evaluating all strategic options to drive sustainable long-term shareholder value”. Earlier this month, it was reported that WBA was renewing its efforts to offload Boots, reaching out to potential buyers and hiring advisors to hold early-stage discussions with interested parties. Figures released last month show retail sales at Boots rose 5.9% during the three months to 29 February 2024, helped by increased footfall in its store and increased demand online. NamNews Implications: * Excellent results. * But best keep in mind that WBA want to remove Boots from their equation in order to focus on US opportunities, without UK distractions. * The issue then becomes: - A: Have WBA the patience to wait for the five years of good Boots results required to warrant a successful re-flotation? - B: Or will WBA compromise on their expectation of Boots value in order to obtain an acceptable but lower sale price? * Each option requires suppliers to handle their Boots’ business differently. * i.e. Option A: Supplier employs a finance based 5-year strategy or B: Supplier prepares shorter-term strategy, anticipating a PE-based takeover. * (not forgetting that Amazon may be dusting down its option of using Boots as a basis for buying its way into comprehensive healthcare provision?) #Boots

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Sharing retail insights from Claire Tassin at Morning Consult, "Spending is unchanged from March to April, and the increase from April 2023 is just 2.7%, while the CPI for the same period is 3.4%. That indicates that the sales gains from a year ago are entirely attributable to inflation, not increased consumer demand.” Read on below as others weigh in on April retail results: https://lnkd.in/dZbzUkmG

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Retailers have to work hard to meet ever-evolving customer experience requirements in order to win and remain relevant. The COVID-19 pandemic upended the retail industry, forcing the closure of physical stores and causing uncertainty for the future of the in-store experience. These abrupt shifts left many retailers scrambling to effectively serve customers through other channels. Digital-first and omnichannel retailers pivoted more easily, but many retailers are now prioritising physical stores and face-to-face engagement. Retailers that reimagine their omnichannel approach to create a distinctive customer experience will maintain a distinct advantage. https://lnkd.in/edda5sFR

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Quick Commerce Media Monday 💭 The “Fab Four” of marketing 🔥 Our media is recognized for its significant role in the convenience channel, focusing on retail media to support brands and retailers. It aims to drive innovation and collaboration in the retail sector, enhancing sales and fostering stakeholder collaboration. Convenience is fragmented by fascia, retailer and locality. Hard to influence, maintain and deliver consistent brand growth. Snappy Shopper and our media unifies this channel to the benefits of brands, including: ❤️ Brand love - retailer to consumer 📈 Brand growth - frequency and share 🚀 Brand uplift - incremental sales 🤝 Brand loyalty - sales in, sales out b2b-2c 💡 Brand insights - transparency of data We really do hit the “Fab Four” of marketing as shown by Colin Lewis at recent InternetRetailing Retail MediaX event. Want to hit the “Fab Four” for convenience then look towards Snappy Shopper to drive sustainable growth hyper-locally. #retailmedia #snappyads #delivery #quickcommerce #snappydelivers #media #brands #retailers #loyalty #convenience

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My views - and that of my KPMG RTT colleagues - below.

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The latest retail figures from the ONS, showing sales volumes to have risen by 2.5% since the start of the year, should provide retailers with confidence ahead of their busiest quarter. In contrast, last week’s index from GfK revealed that consumer confidence has fallen to the lowest level since the start of the year, and therefore tells a different story. The latter paints a mixed and more worrying picture of consumer attitudes towards spending, with low levels of confidence no doubt influenced by the negative rhetoric surrounding the state of our economy in recent months. So what are the key takeaways for retailers as they prepare for their busiest months of the year. Should they be concerned or feel cause for optimism?   ➡️ Households are downbeat about their personal finances and the wider economy. Households are less optimistic about their financial outlooks, with optimism and confidence in the wider economy declining right back to January’s level. This is the largest one-month dip since April 2022 and could have a big impact on the shape of the golden quarter.   ➡️ Major purchases on hold… for now. Consumers feeling pessimistic about their financial situation and the broader economic outlook will have a knock-on-effect to their willingness to spend money for the rest of the year. This is reflected in the extremely low score for the release’s ‘Major Purchase Index’ and consumer attitudes willingness to spend on big ticket items.    ➡️ But it’s not all bad news. Fears about the October Budget and what this means for consumers in real terms have had a big impact on consumer sentiment and confidence. In the longer term though, and post-Budget, rising real wages and steady inflation should serve as positive signs for retail businesses.   Against this backdrop, retailers must focus on the fundamentals that keep customers coming through the door. This naturally includes maintaining high levels of customer service and offering high-quality products. But more than ever, this data underlines the importance of a relentless focus on cost. With shoppers less likely to part with their money, reassuring them that your business is offering value-for-money needs to be the number one priority. A focus on this will ensure that customers remain loyal ahead of the biggest spending quarter. https://lnkd.in/e7Hddejz

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Here are some interesting stories from the world of retail for Thursday, August 15: 🍫 Mars, the chocolate to pet food group, has struck a $36bn deal to buy Kellanova, the maker of Pringles and Pop-Tarts. The all-cash offer, announced on Wednesday, is the biggest ever acquisition for the privately owned Mars. 👙 Shares for Victoria’s Secret & Co. climbed after it tapped Hillary Super, chief executive officer of competitor Savage X Fenty, to be its next CEO. Martin Waters stepped down from the role after leading the company for 3 years. 🥦 Kroger and Albertsons have spent more than $800 million on fees to lawyers, bankers and advisers for their proposed merger, underscoring the high costs of trying to complete the largest ever tie-up in grocery. 📉 US annual inflation rate dipped below 3% in July for the first time since 2021, a relief to investors who are expecting the Federal Reserve to cut interest rates next month. 💄 Warren Buffett’s Berkshire Hathaway acquired stakes in cosmetics store chain Ulta Beauty during the second quarter, when it also nearly halved its huge stake in Apple. ☕️ Starbucks has awarded its new chief executive Brian Niccol cash and stock potentially worth more than $100mn, one of the largest hiring packages in US corporate history. 📦 Amazon will implement peak season fees across all products for various third-party seller fulfillment services, the company announced Thursday, the third straight year it has applied a holiday increase. 👜 Designer dupes go mainstream as shoppers choose affordability over luxury. Unlike illegal counterfeit goods, dupes are cheaper, typically legal alternatives to premium or luxury products. 👟 Nike shares rose 5% in after-market trading on Wednesday, after Bill Ackman's Pershing Square Capital Management disclosed a new position in the retailer during the second quarter. 🛏️ IKEA US has launched a new line of mattresses. The rollout of its new mattress line signals Ikea’s investment in the sleep market as it faces more competition from DTC players. 📱 Apple is opening up NFC transactions to third-party developers, who will be able to offer in-app contactless transactions for a wide variety of apps, including in-store payments. 🍔 Brinker International, Chili’s parent company, reported a nearly 15% in jump in same-store sales and increase of almost 6% in traffic for the most recent quarter thanks in part to a promotion of a new burger. 🍪 Wally Amos, the charismatic founder of Famous Amos cookies, has died at age 88, according to a statement signed by his children. 🚛 China's courier sector has reached a significant milestone by surpassing the 100bn-parcel mark this year. #retail #retailnews #economy #DailyRetailNews

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