Kathy Skala

Wayfair's shares have surged by a shade over 16%. And the Wall Street Journal has a piece (link in comments) saying how the company is now showing signs of great promise. Optimism abounds! But is no one looking at the fundamentals? Yes, losses were cut. But the company still lost $248 million in a single quarter. That's almost a quarter of a billion lost after the company has been slashing costs left, right and center. Debt of over $3 billion sits on the balance sheet. A balance sheet where liabilities exceed assets to the tune of $2.8 billion. Sales are anemic and while this might recover once consumer sentiment and the housing market pick back up, Wayfair is unlikely to get back to its heady growth rates of old as competition is intensifying. I'm all for optimism, but this is a company that, since 2019, has made collective losses of $3.2 billion and has only ever turned a profit during the exceptional period of the pandemic. The business model has not yet proved itself. Perhaps it never will. #retail #retailnews #furniture #home

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You know which is the one business strategy that doesn’t fail? 🤔 Making an impeccable product that has unlimited demand. ⚓️ That’s me, pretending to look cute at one of my favorite candy stores - Parkside Candies in Buffalo, New York. Parkside Candies is a candy store that sells, assorted chocolates, candies, and ice cream. And they have been doing it since 100+ years. It is funny to me how so many people get hung up on: - Strategy - Business cases - Market assessments  - SWOT And whatnot... 🤷‍♂️ There is a reason why AI and automation will never replace businesses like roofing, gardening etc. Those businesses have an infinite demand and need quality supply. Codie A. Sanchez is the biggest advocate of “boring businesses” because three things that boring businesses do exceptionally well are: 1️⃣ Have a low barrier to entry 2️⃣ Make money 3️⃣ Hold real value in terms of assets and infrastructure The reason why Parkside Candies has been around for 100+ years is simple: 👇 🥇 Product and experience: Who doesn’t love candies? Kids, adults everyone loves candies and chocolates. Now. You can always buy candies and chocolates from Walmart or any other big chain store, but people come to Parkside for the experience. Nothing beats the experience of driving to the store sitting in the booth with your family and have a good laugh. 🏢 Segment: As long as there are humans there will be a demand of chocolates and candy. Buffalo is not the biggest cities in the world. Yet, Parkside has survived due to an impeccable product but also an infinite demand of candies and chocolates. 📝 The lesson here is - so many times people justify their inaction to start a business or build a company because... ❌ They are waiting to be interrupted by a big bold idea.  ❌ Or some breakthrough realization that no one has had or  ❌ Funding to launch and scale Whereas.. they can simply start by knocking on someone’s door and telling them that they will charge $10 an hour for cutting grass vs $20 as they don’t have the equipment to do so. 🔁 Rinse repeat and voila one day you can buy your equipment. 🔁 Rinse repeat and voila now you can hire your 1st simple. 💡 If you pay attention to one of the most success entrepreneurs, two pieces of advice they all give is: 1️⃣ Stick to 1st principles (common sense) 2️⃣ Don’t think of “creating demand”. Fill the demand by supply. You can be unique via your competitors in infinite ways. Story, branding, pricing, offers, etc. but one thing you cannot do - is create demand that doesn’t exist.  — Liked this article or learned something new? 🔔 Follow me Rochan Kakar for more on personal development, startup growth and entrepreneurship #entrepreneurship #buisnessstrategy

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What are the criteria for Private Label goods to really work? 1.       Fascinating article on big retailers trying to mimic Trader Joe’s (TJ), Aldi and (not mentioned) Costco’s Kirkland uber brand. 2.       And, Keychain sounds like an interesting matchmaking platform. 3.       But, what’s missing from the success formula of TJ and Aldi? a.       They don’t have duplicate, name brands next to their private label. This creates redundant inventory investment. b.      They don’t offer an array of SKUs – just two for peanut butter – smooth and chunky. c.       And, the formulas for the SKUs are to be good or better in quality than the #1 brand. d.      Because of fewer SKU’s and 20% lower prices than full-service grocery stores, the volume throughput (turns) is much greater. This creates an entirely better- buying, logistics – system. e.       When stores get replenished far more often then fill-rates can be tuned to very high and excess stock very low. f.         Private label SKUs are only the visible tip of a great business model. 4.       SO; what are (other) reasons that distributors have even more challenges with true, financial success with private label goods?   

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Are retailers moving fast enough as they build out retail media? Are they setting themselves up to be self-sufficient? Get ready for part 2 of our #RetailMedia series on the Middlemen...we talk about how retailers have begun the process of in-housing their technology, and their slow slide toward becoming digital publishers. Why is it happening slowly? Because display ads on retailers never really worked. We also cover Costco's launch of its Off-site retail media offering, and how (this part is a rant) unsophisticated press coverage is stuck treating all retail media capabilities as one monolithic thing, and holding back an understanding of the business. Some shout outs to Mark Williamson of Costco Wholesale and Michael Halverson of Albertsons Media Collective in this episode as well as a lot of talk about the rise, fall and dispersion of talent from Quotient to the rest of the retailers and vendors who are building out retail media. Spotify https://lnkd.in/esFZiWqY Youtube https://lnkd.in/eW_uHuKZ

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Sustainability is a growing concern. According to Mike Johnston, managing director of data products at international research tech firm Glow, citing recent research from his company: “While 83% of shoppers deem it important for retailers to act sustainably, only 31% currently cite sustainability as a significant influence on their retailer choice. However, this gap will narrow, with 45% of shoppers expecting sustainability to have a greater impact on their choice of retailers in the next 12 months, and only 15% anticipating a decline.” Given that so many consumers have the planet’s health on their minds, it makes sense that most forward-looking grocery retailers do, too. #environmentalsustainability #groceryretail #consumerinsights

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In his article today, Sam Silverstein from Grocery Dive, calls out the key issues confronting retailers as we accelerate up and out the exponential growth curve of tech-fueled innovation. "Rapidly advancing technology is presenting grocers with unprecedented opportunities to move their businesses ahead, but the industry’s tendency to move slowly to test and implement new concepts poses a central challenge for retailers as they look to embrace change, experts said during a webinar on Tuesday. The issue is becoming especially urgent for grocers as artificial intelligence upends long-established processes at the heart of retailing, threatening to put retailers that don’t make adjustments fast enough at a substantial competitive disadvantage, said Gary Hawkins, founder and CEO of the Center for Advancing Retail & Technology." This and other key issues were surfaced during the launch webinar for Bionic Retail, my latest book that's now available at Amazon, Barnes & Noble, and other bookstores. I was joined by Tom Furphy, Zach Bello, Doug Baker, Shekar Raman, and Mike Stigers for a great discussion around the challenges and opportunities retailers have as they prepare for a future arriving sooner than expected. Thank you to all who joined our spirited discussion! Bionic Retail is now available here: https://lnkd.in/gNDY8baC Center for Advancing Retail & Technology (CART) #retail #retailtech #retailinnovation #retailstrategy #grocery #groceryretail #grocerytech #cpg #cpginnovation #techinnovation #fmcg #fmcgretail https://lnkd.in/gFxcKMXu

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OtailO's Real-time inspection works for brands, and engages its eco-system to actively optimise and improve the returns journey. Special glasses are not needed, just a mindset for real impact. #nextbestshelf #returnsmanagement #inspection #certification #innovation #customerjourney

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Is Amazon Contributing to Inflation? This suggestion would have seemed ridiculous 5 years ago. Amazon generally had lower prices then available in Brick and Mortar Stores and was creating downward pressure on retailers, distributors and manufacturers to lower prices (remember the good old days with Walmart "Rollbacks") Well things have changed. just 5 years ago, it was typical for Amazon to take 15% of the cost of an item, now it is typical for Amazon's pie to be in excess of 50% with 60-70% not being unusual. Some of it is Amazon increasing profits by shifting costs onto sellers, some of it is increased logistics costs, a lot of it is due to the cost of Amazon Ads. While costs for sellers have increased steadily, the consumer was insulated due to sellers taking a hit & lowering profit margins, as well as a constant flood of new sellers entering Amazon (many were unsophisticated & sold at a loss). That is an unsustainable business model, and sellers are raising prices in order to survive. This doesn't only impact Amazon Customers, but B&M retailers no longer feel pressure from eCommerce to keep prices low. There are a lot of factors in inflation, but it is surprising that the Amazon effect seems to be overlooked. #amazon #Amazonsellers #Ecommerce #ecommercebusiness #amazonppc #amazonexpert

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Amazon continuing its test & learn strategy to expand its grocery business. Also noteworthy is that it includes grocery retailers on Amazon.com, not just its own grocery ( continuing to build an ecosystem and offer more to customers) Excerpts: Dive Brief: Amazon announced Tuesday a new grocery subscription available to Prime members and customers using EBT. The subscription, which costs $9.99 per month for Prime members and $4.99 per month for non-Prime members with an EBT card, provides free grocery delivery on orders over $35 across Amazon Fresh, Whole Foods Market and grocery retailers on Amazon.com such as Cardenas Markets and Save Mart.   The subscription adds to the string of changes Amazon is making to its grocery offerings as it looks to sharpen its presence as a grocer as well as bolster its Prime membership. Dive Insight: Amazon is positioning its new grocery subscription as a “low, monthly fee” that “pays for itself” after one delivery per month. “Our goal is to build a best-in-class grocery shopping experience — whether shopping in-store or online — where Amazon is the first choice for selection, value, and convenience,” Tony Hoggett, senior vice president of worldwide grocery stores at Amazon, said in an emailed statement. “We have many different customers with many different needs, and we want to save them time and money every time they shop for groceries.” Grocery delivery has been one area in particular that Amazon has grappled with recently. In January 2023, Amazon Fresh raised its threshold for free delivery to $150 but then 10 months later lowered that minimum to $100. A month later, Amazon said it started offering grocery delivery and free pickup to non-Prime members in all markets where its Amazon Fresh stores and online services operate, with plans to expand grocery delivery and free pickup from Whole Foods to shoppers who aren’t Prime members. #amazon #grocery #ecosystem

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It was great to chat with CBS News about the latest twists and turns with self-checkout, which is undergoing something of a scaling back by retailers. It's not being abandoned entirely across every retailer, but more restrictions are being placed around how it can be used and in some stores it is being removed or cut back. The reason retailers give is changing customer needs. That might be part of it, but shrink is also a major concern. https://lnkd.in/ejqaiD3S #retail #retailnews #theft #selfcheckout

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For a minute this headline reads as an industry threat. And it is, but only for big / legacy CPG brands. I see the increase in private label offerings as a warning sign to large strategics, and a win for premium and emerging companies. Private label options, yes, cut into share of legacy brands that aren’t that innovative, lack compelling attributes, and have been raising their prices steadily over the last 3 years purely to extract margin. Best example of this is Campbell's: at the time of their Sovos Brands purchase, Prego was growing just 1% annually. Rao's Specialty Foods, Inc. (prime Sovos asset) continues to grow 38% YoY after 20 years in market. Customers loyal to Rao's would never trade down to a private label sauce. And Campbell's isn’t worried about store brands pulling from premium, differentiated, beloved products like Rao’s. They’re worried about their cheap, commodity brands that have lost their luster. $2.7B worth worried. I think this bodes well for M&A in the coming years and growth among insurgents. Quality and brand affinity wins. Great piece, as always, from Jesse Newman and Stephanie Stamm. https://lnkd.in/ecB3wrQD

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spreadsheets, multiple data sources, hours wasted 👿 speed, accuracy, data driven, intelligent design, scale 🙂 💸 At Etablir - we built a system that enables one individual to properly restock hundreds of store locations with thousands of skus on a Monday morning. That's it - the rest of the week is for strategy, opportunity assessment, mentoring, cross functional initiatives and chasing growth. #demandforecasting #retailplanning #inventorymanagement #replenishment https://lnkd.in/ewECYUQ4

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🚨📉 **Target's Price Slash Bonanza: Good Move or Risky Business?** 📉 👀 **Heads Up, Shoppers!** 👀 Target has just announced some jaw-dropping price cuts on about 5,000 popular items, with plans to slash prices on even more over the summer! 🌞🛒 🛍️ From essentials like Good & Gather Frozen Chicken Breast to sports drinks and household staples, the price reductions are everywhere! Just in time for Memorial Day, 4th of July, and the back-to-school rush. 🎉🍗🧃 But here's where it gets interesting... 🤔 **Target vs. Walmart** 🥊 The retail giant is going toe-to-toe with Walmart on prices at a time when inflation is squeezing everyone's budget. 💸📈 Target's EVP, Rick Gomez, says they're here to help customers save more. But is this really the right move? 🤷‍♂️ As someone who's been in the retail game for a while, I've seen these strategies before. They don't always work out, especially with everyday staples. Unless Target has some solid data showing they're losing out to competitors, this seems like a risky play. 🎲⚠️ I'm super curious to see how this pans out! Will the price cuts drive more foot traffic and boost sales, or could it potentially hurt their margins and Top Line? 🏃‍♂️💸📉 🔍 What do you think? Is Target making the right move by slashing prices, or is this a gamble that might not pay off? Let's discuss! 💬👇 #Target #RetailStrategy #PriceCuts #Inflation #Walmart #ConsumerSavings #RetailTrends #CuriousAndSkeptical #RetailWars

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Interesting strategy by Target, price reductions on 5,000 skus announced today....couple of comments here...... Does reducing prices actually change a consumers habits on where they shop or does it just create curiosity that fades over time? How does this price reduction strategy fit with a grocery strategy that Target has not and seems will not articulate to the public? Are they convenience, are they a full on grocer, or what is it? Very conflicted for the consumer and for Target themselves. Why would you reduce prices on your private label products, were they not well vetted before they were launched in how they fit within the national brands? Or has the reduction on some national brand skus now disrupted the pricing strategy for private label? How does the price reduction solve for the operational issues regarding a poor checkout experience and out of stocks at point of sale? Is Target funding the reduction or are the suppliers being forced to provide cost decreases to keep Target whole? In the past suppliers funded these types of changes in their strategies. Unfortunately none of those questions are answered....just a well placed marketing message planted by Target with the media.

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"Expert Advice" Feature: A Brilliant Example of Integrating Expert Content on E-commerce Pages One frequent question from e-commerce clients is how to best optimize category pages. Often, content optimization is limited because stores are constrained by their SKUs, filtering options, existing modules, and more. A common suggestion is to integrate existing informational content, like product selection guides and blog posts, onto relevant category pages. While this idea is compelling, a common concern is that such content might hinder the purchasing process. REI has a fantastic solution: creating a dedicated tab at the top of category pages labeled "Expert Advice". This effortlessly connects informational content to the category. Clicking on this module reveals category-related articles (Best Hiking Boots, How to Break in Hiking Boots). This is one of the most creative examples of integrating informational content onto a commercial page. It allows users and search engines to connect informational content to the main page without disrupting the purchasing process. #ecommerce #contentmarketing #ux #seo #digitalmarketing #retail #expertadvice #categorypages

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Today's The Robin Report looks at what used to be Walmart's powerful success might be slowing down...Will they lose more sales & customer to Amazon and also risk losing in the #grocery space? #retail #retailstrategy #customerexperience #retailmanagement #walmart #costco Read & Subscribe 👇 https://lnkd.in/gTVt_JhU

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Getting into a retailer like SEPHORA is a huge accomplishment. Once small brands get that initial yes they quickly get hit with the reality that they are in direct competition with 100s of other companies. Some of that competition is going to be multi-national companies that spend hundreds of thousands of dollars to support their brand’s success in Sephora alone. Indie brands cannot compete with that kind of financial power. It’s one of the reasons I support the merchandising effort this retailer has done under The Next Big Thing. The section highlights many of the new entries coming into the retailer. It gives a collective nod to the underdogs. It also becomes a pivotal benchmark for how much product will be sold from those shelves. Products that do well in this section...stay in the store. Products that do not sell well in this section....get discontinued from the store. I encourage customers to seek out The Next Big Thing sections in Sephora. There are separate sections for skin care and hair care in each store nationwide. Black and brown founded brands are being highlighted here. They must be supported to survive. #IndieBeauty #BlackBeautyBrands #Sephora

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Rapid grocer Gopuff launches B2B offering for DTC players, as reported by George Nott for The Grocer. In a strategic move to diversify its revenue streams and drive profitable order volume, Gopuff has unveiled "Powered by Gopuff," a groundbreaking platform enabling brands to utilize the rapid grocer's dark store and courier network for deliveries ordered through their own websites. With "Powered by Gopuff," shoppers can seamlessly make purchases on a brand's direct-to-consumer website, with orders automatically directed to the nearest Gopuff micro-fulfilment center. Here, orders are swiftly picked, packed, and delivered to customers, promising delivery times as fast as 15 minutes. Over the past six months, the platform has undergone rigorous testing with 20 FMCG brands, including industry giants like Ben & Jerry’s, Unilever, Mondelez International, and Nestlé. This initiative marks a significant shift for Gopuff, extending its proprietary fulfillment and logistics capabilities beyond its own app for the first time. Daniel Folkman, Senior Vice President of Business at Gopuff, emphasized the company's commitment to meeting customer demands for fast, reliable delivery. "With the launch of Powered by Gopuff, we're also becoming the fabric of instant commerce, empowering brands to deliver seamless experiences to their customers," Folkman stated. As part of the launch, Gopuff introduces "Storefronts," a Shopify-based online store theme integrated with Gopuff APIs. This allows brands to swiftly launch DTC sites, streamlining the process from weeks or months to a matter of days. Jay Tandan, Global Head of Digital Marketing at Ben & Jerry's, expressed enthusiasm for the partnership, highlighting the simplicity and convenience of Gopuff's micro-fulfillment centers. "Storefronts Powered by Gopuff solves that struggle for us and for Ben & Jerry’s fans across the country," Tandan remarked. Currently available across the US, Gopuff is considering a UK launch for its Powered by Gopuff offering. Additionally, the company plans to roll out "Fulfillment Powered by Gopuff" in Q2, a standalone warehousing and logistics service enabling brands to integrate and promote instant delivery on their existing DTC websites. While Gopuff is not the first to offer such services, with Deliveroo and Jiffy exploring similar models, its move signifies a significant advancement in the quick-commerce sector. As brands increasingly seek efficient delivery solutions, Gopuff's "Powered by Gopuff" platform emerges as a transformative force in the industry, poised to redefine the future of e-commerce fulfillment. Stay ahead with the latest in food delivery news from the weekly Boolanga Business Bites newsletter, brought to you by Wear Your Brand. Sign up for our LinkedIn newsletter now to receive weekly updates directly to your inbox every Monday.

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