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      Show Notes

      Show Notes | S3 Ep4 | Amazon and the Future of Healthcare

      INTRODUCTION

      Download pdf

      What’s a natural extension to the platform Amazon has built that we discussed in detail during Episode 3? Healthcare. Why? It serves Amazon and their network of employees while also being another service they could offer to their broader network of marketplace members and business partners and possibly directly to their incredibly large customer base.

      Amazon has unquestionably changed how we shop. Will they change the way we shop for or manage our health? When you look at industries ripe for disruption, retail was one. Healthcare, being a $4.1T business is clearly another one. But Amazon’s entry into Healthcare has been less than revolutionary. Their take on medication management, telehealth and recent acquisitions gives us indications of what they’re thinking. Though they are shutting down Amazon Care, they are in the process of acquiring One Medical. Let’s explore what Amazon’s platform brings to a retail health experience.

      THE CONVERSATION

      Cristene started with a quote from a WaPo article on Amazon’s health intentions that helps us understand where they’re headed.

      https://www.washingtonpost.com/technology/2022/09/04/amazon-care-health-one-medical/

      A SHORT HISTORY OF AMAZON’S VENTURES IN HEALTHCARE

      To continue the series trend, Cristene shared a short history of Amazon’s interests in healthcare. Here’s a summary:

      In 2018, Amazon, Berkshire Hathaway and JPMorgan Chase formed a joint venture called Haven with the express purpose to lower healthcare costs and provide better outcomes.

      https://www.nytimes.com/2018/01/30/technology/amazon-berkshire-hathaway-jpmorgan-health-care.html

      It was shuttered in 2021, just 4 years later.

      https://www.cnbc.com/2021/01/04/haven-the-amazon-berkshire-jpmorgan-venture-to-disrupt-healthcare-is-disbanding-after-3-years.html

      Then there’s Amazon Care, their virtual healthcare offering that started piloting the offering in 2019. This was shuttered recently and will be shut down by the end of this year. The reason Amazon gave was that it wasn’t a complete enough offering.

      https://chainstoreage.com/report-amazon-shutter-amazon-care?oly_enc_id=3358I4996623D3X

      https://fortune.com/2022/08/25/amazon-healthcare-service-amazon-care-will-shut-down/?tpcc=nldatasheet

      https://www.washingtonpost.com/technology/2022/09/04/amazon-care-health-one-medical/

      And Amazon entered into an agreement to acquire One Medical in July of this year.

      https://www.nytimes.com/2022/07/21/business/amazon-one-medical-deal.html?smid=url-share

      PATIENT AS CUSTOMER

      We spoke about putting the patient – the customer – first. Jeff quoted from a recent essay by Scott Galloway.

      Beyond spotty efficacy, healthcare offers the second-worst retail experience in the country. (Gas stations retain the No. 1 spot.) Imagine walking into a Best Buy to purchase a TV, and a Blue Shirt associate requests you fill out the same 14 pages of paperwork you filled out yesterday, then you wait in a crowded room until they call you, 20 minutes after the scheduled appointment you were asked to arrive early for, to be seen by the one person in the store who can talk to you about televisions, who has only 10 minutes for you.

      New York is the wealthiest city in America, yet the average waiting time in an emergency room is 6 hours and 10 minutes.

      https://www.profgalloway.com/prime-health/?vgo_ee=vRePHet%2BG1wVEim4mH0tZBwUnRnlmwiuCIJkd9A7F3A%3D

      CNBC reported that two-thirds of people who file for bankruptcy cite medical issues as a key contributor to their financial downfall.  Just think about that for a minute.

      https://www.cnbc.com/2019/02/11/this-is-the-real-reason-most-americans-file-for-bankruptcy.html

      Jeff quoted Christina Farr, an investor in health care with OMERS Ventures. “They want to nail the consumer experience.”

      https://www.nytimes.com/2022/07/21/business/amazon-one-medical-deal.html?searchResultPosition=3

      COMPETITION

      There’s fierce competition here as well.  It’s been reported that CVS is considering buying healthcare provider, Cano Health, who has primary care centers in 8 states.

      • https://www.pymnts.com/healthcare/2022/report-cvs-considering-buying-healthcare-provider-cano/
      • https://canohealth.com/

      CVS recently closed on their acquisition of Signify Health, which has a network of 10,000 clinicians who make home visits (both virtually and IRL) across all 50 states

      https://www.cvshealth.com/news-and-insights/press-releases/cvs-health-to-acquire-signify-health

      Let’s not forget CVS’s acquisition of Aetna in 2017.

      Walmart recently signed a 10-year agreement with the world’s largest health insurer, UnitedHealth Group.

      Jeff quoted from Robert Pearl, M.D, in his recent Forbes article, “The skepticism is understandable, but these negative analyses ignore the credentials of the companies in question. After all, you don’t become the largest pharmacy company (CVS), largest online retailer (Amazon), largest health insurer (UHG) or largest company, period, (Walmart) by chance or luck.”

      https://www.forbes.com/sites/robertpearl/2022/10/10/amazon-cvs-walmart-are-playing-healthcares-long-game/?sh=3b91dd2278f6

      On the prescription front, Mark Cuban launched an online pharmacy called, creatively, “Mark Cuban Cost Plus Drug Company.”

      https://costplusdrugs.com/

      https://www.prnewswire.com/news-releases/mark-cuban-cost-plus-drug-companys-online-pharmacy-launches-with-lowest-prices-on-100-lifesaving-prescriptions-301463491.html

      ADITTIONAL REFERENCES

      • https://www.forbes.com/sites/robertpearl/2022/10/10/amazon-cvs-walmart-are-playing-healthcares-long-game/?sh=1be5c3be78f6
      • https://www.washingtonpost.com/technology/2021/12/22/tech-trust-survey/
      • https://www.nytimes.com/2022/09/02/opinion/amazon-health-care.html?smid=url-share

      CONCLUSION

      Why did we take 3 episodes to discuss Amazon? Stating the obvious, their scale and influence in our shopping lives are enormous.  The principles of retail are so fundamental – and transferable to many other industries.

       

      Amazon is a remarkable company with remarkable scale. With that scale, growth can be challenging. The flip side of that is the need to keep costs under control, or better to reduce costs.  Where can you find an opportunity that can deliver value on both sides of this coin? Healthcare. Of course.

      We’ll keep watching Amazon…

      HEROES & CHANGE MAKERS | Our New Feature

      Our new feature, Heroes and Change Makers, concluded our discussion.

      Cristene selected… Karen S Lynch, CEO of CVS

      https://www.cvshealth.com/news-and-insights/press-releases/meet-our-new-ceo-karen-s-lynch

      https://fortune.com/2021/10/04/cvs-ceo-karen-lynch-stores-health-care-super-clinics/

      Jeff selected… Andy Jasse, CEO of Amazon

      This is RETAIL DONE RIGHT. Thank you for listening. And please join our conversation.

      • Michael Cooke via Upwork is our brilliant sound engineer and editor – and Jade Siriwad composed our theme music.
      • Please subscribe on Apple Podcasts, Spotify, or your favorite podcast platform.
      • Please follow us on Instagram at retail done right and at our website https://retaildoneright.net

      Let’s go shopping!

      Jeff Fisher & Cristene Gonzalez-Wertz

      Connect with Jeff on LinkedIn

      Connect with Cristene on LinkedIn

      RETAIL DONE RIGHT is produced and hosted by Jeff Fisher & Cristene Gonzalez-Wertz

       

      Show Notes | S3 Ep3 | Amazon as a Platform

      INTRODUCTION

      Download pdf

      Amazon is a platform. Though we are starting to see others following this business model, Amazon offers a scale unrivaled. But if you’ve created a great brand and want to extend your offering, there’s clearly an opportunity to leverage your brand equity and customer base to create a network and ecosystem that supports services or products.  We discuss the real opportunities Amazon has found.

      There are 4 types of business models. Asset Builders. Service Providers. Technology Creators. Network Orchestrators. Amazon is the ultimate Network Orchestrator through a platform that allows participants to interact or transact with many other members of the network through content, services and physical goods. Amazon delivers value through connectivity.

      THE CONVERSATION

      We kicked off the discussion with a short conversation about Amazon’s internal Pan Amazon group.

      https://www.theinformation.com/articles/how-amazon-uses-aws-to-drive-business-in-retail-ads-and-shipping?tpcc=nldatasheet

      https://fortune.com/2022/09/26/apple-iphone-14-pro-max-sales-deal-wireless-carrier/?tpcc=nldatasheet

      HISTORY OF LAUNCHES

      Cristene shared a short history of Amazon product and services launches. Here’s a summary:

      1. Ecommerce bookstore – launched July 16, 1995
      2. Marketplace – 2000
        1. https://www.history.com/this-day-in-history/amazon-opens-for-business
      3. Advertising – 2003 with the launch of A9.com, a search and advertising technology
      4. AWS, 2006 – with the launch of Simple Storage Service, S3
        1. https://en.wikipedia.org/wiki/Timeline_of_Amazon_Web_Services
      5. FBA – 2006
      6. Amazon prime video – Launched Sept 7, 2006, in its early incarnation known as unbox
      7. The Kindle – 2007
      8. Amazon agreed to buy Audible in 2008.
        1. https://www.nytimes.com/2008/02/01/technology/01amazon.html
      9. Amazon Locker – 2011
      10. Echo and dot devices – with Alexa – 2014, 2015
      11. The fire phone – Launched 2014, RIP 2015
        1. https://www.cnet.com/tech/mobile/fire-phone-one-year-later-why-amazons-smartphone-flamed-out/
      12. Whole Foods – Acquired June 15, 2017
      13. Just Walk Out – 2018, with the opening of the first Amazon Go store

      https://www.businessinsider.com/jeff-bezos-amazon-history-facts-2017-4

      https://en.wikipedia.org/wiki/History_of_Amazon#cite_note-MyUser_Phx.corporate-ir.net_January_17_2016c-98

      FBA – FULFILLMENT BY AMAZON

      FBA helps power the marketplace. FBA offers access to Amazon’s shipping and fulfillment centers, packing and shipping logistics, and customer service programs.

      We compared this offering with Ebay and Etsy.

      https://www.shipcalm.com/blog/fulfilled-by-amazon-worth-it/

      https://www.junglescout.com/blog/what-is-amazon-fba/

      https://www.nextsmartship.com/blog/ebay-fulfillment

      https://www.shipbob.com/blog/etsy-fulfillment/

      https://www.junglescout.com/blog/is-amazon-fba-worth-it/

      We also compared profit margins across Amazon, Walmart, Target, Lowes and Macy’s.

      • Walmart’s worldwide gross profit margin this year is 24.4%, according to Statista.
        • https://www.statista.com/statistics/269414/gross-profit-margin-of-walmart-worldwide-since-2006/
      • Target’s US gross profit margin in 2021 was 28.3%
        • https://www.statista.com/statistics/1113241/gross-margin-of-target-in-the-us/
      • Lowe’s gross profit margin so far in 2022 is in the low 30%
        • https://www.macrotrends.net/stocks/charts/LOW/lowes/gross-margin
      • Macy’s gross margin so far in 2022 is in the low 40%
        • https://www.macrotrends.net/stocks/charts/M/macys/gross-margin

      MARKETPLACE

      Cristene spoke about the shift to a marketplace and how it extended their offering to deliver on their desire to be “The Everything Store.”  In 2021 Amazon stated there were nearly 2 million third-party sellers in Amazon—mostly small and midsize businesses (SMBs)

      https://www.aboutamazon.com/news/small-business/economic-impact-for-small-businesses-powered-by-partnership-with-amazon

      Jeff shared a couple comparisons…

      • ETSY, which has 7.5M sellers in 2021, which was a 74% increase on the previous year.…
        • https://www.businessofapps.com/data/etsy-statistics/
      • EBAY has over 19M sellers with accounts. Gross merchandise volume reached over $100B in 2020, but dropped to about $83B in 2021.
        • https://www.businessofapps.com/data/ebay-statistics/

      Cristene concluded this topic by asking the question, Amazon has been called The Everything Store. Is this still true based on Etsy and Ebay? Has The Everything Store arrived? There’s no doubt that Amazon’s marketplace has made a huge impact to Amazon’s business. According to Statisa, 57% of paid units were sold by third-party sellers in the 2nd quarter of 2022.

      https://www.statista.com/statistics/259782/third-party-seller-share-of-amazon-platform/

      AWS – AMAZON WEB SERVICES

      AWS provides on-demand cloud computing platforms and APIs to individuals, companies, and governments, on a metered pay-as-you-go basis. These cloud computing web services provide distributed computing processing capacity and software tools via AWS server farms

      https://en.wikipedia.org/wiki/Amazon_Web_Services

      ADVERTISING

      Cristene spoke about how Amazon’s heavy move into media has allowed them the opportunity to extend beyond the website into ads – well – nearly everywhere on their estate.

      Amazon Ads offers a range of options to help you achieve your advertising goals to registered sellers, vendors, book vendors, Kindle Direct Publishing (KDP) authors, app developers, and/or agencies. Products include Sponsored Products, Sponsored Brands, Sponsored Display, and Stores. Display ads, video ads, and ads run through the Amazon DSP (Demand Side Platform) can be managed independently or with an Amazon Ads account executive.

      Cristene also referenced an AP article which stated, Amazon’s Echo devices, which house the voice assistant Alexa, have dominated the US smart speaker market, accounting for roughly 70% of sales.

      https://apnews.com/article/technology-whole-foods-market-inc-amazoncom-f715bd73590cd9e19951e4ca77c75e2e

      JUST WALK OUT

      Jeff mentioned that we spoke about this technology in our Season 2, Episode 3 podcast, “Fixing the Broken Checkout Experience.”  Amazon developed this in-house and has implemented it in their Amazon Go!  And some Amazon Fresh stores.

      It offers convenience, ease, simplicity. The technology isn’t just about a simplified checkout, although that alone is very beneficial.  But this technology also offers insights into store and shelf performance, labor efficiencies, planogram optimization and more…

      ADDITIONAL SERVICES

      Cristene mentioned these additional services:

      • Amazon Pay
      • Amazon Transportation Services
      • Sell on Amazon
      • Amazon Design
      • The acquisition of iRobot, the maker of the popular robotic Roomba vacuum
        • https://apnews.com/article/colin-angle-d4de06cdcf36beeec71166ff44abdf68
        • https://apnews.com/article/technology-whole-foods-market-inc-amazoncom-f715bd73590cd9e19951e4ca77c75e2e

      CONCLUSION

      Amazon will account for nearly 40% of ecommerce sales in 2022

      • Amazon will account for nearly $2 in $5 spent online in 2022, making up 39.5% of all US retail ecommerce sales. Altogether, the next 14 biggest digital retailers will make up just 31%, with the remaining 29.5% of the ecommerce pie going to everybody else.
      • That’s $400 billion out of the forecasted $1 trillion in sales revenue, which is five times more than its closest rival, Walmart.
        • https://www.insiderintelligence.com/content/amazon-us-ecommerce-market?ecid=NL1001

      Amazon is the most visited online marketplace in the US

      • Amazon gets 2 billion monthly visits in the US alone, almost triple the monthly visits of eBay, which trails behind at second place with close to 700 million monthly visits.
        • https://www.webretailer.com/b/online-marketplaces-usa/#The_largest_online_marketplaces_in_the_USA

      More than half of US consumers start their product searches on Amazon

      • When searching the internet for products, most consumers start on Amazon. Amazon is the most popular search destination for consumers (63%), above search engines (46%), Walmart (31%), Facebook (26%), and YouTube (24%).
        • https://www.junglescout.com/consumer-trends/
      • What is more interesting is that 88% of consumers who last shopped at Amazon started their next purchase journey at the Amazon website, instead of starting with search engines. This is highly indicative that most Amazon buyers don’t look anywhere else.
        • https://www.digitalcommerce360.com/article/amazon-prime-membership/

      Nearly 50% of consumers shop on Amazon at least once a week

      • In the Jungle Scout report, 48% of shoppers purchase something from Amazon at least once a week, and they tend to spend more, too. In fact, 57% of consumers say they will spend over $50 on Amazon by the end of the first quarter of 2022, and 51% would pay over $100 for a single item from Amazon.
        • https://www.junglescout.com/consumer-trends/

      In 2020, Amazon invested $18 billion in selling partner success, including in logistics and tools like Brand Follow and Stores that allow sellers to directly connect to millions of customers.

      https://www.aboutamazon.com/news/small-business/economic-impact-for-small-businesses-powered-by-partnership-with-amazon

      With Amazon absorbing the increased costs (surcharge and fee changes) brought about the pandemic, roughly 3,700 sellers were still added daily to its roster in 2021.

      https://www.businessinsider.com/amazon-pulls-in-thousands-new-independent-sellers-a-day-2021-3

      Most Amazon 3P sellers are profitable

      According to Jungle Scout, more than 90% of Amazon SMB sellers are profitable, with some 65% earning profit margins higher than 10% and a third earning profit margins above 20%.

      https://www.junglescout.com/amazon-seller-report/?_ga=2.173189091.190745793.1651856173-1271891644.1651763714

      During the pandemic, 44% of Amazon sellers claim that their businesses performed better than expected.

      https://www.junglescout.com/wp-content/uploads/2021/02/State-of-the-Amazon-Seller-2021-Jungle-Scout.pdf

      3P sellers account for 54% of Amazon’s revenue.

      https://www.aboutamazon.com/news/small-business/economic-impact-for-small-businesses-powered-by-partnership-with-amazon

      HEROES & CHANGE MAKERS | Our New Feature

      Our new feature, Heroes and Change Makers, concluded our discussion.

      We selected… Yvon Chouinard, Founder and CEO of Patagonia who stated, “instead of going public, we are going purpose.”

      100% of the company’s voting stock transfers to the Patagonia Purpose Trust, created to protect the company’s values; and 100% of the nonvoting stock had been given to the Holdfast Collective, a nonprofit dedicated to fighting the environmental crisis and defending nature.

      He wrote, “The funding will come from Patagonia: Each year, the money we make after reinvesting in the business will be distributed as a dividend to help fight the crisis.”

      https://www.patagonia.com/ownership/

      This is RETAIL DONE RIGHT. Thank you for listening. And please join our conversation.

      • Michael Cooke via Upwork is our brilliant sound engineer and editor – and Jade Siriwad composed our theme music.
      • Please subscribe on Apple Podcasts, Spotify, or your favorite podcast platform.
      • Please follow us on Instagram at retail done right and at our website https://retaildoneright.net

      Let’s go shopping!

      Jeff Fisher & Cristene Gonzalez-Wertz

      Connect with Jeff on LinkedIn

      Connect with Cristene on LinkedIn

       

      RETAIL DONE RIGHT is produced and hosted by Jeff Fisher & Cristene Gonzalez-Wertz

       

      Show Notes | S3 Ep2 | Amazon’s Impact on Retail

      Show Notes |S3 Ep2 | Amazon’s Impact on Retail

      Download pdf

      INTRODUCTION

      This episode begins our short series discussing Amazon and their impact on Retail. Our series comes at this from a physical retail, online retail and shopper behavior perspective by looking at the offering, tools and services Amazon has introduced and offered their customers, including the end-user customer and retailers in their marketplace.

      This episode focuses on how Amazon has changed Retail, especially shopper behavior – both online and offline.

      THE CONVERSATION

      Cristene kicked off the discussion with a bit of history.

      • https://www.businessinsider.com/jeff-bezos-amazon-history-facts-2017-4#in-the-early-days-of-amazon-a-bell-would-ring-in-the-office-every-time-someone-made-a-purchase-and-everyone-would-gather-around-to-see-if-they-knew-the-customer-2
      • https://nymag.com/intelligencer/2018/01/d-e-shaw-the-first-great-quant-hedge-fund.html

      SHOWROOMING

      Amazon made price shopping much easier. This ability to double check prices led to the term “SHOWROOMING,” where contrary to BOPIS, you visit in store and buy online. We discussed how this practice has become common to this day.

      • https://retailwire.com/discussion/is-mobile-enhancing-the-in-store-shopping-experience/
      • https://www.airship.com/company/press-releases/new-global-consumer-survey-finds-nearly-two-thirds-will-use-retailers-mobile-apps-to-meld-digital-and-physical-shopping-experiences-this-holiday-season/

      Please note: We credited Retail Dive in our discussion about the survey, but in fact it was Retail Wire that we meant to credit. In addition, the survey is from Airship.com. We apologize for this mistake.

      PERSISTING A CART

      The notion of PERSISTING A CART was popularized by Amazon too (and one of our personal favorites). Amazon does not stress about items in your cart. What other retailer takes that approach? Because of Amazon, everyone has had to take some action to deal with carts without calling it all “cart abandonment.”

      DELIVERY EXPECTATIONS

      Customers now expect fast delivery. This is part of their decision set regarding where they make their purchase. We discuss the game changer that was Amazon Prime and its launch offering of free 2-day delivery on every purchase and how this is still impacting retailers and brands today, including Nike.

      • https://www.vox.com/recode/2019/5/3/18511544/amazon-prime-oral-history-jeff-bezos-one-day-shipping
      • https://www.businessinsider.com/nikes-connected-inventory-plan-to-help-compete-with-amazons-speed-2022-9?tpcc=nldatasheet
      • https://routingchallenge.mit.edu/

       

      RETURNS

      A National Retail Federation survey found a record $761 Billion of merchandise was returned to retailers in 2021. That amount surpasses what the U.S. spent on national defense in 2021 (which was $741 billion). While Amazon has simplified the returns process for their customers, we discuss the impact this has had on the industry and our climate.

      • https://www.cnbc.com/2022/01/25/retailers-average-return-rate-jumps-to-16point6percent-as-online-sales-grow-.html
      • https://www.cnbc.com/2022/04/10/how-amazon-plans-to-fix-its-massive-returns-problem.html

      DESIGN

      Amazon has impacted shopper behavior across all the factors and more, with a less than beautiful website.  UX professionals are mortified – while being impressed – with their web design.

      • https://www.reddit.com/r/web_design/comments/jqkqjr/is_me_or_amazon_web_and_app_is_ugly_af/

      LOYALTY & MEMBERSHIP

      We discuss loyalty and membership and agree to disagree on the meaning of loyalty. To quote Cristene, “Did they reinvent the loyalty program? No, they created a frequency program that some call loyalty.”

      • https://www.vox.com/recode/2019/5/3/18511544/amazon-prime-oral-history-jeff-bezos-one-day-shipping

      AMAZON PHYSICAL RETAIL STORES

      Amazon has played – and is still playing – in physical retail. STORES. But with decidedly mixed results.  Success is not a word we would use here. We discuss Whole Foods, Amazon Books, Amazon Go, Amazon Grocery. We can add Amazon 4-Star, another chain of stores that has since been closed.

      LUXURY & TRY BEFORE YOU BUY

      Amazon’s ventures in both of these areas are discussed.

      HEROES & CHANGE MAKERS | Our New Feature

      Our new feature, Heroes and Change Makers, concluded our discussion.

      Jeff offered up: James Daunt, CEO of Barnes & Noble. His turnaround of Barnes & Noble (and Waterstones in the UK) is extremely impressive.

      • https://www.nytimes.com/2022/04/15/arts/barnes-noble-bookstores.html?searchResultPosition=4

      Cristene offered up her local Waste Management Authority and how they are trying to help people divert gently used items to four key locations:

      1. Habitat for Humanity Restore
      2. Lancaster Creative Reuse – for unique and affordable arts, crafts and sewing supplies.
      3. Building Character – 70 little shops that bring recycled and vintage goods together. The largest retail destination in downtown Lancaster and a real unsung hero.
      4. The 300 Block of North Queen is chockablock with vintage and repurposed stores.

      CONCLUSION

      We wrap with four dichotomies:

      1. Bezos as CEO
      2. Does technology drive the experience? Or does the experience drive the technology?
      3. Delivery, Loyalty, Leverage
      4. Physical retail – if you have a chain of B&M stores, take advantage of this.

      This is RETAIL DONE RIGHT. Thank you for listening. And please join our conversation.

      • Please subscribe on Apple Podcasts, Spotify, or your favorite podcast platform.
      • Your comments are so important! This is the best way for us to hear directly from you so we can improve. It also helps us reach a broader audience.
      • Please follow us on Instagram at retail done right and at our website https://retaildoneright.net

      Let’s go shopping!

      Jeff Fisher & Cristene Gonzalez-Wertz

      https://retaildoneright.net/

      #RetailDoneRight

      Connect with Jeff on LinkedIn

      Connect with Cristene on LinkedIn

      RETAIL DONE RIGHT is produced and hosted by Jeff Fisher & Cristene Gonzalez-Wertz

       

      Show Notes | S3 Ep1 | The State of Retail Today

      Download pdf

      Show Notes |S3 Ep1 | The State of Retail Today

      Special Guest: Shelley E. Kohan

      INTRODUCTION

      We’re in the era of the Customer Channel – where Shoppers’ rule.  This requires retailers to be empathetic and supportive of their customers, in every way.

      We explore these changes – to identify them, share insights and speak with a variety of people in the trenches to better understand the changing nature of retail.

      To kick off Season 3, we’ve invited back our first 3-time guest, Shelley E. Kohan. As we leave Summer behind and look toward the 4th quarter and the Holiday Season, consumer outlook seems dark. Is there a storm ahead? Is the outlook possibly a bit better than consumer sentiment would suggest? We will talk about the state of the retail industry today.

      Shelley E. Kohan is the Chief Strategist at The Robin Report, a retail expert (as represented by the countless times she’s quoted in the media), a retail pundit, a senior contributor on Forbes.com and a professor at Fashion Institute of Technology and Syracuse University. She was recently recognized as a Top 100 Global Retail Influencer. And before all of this she spent over 40 years in the industry as a senior executive.

      THE CONVERSATION

      We had a wide-ranging conversation about the state of Retail today. Here’s some of the questions and links referenced.

      INFLATION

      Inflation is hitting us all hard. And impacting shopper behavior and purchasing. It looks like, due to inflation and consumer sentiment, that we are seeing a bifurcation again in retail.  Not the first time!

      https://fortune.com/2022/08/28/inflation-retail-earnings-american-consumer-who-bears-cost-high-rising-prices/

      https://www.youtube.com/watch?v=k5nLGJunMg4

      https://www.retaildive.com/news/what-walmart-and-targets-performance-told-us-about-retail-for-the-rest-of/630515/

      Cristene asked Shelley how Retail is responding. Are you hearing this from executives?

      Cristene then shared data from the National Retail Federation (NRF) that predicts that retail sales for 2022 will grow by 6 to 8% over 2021. She asked if it’s safe to say that $ will flow to retail.

      QUIET QUITTTING

      Jeff spoke about how we’ve gone from the Great Resignation to Quiet Quitting and quoted from Shelley’s recent article: https://www.forbes.com/sites/shelleykohan/2022/08/29/remote-work-quiet-quitting-will-make-holiday-hiring-for-retailers-difficult/?sh=cfbcca84746c

      Jeff then asked Shelley, “What can customers expect this Holiday shopping season? Will it continue to be difficult to find a staff person in store?”

      Cristene built on this and commented that a lot of people in Retail live at baseline subsistence. Restaurants have been using service charges to increase towards a fair wage. She asked how are retailers managing this move towards a fair wage?

      THE PANDEMIC

      I quoted from an article in The Economist:

      https://www.economist.com/business/2021/09/19/two-new-shocks-for-american-shopping

      Shoppers have returned to physical stores. Ecommerce has leveled off. But shoppers behavior is different. They are so much more comfortable with tech, with QR codes. With the blend of the online and offline. Morning Consult recently published their latest state of retail and ecommerce report.  Three takeaways include:

      1. The next phase of e-commerce growth requires more IRL shopping elements
      2. Convenient delivery is more important than fast delivery
      3. Consumers can’t continue to absorb higher costs, and retailers’ pain will grow

      https://go.morningconsult.com/rs/850-TAA-511/images/220812_H2%20State%20of%20Retail.pdf

      Jeff commented that we’ve learned to live with COVID-19 and the variants. We’ve seen the return to stores. He then asked Shelley, what else should we expect, or plan for?

      SUPPLY CHAIN

      Cristene spoke about Supply Chain issues and how they are not behind us. In fact, there are some fascinating trends and shifts happening.

      • Onshoring
      • Reshoring
      • Local, local, local

      She asked Shelley, “Do we really think we are going to near-shoring as opposed to reshoring? Or is it something else?”

      https://www.sdcexec.com/safety-security/risk-compliance/news/22301806/brightpearl-more-than-onethird-of-us-retailers-will-go-bust-from-supply-chain-issues

      https://www.retailbrew.com/stories/2022/08/16/four-supply-chain-experts-on-the-challenges-of-manufacturing-in-the-us-and-the-tactics-to-turn-to-instead

      https://www.businessoffashion.com/articles/retail/american-eagle-quiet-logistics/

      Q2 EARNINGS HIGHLIGHTS

      Jeff shared Q2 highlights from select Retailers:

      Warby Parker:

      https://www.retaildive.com/news/dtcs-second-quarter-earnings-down/629291/

      Allbirds:

      https://www.retaildive.com/news/allbirds-sunsets-leggings-widening-losses/629181/

      https://www.retaildive.com/news/allbirds-lays-off-8-percent-global-corporate-workforce/628764/

      Bed Bath & Beyond

      https://www.retaildive.com/news/bed-bath-beyond-ceo-out-sales-fall-q1/626302/

      https://www.retaildive.com/news/bed-bath-beyond-to-close-stores-lay-off-staff-as-part-of-turnaround-plan/630933/

      https://www.retaildive.com/news/bed-bath-beyond-bankruptcy-risk-what-happened/630011/

      https://www.retaildive.com/news/bed-bath-beyond-talking-with-suitors-for-buybuy-baby-wsj/622606/

      Best Buy

      https://www.retaildive.com/news/best-buy-sales-slide-inflation-discounting-take-toll/630797/

      Yeti

      https://www.forbes.com/sites/shelleykohan/2022/08/05/yeti-sales-up-17-as-customer-demand-remains-high/?sh=57b5a07c65de

      HEROES & CHANGE MAKERS | Our New Feature

      We’re launching a new feature for Season 3. We’re calling this, Heroes and Change Makers. We did an episode last season and it really resonated.  Each podcast this season, we will highlight one person or company (who we haven’t talked about) who we believe is a Hero or Change Maker.

      Shelley offered up:

      • Dave Kimbell, CEO at Ulta Beauty
      • Amy Errett, CEO at Madison Reed

      Cristene offered up:

      • Shekar Natarajan, Chief Supply Chain Officer at American Eagle Outfitters Inc.

      RESEARCH AND LINKS

      Recent articles by Shelley:

      • https://www.forbes.com/sites/shelleykohan/2022/08/29/remote-work-quiet-quitting-will-make-holiday-hiring-for-retailers-difficult/?sh=cfbcca84746c
      • https://www.forbes.com/sites/shelleykohan/2022/08/17/july-retail-sales-flat-but-beauty-and-wellness-remain-a-top-category/?sh=738862207483
      • https://www.forbes.com/sites/shelleykohan/2022/08/17/july-retail-sales-flat-but-beauty-and-wellness-remain-a-top-category/?sh=3328099e7483

      CONCLUSION

      This is RETAIL DONE RIGHT. Thank you for joining our conversation.

      • Please subscribe on Apple Podcasts, Spotify, or your favorite podcast platform.
      • Your comments are so important! This is the best way for us to hear directly from you so we can improve. It also helps us reach a broader audience.
      • Please follow us on Instagram at retail done right and at our website https://retaildoneright.net

      Let’s go shopping!

      Jeff Fisher & Cristene Gonzalez-Wertz

      https://retaildoneright.net/

      #RetailDoneRight

      Connect with Jeff on LinkedIn

      Connect with Cristene on LinkedIn

       

      RETAIL DONE RIGHT is produced and hosted by Jeff Fisher & Cristene Gonzalez-Wertz

      Show Notes | S2 Ep12 | Retail Heroes, Villains & Change Makers

      Download pdf

      INTRODUCTION

      We close out Season 2 with our point of view on retail’s heroes, villains and change makers. Yes, we’re naming names.

      HEROES

      • Colleen Wegman, President and CEO of Wegmans
      • Target
      • Costco
      • The Shade Store, https://www.theshadestore.com/
      • Terrain, https://www.shopterrain.com/
      • Barnes & Noble and independent bookstores
        • https://www.nytimes.com/2022/04/15/arts/barnes-noble-bookstores.html (paywall)
        • Changing Hands Bookstore, https://www.changinghands.com/
        • DogStar Books, http://www.dogstarbooks.com/
        • Winding Way Books https://www.facebook.com/theindiebookstoreexperience/
        • The Caffeinated Bookworm, https://www.facebook.com/Thecaffeinatedbookworm/
        • https://mymodernmet.com/best-independent-bookstores-usa/
      • The Citizenry, https://www.the-citizenry.com/
      • Ulta Beauty
        • https://www.ulta.com/investor/news-events/press-releases/detail/150/ulta-beauty-launches-retail-media-network-ub-media

      VILLAINS

      • Brandy Melville
        • https://www.businessinsider.com/insider-weekly-brandy-melville-elizabeth-holmes-bitcoin-2021-9
      • Jennifer Sey, former brand president of Levi’s
        • https://www.retaildive.com/news/levis-brand-chief-quits-over-activism-against-pandemic-restrictions/618841/
      • Etsy
        • https://abcnews.go.com/Technology/wireStory/etsy-sellers-protest-fees-halting-sales-week-84022090
      • Chick Fil A
      • The Home Depot

      CHANGE MAKERS

      • RH
        • https://ir.rh.com/news-releases/news-release-details/rh-announces-opening-rh-san-francisco-gallery-historic-bethlehem
      • Jose Andre and World Central Kitchen
        • https://wck.org/
      • Rihanna and Savage X Fenty
        • https://www.vogue.com/article/rihanna-savage-x-fenty-retail-stores
      • L. Bean
        • https://chainstoreage.com/ll-bean-temporarily-leaves-social-media-heres-why?oly_enc_id=3358I4996623D3X
      • Kaiyo, https://kaiyo.com/
        • https://www.forbes.com/sites/pamdanziger/2022/04/20/kaiyo-seizes-opportunity-to-keep-used-furniture-out-of-landfills-and-sell-it-along-secondhand/?sh=4005ef511544
      • Italic, https://italic.com/

      CONCLUSION

      We’d love to hear from you. Do you agree? Disagree? Would like to add to the list?  Please share!

      This wraps Season 2.  Thank you for listening. Please share your comments.

      We are building Season 3 now and welcome your input and topic suggesttions. Please comment or reach out to either of us.  We look forward to hearing from you.

      Let’s go shopping!

       

      Jeff Fisher & Cristene Gonzalez-Wertz

      https://retaildoneright.net/

      #RetailDoneRight

       

      Connect with Jeff on LinkedIn

      Connect with Cristene on LinkedIn

       

      RETAIL DONE RIGHT is produced and hosted by Jeff Fisher & Cristene Gonzalez-Wertz

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