Got this email responding to Tom Furphy’s and my Innovation Conversation about Walmart’s Luminate program:
Walmart does not necessarily need to use data to target specific customers because they attract a large percentage, overall, of demographic and income levels. If they already know that XX% of people from a specific economic level regularly shop in Walmart, they don’t then need to target offers to specific shoppers. For example, there is a large Latino population in the southern part of my town and into the neighboring town. When I shop in my local Walmart, it is obvious that many of them shop there. These shoppers are already in the store; data-based targeting is superfluous.
Superfluous? Really? What if a person who is part of that Latino community is lactose intolerant, or a vegetarian? Wouldn’t it make sense to make sure that this person never is targeted with milk or meat promotions?
Yesterday, MNB reported that following in the footsteps of Amazon Prime and Walmart+, Target announced the launching of Target Circle 360, a new paid membership program described by the company as “a new paid membership that includes unlimited free same-day delivery for orders over $35 in as little as an hour with no delivery fees or markups, free two-day shipping, access to preferred shoppers who can personalize their experience, and access to Shipt Marketplace, which offers same-day delivery from more than 100 retailers nationwide.”
I commented:
I think it is a legitimate question to ask whether Target is a day late and a dollar short.
This does appear to be a me-too entrant in the membership wars, and it remains to be seen if Target can offer enough advantages to distinguish it.
One MNB reader responded:
Hmmm. Question is are they only a day late. However, at the end of the day it is about executing a profitable strategy. Pandemic and inventory issues are behind them but they still aren’t a player in the growing internet business. How well they execute and convince shoppers ultimately determine all retailers success.
And from MNB reader Steve Anvik:
May be too late re leakage, but if any consumer is Target brand loyal – then this likely solidifies and builds basket for those most loyal. It’s not me, but for many consumers I know – they are as passionate re Target as others are for their store.
On the subject of Whole Foods launching a small format store that it is calling Whole Foods Market Daily Shop, one MNB reader wrote:
Back in the seventies I can remember Purity Supreme ran Superstores called Heartland, and small convenience stores called Lil’ Peach. Years before they were absorbed by Stop and Shop.
Agreed. Not a new idea. But a good one, if it is done right.
One MNB reader took a bit of an issue with how I describe the economy:
The economy may be improving but to many it feels more like it’s stabilizing. For those households that live paycheck to paycheck inflation coming back to prepandemic levels does not close the jump in prices that occurred in the pandemic. Perception is reality and for those struggling to meet their household budgets talk of getting price inflation back to 2% doesn’t help pay the bills. The reality is as long as people continue to need to cut items out of their shopping trip and/or trade down in their basket selections they are reminded of what they have given up.
Actually, I disagree with that. Perception is perception. Reality is reality. I agree that they often don’t match up, but if people perceive, for example, that the unemployment rate is high when it is, in fact, low, that doesn’t change reality.
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