Kantar Retail breaks down retail strategy over first half of 2016

BOSTON – Kantar Retail on Tuesday released the first of two Breakthrough Insights reports to be distributed in 2016.



“We are seeing a global retail environment where opportunity certainly exists, but that requires competitors to look at the ecosystem holistically and perhaps very differently than what they have been accustomed to,” stated Bryan Gildenberg, chief knowledge officer of Kantar Retail. “From the importance of the functional and emotional components of reducing friction in the shopping trip to new business models that require plans that are broader and more transparent than ever before, the 2016 retail landscape has been all about change so far. This first half analysis highlights the themes that we believe are driving that change and that we feel are most important to those trying to sell more effectively and profitably in retail today.”



“Changing What Matters,” a compilation of recent analysis produced by Kantar Retail, looks to expand on the two major changes that the retail consultancy had identified earlier in the year as being most important to the retail ecosystem.



The first major direction, focusing on an evolving environment and termed “the smaller, harder world,” centers on the reality that while there are still many platforms for retail growth globally, these opportunities tend to be smaller in scale and more difficult to access.



“Changing What Matters” examines the trend from a macro perspective, providing a look at the recent disappointing holiday sales season and a “state of the union” analysis of Walmart’s international competitive position. From a retailer perspective, the report examines the expansion of discounters worldwide into fresh foods, while from a shopper perspective, it looks at the demand for “stress-free’ shopping, how Home Depot has approached this demand and provides a perspective on Costco’s global operation.



The second major change analyzed –  that of how retailer and supplier work is changing  –  is examined in three parts, “Winning With Retailers,” “Winning With Shoppers” and “Winning Plans.”



“Winning With Retailers” focuses on key aspects of a winning retailer strategy, such as discounting appropriately, highlighted through an analysis of Asda’s decision not to repeat its Black Friday promotions in 2016, and a by looking at the major challenges facing U.S supermarket suppliers today.



“Winning With Shoppers” focuses on granular competition with an analysis of the challenge in differentiating two massive retailers – Walmart and Sam’s – owned by the same company and an overview of the subscription box business in the apparel industry. “Winning Plans” examines the competitive disruption brought to U.S. eCommerce by Jet and the faster than expected expansion of Amazon’s Prime Now two-hour delivery capability.