Hanneke Faber

Saving the best for last ... my final Shoptalk Europe 2024 takeaway: The retail media revolution, coming to a market near you: in the US, #retailmedia spend is already on par with TVC spend. Here in Europe, it’s only 1/10th the size, but growing fast (15% CAGR) given its close relation to online #marketplace expansion and retailers recognizing its ability to transform their economics as an incremental revenue stream (i.e., at 60-65% EBIT margin, it can more than double current grocery margins of approx. 1.6%). For brands, purchasing and using this data across digital and shopper marketing initiatives will soon become table stakes – what they do to turn this data into true insight to understand and predict behavior remains to be seen. Again, thanks to Ben Miller and the entire Shoptalk team for a powerful, insight-filled 3 days in Barcelona. Looking forward to the next one!   Interesting companies we met:  Amazon Web Services (AWS),  Zitcha, Walnut Unlimited

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OK, so the new digital era is to put an end to the physical stores.. Or not? Why are marketplaces - recognized leaders of the digital channels - opening offline stores? New EY survey finds consumers are less willing to pay for digital conveniences than it was previously thought. Traditional brick-and-mortar retailers do have a hardly imitable touch-point with their customers, and if smartly applied in their omni-channel strategy, this homebase will stay the best defence against digital pure-players.

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PepsiCo: double (top-/ bottom-line) beat but with contrasting dynamics (international vs. US) The weaker demand from lower-income consumers in the US may well be a recurring theme in earnings call this quarter Specifically, volume fell 5% on Beverage in NA while Frito-Lay North America lost 2% volume in the quarter To be monitored carefully at a time consumption patterns are increasingly diverging in the US between lower-income consumers & the rest Full details below: Pepsico Q1 FY24 results summary: • NR: $18.3Bn • OSG: 2.7%; Volume: -2%; Price/ mix: 5% • GM%: 54.8%; -43 bps vs Q1 FY23 • OP%: 16.1%; +40 bps vs Q1 FY23 • Beat analysts’ consensus for revenue as well as EPS FY24 guidance: • Consistent with its previous guidance for 2024 • At least 4 percent increase in organic revenue • At least 8 percent increase in core constant currency EPS Interesting year ahead for PEP 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀/ 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢𝘀 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: 𝗵𝘁𝘁𝗽𝘀://𝗹𝗻𝗸𝗱.𝗶𝗻/𝗲𝗥𝟴𝘃𝗗𝗽𝘃𝗘 #cpg #fmcg The Coca-Cola Company Mondelēz International Procter & Gamble AB InBev The HEINEKEN Company Carlsberg Group Danone Mars Bel General Mills Kraft Heinz Campbell's L'Oréal Nestlé https://lnkd.in/eCsuteg6

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Five Key Findings From "Retail Circularity: An Action Guide for Retailers" that the National Retail Federation and Deloitte released last week: (1) Consumers want #circular solutions and, as a result, the #retail business landscape is shifting. (2) Retailers with successful circularity efforts understand circularity's connections with core business goals and objectives. (3) Consumers have long embraced some circular behaviors (e.g., #resale #repair #recycling #donation, etc.). Retailers can profit by making those behaviors more convenient and scalable. (4) Retailers can't control as much as some people think. Different retailers have different opportunities so their circular-focused offerings look different. (5) Retailers are asking important strategic questions to determine which circular solutions to incorporate. There are no "one-size-fits-all" circular solutions in retail so retailers are "mixing and matching" to create the most value for their consumers. Learn more in the blog post below co-written with Tal Viskin from Deloitte. Additional shout-outs to Allie Turner and James Carlo Cascone for their invaluable roles in this initial NRF Center for Retail Sustainability project. https://lnkd.in/eT6ht8UN

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"Rediscovering the beauty of shopping in-store The success of SEPHORA and other entrants to the British market contrasts with the struggles of brands such as Estée Lauder that have found it harder to innovate. The “lipstick effect” did much for Estée Lauder during the pandemic. This was the term coined by Leonard Lauder, the skincare and beauty group’s chairman emeritus, for the notion that people spend more on affordable luxuries such as lipstick when economic times are tough. On Monday, the gloss appeared to have come off. Estée Lauder said that it expected its annual sales to fall by as much as 1 per cent or to rise by only 2 per cent, well below analysts’ estimates of a 6.4 per cent increase. The demand for lipsticks and perfumes, widely considered to be recession-proof, has taken a hit, with the group expecting further woes in China. Yet the picture is not universally gloomy. In Britain, the third largest cosmetics market in Europe after France and Germany, shoppers continue to splash out on cosmetics and skincare. The beauty industry was worth an estimated £26.7 billion in 2022 to the UK economy and this looks set to grow......Physical retail is coming back into fashion and some of the companies making the biggest gains have focused on their in-store customers as shoppers go in search of a more personalised experience. Among them is SEPHORA, which closed its six British stores in 2005. Last year the beauty retailer returned to the UK and today it operates three stores in Manchester and London, with plans to open a fourth in Newcastle in September." #beautyintheUK #growthofbeautyinuk #physicalretailandbeauty

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The key to a high conversion rate is minimizing store traffic to 5 or less visitors. I can get north of 80% with this one simple trick.

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Consumer escapism trends are on the rise. They take many forms, but all provide shoppers with temporary escapes by creating joy in their personal environment. Stay ahead of shifting consumer behaviors to fuel sales and loyalty. Get the insights when you download Circana's report below!

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Footwear leading the way in female senior appointments, with females also leading the way in discretionary purchases across apparel and footwear, according to recent research #DE&I

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The 4th episode of our interview blog series on ESG over INSEAD IDN is out! This time we interviewed Bengt Engström, who was a seasoned executive at Whirlpool and former CEO of Duni AB before becoming a board director. He underscores the importance of proactive leadership in navigating these intricacies. In his view, and despite compliance challenges, ESG principles are driving significant societal change within businesses. Success in this endeavor hinges on fostering cultural shifts and embracing diverse expertise. There's a clear opportunity for the public sector also to glean valuable lessons in efficiency and innovation from corporate practices. Yet, implementing and enforcing ESG initiatives present formidable challenges, necessitating robust oversight and transparent processes. Solutions to these hurdles involve incentivizing compliance while simultaneously fostering trust within the system. https://lnkd.in/dtT3xRTz #esg #esggoverance #governance #transferablecapabilities #lean #proactivb

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Targeting Gen Z shoppers requires the right offer, not just the right channel. Discounts and free perks are attractive, especially for the budget-conscious Gen Z. Aligning with their values, like environmentalism, fosters emotional connection. #Genz #Retail #Discounts #connection

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Retailers and brands will be pleased to see our research shows consumers expecting to spend up to 20% more in some categories, like snacks, and many also ‘investing’ in new TVs 😉 during the Euros and Olympics. Here’s hoping some great success for England 🏴󠁧󠁢󠁥󠁮󠁧󠁿 and Scotland 🏴󠁧󠁢󠁳󠁣󠁴󠁿 and then Team GB 🇬🇧 And those successes acting as a catalyst to some positive growth for our consumer and retail companies. Read the results here. #euro2024 #olympics #consumer #retail

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Earnings reports and retail sales figures this year reveal that consumers remain cautious about spending, continuing a two-year trend https://lnkd.in/eR4BXGJ9 The situation has led many retailers toward markdowns, sales events and the development of private labels. But research shows that in these inflationary times, shoppers aren’t focused solely on price #retail Retail Dive

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Another AVN season in the books (exhale). Not surprisingly, 72% of brands faced some level of challenges within their negotiations compared to 15% citing collaborative or efficient AVNs. 14% haven’t resolved their AVNs yet. According to our benchmarking, negotiating favorable terms is the #1 challenge brands face during AVNs. What challenges did you face within your AVN? And are you curious how your Amazon AVN experience, terms, and profitability compare your peers? Join me and Martin Heubel next Tuesday 6/25 where we’ll dig into the full results from our AVN Wrap-Up survey of 250+ brands. Register here: https://lnkd.in/eAD48b_g We’ll be covering: ✅ AVN intensity ✅ 2024 trade term %s ✅ AVN impact to brands’ margins ✅ Key profit levers for the year ahead ✅ and a chance to ask ALL your AVN questions! A must-attend for 1P vendors. See you there!

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I am honored to have contributed an expert insight to the new book Powerful Phrases for Dealing with Workplace Conflict by Karin Hurt and David Dye! Whatever your career / volunteer tenure, I promise you will find valuable nuggets here. Appropriate for C-suite & board members to recent grads, Karin and David have mapped paths using 300+ phrases to successfully navigate many tricky situations...the advice is specific, practical, and immediately applicable! #extraordinarywomenonboards #ewob Lisa M. Shalett https://lnkd.in/eXbmzEa5

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Retailers, take note: the rise of the #JoyEconomy is upon us, and it's fueled by consumers' desire for escapism and comfort in the familiar. Nostalgia connects us to cherished memories, driving shoppers towards products that evoke a simpler, more carefree time. Learn more from Circana about how #ConsumerEscapism is influencing today's #shoppinghabits including the resurgence of iconic brands, the enduring appeal of childhood favorites, and more.

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"Generalizing is a wasted effort and it's what gets retailers in trouble with excess inventory to irrelevant product assortments." Adore this commentary from the inimitable Liza Amlani. Highly recommend it as a read. Generalization is a symptom from our over-stretch to efficiency. We are biologically attracted to efficiency as it reduces effort which burns (what were once precious) calories. We therefore seek out every way we can improve efficiency in how we make stuff, how we think, and how we do things. It has a true cost though, which is articulated beautifully by Liza. Customers aren't formed in factories, and their behaviors and preferences change all the time. Even what they say are their preferences don't always align to their actions. It's an old school way of thinking and in a world of this much data down to individual level, we can do better.

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Over the past few weeks Ive been diving deeper into understanding the ever-evolving impact AI is having on the retail landscape. Having led teams for many years who were managing the complexities of global pricing strategies and looking at the incredible pace at which technology is evolving to drive change in this area, one thing is clear to me: the age of traditional pricing strategies is over. In today's complex retail landscape, marked by persistent cost inflation, supply chain volatility, shifting consumer behaviour, and intense price competition, relying on outdated rule-based approaches is no longer viable. The power of AI-driven solutions and dynamic pricing models have rapidly become must-haves for retailers and brands alike. Read more about how AI is revolutionizing retail pricing in this insightful article by Boston Consulting Group #artificialintelligence #pricingstrategy

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Have you heard of the term 'Degrowth'? My latest Gartner Power of the Profession blog explains what it is and how it could have practical applications in the retail industry so that we break the link between business performance and killing the planet.

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June is #PrideMonth, sparking crucial conversations about inclusion in the workplace. Reflecting on the importance of diversity, particularly for LGBTQIA+ individuals, I believe it's time to deepen our commitment to inclusivity. Many here know my story as a promoter of gender equality in companies, especially in leadership positions. But when we think about the inclusion of LGBTQIA+ people in the job market, I believe that the progress remains slow. According to a Vagas.com survey, job ads for this community grew by a mere 2% in two years in Brazil, while the US leads with discussions on inclusive benefits like fertility support and family-building benefits. Inclusion not only fosters innovation but also garners admiration, respect, and boosts productivity, translating into enhanced value and profitability for companies. As a gender equality advocate, I emphasize the need for actionable steps towards a more inclusive workplace: 1️⃣ Address unconscious biases 2️⃣ Seek expert guidance 3️⃣ Establish an employee feedback group 4️⃣ Set qualitative objectives and define measurable KPIs 6️⃣ Regularly monitor inclusion metrics Ana Paula Padrão Ana Paula CAMARGO Silvia Barcik #diversity #employment #business

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