Matt Herriot

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. 

18

2 Comments

Home Depot's back at it with exciting, extremely promising collaborative deals yet again. This partnership with SRS Distribution is a great example of how to make an acquisition "complementary and additive," especially given that it's "a growth company buying a growth company." Definitely big potential for this partnership—eager to see where this goes, particularly considering what a huge market this opens Home Depot up to. #HomeDepot #Acquisition #SRSDistribution

14

Every relationship starts with a conversation. The best ones are enhanced with communication. Where would you be right now in life if you never started conversations? Think about that one. #relationshipbuilding #conversations #thinkbigger This is 100% Human Generated Content that is ALWAYS ready to start a conversation to see where is goes.

12

6 Comments

It’s been another rough year at U.S. department stores so far, at least for those making their financial filings public. Several of them — public and private — have embarked on turnarounds or are contemplating changes that could be a final test of a challenged retail model. #departmentstores #retailstrategy #turnaroundstrategy #retailsales

2

What if you could get a 25% lift in unit sales by reducing price by 15%? Would you? Conclusions before the math: Negotiate your funding or destroy your P&L. Understand your retailers motivations or live with No. Sales isn't about getting listings and running an ad grid. It's about building a business. Math: +25% unit sales w 15% discount. $ sales grow 6%. Retailer margin grows 6% if funding keeps retailer margin % whole. Retailer margin grows 25% if discount is fully funded. Why wouldn't they do this? Retailer margin shrinks -11% if funding keeps their margin @25%. Why would they do this. Brand gross margin is -22% if funding keeps retailer margin % whole. Sales is not about getting listings and running a promo grid. It's about building a business. If you're burning your brand's P&L, you're not in sales. ****************************************************************************** Maverick Sales. We are builders. FMCG. OTC. Beauty. Bricks & Mortar. Digital Commerce. Field Sales. Canada Experts. Contact us to learn more.

27

5 Comments

Distribution is a fragmented industry, and that presents an opportunity for penetration by big retailers, says Ian Heller of Distribution Strategy Group. Home Depot's recently announced $18.25 billion deal to acquire SRS Distribution is an example of the steady push by big retailers like Amazon, Walmart and Lowe's Companies, Inc. in addition to The Home Depot to capture a growing share of the $8 trillion in revenue from US wholesale and distribution. Heller explains that these retailers are largely blocked from major acquisitions in retail by antitrust concerns. But distribution is wide open to them, at least for now. Distributors will have to up their game to meet these deep-pocketed and technologically savvy competitors. https://bit.ly/3QyAXnS

5

I had an incredible conversation with Eugene Alletto, CEO of BEDGEAR, about how he is additive versus disruptive to the bedding industry! Eugene's journey from a million-dollar salesperson to an industry innovator is nothing short of inspiring. He shares valuable insights on the importance of education, innovation, and being additive rather than disruptive. Tune in, and leave your favorite quote in the comments.

27

3 Comments