Breakout Sessions
December 7 & 9, 2010
Dec. 7 AM
NEW Online/Multichannel Workshop
Dramatic changes in shopper behavior coming out of the Great Recession are forcing retailers to focus their strategies inward to comp store sales (versus store expansion) to grow. As they do so, e-commerce plays a critical role in the creation of new growth opportunities and the ability to meet the demands of the shopper. But to capitalize on these opportunities, retailers—and the vendors that call on them—must understand and align with the economics and structure of the new post-recession world:
- Profile best-in-class pure online and multichannel retailers.
- Understand how the dynamics of a post-modern marketplace are accelerating the financial drivers of a true multichannel operational model.
- Learn how the economics of online retailing differ from bricks-and-mortar.
- Gain a working understanding of the basis, elements, and drivers of GMROII and other return-based financial measures that are critical to success on the “shelf.”
- Identify the structural barriers within your customers that must change to enable an integrated approach to meeting shoppers’ needs.
The many and rapid changes that have impacted Walmart’s Corporate staff since the shift of Castro-Wright to Global.com may be having impact on the International business. For years the fastest growing part of the company, they have absorbed the Central American JV into Walmart de Mexico and purchased the Netto chain of small stores in the UK. Overall, their trend towards small store, financial services, and non-Walmart banner stores continues. And, having just filled the position in Russia for the “Company to Be Named Later”…does it mean that Walmart is finally moving into the remaining BRIC countries? Understanding Walmart’s international scale and operations will enhance your positioning and planning. In this class, we will discuss:
- The Regional Lead Position—The sudden departures of Craig Herkert, Vicente Trius, and Stephan Fanderl threw the concept of regional management into doubt. With the very strong appointments of Eduardo Solórzano and Scott Price, is the position being re-established? If so, what does that mean to your regional sales strategy?
- The Rise of Walmex—With Eduardo Solórzano taking on the CEO of Latin America position…and Walmart de Mexico buying out the partially owned Walmart Centroamerica, should we expect additional growth into new countries by way of divisions such as ASDA or D&S? Clearly, he has already impacted Walmart Brasil with the recent changeover of the CEO and the senior management team.
- Walmart in Asia—Walmart bet that Japan would change to understand and appreciate their value to the market and it appears to be the case. Should we expect changes in the overall Asian market?
- The Possibility of a True Global.com—The push behind a uniform online presence received a much needed boost with the shift of Eduardo Castro-Wright to head the division. If operations of online do become more centralized, are you prepared to offer a multi-regional multi-channel strategy?
- Post-Modern Market Growth—Canada and the UK are facing strong headwinds in regards to growing top line sales. Walmart may need to shift drastically to continue growing in two of their largest, yet most challenging, markets. What will such changes mean to your business?
NEW Retailer Economics
Kantar Retail is pleased to present our new, updated Retailer Economics course
Beyond the buyers and store manager they may interact with, the real workings of retailers are hidden away from most vendors’ view and influence. Those vendors that achieve success come to understand the economic drivers that shape strategies and execution to be profitable. The way that retailers group, examine, and act on their key performance indicators is decidedly different than other industries and requires a structured and considered approach. Join Kantar Retail as we discuss: how growing the topline will define process to control the bottom, what the critical factors of fixed and fluid capital are, how ownership is key to understanding how the number needs to work, and what financial thinking is shaping the thinking of your buyers’ boss.
Dec 7 PM
Value Discounters Workshop
Value Discounters responded well to the Great Recession, and recorded rising sales and comps as shoppers went in search of lower prices. It’s now been two years--and not only do sales continue to grow, but so do comps, baskets, and gross margins across the whole channel. Value Discounters have discovered that they can compete for almost all shoppers in all markets by shifting to more sophisticated merchandising, marketing, and product tactics—and at the same time lower costs through improved processes, tightened procurement, and global sourcing. All that said, each has taken a very different strategic route to profitability:
- Discuss the influx of industry talent into Dollar General
- Walk through the improved processes and metrics at Family Dollar
- Explore Dollar Tree’s move into the middle class
- Find out about the upstart Five Below and its lifestyle discounting
- Gain insight to the international giant ALDI, which is starting to have a real impact on the US retail landscape
NEW Shopper Behavior
The recession had a profound effect on shopping patterns and behaviors. As the economy moves into a period of slow recovery, it is not a given that shoppers will return to their “normal” shopping patterns. Therefore, the need for rich and timely shopper insights has never been greater. Leveraging Kantar Retail’s ShopperScape™ survey of primary household shoppers:
- Identify which tactics shoppers employed in the recession are most likely to become a permanent part of shopping routines
- Navigate through the latest shopping trends and learn where shoppers are selectively opening their wallets wider than they did last year
- Learn how Walmart’s shifting strategy impacts shoppers’ perception of the retailer and how they shop
- Assess whether the value discount channel can keep the shoppers it has gained even as competitors focus on getting those shoppers back
- Hear how the compact supermarket phenomenon affects shopper dynamics
Regional Grocery – Aligning to Real Growth
There is real growth in the grocery channel…it’s just not evenly distributed. Quite a number of mid-tier regional retailers have consistently outperformed the largest chains, highlighting the need for a successful channel strategy properly focusing resources against the real business opportunities. Kantar Retail reviews the best performing regional retailers—from Winco to HEB, Giant Eagle, and Wegmans--and details how the very different market strategies of regional retailers can and should be part of a national grocery channel plan.
- What do high-performing regional retailers have in common? How are they different?
- How can you construct a business plan that enables geographically dispersed retailers to be a viable investment of your resources?
- What is the trend for the distribution of growth in the supermarket industry?
NEW Mining the Opportunities in Home Improvement
Reluctant, insecure, and demanding shoppers are increasing the pressure on home improvement retailers to innovate new ways to capitalize during the sluggish recovery. In this session, Kantar Retail uncovers:
- The Industry Outlook. Contemplate the current structure of the DIY channel--and walk away with the outlook for industry growth, including forecasts for key sub-channels such as home improvement centers and hardware stores.
- The New ROI--Return on Involvement. Analyze several different ways that DIY retailers will drive shopper traffic: satisfying demand for “value-added values,” boosting shopping efficiency, scoping out the right balance of DIY and DIFM opportunities, and marketing practical pleasures.
- An Introduction to the DIY Shopper Journey. Assess the shifting shopper mindset in home improvement. Determine how this shift has affected retailer brand commitment and revealed opportunities in new consumption patterns.
- Web Trends. Consider the ways in which The Home Depot and Lowe’s are investing in their digital platforms--including social and mobile capabilities—and evaluate how shoppers are responding.
Dec 9 AM
CPG 2016
This class is designed for attendees with multiyear planning responsibility.
There has never been a time in the CPG industry where collaboration between retailers and suppliers has been more difficult – volatile, rising costs, slow economic growth, and a private label environment where your biggest customer is often your biggest competitor. At the same time, collaboration has never been more vital than it is in this new world--where increasingly digital, informed, nervous, and price-conscious shoppers are opting out of both conventional brands and conventional retailers. Kantar Retail maps out a path to achieve this essential collaboration:
- The emergence of “post-modern” market forces in the US – Understand the supplier implications of retailers focused on cash flow per linear foot
- The increased need for retailer-centric analytics – Analyze and combat one of the key barriers to successful retailer/supplier collaboration: that CPG increasingly has less to say that’s of relevance to the retailer
- Foresee the skills needed to focus on your retailer’s most profitable shoppers
- The pathway to relevance –Anticipate why helping your customers build their brand is essential to building yours
- Reinventing the work – Find a pathway to profitable differentiation of your best customers
Target Workshop
Target shifted its brand emphasis to the “Pay Less” component during the recession, focusing on consumables and price. As the economy has improved, Target is re-iterating its commitment to the “Expect More” component, but a slow recovery may challenge the pace of Target’s ability to balance these two priorities. At the same time, if well-executed, a number of areas of innovation at Target hold the promise of future growth. This workshop will move beyond the headlines:
- Evaluate the current status of the Pfresh rollout as well as Target’s larger efforts to leverage consumables to drive traffic—and the implications for its store economics.
- Highlight the areas where Target is looking for new growth opportunities beyond Pfresh-- department reinventions, 5% Rewards, smaller formats, online/digital media, and others.
- Understand how Target is balancing value with discretionary purchasing and identify where the opportunities are to help the retailer maintain relevancy.
Clubs Workshop
Costco, Sam’s Club, BJ’s
With the clubs channel poised to grow faster than the market, competition among the major players and vendor partners to capture opportunity is sharpening. Kantar Retail examines the keys to successfully selling club (at the customer and internally) and gaining alignment with the three leading customers. Explore how these dynamic retailers go-to-market and the similar--but different--appeal drivers they employ to attract, retain, and upgrade members while competing to gain greater share from both in-channel and non-channel competitors.
- Assess the recent performance of Sam’s Club, Costco, and BJ’s and calibrate forecasts accordingly.
- Analyze Sam’s unfolding strategy to build its marketplace presence and contemplate how Costco is positioned in response.
- Pinpoint opportunities within the club’s current levers (including promotional and membership marketing activities) to drive member interest.
- Develop a comprehensive perspective of new member expectations and needs within today’s environment.
NEW Retailer Economics
Kantar Retail is pleased to present our new, updated Retailer Economics course
Beyond the buyers and store manager they may interact with, the real workings of retailers are hidden away from most vendors’ view and influence. Those vendors that achieve success come to understand the economic drivers that shape strategies and execution to be profitable. The way that retailers group, examine, and act on their key performance indicators is decidedly different than other industries and requires a structured and considered approach. Join Kantar Retail as we discuss: how growing the topline will define process to control the bottom, what the critical factors of fixed and fluid capital are, how ownership is key to understanding how the number needs to work, and what financial thinking is shaping the thinking of your buyers’ boss.
National Grocery – Benchmarking the Big Three
Kroger, Safeway, Supervalu
The three biggest retailers in the channel have had very different recent performance histories--and are likely to reach different critical decision points in their progress in the near future. Will Kroger’s firmly established market leadership position be sustainable as Walmart returns to a heavy reliance on price? Can Safeway establish a viable brand in the mind of its shoppers and return to growth? Will Supervalu survive in its current form or will it undergo massive changes as it struggles with low performance and high debt? We will examine both the strengths and weaknesses of the Big Three and take a look at how their businesses are likely to evolve to meet the challenges of the near future.
- Compare and contrast these retailers-- and outline what they should be learning to do next, both from suppliers and from each other
- Evaluate the probability of the grocery channel consolidating into a few major players
- Hear how a supplier can mitigate the risks of channel strategies that rely on large under-performing customers
Dec 9 PM
NEW Social Media/Digital Marketing
Facebook has reached 500 million active users, generating over 5 billion pieces of content every week. To put it mildly, Social Media has become a necessary way for your brand to engage and learn from shoppers…and a new lever to pull in negotiations with your customers. Simultaneously, Digital Marketing is evolving (from Google AdWords, to geo-targeted ads, to mobile).
In a world where user-generated content reigns supreme, how can vendors find the right balance of creating emotional relationships between their brands and their consumer advocates? Are retailer brands better positioned to engage in this type of dialogue with their shoppers? Join Kantar Retail and your peers as we share insights on:
- Evolving strategies retailers are using to interact and engage with shoppers on the web.
- Tools brands and vendors require to stay relevant in a social media world.
- Mobile technologies and the ways in which they’re changing how shoppers research, purchase, and discuss brands and products.
- Optimal alignment for your team to take advantage of shifts in this evolving digital landscape
Walmart Workshop
Walmart’s current go-to market approach is in a state of flux. Its core merchandising and operations initiatives are being rethought as the retailer moves to drive top-line sales and customer traffic. This interactive, seminar-style workshop will focus on the unfolding implications of Walmart’s “Post-Project Impact” direction and tactical shifts, examining how the latest changes impact supplier strategies.
- “We plan to win in every category,” Chief Executive Bill Simon has asserted. Consider how Walmart’s merchandising strategy has evolved from “win, play, show” and anticipate how shifts in its pricing, assortment, and promotional practices change the game, yet again.
- Increased vendor collaboration - With national brands receiving increased attention and Walmart shifting away from self-reliant planning, suppliers are now challenged with determining which of the unfolding opportunities are best to pursue – and which may be best to avoid.
- Save Money, Live Better – As Walmart continues to put its mission on a global stage, the company seeks to deepen its shopper connections via new media and win the appeal of budding “Gen Y” families. Compare and contrast your team’s strategies with your peers.
- Store and online experiences evolve– While the in-store experience evolves through continued remodels and increased promotional tactics, the retailer is also allowing greater store and regional manager autonomy. Map out how these initiatives redirect your ability to communicate your brand through Walmart’s stores. Contemplate the growth opportunities that emerging formats and channels offer.
Drug Workshop
CVS, Walgreens, Duane Reade, Rite Aid
The past year has been one of transformation for the chain drug channel. CVS advanced its leading position and brand in the retail and healthcare space, all while introducing an expanded consumables offer and embracing store clustering to gain share of relevance. Walgreens completed its acquisition of Duane Reade and simultaneously moved forward with plans to retool its go-to-market strategies through the implementation of customer-centric marketing and merchandising strategies, all in the face of a more complex and competitive operating reality. Meanwhile, Rite Aid took steps to ensure its future survival through segmentation.
- See how the new path to partnership with these customers will alter where you place bets as they: develop new formats, optimize assortments, aggressively push private brand agendas, employ shopper-based principles to enhance the in-store experience, and continue to reach deeper into your organizations and request greater share of mind and funding.
- Walk away with Kantar Retail’s latest growth projections for the leading national and regional drug chains.
Grocery Horizons – The Future of the Supermarket
This class is for forward-thinking grocery leaders who want to explore the overall health, trends, and directions the channel will move through in the next five years. This is a discussion-oriented module designed to highlight the strategic developments needed for a successful future in grocery retailing—with a special focus on how suppliers can add increased value to their relationships with supermarket customers.
- What skills will your team need in the future? And what skills are needed to lead a team in the supermarket channel going forward?
- What roles will suppliers play as supermarket operators grapple with changing marketing messages, media tools, merchandising techniques, and format evolution?
- How can the new sources of information (such as shopper data) be organized within a supplier company to be effective?
- How can a sales organization improve the customer focus within their company?