Loss prevention

Impacting Product Presentation, Merchandising and the Customer Experience

CART

The in-store environment has become an increasingly important front in retail competition as the majority of shoppers make their purchase decisions in the store and impulse purchases remain a significant factor. With this in mind, it is critical that retailers provide a pleasant and engaging in-store experience for their shoppers to achieve long term success as chain competitors stress clean, uncluttered, and well-organized stores. Key to the shopping experience is merchandising. Merchandising success means not only having the right product selection and assortment available, but also having products neatly presented to make it easy for the shopper to find what she is looking for. With so many more options available to shoppers today, retailers understand that the negative impression made by products in disarray and the frustration caused by inability to find the right product in a timely and efficient manner can send the shopper to a competitor. In addition to lost sales, poor merchandising discipline can result in higher labor costs, as store personnel must take time to straighten products and bring them face-forward. European supermarkets, faced with high real estate and labor costs, utilize merchandising fixtures to maintain product display discipline, maximize shelf space, and realize restocking efficiencies. A relative newcomer to the US market, merchandising fixtures from POS Tuning were recently tested by CART in a live learning lab (operating store) to determine the impact on sales, store labor related to restocking and merchandising, and the customer shopping experience. Overall, the fixtures provided a significant positive impact on units sold in key brands and sections in both the cereal and frozen foods categories, which were evaluated in this test. The quantitative results were reinforced by comments from the Store Director who clearly identified labor savings, improved merchandise presentation, and positive remarks from shoppers as key benefits to the POS Tuning fixtures. Merchandising tests such as these are challenging, especially in the dynamic supermarket environment where there is a regular inflow of new products and delisting of older products. Retailers regularly re-merchandising categories and sections compound the challenges as they react to competition and search for any advantage. The CART team’s retail experience underscores the importance of viewing test results through both a qualitative and quantitative lens. The positive impact provided by an easier and less frustrating shopping experience can create customer value over time that can be difficult to manage in a short-term test. Comments from shoppers and store personnel help reinforce the importance of this perspective. POS Tuning is a global provider of innovative merchandising and display solutions that has brought its products to retailers in North America. Building on the success in its home market of Europe, where leading retailers utilize its products across many categories to great success, POS Tuning engaged CART to implement its solutions in key categories in a supermarket to prove their value. +MORE

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Balance Innovations Suite of Solutions

Balance Innovations

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Balance Innovations offers the only retail software platform that connects all points of your currency operations,  lowering the cost of accepting cash and increasing efficiency at all levels of the organization. It provides multi‐ layer security and effortless integration of all your devices and systems to give you an immediate, complete view  of your entire enterprise.  This comprehensive visibility enables you to understand what’s happening across your entire organization without tapping into multiple systems or reports. It puts all the information you need right in front of you –  customized to thresholds you choose – so you can be proactive in addressing issues before they become problems.   +MORE

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POS Tuning

POS Tuning

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POS Tuning is the global innovation leader for retail front facing shelf management solutions.  POS Tuning offers an entire toolbox of products (pushfeeds, illumination, theft prevention, stock management, brand staging, and other disruptive elements) optimizing the presentation of brands and categories at the Point of Sale. +MORE

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The Promise & Peril of Retail Personalization

Gary Hawkins, Founder, CEO, Advancing Retail

As we head into Groceryshop 2019 I am struck by the number of solution providers focused on providing marketing personalization. It is safe to say that retail personalization has arrived. And yet is also safe to say that far too few retailers truly understand what’s involved with providing effective personalization and how fast capabilities are moving in this space. As supermarket retail has been dragged into the digital age, personalization has become a customer expectation, no longer a nice-to-have. And solution providers have come out of the woodwork to provide capabilities to retailers, each proclaiming the sophistication of their approach and the use of AI and machine learning.  But here’s the problem: Like any engine, the quality of personalization is dependent on the fuel it’s running on… and too many retailers are providing poor quality fuel or, even worse, lack the fuel necessary. As retail enters the Age of ‘i’ - a time of maximizing share-of-wallet and growing lifetime value of each individual customer - far too many retailers lack customer identified transaction data, the primary fuel. Looking at a list of the top 50 supermarket retailers, approximately half of them have little to no customer identified purchase data.  Beyond that, personalization is driven by customer intelligence; the more known about the customer the better. Customer intelligence is driven by attributes, attributes tagged to the customer and to the products he or she purchases. Attributes can, and should, also include location and other information that can be brought in from outside data sources. Knowing what product a customer purchases is good, knowing that the product is sugar-free and gluten-free adds that much more insight to what that customer is searching for. This is where retailers need to start to dig when evaluating different personalization capabilities. What, and how many, attributes are maintained and how they impact recommendations is key to relevancy. How those attributes are created and refreshed is also massively important. Batch cycles and customer segments are yesterday’s approach; look for automated creation of customer profile attributes and systems capable of calculating, maintaining, and ingesting hundreds and even thousands of attributes tagged to the individual shopper and products. Anyone with customer identified purchase data and a spreadsheet can quickly identify products frequently purchased by a customer. It takes more sophistication to track each product’s purchase cadence for each individual customer. And even more sophistication to understand subtle changes in customer behavior. A handful of retailers realize that contextual relevancy in marketing is more powerful than straight personalization. And to provide contextual relevancy requires deep integration with digital touchpoints like mobile and awareness of location - all in realtime. Retail marketing personalization presents the retailer with both promise and peril. Providing recommendations that are irrelevant, or simply wrong, to the shopper in today’s world holds great risk. In the digital world, irrelevant communications are spam, and a customer can easily delete your app or unsubscribe from your emails. But for those retailers who get it right, who understand the need for vast customer intelligence and realtime interaction, contextual relevancy can be massively powerful as retail competition quickly shifts to a stealth battle over each customer’s share-of-wallet and lifetime value. +MORE

CART Weekly Report 9/12/19

CART, Advancing Retail

A RETURN TO CONTEXTUAL ADVERTISING | StreetFight Gary’s Take: Programmatic marketing is facing an increasing challenge as consumers increasingly focus on privacy, governments increasingly are passing privacy regulations, and the benefits of ads based on what is known about the shopper frequently don’t produce the expected results. In its place is a return to contextual marketing; suggesting ads and other information based on what the shopper is currently looking at. For example, if a person is researching diabetes because of a recent diagnosis, a marketer may want to present information on new prescriptions or other information. Far different than providing a deal on cookies because that’s what the shopper was clicking on a few days ago. All digital marketing is facing increased scrutiny and challenges and retailers should look at growing digital engagement with their customer base as fast as possible so as to collect first party data. Reliance on second and third party data will become increasingly risky as regulation increases. STARSHIP TECHNOLOGIES CEO LEX BAYER ON FOCUS AND OPPORTUNITY IN AUTONOMOUS DELIVERY | TechCrunch Gary’s Take: Last mile delivery is a major focus for the retail industry today. There are a growing number of solution providers getting in the game, in addition to the usual players of the Post Office, UPS, FedEx, Amazon, and more. New entrants are focused on self-driving autonomous vehicles - either cars or purpose-built smaller vehicles like Starship Technologies, to deliver products. While these types of automated solutions work best in dense population areas, drones are in pilot to be used in delivering products in more remote areas.  Given the speed of innovation, retailers would do well to focus on developments in last mile delivery. As the economics shift, and automation drives down costs, delivery may become very important very quickly. BEAR ROBOTICS IS RAISING BIG BUCKS FOR ROBOTS THAT DELIVER FOOD TO RESTAURANT PATRONS | TechCrunch Gary’s Take: Robots are coming to a restaurant near you as automation helps restaurant owners address high wages, and a lack of people interested in service positions. Robots serving food, combined with tablet remote ordering have the potential to improve the efficiency of restaurant operations and may in some cases even improve the customer experience. It will be interesting to see how the technology can be applied to supermarkets increasingly offering prepared foods and meals. STARBUCKS DEVELOPING NEW STORE DEDICATED TO PICK UP AND DELIVERY ORDERS | RetailWire Sterling’s Take: The experimentation here is what’s important. There’s a general acknowledgment that things are changing and Starbucks is out in front creating what that change might look like for them and their customers. I don’t think there’s a single answer for all retailers/foodservice operators regarding pickup/delivery, but there are a variety of new things that might work depending on the operator, region and customer base. WHAT WE HAVE TO SAY: 5 WAYS BIG DATA CAN IMPROVE CUSTOMER EXPERIENCE | Ashley Lipman HAPPENINGS: UPCOMING RETAIL TOMORROW INNOVATION DAYS/EVENTS CGA STRATEGIC CONFERENCE 2019 - September 29-October 1, 2019 RETAIL REVOLUTION AT PORTLAND STATE - October 24, 2019 ENERGIZER - November 14, 2019 More Events to be Announced Soon! Notify me about upcoming and new events GROCERYSHOP - September 15-18, 2019 at the Venetian in Las Vegas GETTING THE MOST OUT OF GROCERYSHOP | Gary Hawkins CART’s Gary Hawkins is participating in two sessions at Groceryshop. On Monday, Sept. starting at 8:45am, Rapid-Fire Review: 10 Technologies Transforming Operations will be looking at ten new technologies and getting thoughts from industry leaders. The next is on Tuesday at 9:30am where Gary will speak to Retail in the Age of ‘i’ and then lead a panel of industry execs in a discussion around Data-Driven Shopping Experiences. 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: Innovation doesn’t come just from giving people incentives; it comes from creating environments where their ideas can connect. Steven Johnson +MORE

CART Weekly Report 9/5/19

CART, Advancing Retail

BREAK DOWN DIGITAL WALLS TO KEEP PACE WITH CHANGE | Forbes  Gary’s Take: As I speak to in my latest book, Retail in the Age of ‘i’, one of the ‘i’s that retailers need to focus on is integration. Specifically, I’m referring to the disparate systems most retailers use to connect with shoppers online. We can broaden this to also include the myriad social media channels and other online shopping sites. The need for systems integration to provide a smooth and cohesive user experience is vitally important as traditional retailers increasingly compete with technology firms. There are two primary reasons driving these challenges. The first is that retailers have added digital capabilities over the years as new things entered the scene, leading to multiple solution providers that need to be integrated. Secondly is the retailer erecting walls around their digital properties in hopes of providing a better experience for shoppers. In both cases, the customer experience usually suffers. INTEL TUNES ITS IoT WITH THE HELP OF BLUEBERRY FARMERS | ZDNet Gary’s Take: As 5G cellular networks roll out and IoT explodes, we’re going to see a fast growing number of solutions focused on tracking and monitoring products across the supply chain. In addition to location (and how much time at each location) we are going to see growing sophistication around monitoring of temperature and other environmental conditions. All this is coming together to power greater transparency for the end customer, letting the shopper know where the product was sourced and its journey to the shopper. STORE BRANDS CUT INTO BIG FOOD | Wall Street Journal Gary’s Take: Retailers’ private label programs are finally hitting their stride as retailers put forth products comparable to, if not even better than, the quality of national brands. And, doing it at attractive price points that are appealing to a growing number of shoppers. Sophisticated private label programs provide the retailer a way to differentiate their stores and build customer loyalty. And, in an age of personalization and true focus on growing customer share-of-wallet, private label margins help the retailer provide meaningful savings on relevant products to the individual customer.  WILL H&M’S AMBASSADOR PROGRAM TURN EMPLOYEES INTO SOCIAL INFLUENCERS? | Retail Wire Sterling’s Take: Developing a culture that starts to generate ideas and fashion from the inside is a good plan. And doing it over time is even better. As these new influencers are able to express themselves through the brand it will breathe excitement and life into the whole organization (and of course shoppers). Of course, if the brand tries to express itself through the people it'll be a non-starter. It's a fine line, but certainly doable. I think other retailers are watching to see how it's done... WHAT WE HAVE TO SAY: GETTING THE MOST OUT OF GROCERYSHOP | Gary Hawkins  IT TAKES SOMETHING TO DO NEW THINGS | Sterling Hawkins HAPPENINGS: UPCOMING RETAIL TOMORROW INNOVATION DAYS/EVENTS CGA STRATEGIC CONFERENCE 2019 - September 29-October 1, 2019 RETAIL REVOLUTION AT PORTLAND STATE - October 24, 2019 ENERGIZER - November 14, 2019 More Events to be Announced Soon! GROCERYSHOP - September 15-18, 2019 at the Venetian in Las Vegas 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: Creativity is inventing, experimenting, growing, taking risks, breaking rules, making mistakes and having fun. ~ Mary Lou Cook +MORE

Getting the Most Out of Groceryshop

Gary Hawkins, CEO, Center for Advancing Retail and Technology

So Labor Day has come and gone, school has started back, and its time once again for Groceryshop! This year’s show, the second annual, is on track for significant growth (to the surprise of no one) with several thousand people expected to attend. The Groceryshop team has lined up great speakers from technology companies, leading retailers, and brand manufacturers to educate, inform, and share ideas and best practices. There are three areas of opportunity for retailers to get major learning out of the show. The first is to attend the various workshops that are organized into tracks to help attendees find areas of interest easier. In addition to major presentations, there are many smaller workshops speaking to more focused areas.  The next opportunity is to spend time walking the exhibit floor, meeting and learning about all the solution providers who are there. While you’ll find some established names, there are many younger startups that come to Groceryshop seeking to find partners and retailers to learn with.  The third opportunity is to network, meeting other executives from across technology companies and the retail supply chain. Talking with other people is a great way to to learn what others are doing, sharing best practices, getting feedback on new technologies and innovation. CART’s Gary Hawkins is participating in two sessions at Groceryshop. On Monday, Sept. starting at 8:45am, Rapid-Fire Review: 10 Technologies Transforming Operations will be looking at ten new technologies and getting thoughts from industry leaders. The next is on Tuesday at 9:30am where Gary will speak to Retail in the Age of ‘i’ and then lead a panel of industry execs in a discussion around Data-Driven Shopping Experiences. Photo: Winsight Grocery Business +MORE

Retail in the Age of ‘i’: A Framework for Retailers and Solution Providers

Gary Hawkins, CEO, Center for Advancing Retail and Technology

I wrote my latest book, which was released earlier this year, to help retailers and the broader industry address the challenges of disruption and faster and faster innovation. The premise of the book is that the world is increasingly tailored to each of us individually and there are significant implications for retail. The customization and personalization that we have come to expect - and now take for granted - in the digital world is quickly migrating to the physical world both in marketing and increasingly in physical goods.  Understanding this, I have offered to retailers that there are five ‘i’s that should be focused on moving ahead. The need to market and serve the individual customer. Big data intelligence that’s needed to be contextually relevant to each customer. The systems integration required to deliver immersive shopping experiences. And, of course, constant innovation.   In a recent presentation that was part of a CART Retail Tomorrow Innovation Program event at a well known regional retailer I suggested that the retailer’s team use the five ‘i’s as a framework to evaluate all the new capabilities they would see during the event. Try to understand how a new solution can help the retailer serve the individual customer, provide intelligence, immersive shopping, and smoother user experiences. These are the battlegrounds going forward. For the solution providers, I suggested that they consider how the capability they are bringing into the market can help the retailer with any of the ‘i’s and think about how their innovation will assist the retailer in the battles ahead. +MORE

CART Weekly Report 8/22/19

CART, Advancing Retail

NORDSTROM DID SO MUCH RIGHT, BUT IT’S STILL IN TROUBLE | Wall Street Journal  Gary’s Take: In what could be a harbinger of the future for some supermarket retailers, an interesting discussion of how Nordstrom’s, in spite of doing many right things, is still suffering from declining sales. The retailer has avoided many of the other mis-steps taken by other department stores like having too many stores, not going after eCommerce strongly and quickly enough, and changing their company culture to reward innovation. Despite all this the company continues to suffer from weak performance in a very challenging environment. MASTERCARD’S LOYALTY CHIEF: REWARDS ARE NOT ENOUGH | CMO.by Adobe Gary’s Take: Customer data - more specifically, customer-identified transaction data - has become the fuel for growing numbers of retailers as they seek to become more customer focused and implement marketing personalization. Retail loyalty programs remain the most efficient and effective means of encouraging shoppers to identify themselves each time they shop, giving the retailer the data it needs. Having launched one of the original loyalty programs in the U.S. supermarket sector over 25 years ago, we well understand the power of this data. We also have a pretty good understanding of how to create the incentives needed to encourage shoppers to join and participate. As this article calls out, effective programs are not just about providing financial rewards or benefits. Retailers would be well served to think outside the box and consider how they can provide services, experiences, and recognition to their more valuable customers. Recognition - something as simple as a handwritten thank you card - can actually provide more value to a retailer than giving shoppers more discounts. HOW AI-POWERED AUGMENTED REALITY TRANSFORMS DIGITAL EXPERIENCES | CMO.by Adobe Gary’s Take: Augmented reality, increasingly referred to as mixed reality, is poised to explode as synergistic technologies converge to power growth. 5G networks are being rolled out and the much higher speeds support the data needs powering AR experiences. The next generation of glasses is on the way from Apple, Samsung, and Google making AR experiences far more natural than using your smartphone. Apple reportedly is planning to use the incredible processing power available in its iPhones to power AR experiences, wirelessly connecting to its glasses. This technology is tailor made for food retailing. The ability to use image recognition to launch a video about the farm where the sweetcorn was grown, or a virtual tour of a vineyard bring powerful experiences into the store and into the home.  WHAT WE HAVE TO SAY: INNOVATION IS FOR DISTRIBUTION TOO | Gary Hawkins THE RETAIL APOCALYPSE CONTINUES | Gary Hawkins 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 IMPERIAL DISTRIBUTORS - September 5, 2019 CGA STRATEGIC CONFERENCE 2019 - September 29-October 1, 2019 RETAIL REVOLUTION AT PORTLAND STATE - October 24, 2019 ENERGIZER - November 14, 2019 GROCERYSHOP - September 15-18, 2019 at the Venetian in Las Vegas 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: The possible's slow fuse is lit by the Imagination.  ― Emily Dickinson +MORE

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

Solution Providers need Tailored Approach

Gary Hawkins, CEO, Center for Advancing Retail and Technology

Solution providers are drawn to the massive grocery industry because of its size and scale. But successfully selling into that massive retail industry requires an understanding of how the industry is structured as different sectors require a different approach. According to FMI, there are an estimated 37,000 supermarkets in the U.S.. Here is how we commonly think about the retail vertical: National Retailers: Companies like Walmart, Kroger, Albertsons, and other retailers with national presence. Super Regional Retailers: Companies like Publix and Ahold that have an estimated 1,000 stores and are geographically concentrated (like Publix in the Southeast, Ahold Delhaize on the east coast). Mid-Market Regional Retailers: Retailers with an estimated 25-500 stores. There are many of these retail companies across the country, nearly all of them are privately owned. Independent Retailers: Retailers with fewer than 25 stores, many of them 1-5 store operators. This group represents thousands of stores across the country. One of the first things solution providers should do is determine which sector of the supermarket industry they want to focus their sales & marketing efforts on; each type of retailer has different needs. That sector focus then helps determine your sales and marketing approach. While every young tech company might love to sell into Walmart or Kroger, realistically that is a really tough thing to do early on. Better is to start with a smaller retailer, prove out your solution capability and the benefits to the retailer and/or shopper, and then have a story along with associated data supporting your claimed benefits. +MORE

Innovation for Retailers

Gary Hawkins, CEO, Center for Advancing Retail and Technology

Nearly everyone understands the innovation imperative today. The challenge is that retailers, regardless of size, have limited resources to devote to discovering, understanding, piloting, and deploying, new capabilities. Solution providers seeking to sell new innovative capabilities to retailers would do well to keep the issue of resource constraints top of mine when approaching retailers. Retail success requires incredible operational execution and retail executives spend nearly all their time focused on the day to day operations of their business.  From a sales perspective, solutions want to really think through the benefits of what your solution provides AND be prepared to clearly communicate what’s involved from the retailer’s perspective to test and deploy your capability. Be very clear on what’s required from the retailer, both initially to set things up, and then ongoing to keep your solution performing well. Work with the retailer to understand each requirement and where and when it happens on some kind of project timeline so the retailer clearly understands what is expected of them to be successful. Depending on what capabilities you are proposing, talk with the retailer about requirements at the retailer’s headquarters level and store-level as appropriate. Help the retailer understand how to operationalize your solution. Does the retailer need to train their people? Does the retailer need associates with new skill sets to use your solution? These are vitally important questions to ask and discuss as part of the sales process. It is only with clear understanding and expectations that any new innovation has an opportunity to succeed. +MORE

It’s all in the Pricing for Solution Providers

Gary Hawkins, CEO, Center for Advancing Retail and Technology

The massive retail industry represents an immense market for solution providers; that’s part of why so much innovation is flooding into retail. And while the flood of innovative capabilities available to retailers continues to grow, many solution providers - especially younger companies - make doing business with them more challenging than it needs to be by having confusing and complex pricing models. We’ve seen nearly every revenue (pricing) model there is possible, from different technologies to different market strategies. We’ve seen some succeed and others fail. Here are a few thoughts from that experience… Free: Some solutions seek to deploy their capabilities in retail stores but look to make their revenue from other sources. This could include, for example, a kiosk solution that provides offers (coupons) from brand manufacturers. The revenue model is based on brands paying, and getting the kiosk into the store (in this example) helps get more customers involved. The problem with the ‘free’ model is that retailers pay no attention to it - they have no skin in the game - and the solution will frequently wind up in the back corner, if not the back room. So while ‘free’ may sound attractive in certain cases, there is often a downside. Gain Sharing: We’ve seen some solution providers seek to get a percentage of sales or increase in margin that their solution creates for retailers. Historically, retailers severely dislike this model. Retail is too complex and dynamic, the retailer having no sure way to know that whatever revenue or margin gain is realized is attributable to a specific solution. So beware of the revenue share approach. License: This is the most straightforward approach for software solutions today; a straightforward license model. This can be tiered based on retailer size (# stores or annual revenue) or can be tied to a per-store license model. We suggest you avoid a license model that is tied to the number of users or ‘seats’, that approach has proven very unpopular. There are many variants on these and other pricing models, too many to get into here. The key message we want to convey is this: Keep you pricing model as simple and straightforward as possible and draw a direct connection between the cost to the retailer and the value your solution can create for them. +MORE

CART Weekly Report 5/23/19

CART, Advancing Retail

WHY FOOD COULD BE THE BEST MEDICINE OF ALL | Time Gary’s Take: Food is absolutely the new medicine as a growing number of consumers rebel against the ever-exploding costs of healthcare and prescription drugs, and lose faith in the traditional medical profession. Consumers are increasingly looking elsewhere - their local supermarket? - for ways to improve their wellbeing. Over two thousand years ago Hippocrates called out “Let food be thy medicine and medicine by thy food”. Today, we are seeing AI and big data converging to transform the information available to the shopper to help guide the individual to foods actually beneficial to their wellbeing. Cutting edge nutrition science applied to nutritionally sensitive chronic health conditions, combined with expanded product nutrition data and sophisticated personalization engines, is poised to transform health & wellness and, more so, the greater food industry.   NEVER MIND THE RETAIL APOCALYPSE. WE'RE STILL IN THE MIDDLE OF THE POST-RECESSION STORM | Winsight Grocery Business Gary’s Take: The Great Recession (2007-2009) was a decade ago - a lifetime in terms of the changes in consumer behavior technology has wrought and in how retailers go to market. Rather than pining for 'pre-recession' shopper behavior, retailers would be far better served to focus on the reality of today and the demands of tomorrow. Consumers today are different and shop differently than ever before in history, in large part because of technology enabling new ways to discover and learn about products and services and new ways to procure them. With so many retailers unprepared to do battle with Amazon, and ill-prepared to compete with the innovation being pursued by Walmart and Kroger, there is no time to focus on the past. Far too many retailers lack the data and capabilities needed to provide contextual relevancy to their shoppers and are slow to pursue automation that is driving a growing productivity gap. Time thinking about the 'good old days' may feel nice but won't deliver tomorrow's success. WHY DOES LOYALTY PROGRAM ROI REMAIN SO MURKY | RetailWire Sterling’s Take: Anything that stays the same too long becomes stagnant, and that’s exactly what happens with a lot of loyalty programs. They can become expected, boring and less impactful over time if they’re not continually kept alive and exciting.The right metrics (basket sizes, lifetime value, customer profitability) give us an opportunity to see what’s really going on, but also to see and create new value for our customers. KROGER LAUNCHES ACCELERATOR FUND | RetailWire Sterling’s Take: I like how this gives Kroger more insight and participation in the brand world. They have the data and insight they need from the most important place: the point of purchase. As a startup brand, it’s a relationship that’d be hard to turn down, but might cause conflict selling into other retailers. The relationship between retailers and brands is already complex and this adds another piece to the puzzle.  WHEN THE GOING GETS TOUGH, THE TOUGH GET TRANSPARENT | RetailWire Sterling’s Take: It’s always best to tell the truth in the long run. Although I don’t know how Rothy’s was so close to the launch before realizing quality was an issue, growing pains are natural. Consumers are ready, willing and understanding of things that don’t go as planned as long as we’re open and honest (and have a plan to make it better). FEATURED BLOG OF THE WEEK: IT'S ALL ABOUT RELATIONSHIPS by Gary Hawkins, CEO CART HAPPENINGS: UPCOMING ON-SITE INNOVATION DAYS - Specifically looking for the following solutions to apply 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 TEDx CHULA VISTA - How Leaders Innovate - May 25, 2019 at Southwestern College  CART Co-Founder, Sterling Hawkins will be speaking on How Leaders Innovate  EVENT DETAILS>> PURCHASE TICKET>> 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

It's All About Relationships

Gary Hawkins, CEO, Center for Advancing Retail and Technology

My family’s store started as a summer farmstand by my great-grandmother in 1934. I can remember as a kid getting up early on Saturday mornings to go to the regional market with my father, looking to buy fresh fruits and vegetables for sale that day, supplementing what we grew on our farm. My favorite part was swinging by a local bakery to pick up donuts and baked goods to sell. Nothing like a donut still warm from the fryer, just dripping with glaze. What I also remember is how my grandfather seemed to know everyone. He knew Alice, and that she shopped on Wednesdays and loved fresh, local strawberries still warm from the field. He knew Ben, and that he liked his strip steaks cut extra thick. And even Mrs. Johnson and her dog Buck, a massive great dane, who loved getting a bone as a special treat from our meat department. I remember we shopped for Mrs. Gardner, delivering her groceries on our way home. And this was years before home delivery was a thing! That was personalized retail. The customer was the most important part of the business. And that was the constant refrain over the ensuing years. ‘The customer is the most important part of our business’ is the pablum I, and many others in the industry, was raised on. Except something happened between then and now. Stores became bigger and busier. Product assortment exploded. Competition developed from every quarter. And food became available anywhere and everywhere. As the industry grew larger we began to lose focus on the customer. How we made money - or at least how we thought we made money - began to shift. Merchandising — deciding what products to put on the shelves and which products to promote  —became an exalted position in our organizations. The increasing focus on products grew hand in hand with a growing focus on obtaining marketing funds from brand manufacturers. One could easily make the case that it was because of marketing funds that products grew to take center stage. Today, many major retailers would not be profitable were it not for those subsidies that support sale prices to the shopper, help offset advertising costs, bolster category margins, and enrich the bottom line.  In a very real sense, brand marketing funds have insidiously shifted retailer focus away from the customer to a dependency on products. Retail became product-driven.   But let’s step back for a moment from retail to examine what’s happening in the world around us. As we saw earlier, 3D printing and augmented and virtual reality are transforming the world of mass produced goods. This signals a move from the industrial revolution to a world of customized products and services. The birth of the internet and the world wide web set the stage for the digitization of commerce, removing the personalization penalty for marketers who had to pay a high price for marketing differentiation in the physical world. In short, technology has fundamentally changed the world of one (product or service) to many (consumers) to a world of many (customized, personalized products or services) to one (shopper). Beyond the world wide web, perhaps no technology has fostered consumer expectation of relevancy more than the smartphone. Mobile has brought with it a fast-growing expectation of contextual relevancy, the shopper knowing that merchants have access to technologies providing realtime location in a store or mall. Between the mobile browser and the countless apps available today, each of us has access to the world from the device in our hand, and increasingly that world is tailored to each of us individually. And that brings us back to retail.  In the midst of this Age of ‘i’, the retail industry remains largely on the sidelines. Weekly ads, printed and distributed with the newspaper, filled with mass promotions, are simply out of sync with what our customers want today. Sure, some industry marketing vehicles have gone digital, but a digital version of the mass ad is spam and syndicated coupons are only relevant if I go searching for them.  But it doesn’t have to be that way.  We as retailers can reclaim our customer heritage. We can use new technologies and capabilities to recreate those personal relationships of yesterday and become truly relevant to each of our individual customers today. And that’s what Retail in the Age of ‘i’ is all about. It is about fulfilling the destiny of retail by regaining a focus on the customer. It is about building relationships with each and every one of our individual customers. And it is about returning products to their rightful role in service to each of our customers.  An excerpt from Retail in the Age of ‘I’. Available on Amazon.com   +MORE

CART Weekly Report 5/16/19

CART , Advancing Retail

HOW TARGET USES ITS STARTUP ACCELERATORS TO STRENGTHEN ITS IN-HOUSE CAPABILITIES | Digiday Gary’s Take: Target’s accelerator program is a way for the retailer to support new innovation that can (hopefully) ultimately help the company. But this type of approach only works for the largest retailers that can devote significant resources. An alternative approach is provided by Retail Tomorrow’s Headquarters Events program, an innovation program specially curated for the specific retailer. Designed for regional and national retailers, the program identifies areas of interest from the retailer, then draws upon thousands of new innovative solutions to filter and curate those most appropriate. The team also includes ‘black swans’, new game-changing capabilities that the retailer should have on their radar. The selected solutions are brought together for a day on-site at the retailer’s HQ for a day focused around learning. This is the most effective way we see in the market today for retailers to gain intelligent awareness to new innovation. DRONES IN AISLE 5? GROCERY STORES ARE BECOMING UNUSUAL HOTBEDS OF INNOVATION | Denver Post Gary’s Take: Supermarkets have indeed become hotbeds of innovation, as we see from the regular stories coming out about new technologies being deployed by big retailers like Walmart, Kroger, and Amazon. While these stories get all the coverage, it makes you wonder what’s happening across the regional and independent retail sectors… are these mid-size and smaller retailers experimenting with and deploying new capabilities? Many smaller retailers have already decided they can’t or don’t want to keep up with ever faster innovation. Yet at the same time I know many regional and independent retailers are doing some exciting things. I would love to hear from regional and independent retailers that are pursuing innovative capabilities! I think it is important for all of us to maintain a diverse industry - a mix of all size retailers - as we go forward. Innovation can be a costly game and anything we can do to promote and publicize impactful innovation by smaller retailers can only help tech companies and solution providers understand the opportunity at all levels of retail. WHAT’S WRONG WITH THE (FILL IN THE BLANK) CATEGORY? | RetailWire Sterling’s Take: There’s something to be gained here from the perspective. “What strategies should we follow” is different than “how can we best serve our customers.” When an organization starts to ask more questions like the latter, the more positive results follow. If we turn our stores into commodities (by being all tactics and strategies to maximize return) customers will treat us that way too. There is of course a place for all the tactics, but they’re most effective secondary to a culture that’s really about serving the human beings that shop with them. WHY IS AMAZON PAYING EMPLOYEES TO QUIT THEIR JOBS? | RetailWire Sterling’s Take: There are no rules in this game (only some laws). This is a great way to transform the delivery market and empower their people. 100% agree that Amazon only stands to gain to make sure that everyone that steps into this program wins.  FEATURED BLOG OF THE WEEK: UNDERSTANDING THE AGE OF ‘i’ by Gary Hawkins, CEO CART HAPPENINGS: TEDx CHULA VISTA - How Leaders Innovate - May 25, 2019 at Southwestern College  CART Co-Founder, Sterling Hawkins will be speaking on How Leaders Innovate  EVENT DETAILS>> PURCHASE TICKET>> 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 GROCERYSHOP - September 15-18, 2019 at the Venetian in Las Vegas  Preliminary Agenda Speakers INFLUENTIALS: TOP MOVERS AND SHAKERS IN RETAIL 2019 | RIS News CART COMMUNITY - GET ON THE INSIDE. MEMBERSHIP HAS BENEFITS. Become part of the epicenter of retail innovation exclusive network. The place 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​ LEARN MORE >> 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

CART Weekly Report 5/17/19

CART , Advancing Retail

HOW TARGET USES ITS STARTUP ACCELERATORS TO STRENGTHEN ITS IN-HOUSE CAPABILITIES | Digiday Gary’s Take: Target’s accelerator program is a way for the retailer to support new innovation that can (hopefully) ultimately help the company. But this type of approach only works for the largest retailers that can devote significant resources. An alternative approach is provided by Retail Tomorrow’s Headquarters Events program, an innovation program specially curated for the specific retailer. Designed for regional and national retailers, the program identifies areas of interest from the retailer, then draws upon thousands of new innovative solutions to filter and curate those most appropriate. The team also includes ‘black swans’, new game-changing capabilities that the retailer should have on their radar. The selected solutions are brought together for a day on-site at the retailer’s HQ for a day focused around learning. This is the most effective way we see in the market today for retailers to gain intelligent awareness to new innovation. DRONES IN AISLE 5? GROCERY STORES ARE BECOMING UNUSUAL HOTBEDS OF INNOVATION | Denver Post Gary’s Take: Supermarkets have indeed become hotbeds of innovation, as we see from the regular stories coming out about new technologies being deployed by big retailers like Walmart, Kroger, and Amazon. While these stories get all the coverage, it makes you wonder what’s happening across the regional and independent retail sectors… are these mid-size and smaller retailers experimenting with and deploying new capabilities? Many smaller retailers have already decided they can’t or don’t want to keep up with ever faster innovation. Yet at the same time I know many regional and independent retailers are doing some exciting things. I would love to hear from regional and independent retailers that are pursuing innovative capabilities! I think it is important for all of us to maintain a diverse industry - a mix of all size retailers - as we go forward. Innovation can be a costly game and anything we can do to promote and publicize impactful innovation by smaller retailers can only help tech companies and solution providers understand the opportunity at all levels of retail. WHAT’S WRONG WITH THE FILL IN THE BLANK CATEGORY? | RetailWire Sterling’s Take: There’s something to be gained here from the perspective. “What strategies should we follow” is different than “how can we best serve our customers.” When an organization starts to ask more questions like the latter, the more positive results follow. If we turn our stores into commodities (by being all tactics and strategies to maximize return) customers will treat us that way too. There is of course a place for all the tactics, but they’re most effective secondary to a culture that’s really about serving the human beings that shop with them. WHY IS AMAZON PAYING EMPLOYEES TO QUIT THEIR JOBS? | RetailWire Sterling’s Take: There are no rules in this game (only some laws). This is a great way to transform the delivery market and empower their people. 100% agree that Amazon only stands to gain to make sure that everyone that steps into this program wins. FEATURED BLOG OF THE WEEK: UNDERSTANDING THE AGE OF ‘i’ by Gary Hawkins, CEO CART HAPPENINGS: TEDx CHULA VISTA - May 25, 2019 at Southwestern College  CART Co-Founder, Sterling Hawkins will be speaking on How Leaders Innovate  EVENT DETAILS>> PURCHASE TICKET>> 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 GROCERYSHOP - September 15-18, 2019 at the Venetian in Las Vegas Preliminary Agenda Speakers INFLUENTIALS: TOP MOVERS AND SHAKERS IN RETAIL 2019 | RIS News   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 ✔️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

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