Retail Merchandiser Volume 61, Issue 4

Volume 61 / Issue 4

www.retail-merchandiser.com

Making it big Priding itself on how it serves customers, big and tall clothing retailer Destination XL Group ensures that its merchandise will be the best possible fit, whatever the size Voice interfaces will continue to rapidly gain acceptance as a medium for interacting with the digital environment, but they don’t suit all applications Direct-to-consumer can be a profitable business model for those looking to take charge of the customer experience and become more agile The digital transformation of shopping requires a new playbook, quarterbacked by technology, if retailers want to score points with consumers

Editor’s Letter Chairman Andrew Schofield Managing Director Joe Woolsgrove Editor - Libbie Hammond libbie@schofieldpublishing.com Assistant Editor - Will Daynes Staff Writers - Alex McDonald, Danielle Champ Art Editor/Production Manager - Fleur Daniels Art Editor - David Howard Advertising Designer - Rebecca Side Sales Director Alasdair Gamble Operations Director Philip Monument Operations Manager Natalie Griffiths Research Managers Michelle Fontaine, Joy Francesconi Jo-Ann Jeffery, Ben Richell, Kieran Shukri Editorial Researchers Adam Blanch, Mark Cowles Jeff Goldenberg, Mark Kafourous Tarjinder Kaur-D’Silva, James Page Wendy Russell, Richard Saunders Advertising Sales Johanna Bailey, Mike Berger, Alex Hartley, Dave King, Reid Lingle, Theresa McDonald, Ibby Mundhir, Sam Surrell

Hello and welcome to the May issue of Retail Merchandiser. How do you feel about voice controlled technology? Our feature on page 6 discusses the rise of these solutions. I know people who have their entire house controlled by voice, but personally I still feel a bit selfconscious about telling Alexa what to do, so it will take me a while to embrace anything more complicated than that!

The company featured on our cover

Volume 61 / Issue 4

this issue is Destination XL Group - CEO Harvey Kanter tells RM about the business’

Web Sales web@schofieldpublishing.com

genuine passion and respect for the Big+Tall

Subscriptions i.kidd@schofieldpublishing.com

really sets it apart from the competition.

www.retail-merchandiser.com

clothing market and how attention to detail Furthermore, DXL has, in the last two years, undergone a major digital transformation to better fit changing consumer buying habits.

© 2021 Schofield Publishing Ltd

“We are living in a time of experimentation and we don’t want to dictate how the

Schofield Publishing - Corporate Head Office

customer chooses to engage with us - we

Cringleford Business Centre, 10 Intwood Road,

just want to be there with a mechanism they

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T: (312) 854-0123 T: +44 (0)1603 274130 www.retail-merchandiser.com Finelight Media

are most comfortable with…” said Harvey.

To learn more about the newest innovation,

Making it big Priding itself on how it serves customers, big and tall clothing retailer Destination XL Group ensures that its merchandise will be the best possible fit, whatever the size

interactive shopping, the story starts on

Voice interfaces will continue to rapidly gain acceptance as a medium for interacting with the digital environment, but they don’t suit all applications

page 16.

Direct-to-consumer can be a profitable business model for those looking to take charge of the customer experience and become more agile

207 E. Ohio Street, Suite 351,

The digital transformation of shopping requires a new playbook, quarterbacked by technology, if retailers want to score points with consumers

Chicago, IL 60611

T: (312) 854-0123

Please note: The opinions expressed by contributors and advertisers within this publication do not necessarily coincide with those of the editor and publisher. Every reasonable effort is made to ensure that the information published is accurate, and correct at time of writing, but no legal responsibility for loss occasioned by the use of such information can be accepted by the publisher. All rights reserved. The contents of the magazine are strictly copyright, the property of Schofield Publishing, and may not be copied, stored in a retrieval system, or reproduced without the prior written permission of the publisher.

Libbie Hammond EDITOR

libbie@schofieldpublishing.com RETAIL-MERCHANDISER.COM

1

INSIDE THIS

ISSUE

4

6

UPFRONT 4

PACKAGING

Reusable transit packaging and where it fits into the automated warehouse of the future, creating the optimum blend of manual and digital technology

6

PACKAGING

VOICE CONTROL

Voice interfaces will continue to rapidly gain acceptance as a medium for interacting with the digital environment, but they’re not suitable for all applications

8

RETAIL TECHNOLOGY

10

16

Across America, a host of transformative innovations are arriving to reinvigorate the shopping experience and the broader retail sector

10 ECOMMERCE The shift from B2B to D2C retail isn’t always straightforward but any challenges can be overcome with forward planning and investment

NEW & NOTABLE

ECOMMERCE

12 UPDATES

D

New product launches, additional flavours, exciting ideas and fresh developments from key players in the industry

30

GERBER PRODUCTS COMPANY 2

RETAIL-MERCHANDISER.COM

38

THE

6

8

VOICE CONTROL COVER STORY

RETAIL TECHNOLOGY

24

DESTINATION XL GROUP

8

AMERICA’S FOOD BASKET

42

BAR LOUIE THE ORIGINAL GASTROBAR

FAJITA PETE’S RETAIL-MERCHANDISER.COM

3

Contained solutions Can sustainable logistics packaging be the efficiency anchor for automated warehousing of the future? By Jon Walkington

T

oday, brands are armed with

global warehouse automation sits at a strong

more information about their

12.6 percent1, projected to reach a global

micro-fulfilment, working by lean

customers than ever before.

value of $46Bn by 2023.

principles or hyper-efficiency were treated

From shifts in shopping

To keep tomorrow’s warehouse moving

as bolt-on additions to existing operations,

behavior to trends in product choices,

and reacting, system integrators rely on

or simply a change of thinking. Now, they

naturally these changes impact entire global

efficiency anchors that blend seamlessly

are the core principles on which everything

supply chains.

with existing warehouse management

else is built. It’s often the most cited

systems (WMS) and contribute to effective

case, but Amazon is a prime example of

goods flow – not block it.

centering the facility around an efficiency

The supply chain from manufacturer to consumer is also now becoming shorter and more concentrated, driven by greater

anchor point. The business was the first to build its warehouses around automated

rise in intelligent goods-to-person (GTP)

What do we mean by an ‘efficiency anchor’?

models and warehousing today looks very

Because warehouse and logistics facilities

data, saving considerable time and labor.

different to how it did as little as five years

are now designed and built to lead

Now of course, it’s a much more common

ago.

commerce, not just support it, process

approach, but as the first business

automation and digitalization. Consider the

4

Previously, areas such as automation,

picking and SKUs organized by purchase

Report data shows the rise in smart

efficiency becomes key. To achieve the

to essentially build their warehouse

warehousing. Figures from data specialist

necessary speed, flow and accuracy to

‘backwards’ in this way, Amazon showed

Interact Analysis, for example, forecasts that

compete, the warehouse is built around

that the model works - and still does to

the compound annual growth rate (CAGR) for

efficient technologies and processes.

this day.

RETAIL-MERCHANDISER.COM

Packaging

With a double-wide base that actively

Summary

cuts noise for a safer and more productive

The elements that are currently driving

warehouse environment, SASI totes are

retail around the globe - accessibility, speed

molded from resilient recycled plastic

and consistency - rely on strong logistics

and built to withstand the toughest of

to enable commercial success. System

commercial environments. Of course,

integrators working with brands remain

no two warehouses are alike in layout

highly conscious of this, using the power of

and operations, which is reflected in its

big data to make smarter layout decisions.

versatility. SASI containers are suitable for

Creating efficiency anchor points, through

all types of conveyor belts, mini load, shuttle

container choice, digitalization or otherwise,

and multi-shuttle systems.

can be absolutely crucial to achieving the

Like every efficiency anchor should be,

efficiency needed to compete.

the 100 percent recyclable SASI range

This potential is likely to be accelerated

is a dependable foundation for system

further as e-commerce continues to grow,

integrators looking to build warehousing

demonstrated by a 129 percent2 growth

excellence around the latest in logistics

through 2020, according to statistics

technology.

from Forbes. System integrators must

The ideal container solution doesn’t just

account for digital sales playing a bigger

get product from A to B. It underpins safety,

role in warehouse logistics, which means

critical control points and supply chain

accessibility, speed and volume are key.

integrity by seamlessly integrating with

How effectively system integrators

existing system architecture, while also

partnering with brands can use efficiency

providing a strong foundation with which to

anchor points to accelerate facility

create new workflow systems.

performance will prove crucial to future

It can also be an invaluable support for

success. v

Where does reusable transit packaging fit in?

transparency and traceability, automating much of the process by conversing with

1] https://www.interactanalysis.com/wp-content/

Taking an overhead view of the current

modern automation systems and software.

uploads/2019/08/The-Future-of-Warehouse-

manufacturing supply chain, it’s clear that

By being simple to use, versatile and space-

Automation-2019-Brochure.pdf

internal stock management can be one of

efficient, returnable packaging can also

[2] https://www.forbes.com/sites/

these vital efficiency anchor points for the

contribute to the increase in throughput, as

louiscolumbus/2020/04/28/how-covid-19-is-

on-demand economy.

well as the reduction in manual handling.

transforming-e-commerce/?sh=5e00bf5c3544

Our SASI® range was developed with the unique needs and demands of system integrators at the forefront. The latest in sustainable load carriers, the SASI range of

Schoeller Allibert UK

resilient totes and bins is designed for the

Jon Walkington is Retail and System Integrator Sales Director at

automated warehouse of the future and

Schoeller Allibert UK. Schoeller Allibert is one of the world’s largest

creates the optimum blend of manual and digital technology. Like the diverse range that Schoeller Allibert is known for, the SASI range doesn’t just exist within a warehouse’s efficiency or capacity; it contributes advantages of its own.

manufacturers of returnable plastic packaging for material handling.

It has been inventing, developing, designing and manufacturing Returnable Transit Packaging (RTP) for more than 60 years. Today it is the European market leader with operations world-wide with over 2000 employees and operations in over 20 countries. www.schoellerallibert.com/uk

RETAIL-MERCHANDISER.COM

5

The conversational

revolution T The rise of voice interfaces he use of computers and

more powerful: their ears and voices.

by the end of 2020, it was four-and-a-half

mobile devices has become

These allow for a nearly limitless range of

billion. This pattern of adoption not only

so ingrained into our reflexes,

expression and comprehension – and beg the

rivals, but rather exceeds the last digital

that few give thought to

question: why don’t we use them to interface

revolution of mobile devices.

the fact that modern graphic interfaces –

with our digital ‘counterparts’? After all,

regardless of how well they’re implemented

we’ve been speaking for 1.75 million years!

– are in effect straightjackets. They starkly

in Natural Language Processing technologies

narrow the full possible spectrum of human

algorithms were implemented nearly 70

and the development of Conversational

expression and interactions into a single

years ago, the use of voice interfaces was

Design as a body of knowledge have

focused command, such as a mouse click,

until very recently at best a stultifying

combined to make voice interfaces pleasant

in order to execute a single command

experience – and at worst, a wholly irritating

and reliable to use. Consumers are re-

and perform a function on the device and

one. Currently however, voice interfaces are

learning their modes of interaction and

application involved.

enjoying an exponential rate of acceptance,

– increasingly often – using pre-existing

with the number of applications and voice-

voice interfaces at home and underway.

touchscreen: all interactions with these input

enabled devices reliably doubling every

This learning curve is vastly easier to master

aids are artificial in nature and functionally

year since 2018. For instance, the number

compared to learning to operate a computer

highly limited. Luckily, human beings possess

of voice-capable devices in the world was

– humans need no instruction on how to use

input and output ‘devices’ which are much

roughly two billion towards the end of 2019;

their voices!

Be it a keyboard, a mouse, trackball or

6

Even though the first voice recognition

The reasons behind this astonishing rate of adoption are twofold: vast improvements

RETAIL-MERCHANDISER.COM

Voice control

completely reverse the meaning of what has

inherently differently than they read, for

been said. Briefly consider the statement:

instance, leading to voice applications which

“What a fascinating dress! I don’t think I’ve

present their users with long-winded spoken

ever seen anything quite like it!” Taken in an

instructions, hierarchical menus and wholly

ironic context, these exclamations might be

forgettable long lists of options. Competent

anything but flattering.

conversational architects know how to carry

Speech design languages, such as SSML

complicated navigational menus, and – most

enable designers to create spoken outputs

importantly – how to manage expectations

which effectively imitate the finest

for the user while providing enough

nuances of human speech. Emotions,

personalization and contextual dialogue to

interjections, accents, changes in pitch,

maintain the natural flow of conversation.

volume and speed – even breathing

For instance, a voice application that

noises – can all be incorporated. Gone are

performs a relatively simple function, such

the days when listeners were confronted

as taking an order for a pizza, can easily be

with voice interfaces which were easily

made user-friendly by registering whether

identifiable as robotic. The output from the

a customer has preferences or allergies.

newest generation of voice assistants is

Similarly, if the user logs in weekly, any

indistinguishable from human speech, for

instructions which were helpful for the first

the first time stoking discussions about the

visit quickly become tedious and can be

moral dilemmas posed by robots which arise

skipped in the future. Consider that placing

not from theoretical hypotheses, but rather

an order in an online shop is often a seven- or

from real-life situations.

eight-step process, whereas in a restaurant,

Powering the advent of the ‘conversational revolution’ are a new generation of user Above and beyond powerful speech

a conversation forward, how to collapse

(synthetic speech markup language),

it is usually one step only!

In conclusion, voice interfaces will

experience architects: conversational

continue to rapidly gain acceptance as a

designers. Many initial attempts to

medium for interacting with our digital

recognition machine learning models,

implement voice applications were hampered

environment, but one should keep in mind:

technologies such as sentiment analysis,

by a lack of understanding about how

not all applications can be easily operated

semantic networks, ontologies and self-

productive human conversations work.

with voice commands alone. Admittedly,

training conversational bots, all conspire

The assumption that information can be

at a certain level of interdependency and

to allow applications to better understand

successfully disseminated regardless of

interactional density, such as configuring and

human speech. This is no trivial task. Human

channel or medium is naturally erroneous,

purchasing a new automobile, conversational

speech patterns exhibit nearly infinite

but it’s especially easy to overlook that

interactions would quickly become too

variations in syntax, inflection, vocabulary,

humans hear and process information

confusing. v

tonality and semantics. Additionally, after natural language processing applications derive base meaning from a spoken or written statement, the job is only half done. Further challenges to the successful interpretation of speech arise when overlying factors, such as irony, sarcasm, meta context and even cultural influences come into play. These can easily skew or even

Reply Reply specializes in the design and implementation of solutions based on new communication channels and digital media and offers a network of companies working across sectors and technologies including AI, big data, cloud computing, digital media, the Internet of Things, among many others. www.reply.com

RETAIL-MERCHANDISER.COM

7

A new playbook The future of retail is here.

By Steve Koenig

A

8

cross America, a host of

consumer by melding the physical and online

once thought of as science fiction – such as

transformative innovations

realms.

robots, digital payment systems, cashier-less

are arriving to reinvigorate the shopping experience

The amplification of online sales

stores and even augmented reality (AR) – are

operations was a lifeline for many retail

becoming more common in retail and may

and the broader retail sector. The result is

businesses during the pandemic. But the

soon become table-stakes in retail strategy.

a revamped and reengineered industry –

digital transformation of physical stores

one adapted to address a more digitized

has quietly grown apace. Technologies

RETAIL-MERCHANDISER.COM

Robotics is one technology arena retailers are now leveraging to support business

Retail technology

operations, especially among grocers and

arrived. Amazon now operates more than two

of online shopping. In fact, IBM’s 2020 U.S.

mass merchants. From cleaning systems to

dozen Amazon Go convenience stores coast-

Retail Index report concludes the pandemic

inventory management, robots are focused

to-coast in the U.S., and recently opened its

accelerated the shift to digital shopping by

on improving operational efficiency. But more

first store in the U.K. Powered by Amazon’s

roughly five years.

importantly, these deployments represent

‘Just Walk Out’ technology, Go stores use

an emerging trend: human-machine

a mosaic of sensors and deep learning

Parker is a pioneer in digital shopping, with a

partnerships.

technology to detect the merchandise

2019 app that allows consumers to virtually

shoppers take from shelves and track it all in

try on different frames. More recently

inventory management robot created by

a virtual cart. Customers use the Amazon Go

Snapchat, the popular messaging app,

Badger Technologies – to some 170 stores

mobile app to enter stores and automatically

worked with Kohl’s to design an ‘AR Virtual

in four states. Marty alerts shoppers and

pay when they leave with their goods.

Closet’ – a smartphone experience that uses

Giant Food Stores deployed ‘Marty’ – an

Prescription eyeglasses retailer Warby

employees to common hazards like spills or

Is the future of retail really ‘faceless?’

the Snapchat app to create an AR dressing

debris cluttering the aisles. Another grocer,

Maybe. Our research shows consumers

room where consumers can virtually try on

Schnucks, deployed Tally, developed by Simbe

endorse frictionless shopping such as

items and make a purchase without leaving

Robotics, to monitor inventory levels and report

cashier-less stores. CTA’s COVID-19 Impact:

the app. In another retailer partnership,

shelf data to its mobile app to help customers

Retail Innovations study (Oct 2020) found 39

Snapchat is powering American Eagle’s

find what they need. And to keep stores

percent of U.S. consumers are likely to use

Spring 2021 Jeans Are Forever campaign,

clean, Sam’s Club is deploying automated floor

them over the next year.

with the ‘AE x Snapchat AR Jeans Guide,’

scrubbers across its 600 stores and many other retailers are following suit.

And as many consumers have modulated

CTA’s research also found more than half (56 percent) of U.S. consumers plan to use

allowing users to view jeans in AR. Will digital shopping really become

contactless or mobile payment solutions

a ‘thing?’ Probably. AR-powered digital

their shopping behaviors to online, robots are

where available. Broadening acceptance of

shopping experiences such as these are

at work in the warehouse, helping to pick, sort

services including PayPal or Apple’s Apple Pay

another type of human-machine partnership

and prep orders for shipment. Walmart is using

among consumers and storefronts suggests

the tech industry expects will be more

Alphabot to assist human workers by picking

we are destined for a (mostly) cashless

common, especially as faster 5G wireless

items needed to fulfill customer orders. The

future.

connectivity becomes common.

humans still pack the goods, however.

One reason automation is becoming more

Already, the global digital payments

The digital transformation of shopping

market is valued at $6.6 trillion this year (up

requires a new playbook, quarterbacked by

common in retail is the seismic shift to online

40 percent from two years ago) and forecast

technology, if retailers hope to score points

grocery ordering, one that will continue to

to grow to $10.5 trillion by 2025, according

with consumers. More, when we consider

rise. The Consumer Technology Association’s

to analysis by Finaria, a global finance and

how substantially technology is refashioning

(CTA)® Future of Consumer Behavior Amid

investment company.

retail, terms like ‘omni-channel’ and ‘in-

COVID-19 study from September of last year

AR, once an experimental technology at

store experience’ take on new meaning.

found 51 percent of consumers who ordered

retail, is redefining ‘experience shopping’

Delineating sales between online, mobile and

groceries online plan to continue or increase

in a very 21st century context. The latest

physical stores may matter less as shopping

that activity post-pandemic. It’s no surprise

AR retail trend bridges physical stores and

experiences become inextricably linked

Kroger is now building the first of 20 planned

ecommerce by creating digital shopping

between the digital and physical world.

fully-automated warehouses, powered by

experiences that combine the energy of

Ocado Technology.

in-store shopping with the convenience

The future of retail is technology innovation; and it is not fantasy, but strategy. v

Customer service is another aspect of the retail environment where technology is transforming the in-store experience, particularly at the checkout counter. Mobile

CTA

payment systems combined with a rising

Steve Koenig is Vice President, Market Research at CTA. As North

tide of unmanned, cashier-less stores

America’s largest technology trade association, CTA® is the tech sector.

empower customers with more options at

Its members are the world’s leading innovators – from startups to global

the point of sale.

brands – helping support more than 18 million American jobs. CTA owns

The appearance of self-checkout lanes across retail stores was the precursor to the

and produces CES® – the most influential tech event in the world. www.CTA.tech

sector’s cashier-less future that has now

RETAIL-MERCHANDISER.COM

9

A growing

shift

The path to direct-to-consumer success. By Mel Tymm

T

he past year has proven the

prepared for this type of retail and the new

steps can be taken to lessen the blow and

power of direct-to-consumer

considerations that come with it. Brands

keep retail partners happy. This includes

(D2C) eCommerce sales.

must first decide how they plan to sell.

differentiating your D2C offering from what

With whole sections of the

Online is the obvious choice – with online-

is sold by partners, white labelling products

economy closed for a large portion of 2020

only brands such as Casper and Dollar Shave

to minimize direct competition, or involving

and into this year, those with an effective

Club continuing to make waves within

partners in the process and sharing customer

D2C sales strategy have not only been able

the industry – but within this, businesses

data to help them optimize their strategies.

to stay in business, but some have been

need to decide whether to create a fully

able to increase their revenue where others

customized digital storefront, leverage an

new D2C businesses is fulfilment. Companies

have failed. In fact, only 22 percent of D2C

integrated eCommerce solution such as

that have traditionally distributed in bulk to

businesses reported a decline in sales last

Magento or Optimizely, or turn to online

stores now need to adjust their operations

year compared to 80 percent of traditional

marketplaces such as Amazon, eBay or Etsy.

to fulfil larger volumes of small orders for

retailers, according to a recent survey.

Each has its own benefits but to get up to

individual customers, right down to the

Brands that sell directly to their customers

speed quickly, while retaining a level of brand

last mile, while also carrying on their B2B

have greater control over the entire end-to-

awareness and autonomy, an integrated

operations. To manage this, retailers need to

end retail experience – ensuring customers

solution is often the best option. Whichever

assess whether they are prepared to invest

receive optimal service – and the removal of

way they go, businesses must be prepared to

in their own fulfilment strategy or whether

middlemen means lower costs and higher

invest in the resources needed to launch and

they turn to third-party logistics (3PL). 3PLs

profit margins. However, the shift from

maintain their D2C presence.

can be an attractive way to get operations

business-to-business (B2B) to D2C retail isn’t always straightforward.

10

Practically, one of the biggest changes for

What’s more, choosing to go D2C is a

up and running quickly, as they have the

dramatic business model shift for those that

experience and economies of scale that a

have traditionally sold via other channels,

new D2C business is unlikely to have. But,

Logistical challenges

such as retail partners. Making this shift

in the long run, a 3PL can be too expensive

Businesses that haven’t previously sold

shouldn’t be done to the detriment of these

to justify, so a brand may want to look at

to the consumer market aren’t often

valuable, established relationships, and

managing fulfilment itself by investing

RETAIL-MERCHANDISER.COM

eCommerce

with as much information as possible to prevent unnecessary returns.

However, retail returns are inevitable and they must be quick, easy and free for consumers, as well as being integrated into the order management system to track and optimize the process. The benefit of going D2C is that brands will have access to data that they previously weren’t privy to when selling through partners. This information should be leveraged to discover trends that may explain why products are being returned – is the product information inaccurate, or is there a theme to the return of similar items? – and this cumulative data can then be acted upon to help minimize the number of returns. This will not only positively impact the bottom line and minimize the logistical headache that comes with managing returns, but will ensure customers come away from their buying experience satisfied. in warehouse and order management

Whether delivery is offered free, next-day

technologies internally that are capable of

or sustainably can have an impact on where

yet showing signs of abating. It can be a

managing multiple fulfilment workflows – i.e.,

they choose to purchase, while the choices a

profitable business model for those looking

B2B and D2C orders – on one platform. If this

business offers must be mindful of its bottom

to take charge of the experience their

is the case, they should ensure their systems

line. However, before D2C retailers can think

customers are receiving and those that wish

can provide them with real-time, accurate

about making sales, they need to consider

to respond with agility to the ever-evolving

visibility of stock levels, inventory and orders.

how to pull product data onto their website.

market conditions. Businesses must be

Missing out on sales due to stock-outs

The buyer journey is often more complex for

mindful that the migration from B2B to D2C

or inaccurate supply chain lead times, or

a consumer market, which means detailed

isn’t a simple one, but any challenges can

creating unhappy customers by miss-picking

product descriptions, including images and

be overcome with forward planning and

orders isn’t the way to start a D2C journey.

videos, stock information and pricing must be

investment into frictionless fulfilment and a

displayed accurately to provide the consumer

customer-first mindset. v

Serving the end consumer Successful retail is all about maintaining a seamless customer experience, and D2C

The growing shift to D2C retail isn’t

Naveo Commerce

commerce is no exception. Often price alone

Mel Tymm is Industry Principal, Naveo Commerce. Naveo

isn’t enough to entice customers to switch

Commerce is an international end-to-end eCommerce, OMS and

their loyalties: the D2C experience needs to mirror the B2C experience. D2C businesses must invest in providing a smooth buyer journey, value-added services and choice to build customer loyalty.

With the market dominated by the likes of Amazon, delivery is often the most important

fulfilment technology company helping SMBs and enterprises across all retail segments to manage and grow their business online. The company was founded in 2020 following the merger of Digital Goodie and Maginus, unifying cloud-based headless commerce expertise, Order Management Systems and fulfilment solutions to establish one of the only companies globally to be able to offer entire end-to-end commerce support to retailers. www.naveocommerce.com

factor for consumers when buying online.

RETAIL-MERCHANDISER.COM

11

Boosting the team Flowhaven, the industry’s leading

Ultimate summer treat

Licensing Relationship Management

This Spring, Bomb Pop is collaborating with Crush soda to announce this summer’s

platform (LRM), has strengthened its U.S.

most refreshing mashup, NEW Bomb Pop Crush®. Bomb Pop Crush ice pops are

sales team with entertainment industry

truly ‘not one thing’ with three delicious Crush flavors packed into each pop: juicy

veterans from Electronic Arts, Disney and

grape, refreshing strawberry and tangy orange, all on one stick. “We are thrilled to

Lucasfilm.

add Bomb Pop Crush to our portfolio of ice pops,” said Jeremy Hrynewycz, Senior

Adam Christensen has joined the company

Brand Manager at Bomb Pop. “This new frozen treat is sure to satisfy tweens, teens,

as U.S. Sales Director, and Chris Davlin and

parents and anyone looking for

Rebecca Dennis as U.S. Sales Managers.

an epic mashup that takes you

These new additions will report directly to

on a three-part fruity flavor

Jessica Trinca, U.S. General Manager.

journey.” Crush Soda, owned and

The addition of these positions is

marketed by Keurig Dr Pepper,

the latest in a series of organizational

is the newest partner to work

developments to sustain the company’s

with America’s classic Bomb

accelerated growth. Flowhaven had a

Pop brand. Crush Soda joins

record-breaking first quarter in 2021 with

the likes of current Bomb Pop

a number of customer acquisitions across

brand collaborations including

new verticals including universities, record

Hawaiian Punch®, Jolly Rancher®

labels and more. In the last year, Flowhaven

and Warheads®.

raised $16m in funding led by Sapphire

Bomb Pop Crush (SRP: $3.49

Sport, and more than doubled its team in

per box of 12 ice pops) is

Helsinki, Finland, Los Angeles and London.

available at grocery retailers nationwide, including Walmart,

Entertainment complex

Kroger, Harris Teeter, Hy-Vee,

MVP3 Entertainment Group, LLC has

Food Lion and SuperValu.

partnered with ATWEC Technologies, Inc., to start an entertainment mecca in the mid-south.

ATWEC and MVP3 partnered to create

Keep it Oscar

MVP3 Studios & Partners, LLC, the umbrella

Oscar Mayer has unveiled a cohesive new look and creative platform called ‘Keep It

for a multi-use center that will have six

Oscar’ to unite the brand’s entire portfolio of products under one image that reflects

production sound stages, music recording

today’s consumers and is still loudly and proudly Oscar Mayer. The refresh aims to

studios, television network, retail, museum,

bring the meats brand into a fresh, modern era.

art gallery, restaurants, office space

The new look includes an updated logo and refreshed packaging designs that

rental, indoor sports complex and family

connects the portfolio by prominently featuring the brand’s iconic ‘never square’

entertainment. This venture will also include

logo shape and the Oscar Mayer Wienermobile for the first time ever, from branding

hospitality that features a 150-room hotel,

agency BrandOpus. It also features bite-sized ads that feel like pop art GIFS to

developed by The Worsham Hotel Group

commercials that are under a new ‘Keep it Oscar’ creative platform, from global

(based in Atlanta), which develops limited

advertising agency Johannes Leonardo.

and full-service hotels, boutique inns and private owned residences.

MVP3 Studios & Partners has purchased

Sergio Nahuz, President, Meal Foundations and Coffee, for Oscar Mayer commented: “Oscar Mayer has been deeply ingrained in American culture since 1883, and while we’re proud of our history, we wanted to give consumers a more

the property owned by Michael Lightman

modern brand

Realty Company, The Majestic Theater, an

to engage with.

80,000-sq.-ft. building, and the 20 acres of

But in doing so,

land that it resides on in Memphis.

it was important to stay true to what’s made this brand such an icon over the years – the ability to spark smiles.”

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RETAIL-MERCHANDISER.COM

News update $50m takeover

Warehouse of the Future

Dimepiece LA, a clothing brand recognized by celebrities and street

XPO Logistics and Nestlé have announced that their flagship

fashionistas alike for its fashion-forward looks and empowering

distribution center and technology hub in the UK has completed its

and inspiring messaging and aesthetics has been acquired by an

phased opening to full operations. XPO and Nestlé began collaborating

undisclosed UK-based hedge fund in a $50 million takeover deal

on the design and construction of the Digital Distribution Warehouse of

that will see the brand re-launched in the UK later this year.

the Future in 2018, together with technology partner Swisslog Logistics

Dimepiece LA, which was launched in early 2007, quickly gained traction in the US fashion world thanks to its bold look

Automation.

The 638,000-square-foot facility includes advanced solutions

and woke messaging. The female-led, woman’s fashion brand

customised by Swisslog and integrated with XPO’s digital warehouse

includes hoodies, sweatshirts, hats, clutches, and a variety of

ecosystem. The operations use sophisticated robotics, automated

other accessories in its latest line. Amongst its fans are former

sorting systems and XPO’s intelligent analytics to deliver fast, efficient

United States First Lady, Michelle Obama, who wore items from

distribution of Nestlé products, including KitKat, Maggi and Nescafé.

the brand’s line during her appearance at SXSW. The brand, which prides itself on having some of the most

XPO has been ramping up operations at the site since mid-2020, using its global experience with COVID-19 and extensive safety protocols

environmentally friendly shipping methods designed to be less

to protect workers. The processes are designed to accommodate the

destructive to both human and animal habitat has, since its

highest throughput of any warehouse in Nestlé’s global network.

inception, been a corporate leader with a focus on diversity, environmentalism and female leadership.

Help for shoppers ThryveAI, a grocery-first ecommerce platform, has announced support for Electronic Benefits Transfer (EBT) payments. Grocers using ThryveAI’s platform will have the option to offer a seamless and convenient shopping experience to customers enrolled in the Supplemental Nutrition Assistance Program (SNAP) program by allowing them to securely pay for online grocery orders with their EBT cards.

According to the USDA, there are now 43 million Americans relying on SNAP benefits to feed themselves and their families. Due to the global pandemic, under the American Rescue Plan, Congress recently approved an extension of increased SNAP benefits through September 2021.

While navigating the sharp acceleration in demand for online grocery this past year, grocers are also facing financial and technological challenges in offering EBT payment options including delivery costs, user experience and split payment options. To overcome these challenges, many grocers interested in setting up SNAP online payments, particularly smaller and mid-sized grocers with limited resources, are looking to partner with a technology provider that already supports this capability. ThryveAI’s modern digital commerce platform addresses these challenges by enabling a userfriendly digital experience for both SNAP and non-SNAP shoppers using the full commerce platform or mobile device and offers secure EBT payment and split-payment options.

“Grocery retailers are looking to accept SNAP payments in their digital storefronts but are being met with regulatory, financial, and technological obstacles, making it extremely challenging to implement,” said Neil Moses, CEO of Mi9 Retail/ThryveAI. “By offering an integrated EBT payment option we hope to alleviate some of these grocers’ burden and make it easier for them to meet the individual needs of their customers, provide equal access to online grocery shopping, and boost customer loyalty.”

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13

Destination XL Group

Making it big In the midst of a digital transformation designed to better fit consumer buying behavior, Destination XL Group continues to find ways to serve and support its valued Big+Tall clothing customers 16

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P

assionate about the often

highly personalized experiences unavailable

underserved Big+Tall clothing

to big and tall men anywhere else on

market, Destination XL (DXL)

the market. In conversation with Retail

has been changing the lives

Merchandiser, CEO Harvey Kanter begins

of its customers since 1976. Boasting a

by recounting one of many transformative

presence in every major metropolitan area

encounters he has witnessed since joining

in the US, DXL is not only the most dominant

DXL in 2019.

XL specialty retailer in the nation, but a

“Not long after I came onboard at

company with a reputation for creating

DXL, a customer came into one of our

stores just like any other day,” Harvey

going to a wedding, but he’d never bought a

mirror. There were tears in his eyes, and he

recalls. “It transpired that someone had

suit before because he didn’t think it would

mouthed the words, ‘I never thought I could

told him about us, or he’d just happened

make him look or feel good. Our style and

look so good.’

to stumble upon us, but either way, he

fit experts jumped into action – measuring

was a real example of this underserved

him, asking him about the colors and styles

we make with our work at DXL,” Harvey

consumer who hasn’t had great shopping

he liked, and then eventually brought him

declares. “We have a real passion and

experiences elsewhere and felt intimated,

several different outfits to try on. Minutes

respect for this market and for our

or embarrassed, to shop for clothes.

later, when he came out of the fitting room

customers, and that carries right through to

wearing the suit, the man looked in the

our stores and our corporate office.”

“This particular customer told us he was

“That’s the kind of meaningful difference

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17

Destination XL Group We continuously create a better understanding of our customers based on implicit and explicit signals along with buying behavior. What a customer does or often times doesn’t do is an indication of the consumer segment they fall into, and informs us on how to personalize their experience, across the web, in-store and on our app

With thousands of styles and sizing options available, from private label goods to exclusive offerings from high-end designer brands like Polo Ralph Lauren, Lacoste and Levi’s, DXL merchandise benefits from unique specifications, ensuring the best fit possible, whatever the size. Harvey explains more: “Many retailers take what is an XL garment and just ‘grade it up’ for bigger customers in the XXL range and beyond,” he says. “At DXL, we don’t do that.

We create a spec that’s unique for each size. An XXXL shirt, for example, will have different collars, sleeves, cuffs and tail relative to a regular size of the same item. Perhaps the greatest appreciation of that is in our tailored pant, of which we have 72 sizes, each with a unique spec from the seat to the leg. That attention to detail, and the more bespoke product range it leads to, is probably the greatest single element that differentiates us from other retailers.”

Digital focus As a highly customer-focused organization, DXL has, in the last two years, undergone a major digital transformation to better fit changing consumer buying habits. Back in 2018, around 20 per cent of the company’s business was derived digitally. Today, following the transformation, online penetration has more than doubled and in the fourth quarter of 2020 was at 41.4 per cent.

“Our expectations,” Harvey notes, “which we have publicly communicated, are to be 35 per cent digitally penetrative or more, in spite of getting our stores really working again and driving revenue after Covid-19. Due to the current climate, and contemporary buying habits, we believe that our digital business will grow materially faster than our stores.

“Obviously, a more digitally-focused business helped us through the Covid-19 pandemic, but it’s about more than that for us; we are evolving our approach from thinking about channels first to thinking about customers first. We are living in a time of experimentation and we don’t want to dictate how the customer chooses to engage with us - we just want to be there with a mechanism they are most comfortable with, whether that be our website, an app, delivery, in stores or through store curbside pick-up, or, our most recent innovation, interactive shopping, through a test we are currently running.”

As the name suggests, interactive shopping will allow DXL customers to interact and make purchases directly with in-store sales consultants via a live video link. The initiative is yet another example of how DXL is creating some of the industry’s most tailored shopping experiences. As Harvey puts it,

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Destination XL Group

“It is as if each individual customer is being marketed to uniquely. Of course, that is impossible, but by marketing to segments of customers with similar characteristics, we can deliver a similar result.”

Multi-channel offer The specialist, individualized marketing process that Harvey describes is driven by huge amounts of data captured and leveraged by DXL. When used effectively, this data has the power to create a significantly better understanding of the unique characteristics that make each of the company’s customers different. This can then be used to tailor, and ultimately improve, consumer experiences.

“We continuously create a better understanding of our customers based on implicit and explicit signals along with buying behavior,” reveals Ujjwal Dhoot, Chief Marketing Officer at DXL. “What a customer does or often times doesn’t do is an indication of the consumer segment they fall into, and informs us on how to personalize their experience, across the web, in-store and on our app.”

20

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the store, so they go in-store and they shop.

test and control, predictive elements and

to evolve at a rapid pace, the company

Though DXL’s digital platform continues

It’s circular, and that relationship is really

digital marketing has, understandably,

will not, at the same time, be neglecting

important.”

been the largest factor behind the retailer’s

its physical stores. Viewed - alongside its

recent growth. However, it is only by

website and app - as an important part of

Customer service

staying true to its values and ethos that the

DXL’s offering, traditional stores play a key

With over 300 mini-warehouse-style stores

company has remained popular with its loyal

role in the company’s multi-channel retail

to its name, all capable of shipping directly

customer base, so, consequently, efforts to

mix.

from store, DXL designs its sites specifically

ensure that this culture persists within the

for big and tall customers, including

business are ongoing.

“A customer that shops across channels has a far richer, more revenue-generating

features like wider aisles and larger fitting

relationship with us than one that only

rooms. Naturally, the Covid-19 pandemic,

proud is a program we have at DXL called

shops in-store or online,” claims Peter

along with the growing digital market,

Normalizing the Brand,” Harvey reports.

Stratton, the company’s Chief Financial

may result in a minor rationalization of the

“It’s really about unconscious bias and the

Officer. “Our stores remain vital not only as

company’s store portfolio in the near-future,

wider elements behind discrimination. It is

a point of sale, but as a marketing vehicle

but DXL’s belief in a connected network of

at the core of what we do because DXL has

advertising our products when someone

in-store and online retail platforms means

become successful through stores built on

drives by.

that, ultimately, there may be opportunities

inclusion.”

“The retail mix is like a flywheel,” Peter adds. “A customer comes into a store and shops; they need something else when they

for the retailer to open even more stores in selective markets in the years ahead.

DXL’s transformation from a traditional

“One of the things of which I am most

Another benefit unique to physical stores – at least until the practice of interactive shopping becomes widespread – is people.

get home, so they go online and they shop;

brick and mortar retailer to a modern

As a retailer serving a diverse range of

they are reminded of us next time they pass

consumer brand focused on data, analytics,

customers, DXL employs a similarly diverse

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Destination XL Group

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RETAIL-MERCHANDISER.COM

workforce, all of whom are trained not only in how to measure and fit clothing, but also in the inclusive culture that makes the company great.

“All in all, there are three key elements to the people side of our business: culture, how we recruit and train, and the passion our consultants have for the customer,” Harvey states. “People are critical to what we do and I’m proud to work with so many people that care. We all honor the opportunity to serve and interact with our consumer, and we believe there is a meaningful opportunity to grow our business based on that.”

Planned improvements The rapport between company and customer that Harvey alludes to means that DXL currently holds a Net Promoter Score

achievement in itself, gives the company

to return. Unfortunately, given the strife

(NPS) well above the industry average.

around five per cent market share for the

of some retailers during the pandemic,

A measure of consumer satisfaction and

sector – a fact that Harvey would like to

we also plan to take a share of the market

loyalty, NPS indicates a company’s ability

change over the course of the next decade.

there as a result. In short, we while we have

to make brand advocates of its customers.

“The addressable big and tall market is

not authored a specific financial target

With an NPS score in the high 70s, DXL’s

meaningfully greater than our revenue,

going forward, executing on all the things

focus on consumer engagement and

despite the fact that we are the biggest

we’ve talked about – including one to one

personalization means customers continue

specialty player in the US,” Harvey

marketing, the digital transformation, the

to recommend the brand to others.

affirms. “Our belief is still that there is an

fit and all these variables – then there is

underserved consumer out there, and we

a definitive opportunity for us to grow

advocacy even higher,” Harvey asserts.

can do better in acquiring new customers

revenue and profits.” v

“Whether you are an airline, hotel, retailer

and encouraging our existing customers

www.dxl.com

“We now want to raise the bar on brand

or car repair business, customer advocacy is the best way to create awareness of your company and acquire new customers. It beats traditional advertising hands down.

“In the next three to five years, we have plans to further improve our Net Promoter Score to above 80. Through that process and improved loyalty, our customer base will grow as we become more recognized as a great business. That, in turn, will create more revenue, and with that revenue growth, more profitability.”

In 2021, the addressable Big+Tall clothing market is worth more than $10 billion. At present, DXL turns over close to $500 million pre-pandemic, which, though an incredible

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23

America’s Food Basket

Better

together

Celebrating its 14th year in business, America’s Food Basket is a grocery co-operative built on strong partnerships, a robust support network and a flair for customer service

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A

co-operative of independent grocers, America’s Food Basket has been serving customers and communities

in the northeastern United States since 2007. Having enjoyed rapid growth during its short history, the independent store owners achieved close to $500 million in sales in 2020, but more importantly, its go-to neighborhood supermarkets continue to provide consumers with a superior local shopping experience, based around friendly service and competitive value.

“America’s Food Basket is a true grocery co-op started by enterprising store owners 13 years ago with the goal of providing maximum value back to stores, while delivering all of the services and support of a major retail chain,” explains CEO David Siegel. “Customers will know us through our two primary banners: Ideal Food Basket in metropolitan New York, Long Island and Florida, and America’s Food Basket in New England.”

Success has come steadily to America’s Food Basket. In 2007, the company had just three stores in the United States. Today, in 2021, the business supports more than 50 stores in seven states, and COO Daniel Suriel expects that number to surpass 60 by the year’s end.

“We currently do business in seven states, including New York, Massachusetts, Connecticut, Rhode Island, and Georgia,” Daniel affirms. “The nature of our grocery co-op format, along with a wide network of helpful trade partners, has recently enabled our expansion into new areas, namely Pennsylvania and Florida.”

Healthy partnerships Though America’s Food Basket locations often have different footprints based on their respective urban, suburban or rural settings, the company’s stores are all built around a customer shopping experience that is ‘fresh, full, friendly and clean’. Each site boasts an assortment of products

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25

America’s Food Basket

specifically tailored to its neighborhood and consumer demographics, and substantial support is always on offer to store owners from America’s Food Basket’s central headquarters.

“I believe what sets us apart from the competition is the value we, at HQ, give back to store owners, and the relationships we have with the store teams,” Daniel states.

“We are in constant communication with our stores every day, throughout the day. At HQ level, we leverage all the resources we have access to from a back-office perspective to help our stores remain as relevant as possible in today’s ever-changing retail environment.

“Similarly, we take pride in being fair and equitable with our valued trade partners. Our goal is to foster long-term healthy partnerships and that’s why we commit to what we know we can execute.

Co-operating involves all stake holders pushing together for the same common goal. Ultimately, return on investment is the measuring stick for performance.”

Positive culture In order to maintain high levels of service and a ‘local’ feel to its stores, America’s Food Basket places emphasis on making the tools available for proper training at all its supermarkets. Conscious of the fact that customer service can make or break the consumer experience, the company strives to educate all its staff in everything from guest interaction and proper sanitation practices, to how to properly cut meat.

“We make National Grocery Association computer-based training courses available to all stores who choose to utilize it,” David reports. “In conjunction with our trade partners, we provide ongoing Fresh Seminars and in-store training. In addition, all of us at HQ get into stores whenever possible to provide additional support and to understand what works, what doesn’t and what we can do better.”

America’s Food Basket’s dedication to professional development has, over time, helped the company to construct a skilled and customer-centric workforce. Though they have similar turnover rates to the rest of the industry, with close to 2200 employees across its portfolio of stores, the indispensable

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RETAIL-MERCHANDISER.COM

As a true grocery co-op, our focus is to serve our stores as best as we can - whether that is through enhanced category management insights, merchandising initiatives, cost of goods reductions, improved in-store support or increased CPG promotional funding. Whatever happens, we will manage this business by working hand in hand with our store owner operators nature of each and every one of the

the future. None of that is possible without

of company-wide newsletters and savings

organization’s people is not lost on David.

a culture of shared beliefs and values that

initiatives.

“People are the most important variable

foster personal growth, listening more than

“Our Ideal Everyday Value and Basket

in any retail environment, but especially

speaking, and caring about each member of

Full of Savings program is a strong business

at America’s Food Basket,” he declares.

the team, regardless of their role.”

driver for all our sites,” Daniel reveals. “With

“Yes, you need a solid foundation to

this program, we are able to lock in long-

be successful, which includes strong

Online retail

term deals on key items throughout the

merchandising, marketing, procurement

As David suggests, shared culture has long

store, allowing us to be competitive with

and financial systems, but those alone will

been a contributing factor to the success

the club stores and big box operators, while

not be the catalyst to long-term success or a

of America’s Food Basket, and the company

still offering the in-store services that our

positive, rewarding culture.

works hard to ensure that this sense of

customers enjoy when shopping with us.

unity and commonality persists across all its

Our weekly newsletters and online recipes

team that is passionate about serving,

supermarkets. Since the beginning of 2020,

serve as additional resources designed

in our case, the independent retailer, is

for instance, the organization has improved

to help customers love the food that they

critical to remaining relevant now and in

links between stores with the introduction

purchase with us even more. Food brings

“A knowledgeable, motivated, focused

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27

America’s Food Basket

families and friends together!”

Alongside its physical in-store initiatives,

minutes, and this now includes groceries for

have the simplicity of ordering food on an

America’s Food Basket customers.”

America’s Food Basket also profits from the

app, to a senior citizen who would prefer not

latest technological innovations. For example,

to lug groceries around when they can just

Unrivalled value

a BRdata Software Solutions platform keeps

have them dropped off instead,” Senior Vice

In the months and years ahead, America’s

the company efficient by tracking and storing

President of Operations Amanda Espinal

Food Basket hopes to build on the strong

all data captured from items scanned at

points out. “In the early days of Covid-19,

platform it has established over the last

in-store cash registers. This information can

online retail was crucial for us because it

two decades. Focusing on intelligent,

then be used to create programs based on

allowed people who preferred not to leave

controlled expansion, both in-store and

consumer purchases, and reports gauging the

their house to get their groceries delivered

online, the organization aims to seek

success of every promotion.

straight to their doorsteps.

out more like-minded, financially viable

As an organization continuously

“Online retail also gives us the ability to

independent grocers who want to grow

searching for new and innovative ways to

serve new customers,” she adds. “It means

with the company, as well as ramping up its

serve its customers, America’s Food Basket

that people who may never have stepped

e-commerce and digital marketing activities.

has recently started offering online retail

foot inside our stores before might see that

services. Popular with consumers since

we are geographically close to them online

organization, America’s Food Basket prides

its inception, the digitalized shopping

and give us a chance as a result.

itself on being a company that works for its

exprience proved especially important during the Covid-19 pandemic.

“The customer base for online retail ranges

28

in age from a teenager who would rather

RETAIL-MERCHANDISER.COM

“Finally, online retail allows us to stay

A ‘bottom-up’ rather than ‘top-down’

stores, rather than using them as a vehicle

relevant. Most things nowadays can be done

for profit. As a proud sponsor of charities like

with an app on your phone in under five

Los Rancheros Unidos Foundation, and as an

there with our stores every step of the way

see the value of our company. America’s

to provide support and make sure they are

Food Basket will remain consistent

adapting to all of these changes accordingly.

with intelligent, controlled, organic and

“Going forward, more store owner

incremental growth.” v

operators, trade partners, and most

www.afbasket.com

importantly, customers will continue to

www.idealfoodbaskets.com

active member of the National Supermarket Association, the business endeavors to bring unrivalled value to its communities, partners, and most importantly, its co-op members.

“As a true grocery co-op, our focus is to serve our stores as best as we can whether that is through enhanced category management insights, merchandising initiatives, cost of goods reductions, improved in-store support or increased CPG promotional funding,” Daniel asserts.

“Whatever happens, we will manage this business by working hand in hand with our store owner operators.

“In the next three to five years, technology will evolve rapidly, and so will our customers’ shopping habits.

Consolidation will continue throughout the supply chain network as it drives efficiencies. As this takes place, we will be

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29

Gerber Products Company

Anything for Baby

TM

With a rich heritage in the baby food industry, Gerber Products Company keeps innovation (and baby) at the heart of everything it does, so that it can help parents meet the nutritional needs of babies and toddlers around the world

F 30

ounded in 1928 in Fremont,

true leader and innovator in early childhood

simple products, today Gerber enjoys well

Michigan, Gerber Products

nutrition. Over the 93 years of its evolution,

over half of the market share in the US, the

Company (Gerber) has

the company has continually grown and

world’s largest baby food market.

established a reputation as a

expanded, and from its initial offer of five

RETAIL-MERCHANDISER.COM

What makes Gerber so successful, is

that it is founded on a true dedication to

support to parents and an extensive range

nutritional needs of babies remain the

do Anything for BabyTM. This is exhibited

of nutritious food products for their babies,

same as in previous generations, Gerber

by its innovation driven products and

for which the Gerber name is renowned.

recognizes that nutrition science has

services that include multiple avenues of

Furthermore, while some basic

made great strides in understanding the

RETAIL-MERCHANDISER.COM

31

Gerber Products Company

maintaining a strategy that prioritizes innovative new offerings, and providing the up-to-date products that contemporary parents demand. This is done at the same time as driving nutritional development and making sure that the wide range of product offerings are tasty, convenient and accessible.

Subscription boxes Gerber’s constant drive to remain inventive and create original and inspiring new products sets Gerber apart from the rest of the competition and establishes it as a real differentiator in the industry. The Gerber website is a great example of the business’ imaginative, yet user-friendly approach and has recently been the focus of a raft of improvements. With the overall ambition to create a ‘one-stop-shop’, where visitors can discover and shop for products, learn and educate themselves, and access services on impact of early childhood nutrition on long

looks for ways to meet these needs.

demand, www.gerber.com was relaunched

term health and continues to identify the

Supporting a healthy eating journey for

in November 2020. This site is designed

best ways to nourish babies. And Gerber

babies in modern times is constantly

with busy parents in mind. Through clever

knows that each generation of parents

evolving, and Gerber addresses this by

programming Gerber retains a personal approach by allowing visitors to customize their experience based on what they need for their baby by getting down to a very detailed level on areas such as allergies, flavors, developmental milestones, age range and so forth.

The Direct to Consumer (DTC) eCommerce market provides parents the opportunity to order online and have products conveniently shipped to their homes. An expansion of the DTC is a new Subscription Box service. Designed by Gerber’s nutrition experts, each box is developed for a different stage of a baby’s life with foods to help progress their developmental skills.

Composed of Organic products, each box is delivered monthly, contains organic foods for one to two occasions per day, and includes nutritious cereals, delicious purees, tasty snacks and more. “We always want to find more ways to give consumers expedient options for meeting their baby’s nutritional needs and what you get in this box is all of our expertise at your fingertips.

We introduced the notion of ‘developmental milestone stages’ many, many years ago, and thanks to our knowledge in that area, the contents of the box ‘grows’ as the baby

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RETAIL-MERCHANDISER.COM

gets older, so when they are ready to try

“We recently added Spanish language

are always looking to increase innovation,

new flavors and textures, the contents of

baby experts, and we already offer access

so we have a lot on the agenda this year,”

the box change,” explained Kai Musielak - Sr

to specialists who focus on lactation and

Allison confirmed.

Manager Consumer Engagements.

nutrition as well as having a certified sleep

The development and implementation

“On top of that, we also include

coach on staff. We offer the time of these

of the Subscription Box service goes some

educational material, like our sample

experts completely free to parents - they

way to capture the essence of the overall

menus, hunger and fullness feeding cues

can have one-on-one appointments or

innovation strategy that underpins Gerber’s

tip sheets, and information about the farms

chat with them 24/7. What we are really

approach to New Product Development. By

where we grow the fruits and vegetables

trying to do is support parents, especially

continuously monitoring opportunities and

that make up our foods,” he added. Gerber

first-time parents, and it’s really important

looking for potential gaps in the market,

also sometimes includes items that are

to us to be there for them and it is part of

Gerber is often a trend setter and leader in

designed to surprise and delight, so in

our mission to do ‘Anything for BabyTM’. We

the baby food sector; always keen to find

certain months an item such as a milestone blanket or other nice addition will show mom the value that the company has for her and baby.

Parental support As increasing numbers of parents have been adapting to quarantine and staying at home during the coronavirus pandemic, the Subscription Boxes have proved a popular option, and Allison Creswell, Sr Specialist for E-Commerce Strategy at Gerber, was able to report strong customer retention and loyalty among the subscribers that have been acquired so far. “They do represent our most engaged and brand loyal consumers so we are really excited about continuing to see it grow,” Allison revealed, before noting that the boxes will evolve over time, with new and interesting additions. “We are exploring expanding the subscription series and looking at options where we are adding more flavors for baby - like a flavor adventure - which we think will definitely accelerate adoption.”

From speaking to Allison and Kai, it is clear that Gerber’s improved website has created an ideal platform to which further innovations can be incorporated. The team has ambitious plans for the future.

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33

Gerber Products Company

new areas where it can bring its expertise

with every new promotion and marketing

with over a century of experience in early

and provide new solutions.

execution,” she agreed. As one would

childhood nutrition in its own right.

This approach is reflected in another new

expect with Gerber and its perpetual

In fact, being part of Nestlé gives Gerber

launch, where in a dynamic move, Gerber

forward momentum, the range won’t

access to an amazing repository of data in

has entered the Frozen Foods aisle. This

remain static and new, flavorful additions

the form of The Nestlé Feeding Infants and

exciting undertaking, called Freshful Start,

are also expected.

Toddlers Study (FITS). The largest dietary

launched exclusively in a limited number of

study of children from birth to four years in

Target stores five months ago. “The range

Nutritional needs

the US, the data gleaned from FITS helps to

includes three Organic Veggie & Grain Bowls

Not only a valuable new addition to the

shape policy, educate parents and design

and two Organic Veggie Bites, and they all

already impressive range of products

the portfolio of innovative products that

have a variety of, healthy ingredients in

developed by Gerber (in total it makes

Gerber introduces to the market each year.

them. For example, all the products include

more than 190 products, with its brands

Nestlé has now undertaken this study three

a selection of veggies because we want the

stocked in approximately 80 different

times, over the course of several years, and

family to be comfortable with vegetables

countries) the Freshful Start range can

it has revealed that it can be a challenge for

and understand their importance in a

also be used as an illustration of how

young children to get all the nutrients and

healthy diet, and that is something that

the company combines its dedication

healthy foods they need.

we really value in terms of development,”

to innovation referenced above, with a

Responding to the statistics revealed

explained Catherine Cortes – Baby Food

relentless focus on infant nutrition. To

by FITS, Gerber’s product innovation team

Brand Manager.

maintain the right balance between these

turned their attention to a new area for

two pivotal areas requires a dedicated pool

the business, and following an intensive

Start range is also Organic, and has some

of employees and the support of a strong

period of research and development, they

good early indicators of success. Catherine

and experienced management team. In

created a range of gummy multi-vitamin

is confident that it will continue to mature

this respect, Gerber is able to draw on its

products. These are designed to fill the

as consumers become more aware that

own years of experience, as well as the

nutritional gaps of toddlers and children,

Gerber foods for toddlers are available in

substantial resources of Nestlé, of which it

but have been carefully devised not to

the frozen aisle. “We are watching it grow

is a subsidiary, and which is an organization

provide excesses of certain nutrients that

Like the Subscription boxes, the Freshful

they don’t need. The new range - Grow Mighty and Lil’ Brainies - extend Gerber’s purpose of ‘Anything for BabyTM’ to growing children. As Gao Dan, Business Executive, Infant Formula & Supplements pointed out, it can be hard for parents to consistently meet the nutritional recommendations for toddlers, especially at the age when they have developed their own personal food preferences. “Grow Mighty is a complete kid’s multivitamin, aimed at the toddler of two years and above, and Lil’ Brainies provides key nutrients to help support children’s brain development and memory,” she said, giving some more details about the range. Gao also noted that Gerber will be looking to add more advances in the future to this area, maintaining its stance on helping parents and ensuring the nutritional needs of children are met in supportive and convenient ways.

Every bite counts At the end of 2020 another valuable reference point on infant and toddler feeding was published with the 2020-2025 Dietary Guidelines for Americans. These include recommendations for pregnant

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www.gerber.com/shop-by-product/meals/frozen

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Gerber Products Company

women, lactating women, infants and

a recommendation that most infants

toddlers for the first time ever. Highlighting

need a vitamin D supplement, and we

a message Gerber was already keen to

offer a vitamin D supplement drop in

emphasize - that ‘every bite counts’ under

our portfolio,” revealed Susan Pac - Sr

two years of age - the guidelines promote

Manager of Regulatory Affairs. “There

how important it is that parents and

are also other recommendations

caregivers choose nutritious foods for their

about nutrient dense foods such as

babies and toddlers right from the start.

fruits, vegetables and whole grains, and again, we offer many products

Dynamic innovation

that provide these nutritious foods in

The fact this messaging is coming directly

developmentally appropriate forms for

from the US Government makes it a

young children.

valuable resource for everyone concerned

“Another of the new recommendations

with early childhood nutrition - including

from the dietary guidelines is about the

Gerber. “We definitely have a wide variety

appropriateness of introducing common

of products that can help parents follow

food allergens earlier in the diet than

the new guidelines, for example there is

previously advised, such as peanuts,” she continued. “We have some exciting product releases in our snacks line that support this recommendation, one of which is Gerber Baby Pops. We have a peanut variety of Baby Pops, and they make it easy for parents to include some peanut in a suitable form for their child.”

Having spoken to the hard working and enthusiastic team members that make it all happen at Gerber and having been given a fascinating insight into its operations, it is clear that innovation is the foundation upon which all its new offerings are built. While handling the challenges of differentiating its products from the competition, providing modern solutions for parents, and maintaining a constant focus on nutritional development, the team at Gerber never stands still or relies on past successes. Demonstrating a remarkable dedication to being as ground-breaking and pioneering as possible, the team at Gerber has always maintained the highest standards for everything it grows and everything that feeds the children of America and the rest of the world.

It has been a privilege for Retail Merchandiser to highlight the operations and approach of a respected and renowned company such as Gerber. The magazine looks forward to being able to report on the next amazing product releases and dynamic innovations that are sure to be revealed in the years ahead. v www.gerber.com

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www.gerber.com/subscription-boxes

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Bar Louie – The Original Gastrobar

Eat - Drink Be Happy The pioneers of the original Gastrobar concept, Bar Louie combines great drinks, exceptional food, and awesome service to deliver a comfortable, relaxing atmosphere for its communities of guests to enjoy when they please

Tom Fricke - CEO

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would arrive as CEO in late 2017, with a focus on operational improvements, introducing an upweighted menu, and evolving the brand’s reputation.

“Bar Louie is what we call a ‘Gastrobar’,

F

which we think is the ‘spirit led’ American version of the great British pub,” Tom

ounded as a local neighborhood

explains. “Handcrafted cocktails – with a

bar in Chicago, Illinois, in 1991,

focus on martinis – are at the heart of our

Bar Louie subsequently grew at

beverage menu, and through the years

an exceptional pace to the point

we have evolved a food menu that offers a

where its ‘Gastrobar’ concept expanded to

unique take on classic dishes. Our guests

no fewer than 46 locations by 2010. It was

have always come to us to relax and have

at that point that the company was acquired

a nice drink, but the food we offer has

by Sun Capital, which owned the brand

improved dramatically since 2018, offering

through 2019. Under its stewardship, the

guests another reason to spend time with

business continued to grow, its franchise

us, even if they aren’t in the mood for a drink.

structure was introduced, and Tom Fricke

Ultimately, what we want is for everyone

who enters a Bar Louie location to be able

is why we can proudly say that we are

mix of people that enjoys visiting Bar Louie

to find an item on our menus that becomes

neither just a bar or a restaurant. Rather,

significantly contributes towards the fun

their favorite, and we work extremely hard to

we fit somewhere in between, offering the

social atmosphere that we are synonymous

make this a reality!”

casual and welcoming atmosphere of a bar,

with, and results in guests typically staying

but also the quality food that one would

with us for two hours or more at a time.”

Visitors to a Bar Louie will immediately notice that no two establishments are the

find in a quality restaurant. The ability to

same, with the company looking to reflect

shift our Gastrobars from Lunch to Happy

Ideas & solutions

the neighborhoods that it forms a key

Hour, and from Dinner to Late Night, is a skill

At the heart of the company are its locations

part of. Each location offers a comfortable

set that not many other companies have,

and its people. “We have an exciting portfolio

atmosphere, with its kitchen staying open

and it requires professional leaders who

made up of multiple location types, including

until last call to offer wonderful options for

understand the nuances of each day part,

lifestyle centers, special event centers, free-

business travelers or those who don’t want

and who are able to flex the space and their

standing locations, an airport and hotels,”

the night to end!

teams throughout the day.

Tom continues. “Our smallest location is under

“I can confidently say that we are highly

“We also boast a wide guest demographic,

1000 square feet, while our largest location

differentiated in comparison to our nearest

with the majority of our guests falling

takes up almost 11,000 square feet. Clearly

group of competitors,” Tom tells FoodChain.

between the ages of 21 and 55 years old.

the model of a Gastrobar is not confined to

“We have a strong understanding of both

Our guest profile also skews 58 percent in

a specific floor plan and this allows us great

the bar and the restaurant industry, which

the direction of females. The wonderful

flexibility when choosing a site.

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Bar Louie – The Original Gastrobar

“A unique characteristic of the majority of our locations are our garage doors that roll up, providing access to our large patios. The seating on our patios sometimes represents as much as 30 per cent of our total seating capacity. For that reason, we prefer locations where we can take advantage of three or even four seasons on the patio, and we are actively investing in covering our patios and offering heaters in the cold months. We prefer to have a footprint of at least two to three locations within a market and have plans to expand within markets where we already have a presence.

The ability to grow talent internally is very important to us. Having a more significant presence in a market allows us to share talent and offer our Team Members the opportunity to grow and develop without relocating.”

Speaking of the company’s Team Members, their contribution to its success cannot be overstated. “The hospitality industry literally centers around people and cannot survive without them,” Tom states.

“Bar Louie has always been committed

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to freedom of expression for our Team Members and our guests. #beyou and #bettertogether are two phrases that resonate, and we recognize that great ideas and solutions can come from anyone.

This will not happen, however, if our Team Members do not have a voice or we do not listen to our guests.

“Internally, a framework is necessary to ensure that safety and sanitation standards are maintained. A clear strategy and thoughtful tactics are critical if financial goals are to be obtained, but flexibility and

to use our space to gather; and in general,

owners have growth plans in the coming

freedom in other areas also allows us to

ensuring that we play a positive and active

years, and we expect to add new franchise

benefit from the creativity of our Team and

role in our communities.”

owners to the Bar Louie team as well. It

prevents us from becoming overly concerned

After an understandably difficult year,

is early yet to share unit count goals, but

or focused on areas that just don’t really

Tom and the rest of the Bar Louie family

we have a great foundation to build upon

matter. Our site selection, the manner in

are excited to share that growth is in the

made up of multiple proven real estate

which our Team Members dress or style

company’s future. “We plan to expand

models, a solid infrastructure and a proven

their hair at work, the way we transform our

within markets where we already enjoy a

management team. We think Bar

Gastrobars to reflect the event our guests are

positive reputation, and are interested in

Louie’s best years are still to come,”

celebrating – the freedom within all of these

entering new markets with either corporate

Tom concludes. v

choices creates a culture where innovation

or franchise units. Many of our franchise

www.barlouie.com

is possible, inclusion is real, and having fun is just what we do.”

Growth plans Despite its considerable growth over the years, Bar Louie continues to consider its locations as being – at their core – neighborhood bars. “The members of our community that we call guests literally ‘do life’ with us,” Tom proclaims. “We celebrate the birth of their babies and marriages. We mourn with those who have lost a loved one. We host parties for every imaginable reason, and if our community needs a party, we will throw a party – just because.

“As such, it’s not surprising that we also want to give back. In 2020, at the height of the Covid-19 pandemic – and well before we began to recover financially – we began formally giving again. Cocktails for a Cause was born in late 2020, and allows us to focus on giving back through one organization each quarter. Our guests join us by purchasing a unique cocktail or by adding a dollar amount to their check. We then ‘top off’ the donation and pass 100 per cent all of the funds to organizations that are helping people in our communities.

Beyond such larger corporate campaigns, you will also find our local General Managers donating their time; allowing organizations

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Fajita Pete’s

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Grilling up

growth

R

A Tex-Mex franchise built around catering and delivery, Fajita Pete’s is becoming a valued part of communities across America

ecently named as one of QSR

restaurant was a success and helped Pete

“It was 2008 and when my lease was

Magazine’s ‘Twelve Restaurant

hone vital skills in customer service, team

up at that location, I shut down the huge

Chains Ready to Grow’, Fajita

building and site management.

restaurant,” Pete recalls. “It was profitable

Pete’s is set for a big year

As a graduate of the University of

and it taught me a lot of lessons for which

in 2021. After four years of tremendous

Houston Wolff Center for Entrepreneurship,

I’m still very thankful, but we left that site,

growth, the restaurant chain has become a

Pete soon began looking for

downsized to 1,200 square feet, and within

staple of communities across Texas and is

complementary revenue streams and

a matter of three weeks Fajita Pete’s was

in line to become a family favorite in plenty

ways in which the company could make

born.”

more states and homes over the next half-

off-premise consumption part of its

decade.

offering. When substantial local demand

the core focus has always been fajitas. I

Pete continued: “As our name suggests,

For the man behind the brand, Pedro

for catering and delivery services became

narrowed down the menu from my original

‘Pete’ Mora, it’s been a 20-year journey

apparent, Pete spied the opportunity for a

restaurant to items that travelled well. With

that began when he graduated from the

new business – a restaurant chain focused

no Uber back then, let alone Uber Eats, it

University of Houston and opened a full-

on off-premise consumption that could be

was a great time to educate the market in

service Mexican restaurant. A 6300 square-

repeated and multiplied. The rest, as they

Houston on the delivery of anything that

foot location, with over 60 tables, the

say, is history.

wasn’t Chinese or Pizza.”

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Fajita Pete’s a beat,” Pete reports. “We didn’t have to change operationally in the back of house at all because approximately 95 per cent of our food was already consumed off-premise.

Our stores only have three or four tables and most of them are used by customers picking up orders to take home. Our model was ready for the Covid crisis before we even knew the pandemic was going to happen.”

Lasting connections As Fajita Pete’s attracts more and more franchisees, Pete is confident that the company will maintain the strong community culture that has been present since the opening of its first store. Not

Resilient operation

has performed through the pandemic. We

interested in becoming ‘just another

Winner of ‘Best Fajitas’ at the Houston

were very excited before last year, but 2020

national chain’, the organization values

Fajita Festival in 2017 and 2018, Fajita

has just reinforced the fact that we have a

communities and aims to create lasting

Pete’s increasing popularity stems primarily

really strong, resilient operation.”

connections between each of its outlets

from its food. Built around a limited menu

Ready for action

support these relationships, Fajita Pete’s

favorites, the brand’s offering includes

Despite corporate catering making up

franchises play an active role in fundraisers

quesadillas, enchiladas, flautas and of

around 30 per cent of Fajita Pete’s takings

for local causes and Spirit Nights, where

course – fajitas.

prior to the Covid-19 outbreak, the

a percentage of revenues are donated to

company’s sales did not suffer in 2020

schools, clubs or sports teams.

“We serve great quality food that is not only straightforward to make and easy

thanks to its innate suitability to the

to deliver, but also very profitable,” Pete

delivery market, as well as an ability to pivot

you have to be very community based,” Pete

states. “Efficiencies are key. When we sit

its offering focuses when needed.

explains. “My partner Joey likes to say that

down and refine our business model each

“The fact that we are built for contactless

“To get noticed as a small brand, I think

it’s all about getting noticed by teachers,

year, we focus on sales per square foot. We

delivery - we already had online ordering

preachers and coaches. Community is about

target families and consequently, Fajita

platform and a loyalty program - helped

the churches, the little leagues, the schools,

Pete’s has a company average ticket price

us easily pivot to a curbside model. Only

and the people they represent. That is our

of approximately $44. When you combine

minor adjustments were needed to allow

focus - grass roots, local store marketing

that with the streamlined nature of the

us to continue to operate without missing

coupled with operational excellence.

operation, it stands out to experienced operators as a great investment opportunity.”

Having built its reputation in Texas, Fajita Pete’s stores can currently be found in Houston, Dallas and College Station. Later this year, in Kansas City, Kansas, Fajita Pete’s will open its landmark 20th site. The Kansas City location may be the first Fajita Pete’s outside the Lone Star State, but it certainly won’t be the last.

“We have two corporate outlets and the rest of our sites are now franchisee-owned.

We recently received commitments from qualified operators to open 35 new stores, so our plan is to expand aggressively across Texas and into Kansas, Missouri, Oklahoma, Louisiana, Arizona and Colorado – the latter of which will be home to five new stores beginning in 2021,” Pete reveals. “We are confident in our business model and how it

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and the local people that it serves. To

of premium-quality, handmade Tex-Mex

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We want to be your Overland Park Fajita Pete’s or your Bellaire Fajita Pete’s, not just another faceless major brand.

“Since launching, we’ve been lucky enough to attract the right franchisees – people who believe in our culture and live it out through their desire to be involved in the community and make a positive difference. If ever there is a flood or catastrophe, Fajita Pete’s is always one of the first groups out there feeding first responders. I think that level of care translates into the service we try and offer our customers.”

The trust Fajita Pete’s places in its workforce is such that, over the course of 2021, the company intends to take feedback from its franchisees on how they believe the chain can improve. As hope in the battle against Covid-19 rolls out across the world in the shape of vaccination programs, the restaurant chain plans to work in unity with its suppliers to ensure that Fajita Pete’s continues to grow smoothly across US towns and cities.

“We want to continue on the path we are currently on,” Pete declares. “I think we can expand regionally and venture into more states, and in the meantime, we will look to gain more momentum through volume buying and solidifying our supply chains.”

Pete continues: “There is always room to improve of course, so we will also be

help educate the market on what we do in

to 20 locations a year in the long-term,” Pete

finding ways to execute better at store

Q3 2020.

predicts. “We have a great team to support

level, increase sales and keep our valued

“Within the next year, I believe we will

us and so there is no reason why we can’t

customers happy. In the short-term, we will

have up to 100 commitments to open new

continue to grow quickly and thoughtfully.” v

be adding a protein-only retail offering to

stores, and I can see us rolling out around 15

www.fajitapetes.com

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