Sam’s Club: Ardent Shoppers Feel Jilted

The New York Times: “Walmart’s quiet shuttering of 63 Sam’s Club stores on Thursday — hours after trumpeting its plans to raise wages — sent shock waves through the ardent customer base of the membership-only chain. Patrons protested with unusual passion not granted to the thousands of closings recently announced by other retailers.”

“On social media, some shoppers reminisced about sharing frozen yogurt with their great-grandmother at the local Sam’s Club, while others fretted about remote areas losing a primary source of supplies or a reliable place to pick up prescriptions.”

Bethany Pope Hopp, a mother of five, comments: “Having a store like Sam’s Club is absolutely a necessity for some of us rural, smaller communities. That and Walmart are all we have — we don’t live in an area where there’s a Costco or a Target on every corner.” Dharmendra Singh, whose Sam’s Club was among those closed, laments: “It’s like a long-term girlfriend leaving you and not even giving you a call.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Circular Logic: Paper Fliers Beat Banners

The Wall Street Journal: “One old-school retailing trick has survived the e-commerce shakeout—the lowly advertising circular. Some grocers and other retail chains have learned they risk losing business without a steady flow of paper mailings nudging shoppers to stores. Even online startups that don’t have physical shops are embracing the idea.”

“For now, paper fliers keep piling up on doorsteps because most people still read their mail, even as they easily ignore most online banner ads and many emails.”

“The biggest retailer, however, has cut back on circulars. Wal-Mart is sending out about a dozen mailings a year, down from a hundred two years ago. The retailer has asked suppliers to spend the marketing dollars that used to go into circulars on lowering their prices and chose to send out fewer circulars, a spokeswoman said.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Skura: A Sponge That’s Both Smart & Beautiful


Skura Style: “With clean Scandinavian design, bold colors and resealable packaging, this sponge looks so good you’ll want to show it off … Ugly and smelly no more. Skura’s antimicrobial and fade-to-change technologies ensure that brilliant clean we all crave … Skura’s subscription service is an easy, accessible and innovative way to maintain good sponge etiquette and keep your kitchen super fresh.” (Hat tip to Bill Agee).

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Ling Shou Tong: How Alibaba Helps Mom-and-Pops

Quartz: “Alibaba has its sights set on a new goal: to bring its cloud-computing technology to all of China’s 6 million mom-and-pop convenience stores. In the process, it’s building out its physical footprint to tap into the 85% of the country’s retail sales that don’t yet happen online. Alibaba is using a retail-management platform called Ling Shou Tong (which roughly translates to ‘retail-integrated’) to help store owners optimize product procurement and boost sales.”

“Ling Shou Tong’s app gives store proprietors recommendations, based on sales analytics, on what to buy and how to display goods in their stores. In the background, it uses Alibaba’s cloud-computing and logistics businesses to create a digitally connected inventory-management system. Store owners can also use the app to place orders, fulfilled by Alibaba and shipped directly from its warehouses, eliminating the need for middlemen.”

Mom-and-pops have given mixed reviews about the impact Ling Shou Tong has had on their bottom line so far. Some say the storefront decorations and in-store training accompanying the platform’s adoption provides a cosmetic facelift to their stores and makes running them easier. Others worry that relying on Alibaba’s product selection forces them to directly compete with the convenience of online shopping.” However, Alibaba CEO Daniel Zhang comments: “We’re working to make the net in the sky and the net on the ground. We will cover all consumers seamlessly.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Chickens Rule The Retail Roost

The Wall Street Journal: Rotisserie chickens “emerged as a supermarket staple in the 1990s, paving the way for the array of prepared foods that grocery stores sell today. Now they are many grocery stores’ best-selling hot food item and a rare bright spot in an industry struggling to adapt to a shift away from packaged foods … To continue selling them for $5 to $7 each, executives are working to trim supply-chain costs, cook chickens more efficiently and throw fewer of them away unsold.”

“One reason executives say it is so important to hold down rotisserie prices is that shoppers often buy higher-margin side dishes and beverages to round out a meal … Grocers also are tweaking their marketing strategy to make their chickens stand out. Some have introduced lemon pepper and barbecue flavors, as well as organic and antibiotic-free chickens. Others are placing stocked chicken warmers in checkout aisles to inspire last-minute purchases.”

“While Kroger and Mariano’s display their chickens near the front of the store, Costco puts them at the back, hoping people will add to their carts on their way to getting a chicken. Costco has sold rotisserie chickens for $4.99 since 2009. When a bird flu outbreak prompted higher prices for ready-to-cook chickens in 2015, Costco took a $30 million to $40 million profit hit to keep its rotisserie prices steady … Some stores sell deboned rotisserie-chicken meat at a higher price.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Late & Great: Fred Bass

Quartz: “Fred Bass, co-owner of New York’s massive used bookstore, fondly known as the Strand, died of heart failure Jan. 3 at 89. Bass transformed his father’s modest store into the four-story bookshop immediately recognizable to New Yorkers and tourists today: The store on Broadway, with its red-and-white awning over $1-book carts lining the southern-facing exterior.”

“There are two basic things a good bookstore can provide: The delightful maze of human-curated shelves, or the satisfaction of efficiently getting the book you’re looking for. Amazon has done its part in taking away business from the bookstore chains that have excelled at the latter, like Borders and Barnes & Noble. The now Everything Store once sold nothing but books, and one way it’s done so successfully is by offering deep discounts. The Strand, though nowhere near as ubiquitous as Amazon.com, has been able to tout dizzying volume at the same time it’s maintained a beloved shopping experience.”

“What Amazon has done well—sell its vast inventory to you for super cheap—Bass did first. And with tote bags. Nearly all the store’s books are sold at a discount, ranging anywhere from a couple dollars off a new title to less than a $1 for a classic or a book that’s run its course … Today clutching one of Strand’s 100 or so bag designs is a proud display of reader identity.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

How Big Data Disrupts Big Brands

The Washington Post: “Launched in 2015, ZX Ventures is charged with ‘disrupting’ the beer industry by developing and investing in businesses that will provide value and improve user experiences — and make more money for AB InBev — somewhere down the road. They’ve invested in e-commerce delivery systems, beer-rating applications and home-brew suppliers, all of which provide data points that can tell them about trends and help them get ahead of the market.”

“According to its mission statement, ‘ZX Ventures is hopelessly dedicated to creating and analyzing the data necessary for determining our ideal strategies, products and technologies. We believe that the more we know and learn about our consumers and products, the better chance we have of anticipating their needs in the future.’ Translation: They want to know everything about purchasing patterns and decisions. What are customers looking for? What are influencers thinking? How can they make it easier to get AB InBev’s products into the hands of people who might want beer?”

“The ZX Ventures team is interested in access to a large number of data points: The most popular and trending beers, styles and search terms in any region around the world. Are more people giving high ratings to saisons in London than Los Angeles? Are Bavarians searching for IPAs available to them? What are the most highly rated beer bars in the Southeast? Which beer styles have grown the most in the last year, in terms of average ratings or the number of searches, and where? If certain cities are rating sour beers higher than the norm, for example, Elysian’s sour pineapple seasonal or a new wild saison from Wicked Weed could be given extra promotional play in those markets.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

How ‘Ankle-Biters’ Nip Big Brands

The Wall Street Journal: “Consumers in rich countries once embraced the consistency, convenience and affordability of their offerings, from disposable razors to ready-to-boil ravioli. In other parts of the world, a growing middle class clamored for many of the same trusted, Western brands.”

“Today, that isn’t good enough. Shoppers have gravitated in droves toward smaller, niche or locally made products. In many cases, they are seeking out healthy alternatives and more natural ingredients. Manufacturing costs have fallen, allowing small players to seize quickly on trends. Social media and e-commerce have made marketing and distribution easier.”

RBC analyst James Edwardes Jones comments: “We think big incumbents—however well managed—are going to continue to struggle against the depredations of the ‘ankle-biters’.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail