The world needs more heroes

“It takes a great deal of bravery to stand up to our enemies, but just as much to stand up to our friends.”― J.K. Rowling,

The Markets

It was a shorter week and slightly good news about inflation. However, consumers are still paying for the holiday season. A continued volley of companies is calling out that they expect a dryer season ahead on revenue growth. However, investing in AI has a great deal of growth going forward. In about 18-24 months, we will see which companies are capable AI Factories and ready to compete on a different level. Undoubtedly, the ability to leverage data with predictive AI capabilities is one of the greatest competitive revolutions we are entering. Take note that the DJIA is shy of 40,000.

Personal Log: Superheroes or Sellouts

This week, I was at Queens Park for meetings and had the opportunity to watch the question period. As I absorbed the debates and listened to some opinions, I could see which politicians lost their childhood superhero powers and which ones were still connected to them.

Many kids grow up wanting to be superheroes who can help or save humanity, whether with supernatural powers or wanting to become doctors, police officers, or teachers. We all started off in relatively the same place regardless of our economic upbringing. Somewhere along our journey, we change.

Sitting in the guest observer's booth, I wondered when these politicians became believers in one ideology or another. I've met politicians who have changed their political ideology just to get elected. This is fascinating political and ambitious hypocrisy; these leaders are dangerous to social causes on either side of the fence.

When did some begin to believe that helpless people should find ways to fend for themselves? When did others begin to think we should provide for everyone regardless of cost? Or roll the dice, and everything will work out on its own?

Then, I wondered how many of them had ever held a real job. I am not interested in politicians who have never had a regular job in the private sector. Eight to ten years of experience would be nice, and don't tell me you were an aid to another politician. I couldn't care less if you were a bartender or a hairdresser; at least you existed in the real world. I believe a lifetime career in politics leads to shortsightedness and is filled with broken promises because now it is about protecting a job for life, not about the issues and constituents.

I am politically agnostic, and while a capitalist, I also believe in social responsibility because, without it, history has taught us that anarchy is one truck rally away if we are not careful.

In either case, the best leaders are superheroes. They stand up for the weak and at risk, and above all, they keep their promises.

Economy: Domino impact on the middle-class

Let's start by separating middle-class incomes from middle-class lifestyles and the illusion that these incomes actually make for a comfortable lifestyle. Each country has its own measures of income. In Canada, if one earns Below $53K, they are in a lower income bracket. The middle class is Over $53K to $106.7K. Upper Middle is above $106.7 to $235.6K, and Upper class is over $235.6K. All of this is before taxes. And for perspective, the average household income across Canada is $92K before taxes. So after taxes, you can hardly live large.

During the early 2000s, I would walk through countless malls, visiting many of the stores within our four retail brands. I continuously wondered how the middle class would manage to keep up with their spending. Over the years, I saw a shift from cash and debit cards to more credit cards and deferred payment plans. Today better known and more widely used as BNPL (buy now pay later). I used to think this wasn't retail therapy; consumers might need debt therapy.

In this economy that sees retailers calling for slower growth, they are right to do so. And while the consumer price index is down, we all know interest rates must follow. The overwhelming reality is that the middle class is no longer in an economically inclusive place. There is a domino effect happening. It's a global problem, and it could take a decade for this stint of inflation to wear down its effects. Not to forget that the gap between the middle-class income earners and earners above them is widening. Read the TD CPI Report. Every retailer knows their objective now should be to capture and reach a broader consumer base, as the one they rely on moves towards saving more than spending. At least for now!

Economy: Canada's Productivity Problem Are Oligopolies

We need to understand that the Canadian economy has a problem with oligopolies. Think about it. When three to five companies own 70-90% of the market, it is very difficult for anyone else to come in and compete. In that case, where is the incentive to spend capital to improve anything? Even the quality of service, for that matter. The challenge is not enough competition, from airlines, banks, and grocers to telecoms. If consumers had more choices, productivity would not be a problem. Companies would be spending more to retain customers and, therefore, improve their businesses. The Bank of Canada is right. It has been a fifty-year problem in the making. And no political party paid attention as markets were being reshaped in many categories. In the US, anti-trust does not allow this to happen. Then again, white-collar crimes don't get 25 years of prison time in Canada, either. It's about two years.

The CMOs New Dilemma Is AI

Are CMOs losing their edge? Once you leave all of the academic vernacular and digital theories behind, the real world of marketing is far more complicated than it was ten years ago. And it is changing even faster now. In a few of my presentations, I talk about the impact of data on brands and their ability to collect it and curate it into manageable data packs that AI can turn into predictions. But what happens when the machine is faster than marketing's capabilities? I mean talent, technological, and financial resources to act against these AI-first competitors.

Back to the question: are CMOs losing their edge? They are likely losing because the organization cannot accept change, which usually has roots in the CMO's effectiveness in communicating upward and convincing the rest of the senior team what the organizations need to succeed. It's not all the CMO's fault, at least not entirely. Still, their tenure is shrinking. I believe the new breed of CMOs will be younger, data and AI-capable, and able to effectively manage in that AI-Factory playground that is being nurtured, some openly and others very quietly. This RetailTouch Points article highlights some issues but does not address the reality of AI and the collision course many companies and their CMOs will be on if they can't change the organizational culture.

What's new in retailing?

1. We are getting close to seeing how Reitmans and Roots did for the full year. Their fourth-quarter results will be announced in the next couple of weeks.
2. Ciele Athletics Inc./Ciele Athlétique Inc. If you are unfamiliar with this brand, you should look into it. As a runner, I am intrigued by their cap collections! Read this story from the Logic. The founder said it takes 10 years to curate a brand to this level. I agree.
3. A new brand enters Canada. Windsor Fashions plans to open five new stores in Canada in May. Read more
4. H&M reported higher profits on lower sales of about 2.0% and plans to close more stores than it opens. Downward sales and increased profits means heavy duty cost accounting and perhaps a fair bit of discounting. Reuters Article I wouldn't be celebrating yet.
5. Boycotting Loblaw Companies Limited : The frustrations are clear, but is it really necessary? Even if it were for a day. Some shoppers will go elsewhere. But the majority will go back later in the week. It's called pent-up demand. The perception of gouging is overdone. Last week at a Loblaw SuperStore, I saw a sea of signs showing shoppers all kinds of savings. I believe the company is hearing the feedback. However, their public relations machine could also use an upgrade; they are just not used to communicating as they should. Read more
6. If your interests are in how AI will impact retailing and other industries, may I suggest you read this article: The Next Great Leap -Brands That Never Sleep

At the end of the day - Human Heroes

Paul Simon wrote the lyrics, "The words of the prophets are written on the subway walls and tenements halls and whispered in the sounds of silence."

Today, when we encounter humans preaching at a street corner or handing out leaflets with new ideas, thoughts, political ideologies, theories at the end of times, and even spiritual beliefs, we think of them as disconnected from real-world issues or lost souls and even as having mental health issues. So we dismiss them. Once in a while, history has told us that a few have come before with powerful messages, showing us a different, more empathetic path. That's happened a few times in history in many cultures. Jesus of Nazareth was one of them.

I wonder if we would recognize such a person in the present or future, with all the fake news and social media deflection and anger, or dismiss it as we did back then—condemning the innocent rather than listening with curiosity and an open mind. We need more heroes with a vision who can lead and challenge humanity into the future with confidence, prosperity, and happiness. Politicians will never be able to do that; most are in this to fulfill their own destiny, not yours or mine. Happy Easter!

Have a great week. This leadership journey is yours; choose how to live it. Strength comes from earning respect for inclusive values and principles.

I am available for private company annual events, senior management and board discussions, and keynote speaking engagements. When you need a grounded, real-world view of why it's happening and where it takes us next. That comes with over 25 years of progressive thought leadership and leading and working for multi-national retail brands in Canada, the US, and Asia.

Contact me here: [email protected]

Website: www.inceptionretailgroup.com