Podcast Summary: Behind the Numbers: Reimagining Retail – The Unofficial Most Interesting Retailers List (November 2024)
Release Date: November 27, 2024
Host: Sara Lebo
Guests: Arielle Fager, Suzy David Canyon, Jeremy Goldman
Introduction
In the November 27, 2024 episode of Behind the Numbers: Reimagining Retail, host Sara Lebo and her panel of experts dive into the Unofficial Most Interesting Retailers List for the month. This episode, recorded on Thanksgiving Eve—a crucial period for retail insights—examines the strategies and innovations of eight standout retailers. The discussion is enriched by the insights of committee members Arielle Fager, Suzy David Canyon, and Jeremy Goldman, who collectively assess each retailer's impact on the evolving retail landscape.
The Unofficial Most Interesting Retailers List
Number 8: 7-Eleven
Timestamp: 02:28
Arielle Fager highlights 7-Eleven's strategic expansion of its Gulp radio network to 5,000 stores, emphasizing the low barrier to entry in in-store audio as a smart move for retail media. Additionally, 7-Eleven is broadening its store footprint to include more fresh food options, catering to consumers seeking convenience and value:
"7-Eleven is really starting to kind of expand its store footprint to include more fresh food options, which I think is really interesting." (Arielle Fager, 02:28)
Number 7: CeraVe
Timestamp: 03:25
Sara Lebo announces CeraVe's venture into hair care, aligning with the beauty industry's robust growth—projected at 6.6% for hair care in 2024. Jeremy Goldman praises the brand's leverage of existing brand equity:
"The way in which they're approaching it seems to lean very heavily into their existing brand equity." (Jeremy Goldman, 04:50)
Conversely, Suzy David Canyon voices concerns about market saturation:
"It's such a crowded marketplace and it's like so high, low in that there's like people go to the salon and buy like super duper expensive things... or they buy the cheapest thing in the pharmacy." (Suzy David Canyon, 05:33)
Number 6: Klairs
Timestamp: 06:16
Arielle Fager discusses Klairs' launch of five new fragrances targeting "Gen Zalpha," a demographic between Gen Z and Gen Alpha. With Gen Z's fragrance use skyrocketing from 5% in 2022 to 83% in 2023, this move taps into a significant growth opportunity:
"The price point is pretty good. I think the highest price on one of those perfumes is about 25 bucks." (Arielle Fager, 07:42)
Suzy David Canyon questions the longevity and competitive edge in a saturated fragrance market:
"It's just a really good idea. But is that the right product for them? I don't know because there's so much competition." (Suzy David Canyon, 07:22)
Number 5: Kendra Scott
Timestamp: 08:10
Arielle Fager notes Kendra Scott's foray into western wear with the new brand Yellow Rose, featuring boots, hats, jeans, and jewelry in partnership with the TV show Yellowstone. This move leverages brand affinity to capitalize on the enduring cowboy trend:
"It might be a little late on capturing the cowboy trend, but I do think that it's got such brand affinity from its customers that I think it's going to do pretty well." (Arielle Fager, 08:10)
Jeremy Goldman expresses skepticism about the timing and relevance of the cowboy trend:
"I think the timing is off." (Jeremy Goldman, 18:11)
Number 4: The Children’s Place
Timestamp: 09:19
Sara Lebo finds The Children's Place's decision to establish a storefront on Shein intriguing, given the brand's traditional positioning as a mid-priced mall retailer. This strategic pivot addresses challenges like declining mall traffic by embracing digital marketplaces:
"I guess it's not surprising when you consider that they have been struggling, especially with malls closing." (Sara Lebo, 09:19)
Jeremy Goldman emphasizes the potential benefits of partnering with Shein to create a digital mall experience:
"I think that that is definitely a winning move for them if they can basically create a digital mall with a lot of different unique storefronts." (Jeremy Goldman, 09:56)
Suzy David Canyon highlights the mutual benefits for both retailers:
"It's interesting for both of them for exactly what you both said. Shein is moving away from Chinese made products... and Children's Place is trying to shake off the expensive branding." (Suzy David Canyon, 10:05)
Number 3: Kroger
Timestamp: 10:27
Arielle Fager discusses Kroger's initiative to pilot two Asian Experience stores in North Texas, aimed at showcasing a broader selection of Asian products. This strategy not only caters to the growing Asian communities in these areas but also tests product viability before wider rollout:
"It's a really great way to kind of test and see what products are working with a specific demographic before you decide if you want to roll them out to the larger population." (Arielle Fager, 10:27)
Suzy David Canyon questions Kroger's ability to compete with authentic, community-run Asian grocery stores:
"So I'm wondering Kroger as, like, obviously a regional grocer in the US if they're going to be able to compete with the product selection and what people want." (Suzy David Canyon, 12:42)
Number 2: ELF
Timestamp: 13:14
Sara Lebo presents ELF's impressive quarterly earnings—40% sales growth—and its strategic partnership with Dollar General. This collaboration aligns ELF’s budget-friendly beauty products with Dollar General’s value-oriented retail approach:
"ELF is a budget beauty brand. They're proudly a budget beauty brand. Dollar General, proudly a budget store. So even though the brands don't match one to one, the purpose really does." (Sara Lebo, 13:14)
Jeremy Goldman attributes ELF's success to compelling marketing and expansive distribution:
"Compelling marketing campaigns and finding ways to cut very lucrative distribution deals... they are reaching a lot of new customers." (Jeremy Goldman, 14:09)
Suzy David Canyon adds that this partnership injects "cool factor" into Dollar General:
"I find that this is really good for the dollar stores... because they need some cool factor." (Suzy David Canyon, 14:51)
Number 1: Amazon
Timestamp: 15:01
At the pinnacle of the list sits Amazon, recognized for transforming Black Friday into a week-long event dubbed the Cyber Dozen. Sara Lebo underscores Amazon's latest venture—Haul, a budget-friendly goods storefront designed to rival Shein and Temu by offering faster delivery at competitive prices:
"Amazon finally launched Haul, which is their Shein Temu knockoff... it's a huge play for Amazon." (Sara Lebo, 15:54)
Jeremy Goldman appreciates the move but points out the limitation of Haul being mobile-only:
"Right now it's still mobile only. It is cool that it exists, but... you have something being available across all form factors." (Jeremy Goldman, 16:22)
Editing the List: Suzy and Jeremy’s Contributions
In the second half of the episode, Suzy David Canyon and Jeremy Goldman critique and suggest modifications to the initial list.
Suzy's Move: Adjusting ELF’s Position
Timestamp: 17:02
Suzy proposes moving ELF from number 2 to number 8, arguing that while the partnership with Dollar General is beneficial for the latter, it may not be as advantageous for ELF itself:
"I think it's good for Dollar General. So if we're talking about something creative that ELF is doing, I don't think that's great." (Suzy David Canyon, 17:18)
Sara Lebo resists the change, valuing ELF's current position:
"I'm keeping it where it is. Number eight tends to fall off the list because you guys tend to convince us of pretty good new things to add." (Sara Lebo, 17:57)
Jeremy’s Move: Demoting Kendra Scott and Introducing Rent the Runway
Timestamp: 18:11
Jeremy suggests lowering Kendra Scott to number 8, citing timing issues with the cowboy trend:
"I just see it… the timing is off." (Jeremy Goldman, 18:23)
The panel reluctantly agrees, shifting Kendra Scott to number 8. Jeremy then introduces Rent the Runway as a wildcard for the list, advocating for its innovative approach to clothing ownership:
"They are reintroducing themselves to everybody after 15 years being on the market with a really interesting campaign." (Jeremy Goldman, 19:28)
Arielle Fager counters, questioning Rent the Runway's consistency and market alignment:
"Reminding people to rent clothes and not buy them is not where they're going to get people." (Arielle Fager, 21:11)
Suzy’s Addition: KFC
Timestamp: 22:01
Suzy adds KFC to the list at number 5, highlighting its unconventional retail ventures such as chicken-scented candles and limited-edition chicken-flavored wrapping paper. She admires KFC’s creativity in capturing consumer attention:
"They have a candle called the bucket of chicken candle... they're also partnering with Build a Bear Workshop." (Suzy David Canyon, 22:01)
Sara Lebo concurs, moving Kendra Scott to number 8 and placing KFC at number 5:
"I've convinced me to put KFC on the list. You have not convinced me to put them at number 5 above Klairs and 7-Eleven." (Sara Lebo, 24:11)
Arielle Fager expresses enthusiasm for KFC’s innovative approach:
"I think it's got such brand affinity from its customers that I think it's going to do pretty well." (Arielle Fager, 25:01)
Final Updated List
After deliberation, the final Most Interesting Retailers List for November 2024 stands as follows:
- Amazon
- ELF
- Kroger
- The Children’s Place
- KFC
- CeraVe
- Claire’s
- 7-Eleven
Conclusion
The episode wraps up with reflections on the dynamic shifts in the retail sector, emphasizing the importance of innovation and adaptability. The panel acknowledges that while some strategies, like KFC’s novelty products, might seem gimmicky, they effectively capture consumer interest in a crowded market. The discussion underscores the delicate balance retailers must maintain between brand integrity and creative expansion to stay relevant and competitive.
Notable Quotes:
- “The way in which they're approaching it seems to lean very heavily into their existing brand equity.” – Jeremy Goldman (04:50)
- “It's such a crowded marketplace... people go to the salon and buy like super duper expensive things... or they buy the cheapest thing in the pharmacy.” – Suzy David Canyon (05:33)
- “Rent the Runway... is a kind of zag when Everybody else is zigging.” – Jeremy Goldman (20:11)
- “They are the second most interesting chicken innovator… how can you be the second most interesting chicken innovator and still be on the list?” – Jeremy Goldman (23:43)
The panel concludes by inviting listeners to provide ratings and reviews, while teasing future episodes that will continue to explore the intersections of retail with digital media and consumer behavior.