Tony D'Onofrio
A key highlight of 2017 was a retail customer panel that I had the pleasure of moderating. Four executives (two recently retired and two still active) representing over $70 billion in revenue shared their insights on industry megatrends, driving disruptive change, choosing a technology partner, and the future of retail.
The Retail Megatrends
"Step with care and great tact, and remember that Shopping's a Great Balancing Act." (1)
As we enter the busiest shopping season of 2017, I started reflecting on the differentiation strategies for a successful transition to the digital future of retail. What are the definitive formulas for retail success in 2018 and beyond?
McKinsey in October 2017, published a great article on shopping and personalized marketing. "Targeted communications that are relevant and useful can create lasting customer loyalty and drive revenue growth of 10 to 30 percent."
As part of their marketing personalization analysis, McKinsey pointed to this simple formula:
Couple of weeks ago had the pleasure of co-hosting a Retailer Performance Council for Tyco Retail Solutions in New York. This post was inspired by now customary welcome toast for our distinguished retail guests and a presentation by Dr. Sanjay Sarma from MIT titled 'The Inversion Factor - How to Thrive in the IoT Economy'.
History of RFID
In December 2016, Amazon Go was introduced to the world. The premise of the new 'Just Walk-Out technology' store was to empower consumers to walk-in, pick up any products, and track it all through a virtual shopping cart. "When you're done shopping, you can just leave the store. Shortly after, we'll charge your Amazon account and send you a receipt."
Click LINK to see the Amazon Go video
Recently I had the opportunity to participate in the World Department Stores Forum 2017 in Toronto, Canada. Forty five retail CEOs joined 300 attendees in an industry event titled "Digital and Brick-n-Mortar: One Magic Experience".
The host for the 5th Annual Edition was the Canadian luxury department store chain Holt Renfrew. The Forum is co-organized by the Intercontinental Group of Department Stores (IGDS), the largest association for department stores worldwide. IGDS has 41 members from 38 countries on all continents generating $89 billion in total sales in 2016.
The stage for the 24 hour retail discussion was set by Craig Wright, SVP & Chief Economic of the Royal Bank of Canada when he said that the "Last time interest rates stayed low for so long was in 3000 BC." We are living in extra-ordinary age of disruption.
This post summarizes my favorite insights from this year's IGDS event.
"What a tough industry (retail), the consumer has changed more in terms of their demand preferences in the past three years than they have in the past thirty years." - Home Depot CFO Carol Tome
For the past two weeks, my youngest son was in France attending the latest edition of the Cannes Film Festival.
As part of an extended university project, he participated in a week long "producer's workshop." By the end of the week, he was instructed to throw away all his notes for the era of major studios driving the movie industry is over.
This past week had to pleasure of speaking at the Retail Risk Conference in Singapore. The audience mostly consisted of loss prevention professionals responsible for major retail brands across Asia. The customized presentation was an opportunity to reassess the state of Asia in the global retail economy.
A Brookings Institute study noted:
-- 3.2 billion people were in the middle class at the end of 2016
-- 140 million people are joining the middle class annually and this number could rise to 170 million in five years’ time
In an article published in November, we discussed the following five ingredients driving the age of disruption: geopolitical risks ahead, need for technology speed, data as the new oil, next generation consumers, and shopping till you drop. Reverse globalization is a subplot of these trends impacting many industries including retail.
Recent publications highlighted the following challenges facing globalization:
Welcome to Euroshop 2017, the largest retail trade show in the world.
In early March, over 100,000 visitors from 60+ countries tracked 
to Dusseldorf to view 2,000+ exhibits on everything retail. The visual retail feast in Germany that is Euroshop is only held every three years.
At the conclusion of the event, the organizers cited the continued digitalization in retail, tailor-made onmichannel solutions and the emotionalization of the shopping experience as the dominant themes for Euroshop 2017.
A recent LP Magazine study, sponsored by Tyco Retail Solutions, highlights key technology trends around video, EAS, and exception reporting. The research also provides insights into future LP investments and the evolution of the Loss Prevention function.
Decision makers rely on a variety of tools in their LP portfolio. In the United States, CCTV/Video Surveillance and Exception based reporting were ranked the most critical technologies, while in the UK, CCTV/Video Surveillance and Data Mining were ranked most critical.
“What I love most of this crazy life is the adventure of it.” – Juliette Binoche
Continuing the journey to learn something new, we explore the Matterhorn in Zermatt Switzerland. Believed to be 50 to 60 million years old, this world-famous mountain was formed when the African crashed into the European tectonic plate.
The Matterhorn, in Italian known as Monte Cervino and French as Mont Cervin, is the 10th highest mountain in Switzerland at 14,692 feet (4,478 meters). The summit was first reached on July 14, 1865 by a team led by Edward Whymper. During the descent, four members of the team fell to their death. The Matterhorn is one of the most dangerous mountains to climb in the Alps with over 500 deaths to date.
The Matterhorn first appeared on the famous Toblerone chocolate in 1960. Look closely at the mountain on the packaging and you will see a bear. This is a reference to the city of Bern, where Theodor Tobler first invented the chocolate bar.
The town of Zermatt at the base of the Matterhorn bans cars to preserve the Alpine environment. The Theodul glacier which you can access from Zermatt is located at 3883 meters (12,740 feet) and offers the highest elevation ski area in Europe.
Being in nature is my go-to motivational escape to clear my mind and prioritize life priorities. Mountains are an amazing inspirational mental canvas because their massive scale makes everything around you, including your worries, feel small. The raw beauty and quiet wilderness provide perspective.
Find your special natural wonder. Enjoy its beauty. Remember that you are here for a short time, and what is around you will live on. Take chances. Setbacks are miniscule, compared to the possibilities of reaching your peak life nirvana. In the lyrics from the Sound of Music, "climb every mountain, ford every stream, follow every rainbow, 'till you find your dream"
What’s Next for Retail in 2026: An Industry Perspective
Confidence in physical retail remains solid this year. More than 55% of survey respondents said they feel confident or very confident about brick-and-mortar performance in 2026, while only around 20% expressed concern. - From Place AI Read more
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The Number 1 country continued lead reinforces a broader trend: countries with strong institutions, high trust, and robust social safety nets consistently rank highest in life satisfaction. - From Visual Capitalist
