Couponing

The Shaky but Awesome Future of Retail

Shekar Raman, Birdzi

We live in exciting times. The pace of progress in technology far outstrips the pace at which we are coming up with ideas of its applications. Hence the endless stream of exciting startups that come up with new and innovative ways of applying the technology and changing the way we live our lives. Exciting times indeed. There are however a few things that seem to take forever to change and are at contrast to everything else that is happening. Take for instance the retail industry—arguably one of the oldest and most established industries. For years, things have been done a certain way, and the adage ‘if it ain’t broke, don’t fix it’ seems to be a recurring theme in this sector. Innovation meets inertia, and the result is often slow, sluggish progress. But as Dylan said, ‘the times, they are a changin’ . The technology innovation and competition to traditional brick-and-mortar is forcing traditional retailers and even supermarkets to sit up and take notice and start thinking about changing the way we have thought of retail. In particular focus is the astronomical adoption of the smartphone. In eight short years since the first iPhone was released by Apple (some people may argue that smartphones existed before that, but let’s not go there for now), 80% or more of the phones sold in the market are smartphones. More importantly ‘connected’ phones. Last year, mobile overtook desktop as the #1 way to access the Internet. Retailers have started to realize both the power that is in the hands of the consumer to research before they buy, and their own ability to reach the customer proactively with personalized recommendations.  In the mid to late nineties as the reach of the internet exploded and e-commerce seemed to be engulfing the world, the birth of Amazon, eBay, buy.com, and countless other imitators, seemed to suggest that brick-and-mortar is dead. Now, almost 20 years later, brick-and-mortar retail still accounts for more than 95% of retail sales. Long live ‘the store’! Humans are social animals, and as much as the convenience of online shopping is enticing, our very nature thirsts for interaction and exploration. So what does all this mean? There is not a minute in our daily lives that we are separated from our personal devices (looking at my kids, it seems like a minute is a long time to be separated from the phone!). This presents a huge opportunity for retailers to stay connected with customers in ways never before thought possible. However, it is only those retailers who can figure out how to keep the interaction personalized and subtle that will win the race to being effective retailers of the future.  Dealing with promotional emails from e-commerce sites or retailers has become a job in itself, and people setup email accounts just to manage that. Clearly, mass promotion is at best annoying, and given the pace of our lives, hardly effective. It seems so 2000s. The future is about personalization. Its about, ‘just let me know of things relevant to me’ at the right time and place. Doing this was unimaginable a decade ago. Only a good friend could judge your mood, intent and based on their intimate knowledge of your personality say the right words. Just imagine your local supermarket doing that with your shopping needs. Understanding your personal preferences, shopping cycle, intent and budget and suggesting (and notifying) items you may be interested in. Not in an obscene, ‘in your face’ way, but in a ‘friendly’ manner, with your best interests in focus. With the advent of big data platforms and cloud technology, processing massive amounts of data in short order and deriving insights into individual shopping behavior and then proactively suggesting products and services is now a reality. There are several exciting startups that promise just that. So what’s the hold up, why aren’t retailers flocking to this trend, or wait.. can they? If there is one obstacle that stands between most traditional brick-and-mortar stores and the future, its data. The quality of data that most retailers have on their legacy systems simply does not lend itself to the emerging platforms. We are talking about abbreviated, truncated, misspelled, crude, and just plain poor quality data. All our big data platforms, machine learning, artificial intelligence, deep learning platforms require one thing. Good clean data to learn from. Retailers who can address this fundamental issue and bring about change in how they handle and store data will put themselves in a position to own the future and offer a level of personalization that consumers will come to expect in the future. Amazon recently announced that they are planning to open up about 2,000 stores nationwide. With the quality of data they hold, I would be surprised if they don’t become a major brick-and-mortar presence, threatening even the most established players. If traditional stores don’t make fundamental changes and pay more attention to how data is collected and stored, they stand to see the ground slipping away under their feet, while trying to figure out how to hold on to their customers. The future of shopping is closer than you think, especially if you have good clean data! +MORE

Are you Leaving Profits in the Basket? 10 Secrets to Increase Basket Size Week After Week

Dan Dashevsky, My Cloud Grocer

Independent supermarkets that offer products both in-store and online have an online basket size averaging between $120 and $184, based on the recent Brick Meets Click study. This compares favorably to Amazon Fresh at $84; Instacart, $98; Fresh Direct, $105; and Peapod, $147, as reported by 1010data. Out of 19 independent banners participated in the BMC study, Breadberry supermarket in Brooklyn, New York, had an online basket size of $184, the largest reported. Many of MCG’s clients have similar or even larger basket sizes than Breadberry’s. These 10 secrets have enabled our clients to achieve such outstanding results.   1.     Speed matters. Website visitors tend to care more about speed than about the bells and whistles we might be tempted to add to our websites. Google did an interesting experiment with regard to load times, asking web surfers if they would rather see 10 or 30 search results at a time. The users agreed that 30 results per page sounded like a good idea. Google then implemented this on some of their results pages. The shock came when traffic to pages that displayed 30 results dropped an astounding 20%. Google then tested the loading time difference between the 10- and 30-result pages. They found that this was just half of a second. So page loading time has been shown to be a crucial factor in user retention. It is also becoming a more important factor in search engine rankings. 2.     Product photography. The images on a site are another important factor. High-definition, mouthwatering pictures make a big difference when it comes to food shopping. Many website owners opt for the easy solution, and only display product images they can easily obtain from publicly available databases such as Kweeki and Item Master. These databases do not include all products, however, and image quality is often poor and inconsistent. The time and effort invested in high quality product photography to ensure that every product carried in the store is online and has a beautiful image pays good long-term dividends. 3.     Less is more. Instead of cluttering pages with as much product info as possible, keep it simple. Make the product image and a brief description the center of attention. Then you can add to the page some relevant and popular products to help customers remember to buy products that they may otherwise forget. 4.     “Shop by recipe.” Customers are looking for creative ideas to keep their meals fun. With a Shop by Recipes feature, they can find a recipe, click, and send ingredients to their shopping cart. The more interesting it is to browse your online store, the more your customers will buy from you. 5.     “My favorites.” Customers complete their shopping list much faster when they start with a pre-populated list of the products they normally buy. Once they are done with the basics, they have time to browse for more products, adding to the total basket size. 6.     Digital circulars. Everyone loves savings, and the more the better. Having plenty of items on weekly specials not only increases your in-store traffic but also increases your online basket size. Your printed flyer can only fit a limited number of items before it begins to look like a flea market and becomes impossible to read. Online, there is no limit to how many items you can display on special. Customers simply flip to the next page and keep on adding savings to their shopping cart. 7.     Quick re-order. By giving customers the ability to quickly send all the items from their previous order directly to their shopping cart, you’re simplifying their life and minimizing the possibility that they may forget an item or two. 8.     Keep it fresh. Let’s face it, shopping for groceries is not a recreational activity, but if you keep on introducing new products, it becomes more interesting, and this too will be reflected in your basket size. 9.     Accurate order fulfillment. Customers who are using your online order service are doing so for convenience, They want to save time for other priorities. If you fulfill their order quickly, and most important, accurately, you will see many more orders and higher order amounts now that they have trust in your service. Many MCG clients see increase in online basket size with customers who are placing their third and fourth orders. Once they develop the trust in your service, they will reward you with loyalty and larger basket sizes. 10. Good customer service. As in brick and mortar stores, good customer service is the key to success. This is what differentiates you from your competitors. Be ready to replace the not-so-fresh strawberries that a personal shopper put into a customer’s bag by mistake. Customers will buy more online from you if they are confident that if something is not satisfactory you will take good care of them. +MORE

Whatever the Question, A.I. is the Answer Because Nobody Likes Calling Customer Service

Susan Galer , Forbes SAP voice

Bejoy Narayana, CEO of BoodsKapper, develops AI applications that can cut down customer problem resolution time by a factor of 10. Give us your superstar customer service representative, and we’ll provide an AI application that replicates their behavior, reducing problem resolution time from 10 minutes to one. This is what I heard and saw from Bejoy Narayana, CEO of BoodsKapper at the recent SAP Financial Services Innovation Summit held at the SAP Leonardo Center in New York. The Texas-based startup develops AI applications on the SAP Cloud Platform designed to not only ferret out what customers want quickly, but also communicate in their preferred medium – using any texting app or moving to a telephone conversation.   “No one likes calling customer service, and we believe that experience can be much better by training the software to behave like the ideal customer service representative, getting to the point quickly to provide a solution for busy people,” said Narayana. “Modeling the actions of a company’s best customer agent, we can train the AI engine to be up and running in weeks just as you would a new employee. This can cut down interaction times by a factor of ten.” Creating a Human-Like Dialogue…Read the rest of this article by Susan Galer on Forbes SAP voice Posted on the CART blog with permission from Bejoy Narayana, CEO BoodsKapper +MORE

AI Powered Promotion Optimization

CART

Artificial intelligence (A.I.) is tailor-made for high SKU count, high transaction frequency supermarket retail. The insight and recommendations that A.I. provides can help retailers drive significant top line sales gains without increased promotional cost. In the high- volume, low-margin supermarket industry, where even slight improvements can deliver considerable increases to bottom line profitability A.I.-powered promotion optimization is nothing short of transformative. +MORE

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Grocery is Going Digital. The Time is Now.

CART

Online grocery sales are growing fast. A recent report released by FMI and The Nielsen Company states that 23% of U.S. households purchased groceries online in 2016, up from 19% in 2014, and representing an estimated 4.3% of U.S. consumer retail food and beverage spending. The report goes on to state that as many as 70% of U.S. consumers will be buying groceries online by 2025, spending more than $100 billion, an estimated 20% of consumer food and beverage spending.1 Grocery is going digital far faster than many predicted and the time is now for traditional retailers to stake their claim. +MORE

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BoodsKapper Retail bot

Boodskapper

This is our service for the retail industry and is primarily delivered through Facebook Messenger.  Consumers are able to send a picture of an item and ask if the retailer carries the item. The software is able to look up a retailer's catalog and answer the question.  Two-minute simulation here best explains the solution: http://www.boodskapper.com/#!retail/jjvu4 In this simulation, retailer has no prior record of the customer. Customer starts an organic conversation from Messenger, just as people do in life. BoodsKapper assists the customer to locate an article at the store. The customer picks up the conversation thread several months after the purchase and enquires about a variant of the item purchased. An organic conversation ensues and a purchase is made.is Deep reporting:   We would argue that information gold for the retailer are the conversations that your customers had with you through various channels. Our AI algorithms automatically find the meaning of the written text and use that to make the conversational response. As the meaning of conversations is analyzed and documented in real time, it is possible for us to enhance traditional reporting with this information. +MORE

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Crowdsourced Picking&Delivery for eCommerce

ReadyCart.co

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Crowdsourced Picking&Delivery Technology for retailer's eCommerce solution - laser focused around maximizing customer satisfaction and retailer profitability. ReadyCart Crowdsourced Picking&Delivery Technology Crowdsourced network build and eCommerce integration Retailer specific training collaboration and creation Network onboarding and ecosystem to handle training, scheduling, payment etc. Crowdsourced Picking&Delivery Technology  Picking&Delivery App Delivery Analytics Portal +MORE

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My Cloud Grocer Solution Guide

CART

My Cloud Grocer provides a retailer-branded online shopping solution to supermarket retailers. The online shopping site is responsive (will display properly on desktop, smartphone, and tablet screens) and features fast load times and payment functionality using token technology surpassing PCI compliance. My Cloud Grocer provides the retailer with support for picking, managing, and delivering orders. The company’s retail clients have experienced increased overall sales, due to reduced scatter... +MORE

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Darius™ for Retail

Darius Technologies

Darius for Retail is a fully integrated, cloud based shopper engagement platform. Darius delivers proven and measurable return on investment, by allowing retailers to put their shoppers at the center of everything and making it easy to engage and influence them pre-store, in-store, and post-store. Darius allows retailers to design, manage, develop and, measure interactions with their customers throughout the entire shopper journey.  The ‘tech’ bit: Darius™ is a modular ‘ecosystem’ retail technology platform that is designed to integrate and allow interaction with any existing retail systems and solutions such as Beacons, WiFi, dynamic shelf illumination, or e-coupons, and so on, to make continuous engagement with shoppers possible, wherever they are on the path to purchase. The customer experience bit: Darius™ allows retailers to put their shoppers at the center of everything by making it easy to engage and influence them pre-store, in-store, and post-store. The business bit: Darius™ delivers proven and measurable return on investment. That means more shoppers in-store, more often. It means attracting new and hard to engage shopper types. And it means bigger baskets and the increased spends that comes with that. It makes marketing budgets and, where they may already exist, retail tech investments work so much harder. +MORE

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LISNR

LISNR

LISNR powers transactions and connects the global customer journey with the most advanced Ultrasonic Data Platform. LISNR’s technology addresses the growing need for simple communication between myriad devices. Based on that idea, LISNR created proprietary software for encoding data into inaudible “tones”, which were then transmitted and received using standard speakers and microphones. +MORE

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Award-winning eCommerce solution

My Cloud Grocer

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My Cloud Grocer is an award-winning eCommerce solution designed to help supermarkets thrive in a competitive digital world. Offering a robust, customizable virtual storefront, My Cloud Grocer’s top-rated white label platform powers and integrates the full shopping experience, from initial order to the customer’s door. Our clients see lower operational costs and consistently outperform competitors, enjoying the largest weekly sales and online baskets in the industry. +MORE

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App Store for Retail

Sparkle CS Ltd

Sparkle connects legacy and online retail solutions into a real-time cloud ecosystem to enable Big Data, connected store marketing and a true omni-channel customer experience.  Using Sparkle’s technology, retailers from independents to major chains have been able to rapidly and cost-effectively deploy integrated digital technology to drive customer engagement and increase sales. Extensible Framework, an app store for your POS: Our framework allows the digital world to interact seamlessly with tills.  Want your till to do something we haven’t thought of? Add another app. Making Coupons Work, Example App: Redemption Validation (RV): Our RV POS App allows digital and paper coupons to be accepted by the POS with controls against mis-redemption, reuse and fraud. Driving Out Costs, Example App: Electronic Clearing (EC): No more need for expensive clearing houses! With EC, you know who owes you what within hours. Settle via trade accounts or let us manage it for you. Cloud-based Management, Take control of your tills: Our cloud-based solution will get you up and running in no time. Change how your tills behave from your tablet in real-time. Bridging the Gap, bringing tills online: We provide a range of patented technologies that allows legacy tills, from corner shops to mainline grocers, to join the App Store for Retail. Future Proof, avoiding strategic paralysis: NFC, RFiD or QR Codes? You don’t need to guess. The App Store for Retail allows new interfaces to be plugged in at low cost. +MORE

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Easy To Implement Loyalty

CART

Success in supermarket retailing is more and more influenced by a retailer’s ability to strategically use analytics and insights derived from shopper-identified transaction data. Targeted promotions can provide a much higher and effective return on investment than traditional mass promotion. These trends have transformed the industry, powering Kroger’s 46 consecutive quarters of same store sales growth and similar efforts underway at other leading retailers. While few can debate the power of shopper intelligence, the independent sector of the industry has been largely left behind, challenged by lack of cost-effective solutions, requisite technology integration, and lack of resources related to best using the data once gained. AppCard is a fast growing company that provides an easy-to-implement solution targeted at independent retailers. +MORE

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Shopper Media Network

PlaceWise Media

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With the rapid rise of digital and mobile technologies, the shift of power to consumers has forever changed how advertisers, retailers and brands get their messages across. Bringing them all together through its proprietary digital platform is the charge of PlaceWise Media, one of the largest shopper media networks in the U.S. PlaceWise’s shopper media network includes more than 1,400 grocery retailers and nearly 700 shopping and lifestyle centers, with more than 10 million total monthly visitors. Through its unique, first-party data, PlaceWise can extend beyond its network in real time to reach millions of other relevant shoppers. The company also provides digital marketing services to hundreds of malls and lifestyle centers across North America.  Shopper access; shopper insight; real time. PlaceWise Media’s network allows brands to offer shoppers engaging content and special offers along the path to purchase, delivering on its promise to them to reach “Just who you want. Right when they are ready®”. +MORE

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Personalized Shopper Engagement Suite

Birdzi Inc.

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Birdzi’s Personalized Shopper Engagement Suite is made up of the following components: Personalization Engine - Proprietary algorithms track individual shopper profiles & behavior and score offers & content for each shopper based on objectives Digital Touchpoints - Connect with your shoppers through your own branded mobile app, web and email In-store Engagement - Empower your shoppers to search and locate items in-store and receive relevant offers in the aisle through beacons Offer Management and Analytics - Build and manage offers and track performance in real-time To find out more click here. +MORE

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Mobile Checkout

FutureProof Retail

The Mobile Checkout retail platform digitizes brick and mortar stores, bringing the convenience and personalization of eCommerce to physical retailers and their customers. Mobile Checkout Eliminates the Lines Mobile Checkout is a brandable iOS and Android app, a better system than self-checkout for the complete shopping experience from scan to payment. Private White-label Retailers deepen the customer relationship and own the install by deploying the platform as their own-brand staff and shopper apps. Scan Products Customers scan and bag while shopping. Mobile Payment Pay securely with credit card or mobile wallet directly through the app. Skip the Line Customers never wait in line to check out. Customize to your needs Expand the system with functionality like loyalty programs or counter service mobile ordering.     +MORE

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CART Weekly Report 8/8/19

CART, Advancing Retail

STORE BRANDS CUT INTO BIG FOOD | Wall Street Journal Gary’s Take: Big retailers are focusing on promoting private label brands and growth is coming at the expense of the big packaged goods brands that have ruled the supply chain for years. Aside from the differentiation private label can provide, the approach yields far higher gross margins for the retailer and can help build customer loyalty. As I explain in my latest book, Retail in the Age of ‘i’, sophisticated retailers are growing private label and using the added gross margin to help fund strong marketing personalization efforts, growing digital engagement and customer share-of-wallet. MARTY THE GROCERY STORE ROBOT AND A GLIMPSE INTO OUR HELL-ISH FUTURE | Mashable Gary’s Take: Not all customers view robots in the aisle as a good thing. As the writer calls out, how can the retailer invest $35,000 per robot when they are dealing with employees striking for higher pay? Retailers need to carefully message what these machines are being used for and create a powerful value proposition to the customer. Included in that messaging should be assurances around how the retailer is approaching automation and the impact on jobs. It’s still very early days for in-store automation but we are already seeing some of the potential challenges. CONNECTING THE CUSTOMER JOURNEY FROM ONLINE TO OFFLINE | StreetWise Gary’s Take: As the world becomes increasingly digital, marketers are working hard to connect online and offline shopping behavior and better understand the impact of digital advertising on sales in the brick & mortar store. CPG COMPANIES SPENDING MORE TO USE LESS PACKAGING | RetailWire Sterling’s Take: Responding to consumer wants and needs is always a smart strategy. Although, it's important to understand those needs fully and the tradeoffs consumers are willing to make around things like sustainability vs. price. Great packaging speaks for itself, but it's even more powerful when yielded by a culture that's authentically committed to doing good.  WHAT WE HAVE TO SAY: RETAILERS: HOW DO YOU EVALUATE NEW INNOVATIVE SOLUTION PROVIDERS | Gary Hawkins SOLUTION PROVIDERS: WHAT PROBLEM ARE YOU SOLVING? | Gary Hawkins HAPPENINGS: UPCOMING RETAIL TOMORROW INNOVATION DAYS/EVENTS WAKEFERN - August 21, 2019 IMPERIAL DISTRIBUTORS - September 5, 2019 CGA STRATEGIC CONFERENCE 2019 - September 29-October 1, 2019 RETAIL REVOLUTION AT PORTLAND STATE - October 24, 2019 THE DISINTERMEDIATION CHALLENGE In this new Retail Tomorrow podcast, recorded at GMDC’s annual GM conference in Denver, the focus was on the ways in which startups are working to disintermediate traditional retailers … how retailers can turn these innovations to their own advantage … why cultural resistance within companies can be the ultimate enemy of progress … and even brainstorm about a business model that could’ve made Toys R Us relevant again. You can listen to the Retail Tomorrow podcast here, or on iTunes or GooglePlay. The Retail Tomorrow podcast series is a production of GMDC, the Global Market Development Center. Featuring : • Patrick Fore, CEO and co-founder of Fleat. • Sterling Hawkins, co-founder of the Center for Advancing Retail & Technology (CART). The host: Kevin Coupe, MorningNewsBeat’s “ContentGuy.” Pictured, left to right: Patrick Fore, Kevin Coupe, Sterling Hawkins E-Commerce in the Age of ‘i’ [Webinar Recap] Retail expert Gary Hawkins reveals how Amazon sellers must leverage new innovations and customer centricity to provide personalized shopping experiences. By Natalie Taylor August 7, 2019 OUTLOOK LEADERSHIP - August 11-14, 2019 in Asheville, NC The convenience industry’s premier, invitation-only event, that you cannot afford to miss. In a world of accelerating change, where we are going and how do we build our organizations to thrive there? Sterling Hawkins will take attendees on a retail journey. C-Store operators can register today at https://outlookleadership.com/ usingInvite Code: power REFLEXIONS 2019: INTELLIGENT RETAIL - August 12-15, 2019 at Caesars Place in Las Vegas GROCERYSHOP - September 15-18, 2019 at the Venetian in Las Vegas Preliminary Agenda Speakers Apply for Emerging Technology Spotlight MINDING THE GAPS - CGA STRATEGIC CONFERENCE 2019 - Mission Hills Country Club in Rancho Mirage, September 29-October 1, 2019 GMDC SELF-CARE SUMMIT - October 3 thru 7, 2019 in Indianapolis, IN X/SPECS 2019 - October 15 thru 17, 2019 at the Waldorf Astoria, Orlando  Store Design in the Age of “I” - Wednesday, 11:30am-12:15pm THE RETAIL REVOLUTION at PORTLAND STATE UNIVERSITY’S CENTER FOR RETAIL LEADERSHIP - Portland, Oregon - October 24, 2019 12:30-5:00pm SPECS SHOW 2020 - The ForeFront of Physical Retail - March 15-17, 2020, Gaylord Texan, Dallas CART COMMUNITY. GET ON THE INSIDE. MEMBERSHIP HAS BENEFITS.  Become part of the epicenter of retail innovation exclusive network. The place where retail decision makers and solution providers come together to advance retail into the future. ✔️Blogs ✔️Newsletter ✔️Webinars ✔️Accelerator ✔️Pitch Events ✔️Solution Spotlights  ✔️Innovation Programs ✔️Educational Content FOR RETAILERS>> Proven programs to advance your business FOR SOLUTIONS>> Your growth engine into retail VIEW ALL SOLUTIONS HERE CONTACT US TELL ME HOW TO GET MY SOLUTION ADDED TO CART Get the CART Weekly Report delivered to your inbox. Sign up here. Quote of the Week: Nothing ventured, nothing gained. ~Ben Franklin +MORE

Meet Abbie, our new Head of Innovation Programming

CART, Advancing Retail

We are excited to announce that CART is growing. Abbie Weiss is coming on board as Head of Innovation Programming for CART! Being at the epicenter of retail innovation for some years now, we realize that innovation is not just about technology. New capabilities are simply a tool; what’s important is that organizations have a culture of innovation to support trying and implementing new ways of operating and going to market. And that’s where Abbie comes in. Abbie has extensive training and experience in empowering leadership and she’s focusing her incredible energy, enthusiasm, and knowledge on what it takes to make organizations successful with innovation. Abbie will be working closely with Sterling and the CART team on on developing executive education dedicated to creating and fostering a culture of innovation within their organizations. In addition, programs are being developed to extend this culture of what’s possible throughout the enterprise, helping everyone across the company to understand the possibilities in innovation.  Abbie is also bringing her impressive leadership and presentation skills to help solution providers improve how they tell their story to the retail industry, helping guide presentations and the sales process. We are excited to have Abbie join the CART team and bring her world-class knowledge, experience, and energy to companies we work with. Welcome Abbie! +MORE

What Problem are you Solving?

Gary Hawkins, CEO, Center for Advancing Retail and Technology

I see a lot of solutions that focus on the fast moving consumer goods retail sector - retail like supermarkets, drug stores, convenience stores, and discount stores. And when I say a lot I mean hundreds and even over a thousand solutions each year. For these solution providers, be they established firms or young innovators, many of them are challenged to effectively communicate their value proposition. Too often technology providers want to immediately launch into features and functions and why their technology is special. What prospective retailers want to hear though is what problem you are going to solve for them or what opportunity do you help open up. And retailers are busy people, they don’t want to sit through an hour long presentation about how cool your technology is before they figure out what you can do for them.  Go look at your sales deck, the presentation you typically use. If you’re not communicating within the first three slides how you are going to help the retailer you are at risk of losing them. If it’s an initial meeting, keep your deck short - ideally no more than ten or so slides and then, if possible, do a demo of your capability.  Its also important to speak the retailer’s language. If you have good knowledge of the retail industry and how retail works, then great; that knowledge will come through quickly and give the retailer confidence you know what you’re talking about. If you are not familiar with retail, yet you think your solution has potential for retailers, be up front when you have a meeting. Tell the retailer you’re meeting with that you don’t know a lot about their business but you believe you have something they may be interested in. Experienced retailers can detect within the first few minutes if you know what you’re talking about or not. Lastly, it’s always a good practice to visit the retailer’s stores and familiarize yourself with their operations and digital presence before you sit down for a meeting. Retailers appreciate solution providers who take the time to gain some understanding of the retailer’s operations. +MORE

CART Weekly Report 8/1/19

CART, Advancing Retail

IT’S A WRAP! THE INNOVATION PROGRAM AT KVAT FOOD CITY! WHAT PROBLEM ARE YOU SOLVING? YOUR COMPANY HAS A VISION: WHY CAN’T EVERYONE SEE IT? | RetailWire Sterling’s Take:  A vision alone is not enough. And trying to come up with the right words won’t do it either. It’s the leadership that puts themselves on the line for significant positive change that makes the difference. JFK put himself on the line by making that declaration and people rallied behind him. Without leadership stepping out for the benefit of their team and their customers, anything else is empty. STAPLES CREATES CONTENT TO REPOSITION AND DIFFERENTIATE ITS BRAND | RetailWire Sterling’s Take: I think the power in this approach is the community and human-centric connection it potentially creates. Anyone can sell office products, but it’s not everyone that’s connected to understanding their customers work life and their experience of work at a deeper level. Of course, the details here will really matter, but at a high-level, Staples is right on. ARE STORE ROBOTS CUTE, CREEPY - OR NEARLY USELESS | RetailWire Sterling's Take:  I give credit to Giant Foods for trying out something new (especially a robot!), but I’m not quite sure what the value is, the measurable ROI. Unless this becomes an effective platform to manage out of stocks, planogram compliance, etc., it’s an awfully expensive way to make sure aisles are clear of “hazards.”  Robots are best doing simple, repeatable tasks where there’s a real need. Walmart deploying robotic floor cleaners is a perfect example. I think we’d probably all agree that robots will be increasingly included in our lives, it’s just a matter of having them start in manageable and sensible places to match their costs with current capabilities. HAPPENINGS: ASK THE AMAZON EXPERTS - E-COMMERCE IN THE AGE OF ‘I’” THE ROLE OF PERSONALIZATION AND TECHNOLOGY FOR ONLINE BUSINESSES with Gary Hawkins and Natalie Taylor Content Marketing Writer, Feedvisor  UPCOMING RETAIL TOMORROW INNOVATION DAYS/EVENTS WAKEFERN - August 21, 2019 IMPERIAL DISTRIBUTORS - September 5, 2019 CGA STRATEGIC CONFERENCE 2019 - September 29-October 1, 2019 RETAIL REVOLUTION AT PORTLAND STATE - October 24, 2019 INNOVATION CULTURE with Sterling Hawkins and John Golden CSMO at Pipeliner CRM and Amazon bestselling author of Winning the Battle for Sales: Lessons on Closing Every Deal from the World’s Greatest Military Victories and Social Upheaval: How to Win at Social Selling. THE FUTURE IS NOW – IGNITE: ECOMMERCE LEADERSHIP CONFERENCE Tuesday, August 6th, 2019, 9:00am – 5:00pm, Chicago OUTLOOK LEADERSHIP - August 11-14, 2019 in Asheville, NC The convenience industry’s premier, invitation-only event, that you cannot afford to miss. In a world of accelerating change, where we are going and how do we build our organizations to thrive there? Sterling Hawkins will take attendees on a retail journey. C-Store operators can register today at https://outlookleadership.com/ usingInvite Code: power REFLEXIONS 2019: INTELLIGENT RETAIL - August 12-15, 2019 at Caesars Place in Las Vegas GROCERYSHOP - September 15-18, 2019 at the Venetian in Las Vegas Preliminary Agenda Speakers Apply for Emerging Technology Spotlight Minding the GAPS - CGA Strategic Conference 2019 - Mission Hills Country Club in Rancho Mirage, September 29-October 1, 2019 Applications to present at CGA are due - TODAY - August 1, 2019 GMDC Self-Care Summit - October 3 thru 7, 2019 in Indianapolis, IN X/Specs 2019 - October 15 thru 17, 2019 at the Waldorf Astoria, Orlando  Store Design in the Age of “I” - Wednesday, 11:30am-12:15pm SPECS Show 2020 - The ForeFront of Physical Retail - March 15-17, 2020, Gaylord Texan, Dallas CART COMMUNITY. GET ON THE INSIDE. MEMBERSHIP HAS BENEFITS.  Become part of the epicenter of retail innovation exclusive network. The place where retail decision makers and solution providers come together to advance retail into the future. ✔️Blogs ✔️Newsletter ✔️Webinars ✔️Accelerator ✔️Pitch Events ✔️Solution Spotlights  ✔️Innovation Programs ✔️Educational Content FOR RETAILERS>> Proven programs to advance your business FOR SOLUTIONS>> Your growth engine into retail VIEW ALL SOLUTIONS HERE CONTACT US TELL ME HOW TO GET MY SOLUTION ADDED TO CART Get the CART Weekly Report delivered to your inbox. Sign up here. Quote of the Week: It always seems impossible until it’s done. ~ Nelson Mandela +MORE

CART Weekly Report 7/25/19

CART , Advancing Retail

We are excited to announce that CART is growing. Join us as we welcome, Abbie Weiss, Head of Innovation Programming for CART! DISCOMFORT IS NECESSARY FOR INNOVATION | TedX What is the core element of innovation? Sterling Hawkins explores discomfort, a key ingredient of innovation. Through weaving personal, and business story framed through reflecting back to  MacGyver, ’80’s tv show, Sterling connects us to the complexity of innovation through discomfort.  MY COMPLIMENTS TO THE CHEF, ER, ROBOT | Wall Street Journal Gary’s Take: Robotics and automation is coming to food preparation at an increasing pace. We're seeing machines for grilling burgers, machines for making salads, sushi automation, and even making dosa. Aside from the obvious increase in efficiency and consistency, automation in food prep opens the door to efficient customization - increasingly important as growing numbers of consumers have food allergies, diet and lifestyle preferences, and food requirements driven by health conditions. We are already seeing a convergence of the massive healthcare and food industries as big data, cutting edge nutrition science, and expanded food product information all come together focused on improving the wellbeing of the individual. Food preparation automation is only going to help speed this convergence. FROM 'BUY WHAT WE HAVE' TO THE 'CONNECTED CUSTOMER' | Wall Street Journal CART’s Take: Great article that calls out the ability retailers have to engage with the customer at all times, anywhere and everywhere, and to be contextually relevant, providing meaningful value to the customer rather than just offering and promoting mass products as was done in the past. MOBILE IS ALWAYS LOCAL: THOUGHTS ON THE FUTURE OF ONLINE-TO-OFFLINE COMMERCE | Street Fight Magazine CART’s Take:  Mobile allows retailers to respond in real-time to the customer based on time and place. To be contextually relevant and support local businesses. WALMART SHAKES THINGS UP, FURTHER INTEGRATING ONLINE AND PHYSICAL STORE TEAMS | RetailWire Sterling’s Take: These kinds of things should start to be routine. It’s not rocket science that consumers want one experience across all the touchpoints and our organizations can be geared to serve that. And at the same time, things like merchandising stores is a unique function to stores themselves and that necessitates a little more focus. I think Walmart is setting a new norm. HAPPENINGS: ASK THE AMAZON EXPERTS - ECOMMERCE IN THE AGE OF ‘I’” THE ROLE OF PERSONALIZATION AND TECHNOLOGY FOR ONLINE BUSINESSES with Gary Hawkins and Natalie Taylor Content Marketing Writer, Feedvisor - Archived from Thursday, Aug. 1, 2019 11 a.m. PT  |  2 p.m. ET  |  7 p.m. UK UPCOMING RETAIL TOMORROW INNOVATION DAYS/EVENTS FOOD CITY - July 25, 2019  WEIS MARKETS - August 8, 2019  WAKEFERN - August 21, 2019 IMPERIAL DISTRIBUTORS - September 5, 2019 CGA STRATEGIC CONFERENCE 2019 - September 29-October 1, 2019 RETAIL REVOLUTION AT PORTLAND STATE - October 24, 2019 INNOVATION CULTURE with Sterling Hawkins and John Golden CSMO at Pipeliner CRM and Amazon bestselling author of Winning the Battle for Sales: Lessons on Closing Every Deal from the World's Greatest Military Victories and Social Upheaval: How to Win at Social Selling. THE FUTURE IS NOW -- IGNITE: ECOMMERCE LEADERSHIP CONFERENCE Tuesday, August 6th, 2019, 9:00am – 5:00pm, Chicago OUTLOOK LEADERSHIP - August 11-14, 2019 in Asheville, NC The convenience industry’s premier, invitation-only event, that you cannot afford to miss. In a world of accelerating change, where we are going and how do we build our organizations to thrive there? Sterling Hawkins will take attendees on a retail journey. C-Store operators can register today at https://outlookleadership.com/ usingInvite Code: power REFLEXIONS 2019: INTELLIGENT RETAIL - August 12-15, 2019 at Caesars Place in Las Vegas GROCERYSHOP - September 15-18, 2019 at the Venetian in Las Vegas Preliminary Agenda Speakers Apply for Emerging Technology Spotlight Minding the GAPS - CGA Strategic Conference 2019 - Mission Hills Country Club in Rancho Mirage, September 29-October 1, 2019 Applications to present at CGA are due August 1, 2019 GMDC Self-Care Summit - October 3 thru 7, 2019 in Indianapolis, IN X/Specs 2019 - October 15 thru 17, 2019 at the Waldorf Astoria, Orlando  Store Design in the Age of “I” - Wednesday, 11:30am-12:15pm SPECS Show 2020 - The ForeFront of Physical Retail - March 15-17, 2020, Gaylord Texan, Dallas CART COMMUNITY. GET ON THE INSIDE. MEMBERSHIP HAS BENEFITS.  Become part of the epicenter of retail innovation exclusive network. The place where retail decision makers and solution providers come together to advance retail into the future. ✔️Blogs ✔️Newsletter ✔️Webinars ✔️Accelerator ✔️Pitch Events ✔️Solution Spotlights  ✔️Innovation Programs ✔️Educational Content FOR RETAILERS>> Proven programs to advance your business FOR SOLUTIONS>> Your growth engine into retail VIEW ALL SOLUTIONS HERE CONTACT US TELL ME HOW TO GET MY SOLUTION ADDED TO CART Get the CART Weekly Report delivered to your inbox. Sign up here. Quote of the Week: A leader is someone who demonstrates what's possible. +MORE

CART Weekly Report 7/18/19

CART, Advancing Retail

MORE STORE CLOSINGS COMING: AN ESTIMATED 12,000 SHOPS COULD CLOSE BY THE END OF 2019 | USA Today Gary’s Take: A recent report from Coresight Research states that 2019 store closings are already ahead of last year by 20%; they estimate store closures could reach 12,000 by the end of the year. UBS Securities estimate that 75,000 stores could close by 2026 if ecomm sales rise to 25% of retail from current level of 16%. The supermarket channel has largely escaped any significant closings thus far but I do not expect this to continue as online grocery continues to grow and disruption continues sweeping the industry. As happened in the mid 1990s when Walmart entered grocery, triggering a wave of consolidation as bigger players sought to scale up to compete, independent and smaller regional retailers are going to take the brunt of the hit as they can’t keep up with tech innovation and investment. Smaller retailers must quickly find a way to truly differentiate themselves if they have a hope of surviving. The alternative is either going out of business or becoming a glorified convenience store as primary grocery sales are rolled up by the bigger players. PERSONALIZATION MATTERS: HERE ARE 5 GREAT EXAMPLES | Smart Design World Gary’s Take: Personalization in retail is rapidly becoming a customer expectation and a need-to-have by retailers. Like other terms that become ‘hot’, personalization is the latest overused buzzword. The scary part is that many retailers are not experts in this space and can fall prey to 'personalization’ capabilities that are really not. I would suggest that retailers should really be focusing on providing contextual relevancy that goes beyond pure personalization and focuses on providing meaningful messaging (recipes, savings, new product intro, etc.) to each customer. And, like some of the examples in this article, state of the art is realtime relevancy. This is very challenging to do and is dependent on deep integration between digital touchpoints and a relevancy engine that processes in realtime. FLORIDA’S DMV IS SELLING DRIVERS’ PERSONAL INFORMATION TO BILL COLLECTORS AND DATA BROKERS | Fast Company Gary’s Take: Data privacy? Really? A recent investigation by ABC affiliate has just found that Florida’s DMV has been selling license data to bill collectors and data brokers. This while governments - from state to federal - are increasingly inserting themselves into the ongoing privacy debate. Data privacy is an issue that continues to percolate, boiling over periodically as malfeasance by Facebook or assorted app providers comes to light. I do believe that privacy is going to become an increasingly important issue that is going to threaten digital advertising and marketing initiatives. Retailers would be well served to really focus on driving comprehensive digital engagement with their shoppers ASAP to build their repository of first-party data for the future.  WHAT MAKES GREAT RETAIL LEADERS | RetailWire Sterling’s Take: Having a CEO that exemplifies what the company stands for and puts themselves on the line for significant positive change is key to culture. And culture is the key to everything (what it’s like to work there, why everyone is there and what new ideas come up/are embraced, etc). Supporting those same traits amongst the team is a success recipe that transcends any strategy, technology or trend. WHO OWNS CUSTOMER SERVICE IN AN AGE OF CO-BRANDING | RetailWire Sterling’s Take: The responsibility for customer service comes down to the person standing in front of the customer (or on the phone with them). It’s definitely a growing issue with all the co-branding and partnerships and ultimately retailers need to ensure great customer service, no matter what agreements are in place behind the scenes. The co-branding can only be as great as the service and customer experience they can provide. FEATURED BLOG OF THE WEEK:  FROM THE INNOVATION GAP TO THE KNOWLEDGE GAP by Gary Hawkins, CEO, CART I have often written about the growing innovation gap - the divide between the exponential growth of new tech fueled capabilities and the much slower deployment of new solutions in brick & mortar retail. This growing innovation gap is a major challenge to traditional retailers…READ MORE>> HAPPENINGS: UPCOMING RETAIL TOMORROW INNOVATION DAYS/EVENTS FOOD CITY - July 25, 2019  WEIS MARKETS - August 8, 2019  WAKEFERN - August 21, 2019 IMPERIAL DISTRIBUTORS - September 5, 2019 CGA STRATEGIC CONFERENCE 2019 - September 29-October 1, 2019 RETAIL REVOLUTION AT PORTLAND STATE - October 24, 2019 OUTLOOK LEADERSHIP - August 11-14, 2019 in Asheville, NC The convenience industry’s premier, invitation-only event, that you cannot afford to miss. In a world of accelerating change, where we are going and how do we build our organizations to thrive there? Sterling Hawkins will take attendees on a retail journey. C-Store operators can register today at https://outlookleadership.com/ using Invite Code: power REFLEXIONS 2019: INTELLIGENT RETAIL - August 12-15, 2019 at Caesars Place in Las Vegas GROCERYSHOP - September 15-18, 2019 at the Venetian in Las Vegas Preliminary Agenda Speakers Apply for Emerging Technology Spotlight Minding the GAPS - CGA Strategic Conference 2019 - Mission Hills Country Club in Rancho Mirage, September 29-October 1, 2019 Applications to present at CGA are due August 1, 2019 GMDC Self-Care Summit - October 3 thru 7, 2019 in Indianapolis, IN X/Specs 2019 - October 15 thru 17, 2019 at the Waldorf Astoria, Orlando  Store Design in the Age of “I” - Wednesday, 11:30am-12:15pm SPECS Show 2020 - The ForeFront of Physical Retail - March 15-17, 2020, Gaylord Texan, Dallas CART COMMUNITY. GET ON THE INSIDE. MEMBERSHIP HAS BENEFITS.  Become part of the epicenter of retail innovation exclusive network. The place where retail decision makers and solution providers come together to advance retail into the future. ✔️Blogs ✔️Newsletter ✔️Webinars ✔️Accelerator ✔️Pitch Events ✔️Solution Spotlights  ✔️Innovation Programs ✔️Educational Content FOR RETAILERS>> Proven programs to advance your business FOR SOLUTIONS>> Your growth engine into retail VIEW ALL SOLUTIONS HERE CONTACT US TELL ME HOW TO GET MY SOLUTION ADDED TO CART Get the CART Weekly Report delivered to your inbox. Sign up here. Quote of the Week: Great things are done by a series of small things brought together.  ~Vincent Van Gogh +MORE

From the Innovation Gap to the Knowledge Gap

Gary Hawkins, CEO, Center for Advancing Retail and Technology

I have often written about the growing innovation gap - the divide between the exponential growth of new tech fueled capabilities and the much slower deployment of new solutions in brick & mortar retail. This growing innovation gap is a major challenge to traditional retailers. A number of solution providers are working hard to help retailers close that gap, leveraging the cloud, AI, machine learning, and other tech to bring advanced capabilities to regional and even smaller independent retailers. The problem is that while retailers can avail themselves of new solutions, they are sometimes lacking the resources, knowledge, and skill sets to make use of these new capabilities. We are seeing this in many different areas. From sophisticated AI powered forecasting solutions that are able to ingest store-level events that impact product movement to cutting edge marketing personalization systems that challenge retailers to think differently about how they go to market. The challenges we see are four-fold. First, retailers lacking resources skilled in data analytics needed to take advantage of the explosion of big data. Second, retailers lacking the discipline to modify operations or data gathering needed to power new capabilities. And three, retail executives being challenged to think outside the box, and envision doing business differently. The fourth challenge is retailers not understanding the how tech-fueled innovation is growing exponentially. I can almost hear the collective sigh of relief from traditional supermarket retailers that they have withstood the initial rush to online shopping. The problem is that we’re just getting started, massive disruption is coming fast across all areas of the supply chain, driven by automation, the ability to promote to each individual customer more effectively than mass promotion, and far more.  There is no easy answer to these challenges. It is one thing to have access to new innovative capabilities and quite another to have a company culture that embraces innovation and new ways of doing things. It is this issue that is perhaps the most important in looking ahead to who will win and lose in future retail battles. +MORE

CART Weekly Report 7/11/19

CART, Advancing Retail

NOT ALL CUSTOMERS ARE EQUAL IN RETAIL | Forbes Gary’s Take: Customers are not equal in retail. This is not heresy but fact. We discovered this firsthand 25 years ago when we launched one of the early loyalty programs in supermarket retail and began capturing customer identified purchase data. It quickly became obvious that a relative handful of shoppers generates a large portion of annual sales and even more of gross profit. At the same time, a majority of shoppers are shopping very infrequently and spending  little. And yet a vast majority of retailers continue to ignore these economics. Some retailers, those who understand the data, skew value in different ways towards their more loyal, valuable customers. Kroger has been doing this for years with a few other retailers finally catching on in recent times. As my friend Brian Woolf was fond of saying "Treat all your customers equally (with great service) but reward them differently". Retailers who fail to understand customer behavior and economics are increasingly disadvantaged in today's marketplace. NOT EVEN WALMART HAS ENOUGH CASH AVAILABLE TO COMPETE WITH AMAZON’S ECOMMERCE FULFILLMENT EMPIRE, REPORT SAYS | Business Insider Gary’s Take: So if Walmart is pressured to keep up with investments required to compete with Amazon where does that leave other retailers? Walmart is being pressured from not having enough eCommerce fulfillment centers, costs related to acquiring and growing digital-first brands, and funding eCommerce related operational losses. A recent report from Recode states that Walmart's eCommerce related losses are pushing past $1 billion. Two key call-outs from this: First is that if Walmart is having trouble funding eComm related losses, it does not bode well for other national, regional, and independent retailers. Amazon's greater margins are funding infrastructure growth and new services as the innovation arms race is grows fiercer. The second issue is that Walmart is facing a brewing cultural war inside the company as traditional brick & mortar merchants resist the massive investments in digital. This cultural divide is something that many retailers will be wrestling with, if they are not already, and presents yet more challenges for traditional retailers as they navigate the future. SPURRED BY AMAZON, SUPERMARKETS TRY SWAPPING CASHIERS FOR CAMERAS | WSJ Gary’s Take: We are seeing many retailers pursuing 'Amazon Go' like shopping technology that would eliminate traditional cashiers. The computer vision tech powering up these competitors to Amazon is still early-on but moving fast as young companies seek to scale the tech for traditional supermarkets. As I discussed in my recent book, Retail in the Age of 'I', the industry is rapidly approaching a crossroads. One path leading to this kind of automated, yet barren and sterile, shopping experience offered by automation. The other path puts technology in service to retailers, enabling them to recreate at scale the personalized relationships in the old corner store while increasing service levels as certain functions are automated. Tech is moving increasingly fast and retailers must grapple with the implications of new capabilities, both the good and the not so good. Those retailers that have a clear vision of who they are can use new tech to update and solidify their market position. WILL MEATLESS MEAT, CBD AND COLD BREW COFFEE HELP FOOD RETAILERS TO DIFFERENTIATE? | RetailWire Sterling’s Take: Attempting to differentiate with a few products is looking in the wrong direction. Many of these will just become more standard items on the majority of retail shelves. Consumers are looking for full experiences, with new products and services consistent with that experience. It’s around the full experience that retailers can innovate, differentiate and compete. Just look at the Best Buy turn around — did they have the latest products on the shelf? Sure. But that’s not why they started winning. NRF STUDY SAYS CUSTOMERS DIG RETAIL TECH | RetailWire Sterling’s Take: There is a nice convergence of consumers becoming more tech savvy and technology getting easier to use. With all the new tech available, it’s easy as retailers to think that it’s the technology that’ll provide the next big wave of growth. But we can’t lose sight of why we’re here as an industry: to meet the needs of human beings. And what motivates human beings is new, positive and engaging experiences with the world around us. All these technologies are not a goal. They are only a means to creating those meaningful human experiences. LOCATION BASED MARKETING IS SPREADING BEYOND SMARTPHONES | RetailWire Sterling’s Take: I think there’s a better question to ask, which is: what consumer experiences can be enhanced with any of these technologies? Approaching our business from a “technology first” standpoint is a mistake. Technology is not the end goal. It is only there to support/enhance great consumer experiences. FEATURED BLOG OF THE WEEK: GENERATING MORE REVENUE FOR YOUR SUPERMARKET IS EASIER THAN YOU THINK by Eli Langer, CEO, Harvesting Media HAPPENINGS: UPCOMING RETAIL TOMORROW INNOVATION DAYS/EVENTS BOSTON IMMERSION EVENT:  DISRUPTIVE LEADERSHIP & THE SELFCARE REVOLUTION - July 16 thru 19, 2019  FOOD CITY - July 25, 2019  WEIS MARKETS - August 8, 2019  WAKEFERN - August 21, 2019 IMPERIAL DISTRIBUTORS - September 5, 2019 CGA STRATEGIC CONFERENCE 2019 - September 29-October 1, 2019 RETAIL REVOLUTION AT PORTLAND STATE - October 24, 2019 OUTLOOK LEADERSHIP - August 11-14, 2019 in Asheville, NC The convenience industry’s premier, invitation-only event, that you cannot afford to miss. In a world of accelerating change, where we are going and how do we build our organizations to thrive there? Sterling Hawkins will take attendees on a retail journey. C-Store operators can register today at https://outlookleadership.com/ using Invite Code: power REFLEXIONS 2019: INTELLIGENT RETAIL - August 12-15, 2019 at Caesars Place in Las Vegas GROCERYSHOP - September 15-18, 2019 at the Venetian in Las Vegas Preliminary Agenda Speakers Apply for Emerging Technology Spotlight Minding the GAPS - CGA Strategic Conference 2019 - Mission Hills Country Club in Rancho Mirage, September 29-October 1, 2019  Applications to present at CGA are due August 1, 2019 GMDC Self-Care Summit - October 3 thru 7, 2019 in Indianapolis, IN X/Specs 2019 - October 15 thru 17, 2019 at the Waldorf Astoria, Orlando  Store Design in the Age of “I” - Wednesday, 11:30am-12:15pm SPECS Show 2020 - The ForeFront of Physical Retail - March 15-17, 2020, Gaylord Texan, Dallas CART COMMUNITY. GET ON THE INSIDE. MEMBERSHIP HAS BENEFITS.  Become part of the epicenter of retail innovation exclusive network. The place where retail decision makers and solution providers come together to advance retail into the future. ✔️Blogs ✔️Newsletter ✔️Webinars ✔️Accelerator ✔️Pitch Events ✔️Solution Spotlights  ✔️Innovation Programs ✔️Educational Content FOR RETAILERS>> Proven programs to advance your business FOR SOLUTIONS>> Your growth engine into retail VIEW ALL SOLUTIONS HERE CONTACT US TELL ME HOW TO GET MY SOLUTION ADDED TO CART Get the CART Weekly Report delivered to your inbox. Sign up here. Quote of the Week: Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow. ~ William Pollard +MORE

CART Weekly Report 6/13/19

CART, Advancing Retail

SURVEY: PROFESSIONALS EAGER AND READY TO DEPLOY 5G | ZDNet Gary’s Take: The rollout of 5G over the next several years will be transformative, especially for retailers. The speed of 5G is mind-blowing: A two hour movie download took 26 hours using 3G tech, 6 minutes with 4G, and will take only 3.6 seconds with 5G. Beyond speed, 5G offers much more bandwidth, enabling billions (trillions?) of IoT devices to stream data from everywhere - are retailers ready for the realtime store? And, for those regional retailers located in rural parts of the U.S. who think their customer base has not yet embraced the digital age - 5G will finally bring high-speed connectivity to all areas as it is much cheaper to deploy than cable. 5G will do nothing but increase shopper expectations of having everything they want available in moments. But is retail ready to deliver?  MARY MEEKER’S MOST IMPORTANT TRENDS ON THE INTERNET | Vox.com Gary’s Take: Mary Meeker, the "Queen of the Internet", is out with this year's deck calling out the most important internet and digital trends. Her report is always fascinating to review, but long at 300+ pages. Here are a few highlights as pertains to retail: eComm is now 15% of all retail sales and growth continues to outpace brick & mortar. Internet ad spending in the U.S. is up 22%; 62% of digital ad is programmatic. Customer acquisition costs are going up - in some cases it surpasses customer revenue! Targeted advertising is under threat from GDPR and other data privacy regulations. Americans now spend 6.3 hours a day with digital media and it continues to grow. Lastly, healthcare is becoming more digital - lots of implications here, especially for the food industry.  WORD OF MOUTH REMAINS VITAL FOR LOYALTY IN DIGITAL AGE | Streetfight Gary’s Take: Interesting that word-of-mouth is as - perhaps even more - important in the digital age in securing new customers. With deep experience in retail loyalty, I would suggest that recognition is the most powerful way to build loyalty that in turn powers positive word-of-mouth. In years of working with prominent retailers in markets around the world I inevitably found that recognizing customers, especially a retailer's most valuable customers, transcended cultures. There are countless ways to provide that recognition - everything from a simple handwritten thank-you note to special offers to the store manager greeting the shopper in-store. One of my favorites occurred years ago when I helped M&M Meat Shops of Canada build their loyalty program. On Valentine's Day we had each store owner hand deliver a bouquet of roses to their top 10 customers. Talk about positive word-of-mouth! FEATURED BLOG OF THE WEEK: RETAIL’S BIG DATA CHALLENGE...AND OPPORTUNITY by Gary Hawkins, CEO CART HAPPENINGS: 2019 GMDC GENERAL MERCHANDISE MARKETING CONFERENCE, Gaylord Rockies Resort, Denver, CO - June 13-17, 2019 DISRUPTIVE LEADERSHIP & THE SELFCARE REVOLUTION​, Boston Immersion Event - Hosted July 17 & 18th, 2019 Apply to present at Retail Tomorrow Labs: Boston - Applications due June 15th, 2019 Full Agenda OUTLOOK LEADERSHIP - August 11-14, 2019 in Asheville, NC The convenience industry’s premier, invitation-only event, that you cannot afford to miss. In a world of accelerating change, where we are going and how do we build our organizations to thrive there? Sterling Hawkins will take attendees on a retail journey. C-Store operators can register today at https://outlookleadership.com/ using Invite Code: power REFLEXIONS 2019: INTELLIGENT RETAIL - August 12-15, 2019 at Caesars Place in Las Vegas GROCERYSHOP - September 15-18, 2019 at the Venetian in Las Vegas Preliminary Agenda Speakers Apply for Emerging Technology Spotlight CART COMMUNITY. GET ON THE INSIDE. MEMBERSHIP HAS BENEFITS.  Become part of the epicenter of retail innovation exclusive network. The place where retail decision makers and solution providers come together to advance retail into the future. ✔️Blogs ✔️Newsletter ✔️Webinars ✔️Accelerator ✔️Pitch Events ✔️Solution Spotlights  ✔️Innovation Programs ✔️Educational Content FOR RETAILERS>> Proven programs to advance your business FOR SOLUTIONS>>Your growth engine into retail VIEW ALL SOLUTIONS HERE CONTACT US TELL ME HOW TO GET MY SOLUTION ADDED TO CART Get the CART Weekly Report delivered to your inbox. Sign up here. Quote of the Week:  Progress is impossible without change, and those who cannot change their minds cannot change anything. ~ George Bernard Shaw +MORE

Retail’s BIG DATA Challenge… and Opportunity

Gary Hawkins, CEO, Center for Advancing Retail and Technology

Data has long powered modern retail, helping Walmart become a master of supply chain logistics and fueling Kroger’s customer-centric strategy. Artificial intelligence and the cloud are fueling explosive growth in retail big data - and transforming customer marketing. And as the retail industry moves online and customer digital engagement is the battlefield, the quality and quantity of data will determine the winners and losers.  This new world requires - more than ever - data discipline. And this is an area that is particularly challenging to smaller retailers and even some regional chains. Data discipline will make or break retail success from this day onward. Here are just a few examples of issues I’ve encountered in talking with retailers: One retailer still had super abbreviated product descriptions that were used years ago with the old (much narrower) receipts. Product descriptions coming from the retailer’s item file are used to power online shopping - abbreviated descriptions just won’t do it for eCommerce as customers won’t understand what the product is.  Another retailer’s item file lacked any kind of product categorization on nearly 50% of the products carried. Many retailers lack even somewhat accurate product graphics. Retailers with these issues cannot realistically install any kind of marketing personalization capabilities that rely upon product categorization. And yet another well known regional retailer had many products at store-level that were not represented in item files at the headquarters office; i.e. the merchandisers and buyers at the corporate office did not know what products were in the store. This situation is simply frightening; how can a retailer do effective promotion planning, demand forecasting, let alone any kind of optimization, when HQ doesn’t know what products are in each store? Data quality issues like these come back to haunt retailers when they look to deploy new capabilities like online shopping, promotion optimization, or marketing personalization - capabilities that are rapidly becoming a cost of entry to compete. And these are issues with what should be basic levels of data required to operate.  Leading retailers are leveraging fast growing data attributes attached to each individual shopper and each product.  Customer identified transaction data is just the beginning as solution providers like Birdzi calculate and maintain hundreds of data attributes for each individual shopper, from brand loyalty scores to discount propensity, and from product purchase frequency to category spending indexes. Add to this third party data from companies like Experian or Acxiom that provide dozens or even hundreds more data points. Category tags, package sizes, and pricing form the core of product based attributes. Label Insight is using AI and machine learning to deconstruct the handful of nutrition attributes on a package to encompass, dozens, hundreds, and even thousands of additional attributes for any given product. Deep nutritional data attributed to individual products is quickly growing in importance as food is increasingly linked to a shopper’s health condition. The velocity of data is growing as various solutions use realtime shopper location - both inside and outside the store - to provide contextual information. An understanding of the shopper’s intent is provided by a realtime view to what products have just been added to the shopping list, what digital coupons have been clipped, and what products have been searched for.  Cloud based solutions enable regional and smaller retailers to access cutting edge marketing personalization solutions driven by advanced data science to power relevancy across every digital engagement with each individual shopper. The cloud also brings sophisticated pricing, promotion, and product assortment optimization capabilities to retailers cost effectively. But the efficacy of these solutions is directly dependent on the quality and quantity of data feeding them.  Retailers embarking on data driven strategies would be well served to first assess the quality of their core data (product descriptions, categorization, pricing, product cost, vendor codes, and more). Retailers with loyalty programs should examine how clean and up to date their customer contact data is along with how customer loyalty IDs roll up to households (this area is particularly vexing as retailers often just distribute cards). Building on a now-solid base, consider bringing in third-party data to permit scoring share-of-wallet by customer household in addition to other attributes that can improve targeting and personalization. More than ever before, retail success is driven by data. For retailers that understand the power of data - and especially customer and product data attributes - marketing nirvana awaits. +MORE

CART Weekly Report 6/6/19

CART, Advancing Retail

WHY MARKETERS STILL STRUGGLE WITH ONE TO ONE PERSONALIZATION | StreetFight Gary’s Take: Retailers who commit to personalization and bring that commitment to life by devoting resources and budget are finding success as measured by increases in spending, shopping visits, and retention. But far too many retailers simply pay lip service to personalization, believing that putting a name on a mass email qualifies, or filtering the mass weekly ad to the shopper based on historical purchasing is the epitome of retail marketing personalization. True adherents understand that the ‘personalized ad’ becoming popular today provides little value to the shopper beyond helping guide them more efficiently to sale products they may be interested in. Much more powerful is providing meaningful savings on products relevant to each customer, not just those products vendors decide to promote. Beyond disruptive marketing economics, retailers need to develop data discipline as it is the fuel for the future. ‘SIGN IN WITH APPLE’ PROTECTS YOU IN WAYS GOOGLE AND FACEBOOK DON’T | Wired Gary’s Take: Apple’s announcement that it is giving users more control over their data is just the latest salvo in the data privacy debate. The EU’s GDPR regulations, brought into effect about a year ago, are already heavily influencing data privacy initiatives around the world. All this points to a growing challenge for marketers in the time ahead as consumers begin to push back on how their data is monetized and used without the user’s awareness. Marketers that rely on 2nd and 3rd party data to drive their digital marketing efforts should start considering how they will operate in a world of data constraint. Retailers in particular should ramp up efforts to gather 1st party data on their shoppers, in good part by focusing on driving digital engagement as fast and as comprehensively as they can. And yes, this means formulating a value proposition - often based on delivering personalized, relevant, meaningful value - to each individual shopper. WALMART’S CHECKOUT PILOT PUTS SHOPPERS IN THE FAST LANE | RetailWire Sterling’s Take: People respond to how the world occurs around them. And a small change like this could produce strong results — helping people understand the value in more physical terms (a special place to checkout). There will be some period of overlap with most of these technologies. Self-checkout still most often works in tandem with traditional checkout. As technology improves we’ll see some stores bet on some of these new technologies alone. We’ll be telling our kids there used to be a time you had to wait in line to “check out” of a store. EXPERIENCE IS OVERRATED, HIRE TALENT | RetailWire Sterling’s Take: Eagerness to learn new things, add value and ability to embrace (or even better, create) change are top in my book. 100% agree that most retail positions can be trained much easier than attitudes. When the people are aligned on values, vision and purpose (not just printed on a sign, but actually aligned as people) anything is possible. DISCOVER THE POWERFUL FINANCIAL IMPACT OF THE “HALO EFFECT” Grocery retailers can take a new and more profitable approach to promotional planning by embracing the “Halo Effect”. Learn how to uncover the powerful connections between products in Daisy Intelligence’s new eBook. FEATURED BLOG OF THE WEEK: A NEW WORLD VIEW by Gary Hawkins, CEO, CART HAPPENINGS: UPCOMING ON-SITE INNOVATION DAYS - Specifically looking for the following solutions to apply to present: Food City - July 15, 2019: Marketing & eCommerce - Health & Wellness Tech - In-Store Automation (Apply by June 10, 2019) MOBILE SHOPPING CONNECT - JUNE 10-12, 2019 in San Diego, CA THE MILLENNIAL ALLIANCE, DIGITAL RETAIL TRANSFORMATION - JUNE 11-12, 2019 in Las Vegas, NV DISRUPTIVE LEADERSHIP & THE SELFCARE REVOLUTION​, Boston Immersion Event - Hosted July 17 & 18th, 2019 Apply to present at Retail Tomorrow Labs: Boston - Applications due June 15th, 2019 Full Agenda OUTLOOK LEADERSHIP - August 11-14, 2019 in Asheville, NC The convenience industry’s premier, invitation-only event, that you cannot afford to miss. In a world of accelerating change, where we are going and how do we build our organizations to thrive there? Sterling Hawkins will take attendees on a retail journey. C-Store operators can register today at https://outlookleadership.com/ using Invite Code: power REFLEXIONS 2019: INTELLIGENT RETAIL - August 12-15, 2019 at Caesars Place in Las Vegas GROCERYSHOP - September 15-18, 2019 at the Venetian in Las Vegas Preliminary Agenda Speakers CART COMMUNITY. GET ON THE INSIDE. MEMBERSHIP HAS BENEFITS.  Become part of the epicenter of retail innovation exclusive network. The place where retail decision makers and solution providers come together to advance retail into the future. ✔️Blogs ✔️Newsletter ✔️Webinars ✔️Accelerator ✔️Pitch Events ✔️Solution Spotlights  ✔️Innovation Programs ✔️Educational Content FOR RETAILERS>> Proven programs to advance your business FOR SOLUTIONS>>Your growth engine into retail VIEW ALL SOLUTIONS HERE CONTACT US TELL ME HOW TO GET MY SOLUTION ADDED TO CART Get the CART Weekly Report delivered to your inbox. Sign up here. +MORE

A New Worldview

Gary Hawkins, CEO, Center for Advancing Retail and Technology

I want to challenge the way you believe the world works. And then suggest to you a new perspective. The place to start is understanding that our worldview is constrained by the knowledge available to us. We know what we know; for example, I know how to ride a bike. Then there are things that we know we don’t know; I know that I don’t know how to speak Russian. But then there are the things we don’t know that we don’t know. The faster things change, the less reliable our predictions of the future are because the very things that can cause massive disruption may not even have been invented yet. We don’t know what we don’t know. This is the dangerous place retail executives find themselves: Not knowing what they don’t know. Not knowing what disruption lurks around the next corner. Retailers, like everyone, are working from a certain knowledge set that by default limits their understanding of what is possible. And yet to compete successfully, let alone survive, retail executives must throw some light on the vast abyss to bring some of what they don’t know they don’t know into the light. Said another way, retailers must adopt a new worldview. Today, we as human beings are already in transition. We know the world is changing even if we don’t know why. Exponential Growth: Tomorrow Will No Longer Resemble Today We are at the knee of the exponential growth curve of computer processing power and from this day forward change will be increasingly noticeable and increasingly fast. While most are familiar with the definition of exponential growth, far fewer people truly understand the power and implications of this reality. We as human beings are wired to think linearly. Today is much like yesterday and we have lived our lives expecting that tomorrow will be much like today. Except that is no longer true, and this will become increasingly apparent. Physicist Albert Bartlett is blunt in his assessment: “The greatest shortcoming of the human race is our inability to understand the exponential function.” Today is the slowest pace of change you will experience in your lifetime. Learn more about the Age of ‘i’ in Gary’s new book, RETAIL IN THE AGE OF ‘i’: A New World View for the Retail Industry now available on Amazon. +MORE

CART Weekly Report 5/30/19

CART, Advancing Retail

ONLINE ADS CAN BE TARGETED BASED ON YOUR EMOTIONS | Vox Gary’s Take: Targeting ads using the shopper's emotional state appears to be the next step in contextual relevancy. The New York Times is using machine learning and surveys to understand the link between different types of stories and the reader's emotions, offering advertisers up to 18 different emotional states they can target. The NYT is not the only company seeking to understand emotions as recent articles call out that Amazon is working on using voice and potentially other means to understand the user's emotions. Advertisers are in search of increasing efficiency and efficacy while consumers are in search of contextual relevance. While these two 'goals' seem in alignment, I think there will come a growing pushback from consumers as more people understand they are being monetized... and not sharing in the proceeds beyond whatever offers or promotions are extended to them. ROBOT IN AISLE 3: RETAIL TURNS MORE AND MORE TO MACHINES | The Boston Globe Gary’s Take: Beyond the innovation gap, retailers need to be increasingly focused on the growing productivity gap driven by automation and new capabilities. Ahold is deploying $35,000 robots across 500 stores to monitor floor conditions (goal to avoid slips & falls) and the robots can easily be tasked with monitoring shelf conditions for out of stocks and pricing errors. Ahold is only one of a number of large retailers increasingly using automation in distribution centers and at store level to reduce costs and increase sales. To date, this is primarily a game for the largest retailers who are able to afford the cap-ex and significant investment. Automation is coming to food prep, and a number of other areas - all of which constitute a growing threat to regional and smaller retailers unable to move fast enough and leverage this technology. Interesting times lie ahead for retailers of all sizes! ARE RETAIL HQs AND STORES SUFFERING A COMMUNICATION BREAKDOWN | RetailWire Sterling’s Take: Technology won't solve it. This is a cultural issue, technology is secondary. Simplifying communications, automating more and setting expectations is key. But there also has to be a relatedness between the HQ and the store level. If HQ doesn't understand what it's like inside their stores and how to run them, they're disconnected from where their business is actually happening. ARE APPLE’S CLASSES GETTING IN THE WAY? | RetailWire Sterling’s Take: I don't see a conflict here -- they are different sides of the same coin and they reinforce each other. To separate learning would separate the Apple stores from a major component of what makes them special, some of the community aspects. Separately, there's always opportunity around new formats and learning what else might work (or work better) as retailers. FEATURED BLOG OF THE WEEK: RETAIL TOMORROW INNOVATION PROGRAM OPPORTUNITIES by Gary Hawkins, CEO CART HAPPENINGS: UPCOMING ON-SITE INNOVATION DAYS - Specifically looking for solutions in these areas to present: Wakefern - June 29, 2019: In-store Engagement - Digital Marketing - Data and Personalization Tools (Apply by May 25, 2019) Food City - July 15, 2019: Marketing & eCommerce - Health & Wellness Tech - In-Store Automation (Apply by June 10, 2019) DISRUPTIVE LEADERSHIP & THE SELFCARE REVOLUTION​, Boston Immersion Event - Hosted July 17 & 18th, 2019 Apply to present at Retail Tomorrow Labs: Boston - Applications due June 15th, 2019 Full Agenda MOBILE SHOPPING CONNECT - JUNE 10-12, 2019 in San Diego, CA OUTLOOK LEADERSHIP - August 11-14, 2019 in Asheville, NC The convenience industry’s premier, invitation-only event, that you cannot afford to miss. In a world of accelerating change, where we are going and how do we build our organizations to thrive there? Sterling Hawkins will take attendees on a retail journey. C-Store operators can register today at https://outlookleadership.com/ using Invite Code: power REFLEXIONS 2019: INTELLIGENT RETAIL - August 12-15, 2019 at Caesars Place in Las Vegas GROCERYSHOP - September 15-18, 2019 at the Venetian in Las Vegas Preliminary Agenda Speakers CART COMMUNITY. GET ON THE INSIDE. MEMBERSHIP HAS BENEFITS.  Become part of the epicenter of retail innovation exclusive network. The place where retail decision makers and solution providers come together to advance retail into the future. ✔️Blogs ✔️Newsletter ✔️Webinars ✔️Accelerator ✔️Pitch Events ✔️Solution Spotlights  ✔️Innovation Programs ✔️Educational Content FOR RETAILERS>> Proven programs to advance your business FOR SOLUTIONS>>Your growth engine into retail VIEW ALL SOLUTIONS HERE CONTACT US TELL ME HOW TO GET MY SOLUTION ADDED TO CART Get the CART Weekly Report delivered to your inbox. Sign up here. +MORE

Retail Tomorrow Innovation Program Opportunities

Gary Hawkins, CEO, Center for Advancing Retail and Technology

The Retail Tomorrow Innovation Program is a unique offering for both qualifying retailers and providers of exciting, new capabilities. The program is targeted at larger regional and national retailers and is designed to help these retailers manage innovation as a process, not a series of one-off solution deployments. As the pace of change continues to increase, retailers are growing more and more challenged to keep pace with new capabilities coming into the market. For retailers, the program provides retailers a true partner in the innovation process. The Retail Tomorrow team works with the retailer’s executive team to identify two or three areas of focus driven by opportunities or challenges. The team then sifts through the thousands of solutions in their database while in parallel reaching out across the industry and the tech world to identify any new appropriate solutions. The Retail Tomorrow group then filters through the appropriate solutions, curating the list to a dozen or a dozen and a half solution providers that are then given the chance to meet with the retail executive team for a day on-site at the retailer’s HQ. These days are built around education and networking, helping the retailer understand the latest technologies. For solution providers, these events provide an unparalleled opportunity to get in front a major retailer’s executive teams to present their capabilities and to begin building relationships. The Retail Tomorrow team works with the chosen solution providers to review your materials and coach you, all with a goal of helping you deliver a powerful presentation. Each accepted solution provider has an opportunity to present to the retail executive team, time for questions, answers, and discussion, along with networking during breaks. A ‘win’ for the solution providers is helping the retailer understand the technology, the benefits, and what’s involved with deploying, and then the retailer deciding to pilot the solution. The Retail Tomorrow Innovation Program is a powerful answer for retailers challenged to keep pace with a fast changing world and provides a proven benefit to retailers and solution providers alike. +MORE

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