We've Moved!
It's official! We have moved to a new website. You may now read insight from "The Sales Hunter" on our "Emerging Retail Trends" blog. Click on the link below or visit www.emergingretailtrends.com/blog. It's the same great stuff, just a new location!
Emerging Retail Trends Blog
Thursday, September 20, 2007
Saturday, September 08, 2007
Emerging Retail Trend: In-Store Media and CBS
Yesterday, we saw the key purchase of an in-store media company by the broadcasting giant, CBS. This is just another demonstration of the growing importance of in-store media. As reported in the Wall Street Journal, Sept. 7, 2007, CBS paid $71.5 million for SignStory, which had in-store video montiors in 1,400 supermarkets.
I’ve mentioned previously the increasing importance of in-store advertising and this is just another confirmation of this trend. Mainstream news sources have been talking about how companies are running from traditional media such as network television, etc., and moving their spending to in-store activities. This is an understatement. The real problem is that there are not enough viable vehicles to absorb the movement of advertising dollars. I’m very bullish on this and I believe very strongly that in the next 5 years, we’re going to see the emergence of a number of new ”consumer-specific” advertising vehicles. I’m not sure exactly how these will appear or where, but I do know that there will be a lot of money spent developing new advertising mediums.
In the words of the vintage broadcast networks, “Stay tuned. We’ll be back shortly.”
Yesterday, we saw the key purchase of an in-store media company by the broadcasting giant, CBS. This is just another demonstration of the growing importance of in-store media. As reported in the Wall Street Journal, Sept. 7, 2007, CBS paid $71.5 million for SignStory, which had in-store video montiors in 1,400 supermarkets.
I’ve mentioned previously the increasing importance of in-store advertising and this is just another confirmation of this trend. Mainstream news sources have been talking about how companies are running from traditional media such as network television, etc., and moving their spending to in-store activities. This is an understatement. The real problem is that there are not enough viable vehicles to absorb the movement of advertising dollars. I’m very bullish on this and I believe very strongly that in the next 5 years, we’re going to see the emergence of a number of new ”consumer-specific” advertising vehicles. I’m not sure exactly how these will appear or where, but I do know that there will be a lot of money spent developing new advertising mediums.
In the words of the vintage broadcast networks, “Stay tuned. We’ll be back shortly.”
Saturday, August 25, 2007
New, Bigger, Better Blog and Website....
It's coming, in just a few short weeks we'll be making the move from this blog site to a new website / blog. I'm pleased to announce www.EmergingRetailTrends.com will be our new home effective October 1, 2007.
Thanks to all of our readers / contributors and we look forward to the launch of our new site, October 1, 2007
It's coming, in just a few short weeks we'll be making the move from this blog site to a new website / blog. I'm pleased to announce www.EmergingRetailTrends.com will be our new home effective October 1, 2007.
Thanks to all of our readers / contributors and we look forward to the launch of our new site, October 1, 2007
Monday, August 06, 2007
Emerging Retail Trend: The Sell-Off of Brands
Every couple of years, we go through the cycle of major companies selling off brands they deem no longer worthy of their focus. The cycle never ends, and with the amount of hedge money in the marketplace, look for some interesting moves in the next couple of months. The announcement by Unilever is just the start. I believe Kraft will sell off some brands and SaraLee will sell even more. The end result is that it will create significant opportunities for some smaller companies to pick up some brands. The downside is that these brands will come with so much debt connected to them that it will be difficult for any of them to mount anything significant in terms of a long-term marketing push.
Every couple of years, we go through the cycle of major companies selling off brands they deem no longer worthy of their focus. The cycle never ends, and with the amount of hedge money in the marketplace, look for some interesting moves in the next couple of months. The announcement by Unilever is just the start. I believe Kraft will sell off some brands and SaraLee will sell even more. The end result is that it will create significant opportunities for some smaller companies to pick up some brands. The downside is that these brands will come with so much debt connected to them that it will be difficult for any of them to mount anything significant in terms of a long-term marketing push.
Emerging Retail Trend: The Pet Economy - Business Week Magazine
I can't pass up the opportunity to comment on the recent cover story in Business Week magazine (August 6, 2007). The headline read "The Pet Economy", with a picture of a pampered dog on the cover. The article talks about how the the pet industry has been booming and is continuing to grow. If you've been following my annual Emerging Retail Trends reports, you'll know that I first said this more than 3 years ago. I'd agree that the pet economy is showing no sign of slowing anytime soon. Thanks Business Week for commenting on what Emerging Retail Trends first reported on 3 years ago!
I can't pass up the opportunity to comment on the recent cover story in Business Week magazine (August 6, 2007). The headline read "The Pet Economy", with a picture of a pampered dog on the cover. The article talks about how the the pet industry has been booming and is continuing to grow. If you've been following my annual Emerging Retail Trends reports, you'll know that I first said this more than 3 years ago. I'd agree that the pet economy is showing no sign of slowing anytime soon. Thanks Business Week for commenting on what Emerging Retail Trends first reported on 3 years ago!
Saturday, August 04, 2007
Emerging Retail Trend: Secondary Sourcing
Several years ago, I talked about the need for companies to have secondary suppliers and sources for goods and services. With all of the supply chain issues coming out of China, the need for companies to have alternative sourcing is more important than ever. The problem with China is only the tip of the iceberg. The on-going issues with the transportation grid are only going to get worse. In the next 15 months, we will be facing potential strikes on the west coast ports and the implementation of new Homeland Security rules regarding the movement of containers. These factors are not to be taken lightly, and depending on how they all play out, could cause major disruptions even before we call into play the usual issues surrounding weather, currency valuations, energy, etc. Retailers and manufacturers alike need to be paying more than lip-service to this issue because if and when supply-chain disruptions do occur, there will be those who cannot recover from them and will ultimately be forced out of business.
Several years ago, I talked about the need for companies to have secondary suppliers and sources for goods and services. With all of the supply chain issues coming out of China, the need for companies to have alternative sourcing is more important than ever. The problem with China is only the tip of the iceberg. The on-going issues with the transportation grid are only going to get worse. In the next 15 months, we will be facing potential strikes on the west coast ports and the implementation of new Homeland Security rules regarding the movement of containers. These factors are not to be taken lightly, and depending on how they all play out, could cause major disruptions even before we call into play the usual issues surrounding weather, currency valuations, energy, etc. Retailers and manufacturers alike need to be paying more than lip-service to this issue because if and when supply-chain disruptions do occur, there will be those who cannot recover from them and will ultimately be forced out of business.
Monday, July 23, 2007
Emerging Retail Trend Update: Wal-Mart Discounting Strategy
Wal-Mart's announcement today of price cuts on as many as 20,000 items in a back-to-school push really shouldn't surprise anybody. They are in a tough spot and the only way out is to dive deeper with their pricing. I've talked about this on several occasions in earlier blogs (Feb. 18 and Dec. 04, 2006 to name just a couple).
Wal-Mart has to keep their real estate productive and the only proven method they have to build sales is through discounting. The vast majority of their other attempts to go upscale have backfired. For vendors, it means the ride is going to get rough. However, there is light at the end of the tunnel (although it is still probably 10 years away).
I firmly believe Wal-Mart is now in a mature state of existence in the US. In my opinion, there are only a handful of things that will save them:
Wal-Mart's announcement today of price cuts on as many as 20,000 items in a back-to-school push really shouldn't surprise anybody. They are in a tough spot and the only way out is to dive deeper with their pricing. I've talked about this on several occasions in earlier blogs (Feb. 18 and Dec. 04, 2006 to name just a couple).
Wal-Mart has to keep their real estate productive and the only proven method they have to build sales is through discounting. The vast majority of their other attempts to go upscale have backfired. For vendors, it means the ride is going to get rough. However, there is light at the end of the tunnel (although it is still probably 10 years away).
I firmly believe Wal-Mart is now in a mature state of existence in the US. In my opinion, there are only a handful of things that will save them:
- Spin off Sam's
- Build up Neighborhood Markets
- Open a new, small deep-discount format
- Begin to move away from the SuperCenter concept
If you're in the real estate end of the retail business, you are going to see major shifts in space. Hang on! It's going to be a wild ride for the next few years and, as a result, it's a great time to be part of the retail industry.
Saturday, July 21, 2007
Emerging Retail Trend: Decline of Television Shopping
HSN and other television-driven, shop-at-home formats are going to start rapidly declining in the next 3 years. They are already becoming very frayed around the edges. I'm basing this on the following reasons:
1. There has always been a very high return rate on their products which have served as a damper on their profits.
2. When compared to the speed at which people can shop online for anything at anytime, the format moves too slow.
3. The ability to use the Internet to seek out a lower price for something that is being shown on the television shopping channel is quickly turning these programs into nothing more than a product showcase for the manufacturer.
4. Cable capacity / competition is forcing every cable operator to increase the fees they charge their content providers. The continued upward spike in these fees is another cost that must be passed along to the consumer.
I know there has been a lot of money thrown at these formats in recent years from very smart investors like Barry Diller, but, in the end, they are going to lose out to the flexibility of the Internet.
HSN and other television-driven, shop-at-home formats are going to start rapidly declining in the next 3 years. They are already becoming very frayed around the edges. I'm basing this on the following reasons:
1. There has always been a very high return rate on their products which have served as a damper on their profits.
2. When compared to the speed at which people can shop online for anything at anytime, the format moves too slow.
3. The ability to use the Internet to seek out a lower price for something that is being shown on the television shopping channel is quickly turning these programs into nothing more than a product showcase for the manufacturer.
4. Cable capacity / competition is forcing every cable operator to increase the fees they charge their content providers. The continued upward spike in these fees is another cost that must be passed along to the consumer.
I know there has been a lot of money thrown at these formats in recent years from very smart investors like Barry Diller, but, in the end, they are going to lose out to the flexibility of the Internet.
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