Jake Hirsch

A few decades ago, when I was a brand manager on Pringles (once you pop, you can't stop!), we had a fair amount of influence over what teenagers and young adults thought was cool - especially among German-speakers for some reason :) Nowadays, the who-influences-who relationship has inverted. Appealing to teenagers and young adults means dealing with the first generation to have never known a day without smartphones and social media - and so it is the brand owners who spend their time trying to tune into the online demand signals, not the other way around. Have compiled some observations on Gen Z from our latest Capgemini Research Institute Report in the article that Aiman Ezzat so kindly called out below. The clock is ticking, Gen Z are set to hit their economic peak spending power in a short 2 years time. But if you choose the right platforms, engage early in their journey with authentic in-flow content, and lead with value as well as values - then once they shop, they might not stop!

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No surprise that Walmart continues to post huge numbers! However, I would look beyond the headlines of these articles for the takeaways in the context of the overall industry. Yes, we are seeing Walmart post strong numbers but that doesn't necessarily mean consumer spending is strong. A rise in Walmart is also an indication of trading down from more premium retailers. When we see budgets tightening we also see consumers start to prioritize and be strategic about where they trade down (on a retailer level or also on a product/category level with private label usage). We are approaching a very critical pre-holiday season that continues to start earlier every year. I am highly interested how current economic trends are going to impact spending not only on a product level but on a retailer level as well. No surprise in the continued rise in the RMN numbers for Walmart. I believe we will only continue to see an expansion of channels/ad products and an integration of retail media trading variables into overall retail JBPs for brands. With consumers tightening budgets and not spreading themselves too thin, perhaps it's time for brand's to take a similar approach, to prioritize a few critical retailers to their business and focus on what matters most (to me this is more flexibility with partners to drive mutually accountable BrandFormance type opportunities). https://lnkd.in/eb9368Mm https://lnkd.in/eCm8puST

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Our latest research reveals the power of DEI in brand success. Our 2024 Brand Inclusion Index found that #DEI influences buying decisions for an overwhelming 80% of shoppers and that 75% of U.S. consumers say it is important that brands they buy from promote diversity and inclusion. Learn more about our ranking, which spotlights the most inclusive brands of 2024 - those earning consumer recognition for their authentic commitment to DEI and for setting positive examples in the market, in this article from Mass Market Retailers: https://lnkd.in/embaUvZV

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It’s All About The Experience At SGG and Associates, we are well into Q1 Earnings Season and our review of the 250 consumer facing companies that are competing for share of the consumer spend, loyalty and “mindset”. Especially striking is the extraordinary and growing divide between Walmart and Target. Walmart U.S. Comp Sales (x Fuel) were +3.8% while Target Total Comp Sales declined 3.7% There is no question that both retailers have broad appeal and audiences and offered a sense of value.  But their approaches to the consumer have dramatically changed. Target was always known as the “cool” big box store, with incredible designer capsule collections that created lines before store opening and sold out immediately. Walmart built their following on the promise of “always low prices” and incredible value. Their roles have changed dramatically.  Target just announced thousands of price cuts in their recent earnings report, a clear nod to the impact inflation has had on their customers, and an attempt to reverse their sales trend. A trip through Target will illuminate their almost complete shift to private labels. Walmart has introduced a balance of designer and private label brands. In their pilot “stores of the future” concept, these brands are showcased in “shops” complete with lifestyle presentations. Newness is continuously introduced into these stores. This concept test has worked and Walmart is now rolling the concept out nationally. But even more striking is the dramatic difference between Walmart and Target in the “customer experience”. At a recent visit to a newer Target store, we were greeted by an expansion of categories that were locked behind glass doors. This included everything from laundry detergent to Men’s socks and underwear. Pressing a red button on the case would supposedly summon an associate.. who never came. During the same week at several Walmart stores, associates were folding inventory, and refreshing displays. And, when asked about the location of a department, associates ( on numerous occasions) escorted us to the correct aisle. Indeed, it’s no wonder that Walmart Doug McMillon reported in last week’s earnings report that Walmart gains were coming from higher income customer. It’s not just about price.. it’s about creating a comprehensive and compelling customer experience that includes price, presentation and service. 

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🏢 Let's not forget about in-store retail which is still a huge part of a brands overall retail media strategy. Peter Crosby & I sat down with Jeffrey Bustos from the IAB and Michael Wessel Esq. from Kroger to talk about the latest in-store media playbook! Be sure to listen 🎧 #digitalshelf #content #retailmedia #instore #omnichannel

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As ongoing financial challenges have grocery shoppers more cautious about their purchasing, many are seeking out digital rewards. In its fourth quarter and full year fiscal 2023 financial results, Albertsons Companies shared that increases in digital engagement led its growth, with identical sales up only 1% year over year in Q4 but digital sales up 24%. Central to this growth was the chain’s loyalty program, which saw its membership grow by 16% to nearly 40 million. “We delivered another solid quarter amidst a difficult industry backdrop,” Vivek Sankaran, the grocery giant’s CEO, said in a statement. “Again this quarter, we focused on our strategy to create Customers for Life, which drove strong growth in digital and pharmacy, deepened our omnichannel relationships with our customers and improved our in-store experience.” He added that this Customers for Life approach involves investments in technology “to digitally connect and further engage our customers through a frictionless omnichannel experience.” #groceryindustry

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