Kellogg Cereal Cafe

Is anyone talking about brands working on their direct to consumer approach?

Me?

Others?

Yeap.

Kellogg's has opened a "Cereal Cafe" to very positive word of mouth (so the story says).  Wow.

Here is a snippet from the piece:

Kellogg's expanding cereal cafe concept in New York City is part of a larger trend of CPG companies opening stores in order to market their products directly to consumers.

While traditional methods of CPG brand extension may involve, say, developing new products, this new form of extension calls for brands to extend into a service experience at a store. This type of branding can be beneficial for CPG companies looking to stay ahead of evolving consumer preferences.

Here is the whole story:

https://retailleader.com/kellogg-takes-cpg-brand-extension-new-level

Happy Reading,

J.W. Gant

67% eCommerce Growth at Walmart

Now that's news for the day!

Huge growth at Walmart online.  Think the Jet.com acquisition is paying off?

Maybe?

Yeap.

Here is a snippet from the piece:

Walmart continues to invest heavily both in-store and out to redefine the shopping experience and blur the distinction between digital and physical retailing.

As the world’s largest retailer continues its fight with Amazon for consumers’ hearts, minds and wallets, the customer ultimately wins ― new solutions provide a seamless path to purchase and bring a new level of excitement to the shopping experience.

Here is the whole story:

https://risnews.com/walmart-posts-enormous-67-e-commerce-growth

Happy Reading,

J.W. Gant

Mobile Payments in Chicago Mass Transit

Wow!

2 million downloads.  That's moving along.

Great little piece on mobile payments in Chicago.

A pioneering mobile-payment wallet for mass transit has reached a milestone. Chicago’s Ventra app has been downloaded more than 2 million times since it became available in November 2015, according to an announcement Monday from Cubic Transportation Systems, the San Diego-based company that developed the app. Commuters have bought almost $250 million in fares on the app in that time, Cubic added.

Here is the full story:

http://www.digitaltransactions.net/news/story/At-2-Million-Downloads_-Chicago_s-Transit-System-Sees-an-Appetite-for-Mobile-Payment

Happy Reading,

J.W. Gant

Sears - A History

I thought I had nothing else to say, or read, about this story except the (surely soon to happen) looming bankruptcy.  Then I found this little piece by the New York Times that tells their whole story in brief.

Great little read.

Here is a portion of the piece:

Imagine a retailer that began by specializing in just one product, then grew into a mammoth that redefined the American shopping experience.

Among its innovations: No matter where you lived, it shipped your order directly to you, whether you were looking for cast-iron cookware, a mandolin, the newest technological marvel, or the latest in petticoats.

Amazon, right? Actually, it was Sears — a century ago.

Here is the full story:

https://www.nytimes.com/2017/08/11/business/the-incredible-shrinking-sears.html?mcubz=1

Happy Reading,

J.W. Gant

Small Towns and Walmart

The story of this little Massachusetts town really caught my eye.  Not only for the urban planning aspect but for the small business savvy and differentiating strategy.

Well worth the read.

Here is a snippet from the piece:

Downtown Hudson was quiet when Michael Kasseris stepped out into the late night air in 2012.

Behind him was a Main Street space that had once housed a printing shop, a bagel shop and a gifting shop.

His uncle owned the building. Kasseris and his two business partners had just opened Rail Trail Flatbread Co. -- a trendy new restaurant featuring wood-fired pizza and craft beer.

He looked around. The downtown stores, tucked inside historic brick buildings, were empty. The parking spaces were empty. There was no foot traffic.

He and his friends were investing everything they had into this place.

In a moment of panic, Kasseris thought, "What are we doing building a restaurant?"

Here is the full story:

http://www.masslive.com/news/index.ssf/2017/08/hudson_how_this_small_massachu.html

Happy Reading,

J.W. Gant

BRotD - Entry 0254 Consumer Brands and Their Customers

Best Reading of the Day

This excellent article on HBR.com is well worth your time.

As I wrote about some time ago the new digital era creates risks and opportunities for a shifting landscape.  This is the first solid analysis I've seen on Amazon's recent moves to help Consumer Packaged Goods (CPG) companies interact more directly with customers.

Here is a snippet from the piece:

When news broke earlier this year about Amazon’s courtship of some of the world’s biggest consumer packaged goods ... brands, it touched off a wave of speculation. Was the e-commerce giant engaged in a long game to alter the relationships between consumer goods makers and their brick-and-mortar retail partners?

However it plays out, Amazon’s outreach exposed a digital divide in the consumer products world. On one side is the growing interest of brands in direct-to-consumer (D2C) models. On the other side are persistent worries about conflict — not just with traditional distribution channels but also with retailers carrying the brand.

Here is the full article (you may have to create a login to view it):

https://hbr.org/2017/08/how-consumer-brands-can-connect-with-customers-in-a-changing-retail-landscape

Happy Reading,

J.W. Gant

AI Comes to Online Retail

What's the next big thing?

Artificial Intelligence, or machine learning, is definitely coming as big wave of impact.

This little article caught my eye for that reason.

https://econsultancy.com/blog/69292-this-online-retailer-uses-ai-for-product-categorisation-here-s-how/

Here is a snippet from the piece:

LovetheSales.com was founded in 2013 and is a retail sales aggregator where consumers can find more than a million sales items from hundreds of retailers.

Machine learning is used to classify these products, tagging them to enable the website to sort them into the right categories and to show a user products they may be interested in.

[Founder Stuart McClure] explains the need for a machine learning-led approach:

“Given that we’ve got that massive catalogue of products that can change and shift very quickly - as products on sale can change in price or sell out - we recognised that we needed a pretty clever tool."

Happy Reading,

J.W. Gant

Which Retailers are Mobile?

The advent of the smart phone has done two things that require retailers to respond: taken away some traffic from older internet sources, and opened a new type of opportunity for mobile interactions.

Initial offerings were essentially to offer the same online web experience but in mobile.  Going way back to the introduction of the first iPhone one of the enormous selling points was the ability to view the full New York Times website on your phone.

Wow!

Quickly the limitations of that experience became clear.  A tiny screen you hold in your hand requires a different approach from the interactions one has with a full PC screen.

A few retailers really really get that.  Here is a story on the best experiences:

http://www.mytotalretail.com/article/mobile-cx-study-gives-best-buy-home-depot-and-target-top-marks/

Here is a snippet from that piece:

As consumers spend more time shopping on smartphones, their expectations for mobile experiences have soared. With mobile interactions influencing $1.05 trillion in offline sales in 2016, the successful retailers of 2017 will be those that offer consumers mobile sites with a frictionless path to purchase that also integrates into omnichannel shopping experiences.

Which omnichannel retailers are doing it right and setting the bar the highest for merchants looking to deliver a seamless mobile customer experience (CX)?

Happy Reading,

J.W. Gant

Starbucks Mobile Payments at 30%

Holy moly!

I was surprised by this one, but then, not.

They do this all so well.  Fully integrated top to bottom and left to right their digital relationships with their customers are second to none.  Full stop.

Here is a snippet from the story:

http://bankinnovation.net/2017/07/nearly-one-third-of-all-starbucks-payments-are-mobile/

Here is the full story:

What makes the Starbucks mobile wallet such a popular option when it comes to paying for that morning coffee?

Mobile payment at the coffee company’s U.S. stores increased to 30% of all stores, according to the earnings Starbucks reported yesterday, meaning just under a third of customers are now paying via mobile.

Meanwhile, Starbucks Mobile Order & Pay transactions increased as well to 9% of all transactions in U.S stores.

Happy Reading,

J.W. Gant

Who Is Innovating in Personal Computers?

iPhone

Tablets

Laptops

Computers

While Apple is frequently pushing the edge with its iPhone its play in the PC space is lagging substantially.  Who is the leader now?  One article says it is Microsoft.

The software company that ruled the world once upon a time is doing pretty well with hardware today.  Worth a read.  Here is a snippet from the piece:

...today, the company is making the most visionary computers in the industry, if not the best machines, period. In the last two years, while Apple has focused mainly on mobile devices, Microsoft has put out a series of computers that reimagine the future of PCs in thrilling ways.

Here is the full story:

https://www.nytimes.com/2017/07/26/technology/microsoft-pcs-apple.html

Happy Reading,

J.W. Gant

Why Are Some Restaurant Chains Struggling?

It isn't technology.

Some of the smartest folks I've met in retail are involved with loyalty programs for one or more chains.  Using technology at the table to enhance the relationship between the retailer and the customer.

These chains are struggling because their menus are too loaded in fat, salt, and calories according to one analysis.  Worth the read.  Here is one revelatory quote:

While fast food has received plenty of flack from nutrition-savvy critics, the biggest culprits when it comes to calories, salt, and fat are often sit-down, casual dining joints.

A Big Mac contains 540 calories. Buffalo Wild Wings' Cheese Curd Bacon Burger contains 1,620 — before you add fries or sides.

Read that again.  The burger alone is 1,620 calories.  You only need about 2,000 calories in a day.  What in the world are they doing over there?

Here is the full article:

http://www.businessinsider.com/health-concerns-show-why-casual-dining-is-failing-2017-7

Happy Reading,

J.W. Gant