Consumers spending like it's 2019? | The Retail Consumer Index by G & Co.

Can’t believe September starts this week already…

That means for retailers, the biggest season of the year is starting in roughly two months

Needless to say, all our partners and team at G & Co. have their work cut out for them!

In light of making it easier to know what’s happening in the industry, here’s a quick update of what’s going on in the space:

I took the liberty of giving you the highlights of each article ;)

See? I told you I wasn’t going to waste your time with the newsletter!

Figure of the Week

Consumers Are Spending Like It’s 2019

Source: The Wall Street Journal

What matters to you:

• Post-pandemic, shoppers are giving retailers a run for their money. Major brands like Macy's, Dick's Sporting Goods, and Foot Locker are stumbling with slower sales, dampened profits, and less-than-inspiring predictions.

• Blame it on shifting consumer wallets - higher debt and prices have sent them hunting for better bargains. But don't shed a tear for the consumers just yet; they're still sitting on decent savings. They're just more judicious with spending, opting for experiences over products.

• Retailers aren't just twiddling their thumbs either. They're wrestling with "shrink," a fancy word for losses from theft and other mishaps, eating into their profits.

• Remember all those home improvement sprees during lockdown? Well, they're dwindling now, leaving brands like Bath & Body Works with fewer sales of fragrances and sanitizers.

• Peloton's post-lockdown high is waning, and it's struggling to keep its subscribers pedaling. Lowe's is seeing a dip in demand from DIY enthusiasts but a rise from professionals. Even Petco's pet-loving fortune is taking a hit as pet-pampering slows down.

• Apparel's taking a hit too, with Macy's, Dick's, and Foot Locker pointing at weakened demand. Not everyone's closet is feeling the pinch though - Abercrombie & Fitch and Urban Outfitters are strutting their stuff with solid sales.

• Shrink is causing a headache for major players like Target and Home Depot too. And the off-price crowd isn't having the easiest time either. Dollar Tree's customers are pinching pennies on every trip, and Burlington Stores is feeling the heat from lower-income wallets affected by inflation and relief cuts.

• Time to buckle up, retailers - the post-pandemic spending shuffle has begun!

Sellers Are Overwhelmed by New Technology

Source: Harvard Business Review

What matters to you:

• Sales leaders pushed for "just one more" from salespeople – skills, tech, tools – but ended up creating a role that's too overwhelming for most to handle. Surprisingly, being overloaded with tech is hitting sellers hard – almost half feel buried, leading to a 43% drop in quota success.

• It’s time to shift gears: focus on vital skills, build trust with tech as a teammate, and simplify the chaotic sales role.

• Ready to roll? Here are your trusty tech allies: trim the role, fine-tune value messages, let automation do the prospecting, and wrap up deals smartly.

• It's all about trust: sellers must warmly embrace technology – "tech receptivity" is the key to unlocking success.

• Unveil the secret power: "mentalizing." The seller of the future excels at understanding the unseen motivations of buyers.

• Equip yourself: hone skills in prompt engineering, creativity, and the intriguing "hallucination spotting." AI joins the gang, assisting in mentalizing, decoding emotions – a promising path forward for a revamped sales role. Less busywork, more impact. Blend AI and human strengths to conquer the world of sales.

Coach and Michael Kors Tie-Up Shows Limits of Accessible Luxury

Source: The Wall Street Journal

What matters to you:

• Midtier luxury brands like Coach and Capri Holdings are caught in a pricing puzzle as consumers swing between high-end and accessible luxury, leaving them in a sticky spot.

• Coach, Capri, Tory Burch, and Ralph Lauren watched their market shares slide, while high-end champs like LVMH, Kering, Hermès, and Chanel soared.

• Shoppers opt for quality over quantity, favoring high-end brands due to online resale and rental trends that give luxury items a longer-lasting sparkle.

• Middle-income buyers struggle with stagnant wages, making price points tricky to pin down for brands like Coach and Michael Kors.

• Amidst gloomy growth forecasts, midtier brands might just need to team up to tackle the affordable luxury abyss.

Nike: User Experience Design

Source: G & Co.

What matters to you:

• G & Co. collaborated with Nike to revolutionize digital presence, optimizing user journeys through innovative mobile app design and development, enhancing customer experiences.

• G & Co. aided Nike in seizing control of distribution channels, deepening consumer bonds via DTC endeavors. Expertise in eCommerce, retail strategy, and mobile app solutions facilitated seamless expansion.

• G & Co. streamlined Nike's mobile app design, aligning with brand ecosystem. User flows refined for Nike SNKRS, Run Club, and Training Club apps, emphasizing personalization and ease of use.

• Collaborative efforts shaped a powerful eCommerce experience and robust product development for Nike's app family. User-centered design poised to enrich athlete experiences, driving inspiration and innovation.

• G & Co. enabled a deeper consumer connection, enhancing convenience in an optimized mobile app amid the growing eCommerce shift.

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