Every week we summarize the top news and stories, here are our picks from last week including links to the stories:
But, before we jump into last week’s top stories there were two topics created a lot of buzz in the retail-sphere this past week; Instacart and Retailer Owned Media. While they are different topics, the surrounding conversations and debates were similar.
There have been, and continue to be, a lot of opinions, discussion and debates shared, yet it does depend on the individual’s perspective – is the point of view through a retailer or CPG lens? We heard it all; they are strategic assets, a necessary evil or just plain evil? Or, to use different terms are we talking friends, frenemies or enemies?
Our point of view at RetailWit is that both Retailer Owned Media and Instacart have the potential to be any of the above, and the decisions made by these organizations this year will determine what the answer will be:
- Will Instacart expand capabilities and become a full outsource eComm resource for retailers? Managing dark stores and micro fulfillment? Or do they take the leap and become a stand-alone retailer this year?
- Will Retail Owned Media compete against traditional advertising on their own merits; better targeting, detailed measurement and higher results? Or will retailers turn them into a requirement and another tax for CPGs (some even called this the new slotting fee)?
- A further overlap of this conversation is Instacart competing for the same advertising dollars. Two different topics, but the collision is coming.
We will be watching this closely and sharing as we learn more. We would love to hear your thoughts on this topic as well, what do you think?
Now, on to the big stories of the last week:
- Target to Expand Apple Footprint in store – Brilliant move to continue the premiumization of the in store experience with a premium brand. The timing is really good as Best Buy announced they are shrinking the square footage dedicated for selling to increase ecom fulfillment, and announced a massive layoff as they flex their workforce. Will we see a Peloton store within a store next at Target?
- Catalina tracks pandemic’s ‘lasting impact’ on U.S. CPG purchases – It is well known that more households were baking and enjoying adult beverages, but did you know canned meat and marshmallows had a big year as well?
- Can Grocers Fight Veggie Consumption Decline? – So much for all of those supposed health trends and getting in shape during the pandemic – Vegetable consumption is down 10% since 2004, driven by reduced frequency and decreased vegetable juice intake. This has implications for producers, CPGs and maybe most importantly the overall health of the country
- Speaking of veggies and alternative proteins – Beyond Meat continues to expand their footprint after announcing partnerships with McDonalds, Yum! Brands and PepsiCo.
- In 2021, online grocery sales will surpass $100 billion – According to a forecast from eMarketer this is the year that online grocery will exceed $100B, 2020 was $95.8B so $100B seems quite feasible.