Takeaways from Shoptalk Las Vegas 2024

Have you attended Shoptalk in Las Vegas this year? Whether you attended the event or missed it, here are some key takeaways you can consider for your business.

With the pragmatic optimism approach, good old consumer-centricity, artificial intelligence, and more, retailers are doing everything to win a battle for attention. This image shows a nutshell, but if you want to dive deep, this is your article.

Macy's Inc. Challenges and Opportunities?

Adapting to changing consumer preferences and behaviors has challenged Macy's. This huge department store prioritizes enhancing the customer experience, streamlining operations, and investing in newness across the enterprise.

But Macy's has found opportunities for growth through private brands, luxury expansion, and digital transformation, and that's quite exciting. We can anticipate bold actions like closing underperforming stores, investment reprioritizations, and shifting Macy's merchant responsibilities to a full-category approach.?

Driving Innovation in Big Companies

Leaders from Esprit, Mattel, and Mars Snackfood US, LLC shared some interesting thoughts about how to make innovation. The speakers have stressed the need to focus on projects that make a difference for customers and the business rather than chasing shiny and trendy ideas. This insight may look like a no-brainer, but many companies put hype above value.?

I've always sensed how important it is to get the right people involved early on and keep everyone on the same page throughout the process. If you involve folks from different departments and encourage open communication, you'll build trust and ensure everyone's on board. Huge thanks to the speakers for highlighting this communication style.?

Kohl's Growth Strategy

In a candid conversation,?Tom Kingsbury, CEO of Kohl's, outlined the company's strategy for driving growth. I agree 100% with Mr. Kingsbury that enhancing the customer experience should be a primary focus for any company. Tom discussed Kohl's successful integration of SEPHORA , noting how it has propelled the company into the beauty business with remarkable success. Additionally, Tom touched base on efforts to differentiate Kohl's offerings, particularly in competitive categories like home goods and beauty, by emphasizing affordability and gifting programs. One humorous detail from the conversation was the "treasure hunt mentality" borrowed from Tom's experience in off-price retail, where customers always look for something new and fresh.

Here is an actionable insight from the CEO of Kohl's that many retailers should consider: simplifying pricing structures will eliminate confusion for shoppers.??

Canada Goose's Product Development Strategy

The CEO of Canada Goose Dani Reiss has highlighted key points about the brand's strategic approach to product development and expansion. Dani emphasized the importance of maintaining product excellence by making bold decisions, such as pulling back a product launch when necessary to ensure quality. In a world of quick launches, this approach is extraordinary. I share Dani's dedication to excellence, and we put quality over quantity when it comes to product features at Competera Pricing Platform .??

The discussion also underscored Canada Goose's deliberate expansion into new categories, like footwear, with a gradual approach to delivering top-notch products. Dani reiterated the brand's commitment to creating best-in-class items and discussed the challenge of their higher price point, detailing their customer acquisition strategy based on product longevity and authenticity.

Mattel's Strategy and Successes

Another panel talk I'd like to shed light on is the one featuring CEO Steve Totzke and President Robbie Brenner of Mattel Films. They discussed the company's strategy and successes, mainly focusing on their iconic brand, Barbie. Steve highlighted the importance of innovation and collaboration in Mattel's values, while Robbie emphasized the significance of storytelling in their film division. They also delved into the successful partnerships and revenue growth generated by their consumer products, particularly highlighting the impact of the Barbie movie. Hearing Robbie discuss the creative process behind their film projects and their approach to developing compelling stories for different brands was inspiring. Lastly, Steve touched on the evolving role of demand creation and teased upcoming ventures such as Mattel Adventure Parks.??

AI Adoption in Store Operations

In a panel discussion featuring Lowe's Companies, Inc. CTO, Tapestry VP Product, and Domino representatives, the speakers emphasized the importance of AI adoption in enhancing store operations. They highlighted the necessity of building trust and providing education around AI to overcome potential fears.?

Central to this approach was enabling store associates with "superpowers" through AI, emphasizing the need for empathy and change management in training and building trust with associates. They discussed the critical role of data in AI success, stressing the need for structured, intentional data to drive complex outcomes effectively.?

Moreover, they underscored the significance of personalization in customer experiences, with examples from Domino's intuitive pizza ordering process and Lowes' efforts to personalize home improvement experiences. The speakers stressed the importance of testing, learning, and verifying AI initiatives, cautioning against blindly trusting AI models and emphasizing the need for a mindset shift within organizations to harness AI's potential effectively.?

By the way, could you share your experience of adopting AI-powered tools in your organization???

Cost's Customer-Centric Approach

Jon Alferness from 沃尔玛 highlighted several key strategies and technologies to improve associate productivity and customer satisfaction. You need to equip associates with tools and capabilities to enhance their store experiences, such as the "Me@" platform, a digital operating system for associates, providing access to store information and enabling efficient customer assistance. Additionally, Mr. Alferness discussed the evolution of Walmart's technology journey, from consolidating separate tools into unified platforms to leveraging generative AI for predictive task management. He also addressed the significance of gathering feedback from associates to drive innovation. He underlined embracing external technologies and prioritizing data and platform development regardless of budget constraints.?

Insights on AI Perception

During the session led by Ben Miller, the VP of Content and Omnitalk, the discussion centered around the perception of AI in the retail sector. While many acknowledge the short-term benefits of AI, the long-term implications remain uncertain. Moreover, the importance of being inquisitive and testing hypotheses was emphasized, along with the need for internal alignment and setting guardrails before implementing customer-facing AI solutions.

Well, I partially agree with Ben because everything depends on AI.?

With Competera, you can be confident in the lasting advantages of using AI for your pricing. For our clients, we do POC to show the short-term capabilities of the AI Pricing platform. After the test period, clients continued working with us for years. And there is a strong “why” behind that. Our suggestions are based on holistic AI, knowing 10B+ transactions and 20+ pricing drivers, considering external events and category trends, and transferring learning from the industry to a specific retailer. Catch up with our team if you want to take your pricing to the next level.?