VMSD - October 2016 - 24
SECTOR SPOTLIGHT: mAss merCHANdIser TreNds
c o ur te S Y o F tA rG e t, m i N Ne AP o L i S
of shopping malls around the country. "The big-box
operators could be the portals for those displaced
brands," he says, "partnering with the online marketing, logistics and fulfillment, but also sampling or
inventorying the brands in their stores as they look for
enhanced productivity."
Also consider fresh food and groceries. Walmart
has overhauled its grocery section to better compete
with higher-priced - and higher-quality - players such
as supermarket giant The Kroger Co. (Cincinnati).
Grocery now generates more than half of Walmart's
$482 billion annual revenue. It's also one product category that, because of its complex supply chain and
the demand for fresh foods, Amazon hasn't entirely
24
OCTOber 2016
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S o r b i S / S h ut t e r S t o c k .c om
Target CEO Brian Cornell on the company's second
quarter earnings call in August.
Both retailers are reportedly looking at expanding
their health and wellness offerings, including miniclinics, remodeled pharmacies and enlarged vision
departments. Other initiatives include coffee shops,
playgrounds and/or experiential centers for kids, in
addition to high-tech dressing rooms.
Ken Nisch, chairman of JGA Inc. (Southfield,
Mich.), says big-box stores could be secondary tenants
for service retailers - food and select vertical, fashion
and lifestyle retailers - left homeless by the closing
mastered despite its AmazonFresh delivery service.
The fresh grocery initiative, started by Walmart
about 20 years ago, has been credited for extending
its competitive margin over Target, which had closed
the gap with spiffier stores and trendier merchandise
in the 1990s. Target announced this spring it would
re-focus on grocery with an emphasis on organic
products and fresh food, which has proven tricky for
the retailer in the past.
"[Target] thought it would be a way to optimize
shopping baskets and build traffic," says Lee Peterson,
executive vp, brand, strategy and design, for WD Partners (Dublin, Ohio). "They didn't take into account
the cost of operating a perishables business." Target
reportedly has double the normal distress rate of the
supermarket industry.
"Walmart, early on, saw milk as a way to get people
into the store," Peterson says, "and now more than half
of its business is grocery. Target lagged. It continued
to emphasize apparel and home. During the recession, people stopped buying apparel, but they never
stopped buying groceries."
In fact, the world and the consumer never stop
changing. Walmart and Target were the two most
successful retailers of the last 20 years. But the next 20
years are looking considerably different. Will they be
up to the challenge?
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Table of Contents for the Digital Edition of VMSD - October 2016
Vmsd - October 2016
Contents
From the Editor
Vmsd Editorial Advisory Board
The Goods
Next Store
Mexico City’s Iron Palace
Battle of the Behemoths
Big Bang
Remaining Relevant to a Disruptive Audience
Hello, Cleveland!
Showroom
Showroom
Ad Index
Checking Out
VMSD - October 2016 - Intro
VMSD - October 2016 - BB1
VMSD - October 2016 - BB2
VMSD - October 2016 - Vmsd - October 2016
VMSD - October 2016 - Cover2
VMSD - October 2016 - 1
VMSD - October 2016 - Contents
VMSD - October 2016 - 3
VMSD - October 2016 - From the Editor
VMSD - October 2016 - 5
VMSD - October 2016 - Vmsd Editorial Advisory Board
VMSD - October 2016 - 7
VMSD - October 2016 - The Goods
VMSD - October 2016 - 9
VMSD - October 2016 - 10
VMSD - October 2016 - 11
VMSD - October 2016 - 12
VMSD - October 2016 - 13
VMSD - October 2016 - Next Store
VMSD - October 2016 - 15
VMSD - October 2016 - 16
VMSD - October 2016 - 17
VMSD - October 2016 - 18
VMSD - October 2016 - Mexico City’s Iron Palace
VMSD - October 2016 - 20
VMSD - October 2016 - 21
VMSD - October 2016 - Battle of the Behemoths
VMSD - October 2016 - 23
VMSD - October 2016 - 24
VMSD - October 2016 - 25
VMSD - October 2016 - Big Bang
VMSD - October 2016 - 27
VMSD - October 2016 - 28
VMSD - October 2016 - 29
VMSD - October 2016 - Remaining Relevant to a Disruptive Audience
VMSD - October 2016 - 31
VMSD - October 2016 - 32
VMSD - October 2016 - 33
VMSD - October 2016 - Hello, Cleveland!
VMSD - October 2016 - 35
VMSD - October 2016 - 36
VMSD - October 2016 - 37
VMSD - October 2016 - 38
VMSD - October 2016 - 39
VMSD - October 2016 - 40
VMSD - October 2016 - Showroom
VMSD - October 2016 - 42
VMSD - October 2016 - 43
VMSD - October 2016 - 44
VMSD - October 2016 - 45
VMSD - October 2016 - 46
VMSD - October 2016 - Showroom
VMSD - October 2016 - 48
VMSD - October 2016 - 49
VMSD - October 2016 - 50
VMSD - October 2016 - 51
VMSD - October 2016 - 52
VMSD - October 2016 - 53
VMSD - October 2016 - Ad Index
VMSD - October 2016 - 55
VMSD - October 2016 - Checking Out
VMSD - October 2016 - Cover3
VMSD - October 2016 - Cover4
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