The Business of Retail

While the Pandemic Triage is well in the rearview of retail executives, we have been hearing of the need for sharing and discussion around more deep challenges facing the sector.   New in 2023, TBOR is tackling the next round of complexities.  Here is our first - Re-Innovating Retail.

As the retail industry transitions through a high-speed technological revolution filled with overwhelming mounds of data, Ai, robotics, and digital transformations. The power to lead, leverage, and innovate will belong only to a few. 

Many didn’t expect the disruptive innovation of the last decade to take place, then came the Pandemic no one anticipated its duration and impact, then we were hit by supply chain challenges, inflation, and higher interest rates, needless to say a consumer that is fatigued.

Retaining a brand’s position in the market is a challenge. The need to develop an ongoing aptitude to innovate is one response.  80% of retail executives cite Innovation as one of their top 3 imperatives in 2022, but only 10% where satisfied with their organization’s progress. 

A few brands are able to overcome that challenge and those that do have a formula. In today’s retail landscape, staying ahead of the curve is no longer just a choice or luck—it’s a necessity and takes planning and management. A deep focus on Innovation at the business core is an option many seek, but few find.   This is a recent discussion exploring the opportunities and challenges true innovation brings retailers - and why those adept at tuning their existing processes may need a paradigm shift.

Arguably the top buzzword of 2021 is “The Great Resignation”.  Catchy as it sounds, it's an incomplete story.  Many are leaving, but others are staying and new will come - for the right opportunities.  

A recent Fast Company piece suggests it is actually “The Great Reprioritization”.   It focused on the worker perspective, but reprioritizing and redesigning the way retail works should be a high priority for CEOs.  We turn to the changes in play around head office retail employment, professional careers, and how we organize talent in this exceptionally human industry. 
 

This time of year in particular brings urgent calls to "Shop Local".    Individually and collectively, the TBOR Crew has been a vocal supporter of independent retail and foodservice from the earliest days of the pandemic. 

Yet,  as we dove into Ep. 30, we soon realized these two words can mean different things to different people.  Is it about buying 'locally made' product?  Or are we to focus on buying product from a nearby owner-operator (that might be sourced overseas)?  And more...

We recap the reasons to support indie while noting the challenges discouraging a shift.  We confirm the substantive reasons chain retail will retain its own value.  .Join as we unpack the  "Shop Local" call while emphasizing what is needed to create something purposeful - rather than simple sloganeering.  

Some fire showed in this 24 min episode.  All agree that the retail front of house staffing model for stores is broken. There are quick patches for Holiday 2021, but the underlying issues are not going away.  The question is whether the industry can disrupt itself to find the answer.  The ongoing campaign against a higher minimum wage suggests it won't.  We speculate on a slow demise of stores, to the detriment of consumers and brands, if staff are not invested beyond 'minimum'.

Another shorter segment (22.35 min).

The Supply Chain issue has many facets.  This episode focuses on what can be done at the store level in face of stock unpredictability and shortfalls.  Independents might be hard hit with supply, yet have a real edge here to pivot and reset product experiences.  The challenges are exponential for chains.  The crew dissects the issues and offers tips to mitigate the impacts.

As we head into the last quarter of 2021, the crew looks to the retail CEO's path to 2022.  Each of us brought our top one or two priorities to the discussion.  What must be tackled now, while continuing to solidify foundations for 2023 and beyond.  

This was a fast moving discussion.  Listen as we scan the landscape to establish in real time our curated topics for deep dives in the next while.

Are #retailers' #supplychains ready for the next Black Swan moment(s)?   Listen here for our preview of Episode 26.

We know Amazon has been buying planes while chip shortages are creating shortages in car rental fleets. Gary notes that 2020/21 backlogs might take a year to catch up given current global capacities.  If corona-virus protocols wax and wane through 2023 or beyond, supply chain vulnerability will continue to be the biggest wild card for retailers and shoppers alike. 

This  is the subject of Episode 26, fortuitously timed with the announced shocker that Canadian Tire purchased a stake in an inland 'port'.   As with so many things, this is at heart a people issue despite the obvious need for systems and tech. Not only will leaders need to bring supply and logistics firmly into the C-suite, but generate creative out-of-the-box thinking and  break from the linear efficiencies, 'standard practice' playbook.  Will globally experienced pros 'over 50' be a hot commodity?  Will skus need to narrow?  Will risk mitigation dominate?
 

We have heard much about ado about how we have “gained 5 years in 5 weeks”, evolving rapidly through the pandemic. There are pundits claiming soon 50% of retail will flow online. At #thebusinessofretail we love an intriguing hypothesis to test. We take this one head on.

Gary had come across a push-piece calling for #ecommerce to comprise half of all retail transactions by 2025.

"No way!" we thought.  Yet, we dissected it to contemplate implications and conditions for this to occur.  Here is a sample from Ep 25, which will launch in full in one week..

Imagine drive-through meals at every Loblaw's supermarket, with President's Choice on the menu board?.  Or retailers taking over the better meal prep kit plays.  Will grocers unleash their vision of the future? Or will they just test the waters? Will A.I. be cleaning up in aisle four? If so, will it be about customers, or on cutting costs (and people)?  

@TheFoodProfessor is is back.  This time, helping us understand one of our most important subjects: the challenges retailers and food brands face in providing Canadians with access to affordable, healthy food - when so often they are subsumed by their own competitive dynamics.

What of the intense competition amongst The Big 3 (wait, make that The Big 5)?  Is each waiting for the other to make their next move?  Will supplier relations become less combative?    Will Couche-Tard become a food force? Or will Lidl or Aldi finally arrive? 

Listen 6o Ep 24 to find out!

Canada's Food Professor is back!  Dr. Sylvain Charlebois covered Foodservices a few months ago and returns to reveal the big shifts happening in our large grocers that are sending ripples through our Food Retail sector.

Here is a sneak peak and a 'tip of the cap' to Sobey's CEO, Michael Medline.

There ha s been much trumpeting of "customer experience" over the past decade.  However, the experiential foundations of the past 100 years are still these: sales and service.  

Have we forgotten what exceptional sales and service entails? Have productivity efforts gone too far? This is different than having shiny interactive displays in store... this shows up when we shoppers have our specific problems solved, when we gratefully buy something more expensive because an associate helps us better understand the value it brings.  We don't feel 'sold'.   

Why is it eroding?  What are the underlying causes that are getting missed? Why does online face its own challenge? And where do some innovations such as advanced chat or facebook live offer a lifeline?

Our resident CEO George Minakakis, MBA pushed the crew to revisit a bedrock fundamental of retailing that has been eroding for years: the art of exceptional sales and service.

Listen here to a 4 min sneak peak... and subscribe in order to catch the full episode when it drops July 13.

In Episode 22 we are joined by Arlene Dickinson - Canadian business leader, investor, author and television personality. General partner of District Ventures Capital and CEO of Venture Communications, she recently launched the Venturepark ecosystem of supports to assist Canadian #food and #wellness #cpg brands.

This one will be of broad business interest. Arlene’s holistic and long-run view to creating a richer, more resilient local food supply driven by value-add in the last mile of delivery was on clear display during the discussion. We covered a range of topics critical to the successful scaling of innovative food brands.

As we continue this June to explore the opportunities and challenges for new brands to scale, we are delighted to discuss the issues in a food context with one of Canada's most respected business people, resident Dragon on CBC and all-around supporter of ventures: Arlene Dickinson.

She joined on the heels of launching Venturepark - what might be the most complete tip-to-tail ecosystem of support for new brands in the #cpg space.

The full episode will be live Tues. June 29.

This is a sneak peak at Episode 21.  If you like it, please download the full discussion.

“Purpose” in business is a daily topic in our newsfeeds. We expect much as shoppers, but are our values and commitments to do right by society and the environment in the way of our desire for what's new in fashion, technology - and the economic means to acquire them?  

While consumers continue to buy cheap and made-to-fail products, CEOs are under increasing pressure to convince these same shoppers, as well as employees, investors and other partners, that their enterprise is actively addressing important social and environmental concerns.  But how do they back that up and avoid the “greenwashing” handle?  How do they implement “Purpose” in a way that is fiscally responsible?

The TBOR team are joined by the perfect guest host in David Labistour.  David navigated the business of purpose as the CEO of Mountain Equipment Co-op from 2008 to 2019 and today as a Board Member of one of Canada’s foremost fashion brands, Aritzia. 

We have been seeing a surge in new fashion and lifestyle brands even as the bigger players in this subsector seem to struggle. Yet making it through to profitable scale remains elusive for many.  The TBOR team are joined by Canadian retail executive Christine Day to explore why this is occurring and to discuss the challenges and common pitfalls founders face - and the reasons to be optimistic about their futures.

Christine recently teamed with Seahawks quarterback Russell Wilson and his wife, Ciara, to form a new purpose-based house of brands, the House of LR&C.  She formerly scaled Luvo Foods (Performance Kitchen) into a food-as-medicine success in the US, grew Lululemon Athletica post-founder,  and took Starbucks global. Christine is passionate about purpose-based lifestyle brands and innovating the go-to-market journey.

This time we are unpacking the tumult that has swept through the foodservice sector in Canada.  Our dine-in restaurants and bars have borne the brunt of the pandemic, while some formats have thrived. Lots of losses here have been gains for grocery.  But what next?

The TBOR team is joined by guest Dr. Sylvain Charlebois. Sylvain a Canadian researcher and professor in food distribution and food policy at Dalhousie University in Halifax, Nova Scotia, Canada.  Also known as The Food Profession, he has a finger on the pulse of the business of food like no other.