5 Retail topics to watch in the second half
The 2024 election. An uncertain economy. Global conflicts.
Those are big topics for this year’s second half. Food and drug retailers, however, don’t have much control over them. You need to look deeper to identify areas in which retailers have control and are actively pursuing near-term initiatives.
I’m excited about these five areas in the second half because they are quickly evolving, and retailers are playing important roles.
1. Private Brands Get “Better”
Retail private brands are on a roll due to their value allure and increased acceptance by consumers. Retailers are increasingly introducing new offerings and enhancing existing lines. A case in point is CVS Health, which recently launched Well Market, a new private label consumables brand that realigns an existing program and plays up nutritious options and new flavors. Also notable is Walmart’s recent launch of bettergoods, a new private brand focused on enhanced culinary experiences.
2. New Strategies Battle Theft
Retailers are pulling out all the stops to combat growing theft challenges in stores. Their asset protection solutions include initiatives that leverage emerging technologies. Walgreens drew a lot of attention last year when it converted a downtown Chicago store impacted by robberies into a high-tech prototype geared to boosting asset protection efforts and meeting customer needs. The retailer is continuing to evaluate and adapt this prototype.
Meanwhile, Sam’s Club has moved quickly to roll out AI-powered exit technology at 20% of its membership warehouse clubs after introducing the new solution in January. It resolves a key member concern—waiting in line for receipt verification to exit the clubs.
3. Community Engagement Targets Schools
Retailers have been focusing more community efforts on schools—even well ahead of the back-to-school season. Walmart is working with Box Tops for Education to make it easier for shoppers to support schools. Shoppers can give back to their selected schools by connecting their Walmart account in the Box Tops app. Meanwhile, retailer/wholesaler SpartanNash has increased its education scholarship levels in the second year of its Our Family Scholarship program, which rewards students for community involvement in the company’s operating areas.
4. Sustainability Momentum Accelerates
Retailers have been pursuing unique sustainability initiatives geared to their local operating areas. Canadian food retailer Metro recently signed a deal with electric vehicle charging provider FLO to install fast-charging ports at 130 stores in Ontario and Quebec. The Giant Co. has teamed with Keep Pennsylvania Beautiful to award $100,000 from its Healing the Planet grant program for tree plantings across Pennsylvania. The focus on programs such as these make it likely that individual retailer efforts will collectively add up to meaningful results.
5. Retail Media Advances
Retail media networks have helped enhance engagement opportunities for brands and shoppers. Much of the latest excitement is around partnerships built to further drive the programs. Dollar General’s media network is partnering with commerce media company Criteo; Giant Eagle is linking its network to the third-party Rippl data and media collective that helps advertisers target audiences; and Save Mart has partnered with Quad/Graphics for digital sign technology. We should expect to see more partnerships and momentum ahead as retail media programs further develop.
These five topics are very different, but they share some similarities.
In each case, retailers are pursuing strategies unique to their own needs and beneficial to their customer bases. We should watch how these topics play out in the near-term to better understand what is working and where retail is headed.
