Tribalism runs deep. Affinity behavior has been with us throughout history but with an assist from social media, we have achieved a new level of us-versus-them-ism that extends to our consumption habits. A recent Axios/Harris poll shows that brands with a clear political identification are becoming more popular with aligned consumers. Both Patagonia and Chick-fil-A have benefited from their public positions with consumer groups. G Kofi Annan, V.P. of Consumer Experience and Brand Strategy at JUICE in San Francisco has proposed that as we …
Management
Macy’s Beyond the Numbers
Wow Macy’s...at least for now. Q1 results surprised and exceeded Wall Street’s expectations. Furthermore, as CEO Jeff Gennette boldly stated about Macy’s Q1 financial results, “We don’t see this as a short-term pop.” Full of optimism, he said, “There will be a gigantic gift holiday. We are approaching it that way.” In fact, his ebullience over Q1 and outlook through back-to-school and the Holidays, prompted Macy’s to raise its full-year guidance for 2021. Behind the Numbers I’m going to skip past the actual numbers. You have probably already …
The Mom Whisperer: Evereve’s Secret Sauce
How many retailers do you know that were founded and inspired by a woman who found herself crying alone with a baby stroller in a dressing room? Evereve’s husband and wife cofounders, Megan and Mike Tamte, pride themselves on being “the biggest women’s apparel retailer that you’ve never heard of.” My first reaction upon visiting the website was, it’s an off-price world right now. So how does Evereve justify charging full price on brands like Free People, Michael Stars, and Revolve? Style and Substance When I hopped on a Zoom call with …
Target Commits to Black-Owned Businesses
Retail behemoth Target Corporation’s recent announcement that it has committed to spending more than $2 billion by 2025 on products and services from Black-owned businesses, including ramping up the number of minority-owned brands on store shelves and Target.com to at least 500, is setting a new bar for what it means to be a retailer in an era when racial justice and equality are front and center in American national discourse. The mega retailer also announced that it would engage with more advertising, marketing, and construction companies …
The Good, the Bad, and the Ugly of Purpose-Driven Retail
Purpose-driven retail is more than just a buzzword… it’s the new standard. Contrary to popular belief, purpose-driven retail and conscious capitalism are not the same thing. Conscious capitalism works to elevate humanity through every component of a business, while purpose-driven retail refers to a retail business built around an altruistic central purpose or core motivation. Have you heard the slogan “your vibe attracts you tribe?” The retail version would be, “Your purpose attracts your customers.” This isn’t theoretical: nearly …
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Our Workforce Under Pressure
How do you understand and motivate today’s workforce? Being a corporate leader today has never been more complicated than it is right now. The demands of operating a business are daunting between the logistics of sourcing products, managing supply chains, financial engineering, marketing, sales, data analytics, communications and personnel management. Power Shift For over 40 years, the mantra of CEOs and CFOs has been to shun any concern other than those of shareholders’ demand for profits. That mantra has been efficient beyond belief. …
Will Corporate America Continue to Steer Social Policy?
Remember when retail and politics were separate entities? In the past decade, brands have been called upon to take a stance on social and environmental issues. Speaking out about incendiary policy is mainstream and no longer a role relegated to millennial-focused outdoor brands such as Patagonia and REI. The retail landscape has never been more polarized. Even Patagonia has taken a more active role in politics by openly endorsing senate candidates, lobbying for environmental issues and adding tags to clothing that say “Vote the A••holes …
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Saks: Unlocking Value, for Whom?
I will state my opinion right up front. I believe Richard Baker's move to split the Saks Fifth Avenue and its ecommerce business into separate companies, which he calls "unlocking value," is simply applying a fancy buzzword, disguising what will ultimately lead to a real estate play. The reality is somewhere, way down deep in his real estate DNA, he clearly sees his personal cash-generating machine where it always has been -- in real estate. So, don't fall for unlocking value in the retail enterprise as a strategy to improve and accelerate the …