I completely agree with Jeff's comment above, "They had the burden/luxury of staying open and the business model/skill set that adapted quickly to a whole new set of rules." To see how this plays out for Target and other retailers will be interesting, as we watch most of the things we anticipated come to light through the numbers (ramped up e-comm, lesser focus on in-store).
One thing I do appreciate about Target is the transparency and their ongoing dedication to keep things moving as smoothly as possible during this major shift for them. Target rose to the occasion and as far as I am concerned any workers who were still working in any essential retail capacity the past six weeks are all commendable for doing so. Target though, has such loyal customers regardless of how the general population decides to change their behavior, they will continue to do so with Target.
What happens when we are paid for our data and people start selling each other’s data as their own to receive more of this “data dividend?” Would just be a legal method versus the illegal credit card data fraud that already happens.Wherever there is big money there is always somebody coming up with some new scheme right behind it. Just something to think about.
Food concepts are interesting, there’s no doubt about that. But they are not interesting enough to draw the masses to a mall property. The fact that food concepts are being used as the driving force to a property’s tenants seems just backwards to me. For property owners and landlords, their biggest draw is having the ability to adapt with the times and not be stuck in the same thinking that has put their peers under.
As Millennials and Gen-X’ers search to have that instagrammable moment, if you are still stuck on “what’s an Instagram? Eh, we do things the ole fashioned way 'round here” then I am sorry, but you are not wanting to be a successful landlord then. Because these are no longer just social media platforms, but your marketing channels to connect with your largest consumer bases.
Like others have said it is the compelling, the exciting, the exclusive, the partnerships, the Veblen goods, the eclectic, the creative, the experiences that tell a story that is unique and actually worth repeating is what customers seek out.
The shift online was not really a retail apocalypse, good physical retail is very much alive and well. However, how many times have you gone into a store just to take a picture of the label or tag and then Google it as you walk out, ultimately finding that same item online? I’ve done it. We all have.
Retailers have one of the hardest missions there is and that’s to capture our attention spans. One of the greatest things to witness and get to be a part of is the market now as we are in the middle of this evolving retail industry. Are food concepts the answer to drive foot traffic to clothing retailers in a mall property? I’m not convinced so, but only time will tell us in a bigger and clearer picture.
I am just glad that I may now not ever have to step foot in an actual Walmart again. But in all reality, the speed of delivery is critical now more than ever to e-commerce sales performance, as is the price. The availability of free next-day delivery will surely mean an uptick in top-line revenue for Best Buy during the Christmas season. On a more lighthearted note -- our tech focused society has quickly become a "right now society." We must have it right now! Pretty soon we will want drones to pick items off the production line at the manufacturer and supersonic jet them to us from Taiwan to our doorstep in eight hours or less, or we will unfollow them on Instagram. Just sayin'.
Social media plays such a large role in our lives. In a society that is dominated by what products Apple just released, and what celebrities are endorsing what brands, people place a huge emphasis on one another's opinion and style. People want to replicate what they like. Social media takes word of mouth and amplifies it to the masses.
Americans still love their stores. When more than half of the population of shoppers still want to go to the physical store to shop, the social media campaign should always be supporting that; And in large part they do. I don't think that many retailers are looking at social media as a separate channel, when almost all organizations have some roles geared towards social media.
Smart experiential retail is using social media's quick and strong influence to sway customers every-which-way they can. Retailers should of course take advantage of it, but be cautious of the ROI on such practices (as mentioned previously in regards to tracking ROI). It is fascinating though the different routes people use for discovery of a product. Social media is a valuable tool/best influencer as are customer reviews and testimonials. Brands that are not providing photos, video, and now even transparency of their pricing are vastly behind the curve.
Shop-in-shops can be a successful model if their execution makes sense on both sides, but for Barneys to exist within Saks may just cause confusion and I see this strategy poised to go sideways. I think a lot of younger shoppers do not really even differentiate between some of the staple luxury stores like Saks, Barneys, Bergdorf, or Neiman. Some of the folks going in Saks would have also shopped in Barneys, but now they really will not be able to differentiate between the two since both are massive department stores offering a wide variety of product. The path for Barneys to capitalize on its equity may very will be teaming with a stronger luxury name everyone respects (in NYC anyway), but I am skeptical this is the silver bullet. How is it a long-term strategy? For starters, Barneys has always been the "hipper" retailer because they feature some of the "unusual," but when they started selling $1,100 bongs it was the beginning of the end for them. The high-end head shop concept was a failed attempt at some sort of connection to its perceived youthful customers, but they should have just focused on being themselves and quit trying to prove they are something they are not. Hopefully their online presence can keep them alive, but I am afraid this could be just another misfire for old Barneys!
Ha! Rich I was thinking the same thing. I thought maybe they had taken a Chinese proverb about competing against one’s self too literally or something? Who knows, but nonetheless an interesting strategy.
Andrew Yang’s proposal brings up a lot of really great questions. However, to get it from a proposal to an actionable policy could be the difficult, if not impossible part. It brings into question the very definition of what “personal data” is as well as the parameters and price we pay as consumers of places like the internet. If the heavy hitters like Google, Facebook, etc. were forced to comply with a policy like what Yang proposes, our internet would be a very different place, perhaps a much better one. Perhaps not. Who is to know since things have been this way for so incredibly long. Has there ever been a time where personal data hasn’t been collected? Most of the technology these days is somehow pilfering data from consumers, and whether that is a good thing or a bad thing remains the biggest debate. Although, how a business can go about backing a policy like this without becoming a pariah is really the true question.
This move for Foot Locker can hopefully help them assert some dominance among the sneakerheads and gain some much needed traction. Albeit, they continue to gain footing (pun intended) and make strides (also intended) more recently with strategic positioning. As said above, brand image is going to undoubtedly be the most valuable return on their investment in this NTWRK platform move. It will be interesting to see moving forward the overall response and numbers. If there is one thing sneakerheads love, it is being able to participate in the latest drops. So, kudos to Foot Locker for this pivot and opening up an entire vast market share with a die hard following by setting its sights on the streetwear segment.
Adrian, really love that you created a product that allows retailers to bring it all back around to what they really care about (Revenue). If an investor is calculating the intrinsic value of a business, it makes the most sense to look at not only look at your traditional metrics, but to evaluate the ROI. Things like loyalty and churn are equally crucial and it is important for Deloitte to make that distinction.
I agree with Lee’s post. It’s pretty essential that the application is done correctly when it is pertaining to employment. When every part of the process is dissected down to the time you took to make sure there were no grammatical or spelling errors in your job application, I believe we still have a long way to go before we are to that place where this could be truly seamless. So I do not see it becoming a major hiring or recruiting tool.
When I ask Alexa to tell me what song is in the latest Hyundai commercial and she comes back with a list of Hyundai dealerships that is fine. But when it is for your future job and you are asking a voice assistant to send your resume to the right position then there is bound to be some room for improvement.
As far as McDonald's and them ascertaining a solid footing back in the world of fast food, just when everyone had seemed to forgotten their relevance. They come out with tuition assistance plans and voice assisted applications. Steve Easterbrook continues to have tricks up his sleeve.
Only 29% of the average American populace has emergency savings and with a number like that there continues to be a large number of people who face uncertainty when it comes to healthcare. Walmart moving into healthcare is a great business move and I would absolutely see a Walmart doctor. At competitive prices like that, they are guaranteeing themselves major profits.
I think most people would agree that in everyday health, the deciding factor of where we go to receive services is based off of price or coverage. Once it goes from everyday services like physicals and eye exams to a more serious issue, the cost quickly becomes irrelevant. People want to see the best of the best. With that being said, Walmart as just a provider of non-emergency medicine seems like a really great move for them in a time where price and speed are king.
It’s nice to see Simon Properties leaning more into the world of pop-ups and evolving a little bit. Same can be said for Jockey. I wonder though if this is their shot back at real relevancy after their segment got so crowded with competition. With DTC taking so much of their market share it seems like a logical move for them, but I wonder if partnering with Simon is the right move? Did they really need Simon to help them reach Main Street America? I mean we are talking about one of the better known companies of the 20th century here.
Jockey’s greatest asset in my opinion is their heritage and history. Like previously mentioned we have seen many companies that fell out of the spotlight coming back into play and relaunching, but the question is can they hang? You have your Duck Head’s and Eddie Bauer’s and the likes, that are great examples of this. I do however, think the Victoria Arlen is a great touch, it is a really great story and that is something consumers will undeniably connect with. But, I still am ambivalent on expectations of any major success on this first activation.
I agree with the sentiment that they are taking the steps and heading in the right direction, if they do more pop-ups in the future I think they have just as well of a shot as any to asserting their dominance back in this space. It is about time, my question is where the heck have they been?