Retail Intel Weekly: Best Buy, Target & More

TOPLINE NEWSConsumers view Amazon as significantly “different” than competitors Target and Walmart, according to a BrandZ analysis by Kantar that found Amazon has opened a wide brand equity gap this year over competitors. While shoppers in the report viewed Amazon, Walmart and Target as all being "meaningful" (defined as meeting consumer needs in a relevant way) and “salient” (quickly coming to mind), Amazon was also viewed as being significantly “different” (being unique versus competitors and/or setting trends). On a scale where an average brand scores 100, Amazon scored 289 on the BrandZ Power Index, which measures the ability to drive current market share. Meanwhile, according to new data from Kantar’s "Commerce Snapshot" report, Target ranked highest in overall online performance among consumers, with 78% having a positive experience on the retailer's website. Target’s top ranking was due to its strong performance in quality (82%), delivery speed (79%) and low friction (77%). Delivery service provider Instacart and e-commerce giant Amazon were tied for second, at 71% each. Walmart and New York-based online grocery retailer Boxed rounded out the top five, at 69% and 66%, respectively.Walmart continues to dominate all stores when it comes to value, according to the dunnhumby Consumer Pulse Survey, a year-long worldwide study of the impact of COVID-19 on shopper attitudes. Thirty-three percent of respondents mentioned Walmart first when asked which stores provide the best value, followed by Kroger and Aldi (both tied at 10%) and Amazon (6%). CLUBPresident and CEO of BJ’s Wholesale Club, Lee Delaney, died unexpectedly on April 8 at the age of 49 due to "presumed natural causes," the company announced the following day. Bob Eddy, executive vice president, chief administrative and financial officer, has been named interim CEO, effective immediately. In addition, Christopher J. Baldwin, chairman of the board of directors, has been appointed executive chairman. Delaney joined BJ’s in 2016 as evp, chief growth officer and was promoted to president in 2019. Prior to joining BJ’s, he was a partner in the Boston office of Bain & Company from 1996 to 2016. Delaney attended business school at Carnegie Mellon University and earned a bachelor’s degree from the University of Massachusetts.Baldwin said on behalf of the board in a press release: “We are shocked and profoundly saddened by the passing of Lee Delaney. Lee was a brilliant and humble leader who cared deeply for his colleagues, his family and his community. We extend our most heartfelt condolences and sympathy to his family, especially his wife and two children. We will honor his legacy and remember the extraordinary impact he had on so many. Our thoughts are with them during this difficult time.”ELECTRONICSBest Buy is piloting a new membership program dubbed Best Buy Beta that provides shoppers with special benefits, including exclusive member pricing, up to two years of protection on most product purchases, free standard shipping and delivery, and free installation on most products and appliances. The program is $199.99 per year or $179.99 per year for Best Buy credit card holders. The pilot is currently available at select stores throughout Iowa, Oklahoma and eastern Pennsylvania. In April, it will expand to customers and select stores in Minnesota, North Carolina and Tennessee. At that time, it will be available at a total of about 60 stores. The retailer’s current membership program, Total Tech Support, is still available to shoppers outside of Best Buy Beta pilot markets.SUPERMARKETAlbertsons Companies has introduced a new line of private-label wines, including a 2018 Pinot Noir and 2019 Chardonnay, marketed as sustainable. Available at most chains, Kalyana wines are crafted from grapes grown and vineyards located in California’s Central Coast. Both the vineyards and the winery are certified sustainable by the Certified California Sustainable Winegrowing Alliance. The retailer similarly certifies some of its private labels such as Open Nature home cleaning products that are approved by the EPA’s Safer Choice program and the EPA’s Design of the Environment program.Whole Foods Market has rolled out a third-party certification program that marks complying products with a “Sourced for Good” seal. International organizations such as Fair Trade USA, Rainforest Alliance, Fairtrade America, Fair Food Program and Equitable Food Initiative are some of the groups that certify products for the program. The expanded Sourced for Good program will replace the Whole Trade Guarantee the retailer introduced in 2007.MASS MERCHANTTarget recently pledged to spend more than $2 billion with Black-owned businesses by the end of 2025. The retailer's commitment aims to "create more equitable experiences for our Black [shoppers], and use our company’s size, scale and resources to create economic opportunity for Black-owned businesses that extends outside of Target," according to an April 7 "A Bullseye View" blog post. As part of the initiative, the retailer said it plans to: increase the number of products from Black-owned businesses to more than 500 across Target stores and online.spend more with Black-owned companies including marketing agencies, construction companies, facilities maintenance providers and others.establish new resources, including Forward Founders, a program designed to engage with Black entrepreneurs early in their startup journey and help them grow and scale their businesses in mass retail. Walmart has named a former Walt Disney Co. executive as its first-ever chief creative officer. In her new role, Jean Batthany will direct consumer-focused communications across all channels and connect teams to "develop breakthrough and innovative marketing at all consumer touch points," according to a LinkedIn post. She previously spent 4.5 years as VP of global creative Disney, where she led Yellow Shoes, a creative agency for Disney parks, experiences and consumer products.Walmart has also hired Courtney Carlson, a former marketing executive at Under Armour and Target, as SVP of marketing. At Traget, Carlson was senior director of marketing for private-label brands from 2012 to 2015, and a director of grocery, pet care and food expansion before that.Bloomberg reported that Walmart's mysterious financial technology venture now has a possible name: Hazel by Walmart. The retailer filed for a trademark on the name on March 29, with the application including a slew of financial services that the startup could potentially offer, from issuing credit cards and offering credit-repair services to financial-portfolio analysis and consulting.Walmart has introduced a new desktop and mobile tool called Walmart Paint Finder. Powered by New York-based eko, the interactive video experience is hosted by interior decorator and stylist Estee Stanley, who helps shoppers choose what color and type of paint they should buy, complete with SKU-specific product recommendations.McDonald's is closing hundreds of restaurants located in Walmart stores by this summer. Only 150 of its restaurants will remain at U.S. Walmart locations, far below the peak of the 30-year partnership when 1,000 McDonald's restaurants were inside Walmart stores. Reports indicate franchisees of Subway, also with locations in Walmart stores, also say they are closing locations this year, citing diminished foot traffic and lower profits.DOLLAR STORESDollar General has promoted Nick Snow to vice president, decision science and analytics. In his new role, Snow will be responsible for analytical and decision-making support within various internal departments. This responsibility will include behavioral science, pricing strategy, macro trend and forecasting analytics for the organization. Since 2004, Nick has held various roles of increasing responsibility within various functions of the business. Snow's new role was among a batch of internal promotions, which illustrate the retailer's operating priority of investing in its "diverse teams through development, empowerment and inclusion," according to a March 30 media release from Dollar General. Among the other promotions: Rod West was promoted to senior vice president, distribution.Angela Martin was named to vice president, customer insights and branding. Shareeka Meadows was named vice president, division merchandise manager.Denine Torr was promoted to vice president, corporate social responsibility/philanthropy.Jeff Vaughan has stepped into the role of vice president, channel innovation.Pooh Vichidvongsa has been promoted to vice president, division merchandise manager. AMAZONAmazon is considering holding its annual Prime Day sales event in mid-to-late June 2021, sources told Recode. The event has usually been held in July until the 2020 version was postponed till October due to the impact of the COVID-19 pandemic. An Amazon spokesperson would not confirm or deny the report for Recode. "One source speculated that the timing could be influenced by Wall Street. More specifically, Amazon execs may want to boost sales in the second quarter of the year to help with financial comparisons to the second quarter of 2020, when Amazon revenue grew an above-average 40% amid lockdown-fueled stock-up splurges," Recode wrote.Research firm eMarketer released a new report estimating Amazon's 2020 ad revenue at $15.73 billion, up 52.5% from 2019, and its share of the U.S. digital ad market at 10.3%, up from 7.8% in 2019. Nearly 90% of Amazon’s ad revenue was driven by ads that appeared on the company’s e-commerce platform, with search ads for sponsored products and brands accounting for a large percentage of that revenue, according to the report. The National Labor Relations Board has accused Amazon of illegally firing two employees who spoke out publicly about its treatment of fulfillment workers and its sustainability policies, and upheld a complaint by a worker who led a Queens, NY, walkout in 2020, the New York Times reported.Meanwhile, the first major unionization drive at an Amazon warehouse in the U.S. failed at a fulfillment center located in Bessemer, AL. Labor experts believe there will likely be an appeal.

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