Meghan Davis

Hello Retail Friends, I am pleased to announce the release of our latest Pricing and Promotions research report, developed with Incisiv. This report, surveying 179 retail executives across the US and EMEA, will be presented at Groceryshop in Las Vegas this week - be sure to come see us at booth #A610 to learn more.    Key findings include:   🔹 93% of shoppers demand more value: With 84% citing price as critical, 87% of retailers have adopted aggressive discounting strategies to sustain sales and loyalty.   🔹 $1 trillion in sales driven by promotions in 2023: Amid economic uncertainty, promotions are essential. 87% of retailers plan to maintain or increase promotional efforts in 2024.   🔹 Low adoption of advanced analytics: Only 12% of retailers use real-time data, advanced algorithms, and AI, impacting their agility.   🔹 Critical challenges in data quality and integration: Effective promotional strategies require accurate, unified data, yet cultural resistance also hinders progress.   🔹 Reliance on outdated systems: 37% of retailers still use spreadsheets, lacking the agility needed for dynamic market conditions.   The report highlights the need for integrated pricing and promotional capabilities. By leveraging advanced technology, retailers could achieve an additional $450 billion in incremental sales.   I encourage industry leaders to explore this report for strategic insights to drive growth and innovation.   #RetailLeadership #PricingStrategy #Promotions #MarketResearch #RetailInnovation #Groceryshop #GroceryForum #RELEXSolutions   https://lnkd.in/eSjYKxqC

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Ulta Beauty's recent Q1 earnings report highlights a significant shift in the beauty retail landscape, suggesting that the industry may be entering a period of moderation following years of explosive growth. While Ulta saw a modest 3.5% increase in net sales and a 1.6% rise in comparable store sales, these figures represent a slowdown compared to previous quarters. CEO Dave Kimbell attributed this deceleration to intensified competition and changing consumer preferences. Despite new brands and strong engagement with luxury products, Ulta experienced mid-single-digit declines in makeup sales, a sign that last year's growth surge is tapering off. This shift is not unique to Ulta; the broader beauty sector is grappling with similar challenges, as indicated by rising competition from online platforms like Amazon and successful in-store collaborations such as Sephora within Kohl's. Do the trends Ulta reference point to a potential industry-wide slowdown as inflation and economic pressures mount, impacting consumer spending habits even in the resilient beauty category? The phenomenon known as the "lipstick effect"—where consumers continue to purchase small luxuries during economic downturns—appears to be losing some of its protective power. Ulta's strategic adjustments, including lowering annual sales guidance and planning new brand collaborations, aim to regain momentum. However, these measures reflect a broader recalibration within the beauty industry, signaling that even this previously robust sector is not immune to the evolving economic landscape and competitive dynamics. #BeautyTrends #UltaBeauty #CosmeticsIndustry #MakeupSales #EconomicImpact #BeautyMarket #ConsumerTrends #RetailGrowth #InflationImpact #LipstickEffect

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Established fashion companies must invest in fashion technology. To maintain parity with the exponential surge of ultra-fast fashion, traditional players’ tech strategies must fulfill three missions. Learn more in this recent report: https://lnkd.in/gVW8nxpx

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John Donahoe’s exit from Nike offered a brutal reminder to corporate boards: Focus on what a company’s core business is when looking for a new CEO. bit.ly/3MUQw76 As Donahoe took over the top spot at Nike in early 2020, the company touted the former Bain management consultant and eBay CEO’s extensive tech industry chops and Silicon Valley touch. At the time, the sports gear maker claimed it was becoming something of a tech company. But with Donahoe, they chose a CEO who lacked any deep knowledge about sneakers and sneaker culture, and no retail experience in stores, leading to the current disaster. He underestimated the importance of partners like Macy’s, DSW, and Foot Locker in selling its running shoes. And as a former management consultant, cost-cutting proved to be his go-to tactic, but one that only worsened Nike’s problems. Read more: bit.ly/3MUQw76

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Thanks to CNBC and Tanvir Gill and Sam Vadas for great questions and an opportunity to compare and contrast Nike to lululemon which reported recently. Sharing my thought on the “interesting" Nike quarter. I think the numbers say it all! It felt #chaotic to me with concern for the holidays, but they could be one of the few companies that benefits from the #portstrike since they have so much inventory! The company has had countless management changes and changes in strategic direction (Amazon, Foot Locker) Nike Inc Revenue down 10% (guidance for next quarter down 8 to down 10%) Direct down 12% Stores up 1% Digital down 20% (digital down 34% in China!) Wholesale down 7% Gross margins expanded 120bps (guidance for 150 bps contraction) SG&A declined 2% (guidance for flat) EBIT declined 15% in North America and EMEA 1. Surprised that SG&A only declined 2% with double digit revenue declines and especially with the company’s focus on #innovation 2. With the company cutting almost 1/3 of the #sustainability staff (as part of $2billion cost savings plan) and that being such a core part of their culture for employees and customers, this could have a long-term impact 3. The comments on the Greater China market with “revenue down only 3%” and how it is the result of the weakness in the region doesn’t make sense with the >30% increase recently reported from lululemon. I think their #marketshare and relevance is at risk. 4. How can we quantify the potential impact of Kevin Plank returning to Under Armour and the change in direction that could have as he revs up the innovation engine? Or, is there a bigger issue with US #sportswear companies? 5. How could they have 120 bps of gross margin improvement this quarter and guiding for 150 basis points decline next quarter? Huh? 6. Nike #Digital down 20% is just shocking. It may say more about who is shopping them than anything else. Losing relevance with a younger consumer? 7. There is a TON of competition especially in performance with brands like HOKA , On, New Balance, Li-Ning (China) Sports Goods Co. Ltd , and Anta Southeast Asia. Li Ning according to Coresight Research is now the largest sports brand in China although Nike seemed to think they were (“Nike continues to be the number one..”). Maybe they don’t understand the companies that the Li Ningplatform includes?!? 8. They withdrew guidance and ALSO postponed their analyst meeting (although it was still on their website several hours after the call along with the 2017 analyst meeting ?!?)

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