Campaign corner
Chilled for eternity. We haven’t talked about Liquid Death for a while, right? Well, if you are looking for out-of-the-box ad ideas, then this is the brand to follow. In their latest collaboration with Yeti, Liquid Death released a casket cooler. Yes, you read that right - it’s a casket, but you can put ice on it and add your beverages. Those interested can even bid on it and see if they can get it.
Building confidence. Moving on to a serious matter, Dove is preparing for its virtual 'Dove Day' workshop. To initiate discussions ahead of the event and highlight the effects of these issues as students across Canada return to school, Dove has launched Most Likely To. This film takes a new approach to the traditional high school yearbook superlatives by revealing the hidden challenges young people face due to low body confidence. Featuring real-life stories from Canadian girls, the film underscores how low self-esteem and body image issues can profoundly impact their lives.
What happened in Retail tech?
Diversifying tech. Instacart is shifting its growth strategy by diversifying services for retail clients and expanding its advertising base to include more small and emerging brands, beyond its traditional focus on large brands. CEO Fidji Simo highlighted new retail media partnerships, such as with Thrive Market, and the company's efforts to broaden ad placements across retailer websites. Instacart is also enhancing its retail media measurement capabilities, with a goal of having advertising account for 4-5% of its gross transaction volume, while deepening integration with retail partners through new services like online SNAP payments and enterprise solutions.
Virtual dress try-on. Google Shopping has expanded its AI-powered virtual try-on feature to include dresses, aligning the launch with New York Fashion Week. Through a partnership with Simkhai, select dresses will be available for virtual try-on and pre-order after the brand's Sept. 7 runway show. The tool, which debuted last year with tops for men and women, now lets users visualize clothing on a range of body types, helping improve shopper confidence. Since its introduction, Google reports a 60% increase in high-quality views on virtual try-on images, boosting engagement for both shoppers and brands.
What experts say…
Grocerants. In response to rising regulatory pressures, increased theft, and inflation driving up food prices, U.S. grocery chains are facing significant challenges in 2024. As consumers cut back on spending, grocers are revisiting the concept of in-store dining, also known as "grocerants." This trend involves offering ready-to-eat meals and value-focused options that compete with fast food, allowing grocery stores to meet the demand for affordable, convenient meals. By providing a one-stop-shop experience, grocerants are boosting foot traffic and revenue, particularly as dining out becomes less affordable for many consumers. Here’s Neil Saunders’ opinion on the topic:
Private label. Numerator’s recent report highlights that private-label products now account for 24% of unit volume across major categories, with office supplies, home and garden items, and tools leading in private-label share. Grocery, health, and household products show the highest household penetration. ALDI and Trader Joe's rely heavily on store brands, with private labels making up 80% and 69% of their sales, respectively, while Amazon’s private label share is just 3%. Kroger’s “Smart Way” brand has seen remarkable growth, alongside Dollar Tree, Dollar General, Walgreens, and CVS store brands, all showing significant increases in private label sales. This is what Kristin Shane mentioned:
Statistic of the week
Nearly 70% of shoppers prefer retailers that offer personalized experiences across all channels, including both digital and physical touch points.
This stat was revealed by a study by Incisiv and Talkdesk. Despite this preference, only one-third of retailers are personalizing a third of their customer journeys. Luxury retailers are leading the way, with over 90% offering one-on-one shopping appointments with experts, compared to just 30% across the broader retail sector. This highlights a growing expectation for tailored experiences, particularly in higher-end markets.
In other news…
The rise of retail media. In-store retail media has become increasingly influential, with 84% of retail sales still happening in physical stores. As grocers advance their retail media networks, tools like sampling kiosks, digital end caps, and smart carts are helping retailers capture shopper data and measure ad impact. Regional and mid-market grocers, in particular, benefit from these advancements as they can better engage CPG brands through in-store foot traffic.
Retail media initiatives. Grocers are expanding their retail media networks by integrating advanced digital tools to enhance personalized shopping experiences both in-store and online. Efforts include streamlining TV advertising (Albertsons), connecting retail media with ad sales platforms (Ahold Delhaize USA), and incorporating retail media into mobile shopping tools like Sam’s Club’s Scan & Go. These initiatives aim to improve customer engagement and drive more targeted advertising, contributing to a seamless shopping journey across digital and physical channels.
