Suzy Davidkhanian (00:04):

Hi, everyone. Today is Wednesday, February 25th. Welcome to e-marketer's weekly retail show, Reimagining Retail, where we talk about how retail collides with every part of our lives. I'm your host, Suzy Davidkhanian, and on today's episode, we're back with our UMRAs, our Unofficial Monthly Retailer Awards. Let's see who's screwed up this month. Joining me today, we have newly minted principal analyst, Zak Stambor joining us from Chicago. Hi, and congrats, Zach.

Zak Stambor (00:34):

Thank you, and I am very excited to be here for the UMRAs.

Suzy Davidkhanian (00:38):

I'm so excited to have you as well. We have Becky Schilling, Senior Director of Media Content and Strategy joining us from New York City area.

Becky Schilling (00:47):

Yes, I'm glad to be back on the pod after a little bit of a hiatus.

Suzy Davidkhanian (00:51):

It has been a while. Thank you so much for coming. And of course, podcast regular, Blake Droesch, Senior Analyst joining me from, or joining us from a few blocks away from me. Hey, Blake.

Blake Droesch (01:02):

Hey, Susie. Good to be on, as always.

Suzy Davidkhanian (01:05):

Well, thanks for rejoining us. Okay, so as a reminder, here's how this is going to work. Each month we're handing out awards for all the retailers we think really nailed it in a few key areas. This month, we've got three categories, Most Impactful Campaign, Best in Real Life Initiative, and the Greatest Under-the-Radar Move. Becky Blake, Zach each brought an nominee for February, and I'll pick the winner based on how convincing their case is. All right, so let's get started. Number one, Most Impactful Campaign. This is the marketing idea that broke through the noise, resonated, it was memorable, it drove performance. And the nominees are... Becky, I'm starting with you. Who's your nominee?

Becky Schilling (01:48):

My nominee is Chipotle. So February is all about the Super Bowl and the ads during the game, but Chipotle took a little bit of a different tact in that their campaign wasn't a traditional commercial at all. So during the weekend, instead of spending all of that money on an ad, they launched a social first activation called, The Chipotle Realist 30. They dropped a halftime Instagram reel and tied it to the real-time, text to claim offer giving away a hundred thousand free entrees.

(02:19):

What made it smart is it flipped the Super Bowl playbook. Rather than asking consumers to just passively watch this 30 second spot, which they paid millions and millions of dollars for, they asked them to act immediately to turn on their phones, to engage, to order some food. The campaign referenced obviously Chipotle's real ingredients, the positioning that they've been built on, and it really did perform so well on social media aspect. It brought people into the game in a different way. We know that so much about viewing sports is about co-viewing, and what you're doing on your phone as well. So it really kind of engaged people in different ways than all of the noise that can happen during the Super Bowl.

Suzy Davidkhanian (02:59):

I feel like Becky summed up our Super Bowl pod in 60 seconds, right? A great example of a brand who's not part of a bazillion dollar Super Bowl ad during the show but has leaned into the moment.

Becky Schilling (03:14):

So, I won?

Suzy Davidkhanian (03:15):

No, not yet. We still have to hear everybody else's. I also think, not only did they lean into the fun, but it's a really good way to do many things with one 30 seconds. You kind of said it, they have all these conversations that happened, that increased share of mind in a natural way. It was a contest, so they got a lot of new data from people. They understand that there's a second screen that's happening, and so they used it creatively. It sounds like they were wedged... I'm not sure exactly how they got to wedge their ad between AI. It sounds like it was between that vodka robot ad and some other AI ads. So it was really like, "We're human. We have real ingredients. Come to us." Pretty clever if you ask me.

Zak Stambor (03:57):

I mean, I know this is a competition, but I did love this campaign. I thought it was so smart, so clever, and so on brand. I mean, that's what really nailed it for me was that it hit that realness of Chipotle real ingredient note so well, and like you said, that contrast couldn't have been clearer.

Suzy Davidkhanian (04:21):

I guess it's unfair for us in terms of competition because we're doing it as first come, first get, and Zach did have Chipotle on his list, so that is a tough one.

Becky Schilling (04:30):

Sorry, Zach. I thought it was the last one to send it in, too.

Zak Stambor (04:37):

Yeah, that's what I get for doing things last minute.

Suzy Davidkhanian (04:41):

Okay. So now, I'm going to move on to Blake. Tell us who your nominee is.

Blake Droesch (04:44):

My nominee is CeraVe for partnering with Kevin Durant as The New Face of Legs. So a little bit of a backstory here. CeraVe Moisturizing Cream decided to basically piggyback on top of this image that Kevin Durant has or a reputation rather that he has with being combative with trolls on social media. I think anybody that follows has followed the NBA for a long time knows that he hasn't been afraid to sort of mix it up with the people who comment on his tweets and et cetera, to the point where it's kind of brought on a little bit of extra scrutiny himself in comment sections.

(05:30):

So when some of his trolls started calling him out for having dry legs, somebody at CeraVe saw an opportunity to partner with him on a social first campaign where they really sort of leaned into it. They had these sort of fake paparazzi pictures that they've released of him putting the skincare lotion on his legs in the locker room, and sort of just having fun in terms of building off this real-life situation that came off as really authentic, because it sort of picks up on this reputation that Kevin Durant already has as being sort of a combative entity on social media. Plus, it probably really helped them reach an under-penetrated audience of young men who maybe aren't the first to buy skincare products.

Suzy Davidkhanian (06:19):

Young men, and in a different category. They're so well-known for face that it's interesting that they're trying to move into other parts of your body that need cream. I thought it was a very clever, viral moment turned campaign. But my question is, do you really think that this entertaining sort of spoof, if you will, will really help them drive sales beyond what they're actually known for, which is face cream and face washing and that sort of dermatologically friendly? Do you really need that for legs?

Blake Droesch (06:49):

Well, it's not just about driving sales, it's about... I see this more as a brand awareness campaign, where you're introducing a brand to potentially, again, an audience that doesn't have a lot of brand recognition in the skincare space as well. So yes, maybe it's not going to immediately drive people to flock to stores and start moisturizing their legs, but as these life events come up, you get to a certain age where you've got dry skin, or next winter rolls around and all of a sudden you've got that name in the back of your head, and I think that's what these campaigns are really more about than just driving immediate performance.

Suzy Davidkhanian (07:34):

More than a moment in time?

Becky Schilling (07:35):

I love it. Anytime anybody is going to poke fun at themselves and poke fun at the haters, it's a win in my book.

Zak Stambor (07:43):

And they kind of found the perfect guy, right? I mean, he's perfect for this.

Suzy Davidkhanian (07:49):

Well, with that, tell us, Zach, what is yours?

Zak Stambor (07:52):

It is the 125th anniversary of Nordstrom opening its doors. And Nordstrom has a very big anniversary series of events that it's rolling out. It kicked it off, New York and Paris and it's extending the celebration all throughout the year with so many different prongs to it. So there are exclusive product drops, there's partnerships, there's collaborations with brands like Birkenstock and Ahn. There's an expanded anniversary sale. There's loyalty perks, there's even activations within Nordstrom Rack. It's so multipronged, and multichannel that I thought it was really interesting. Because there's no shortage of discussions around all of the challenges facing department stores. But Nordstrom is using this moment in time to really shine a spotlight on what department stores can be and what makes them special, and what makes them unique, and why consumers should go and walk through the doors of a Nordstrom.

Suzy Davidkhanian (09:08):

So this was interesting for me, because it's Nordstrom's first TV campaign as well. And so everything you said in terms of this ecosystem and all the different components of a campaign from a mechanical perspective are here, right? It's loyalty, it's driving sales, it's driving branding. Apparently, they're doing a lot of storytelling around their core competency, which is service, like best service, sort of best in class when it comes to service. What I don't know, and so I'm asking you if you can tell me more about, why would they lean into TV? The other two campaigns which were amazing and viral moments are all about social and this seems like they're like, "We're 125. We know department store grounds are shaky, but yet we're going to launch our first TV ad campaign. Go, let's do it."

Zak Stambor (09:59):

It's not just TV. There is a social component, too. But TV is a great place for storytelling. It's a great place to just get people's attention in a way that it's very easy to scroll past a social media post. And so, why not do both? And so, I think this is more of a yes/and rather than just squarely focused on like, "Yes, we're doing TV but we're also doing all these other things."

Suzy Davidkhanian (10:26):

Yeah, I also thought through the... I mean I'm asking you guys questions, but I think through them as well. For me, it was around TV is probably where their core customer is, the higher end consumers that are slightly older, that have disposable income. And so, it's kind of like a wow that they never did a TV commercial.

Zak Stambor (10:44):

It is surprising that they had never done a TV commercial. I hadn't realized this until I saw this and it put that front and center. I'm not really sure why that's the case because to your point, I think it does align with their customer base.

Suzy Davidkhanian (11:03):

Drum roll, please. I've been assured that they're adding them, though Becky, Ariel did them last time, so you might need to do them.

Becky Schilling (11:13):

Oh, [inaudible 00:11:14]

Suzy Davidkhanian (11:14):

Drum roll, please. And the winner is CeraVe. Is it CeraVe or CeraVe? I'm not sure. I thought it was CeraVe.

Zak Stambor (11:26):

I thought it was CeraVe.

Blake Droesch (11:26):

I honestly don't know. And I probably should have learned how to pronounce it.

Becky Schilling (11:29):

And for that, Blake cannot win.

Suzy Davidkhanian (11:30):

I thought it was a very clever way to bring a cultural moment that is longstanding into play in a way that is meme worthy and will continue to go on. And I agree with what you said, not everything is about driving immediate sales and this is one of those things that's going to be in your memory bank so that when you are at the shelf, the in real-life shelf, you might be like, "Oh yeah, actually, that guy that I like who plays basketball really well uses this, so I might get, too."

Blake Droesch (12:03):

All right, well I'm glad to be on the board. Those are some good picks. So I honestly wasn't expecting to win. Thanks for being fair and impartial.

Suzy Davidkhanian (12:10):

Oh, my god, you guys, there are no speeches. There are no speeches allowed after you win. It's not like the Grammys.

Blake Droesch (12:17):

Sorry, I'll hold my longer speech till the end.

Suzy Davidkhanian (12:20):

Perfect.

Blake Droesch (12:21):

Where I either am accepting the accolade for winning or airing my grievances about not winning and it being unfair.

Suzy Davidkhanian (12:29):

Or maybe everybody's going to win one, because I am all about fairness. That did not happen in January. On to award number 2, Best in Real-Life Initiative. This is the in real-life move that got people off of their screens and into stores creating an experience worth checking out. And the nominees are, Blake, you start.

Blake Droesch (12:50):

All right. I'm going to start with Walmart's latest in-store sushi bar experiments, which they have brought to their newest Walmart Super Center in Florida. So that's basically... That's the gist of it. They've opened up a sushi bar. I think it's a great idea for two reasons. Number one, for I think the more structured and strategy reason, higher income people are shopping at Walmart, particularly for groceries. This has been a trend that we've been seeing for several years. Sushi is a premium food, so catering to those higher end customers, why not have a sushi bar?

(13:36):

The second, perhaps more realistic example, is that it's a little bit of a gimmick. People are wondering, "Is it going to be gross or not? Is it going to make me sick?" People are very skeptical of eating sushi in places outside of sushi restaurants. I think it's going to bring people in stores to roll the dice. And I think that whether for good or for ill, no pun intended, that it will get people in stores.

Suzy Davidkhanian (14:01):

I think this is really, for me, it was a, "Uh, really?"

(14:05):

I don't even know that I get it at the places that I would consider super fresh. But it is an interesting juxtaposition, right? If they're trying to move into the fresh, prepared foods, which they're not really in, your biggest test is raw fish. And if people come in for that, then you could do soup and salad and all kinds of other things.

Blake Droesch (14:25):

Yeah, well that's because you're a bit of an elitist, Susie.

Suzy Davidkhanian (14:27):

I am.

Blake Droesch (14:27):

And I'm kind of a man of the people.

Suzy Davidkhanian (14:29):

Yeah, you're not wrong.

Blake Droesch (14:29):

So I will for one be trying Walmart sushi. I just booked a trip to Florida.

Zak Stambor (14:35):

They do have sushi at Sam's Club.

Suzy Davidkhanian (14:38):

Can you eat like... You know how Costco has the hot dogs? They actually have sushi in their-

Zak Stambor (14:45):

It's grab and go. It's grab and go. But they have the expertise, because they do it there. So I don't think it's that much of a leap to then move it over to Walmart.

Suzy Davidkhanian (14:55):

That's new information. I thought the leap would've been... There's no Sam's Club near me. But I thought the leap would've been, Walmart is so well known for execution and they have so many delivery fleets, that they must have refrigerated fleets that will carry the fish in a way that will be safe.

Blake Droesch (15:14):

Yeah, I mean, all kidding aside, I think Walmart has proven itself to be a very top of the line grocer. And people buy their entire grocery orders there, including meat, poultry, and fish. So I don't really see it as a huge leap for their loyal grocery customers who are very comfortable buying food to make it home.

Suzy Davidkhanian (15:41):

Time will tell.

Zak Stambor (15:42):

And sushi has become so mainstream at this point, that I just think it's a natural next step. I don't think it's a dramatic leap.

Suzy Davidkhanian (15:50):

Zach, since you have the mic, tell us who your nominee is.

Zak Stambor (15:53):

My nominee is Atna the Chinese sportswear giant, which just opened its first US flagship store, and it chose the location for that store to be Beverly Hills. And it's a really interesting store. It's not only a retail space, but it's also being billed as a community hub, a cultural space. So they've got a broad assortment of stuff, so performance and lifestyle gear. They're hosting run clubs and athlete led activations, and various programming celebrating Chinese American heritage, which I thought was an interesting twist. And I thought the location is particularly notable and striking to go first into a really high end retail space of Beverly Hills. It certainly caught my attention. And the opening featured like Kyrie Irving and Clay Thompson and really high profile athletes. So I just think it's a really interesting move. And that's not to mention Anta also investing heavily in Puma. We can cut that out, but...

Suzy Davidkhanian (17:10):

I mean, it is a whole global momentum. They're trying to figure out how to be more global. What I find fascinating is that they have chosen Beverly Hills probably to signal that all things from China are not cheap goods, but it's also so local. How many people will actually get up and go in that neighborhood? And who's traveling to Beverly Hills to go to a shoe store? But, who knows? I guess that's the whole thing about their U.S. brand hub. Only time will tell. And with that, Becky, you too, you have a sports one.

Becky Schilling (17:40):

I went with the Jordan brand and what they did around the NBA All-Star weekend. So instead of just dropping a product line, they showed up everywhere with immersive pop-ups, sneaker launches, community-driven events, all of these things tied to the culture of the NBA. A lot of interactive installations, athlete appearances, storytelling that celebrated the brand's legacy and their future. They had even a vintage swap meet where you could come and sell some of your old vintage gear. It was just a really strong reminder that when brands tap into these cultural moments, and they make them tangible and you can feel them and you can experience them, that they don't just drive sales but they drive memories.

Suzy Davidkhanian (18:21):

Ooh, I like that. And I also liked, but I didn't quite understand the connection, maybe you know, they also did activations across different retail banners like Foot Locker, but also, Levi's.

Becky Schilling (18:30):

Oh, I didn't see the Levi's. That's even more interesting.

Suzy Davidkhanian (18:30):

Yeah, right?

Becky Schilling (18:35):

Oh, see, let's just build on why mine should win.

Suzy Davidkhanian (18:38):

It was beyond, because at first I was like, "Oh, is it really scalable?" It's like one moment in time. They're such a big brand. But then they really thought through how to be everywhere, which was really interesting.

Becky Schilling (18:50):

Yeah, they took advantage of the weekend, and really placed themselves in all of these different locations and all of the different ways that they could really tap into the culture of this NBA All-Star Weekend.

Suzy Davidkhanian (19:01):

Drum roll, please.

Becky Schilling (19:01):

[inaudible 00:19:05].

Suzy Davidkhanian (19:05):

I want to go with Walmart and Sushi, but I just can't get beyond that. So I am going with Nike and Jordan, and really leaning into a cultural moment and turning it into something really big that people want. There was something for everybody and it really got people off their couches.

Becky Schilling (19:22):

Thank you.

Suzy Davidkhanian (19:23):

So with that, on to award number three, Greatest Under-the-Radar Move, the smart play that didn't make the headlines necessarily, but quietly moved the business forward. And the nominees are, I'm starting with you Zach?

Zak Stambor (19:36):

Okay. I am struggling here, and I am not too optimistic about this nomination, but I will give it a go.

Suzy Davidkhanian (19:44):

That's not a good sell, Zach.

Zak Stambor (19:47):

I know, I know. But over Slack you suggested that this one is not likely to win.

Suzy Davidkhanian (19:52):

Oh, shoot. Guys, there is no tamper... And yet, you picked it.

Zak Stambor (19:58):

I still went with it, because I'm going to give it go. So I'm nominating Amazon and the-

Suzy Davidkhanian (20:05):

Like, how under-the-radar is Amazon?

Zak Stambor (20:08):

Right. So the high profile news was Amazon closed, Amazon Fresh. They closed Amazon Go, to my chagrin because I loved Amazon Go. But the under-the-radar thing that they're doing is they're really looking at how they can figure out physical retail beyond Whole Foods. So they announced that they are opening a superstore, a very large store, that's roughly the size... I don't know if you've ever been to a Meyer Superstore. They're gigantic, even bigger than a Walmart Super Center, in Orland Park, Illinois, which is about 20 miles southwest of Chicago. Then rather quietly, they also are making steps to open another store in Oakbrook, which is a affluent area. It used to be the home of McDonald's headquarters. And so, it's very clear that they are very focused on figuring out what is a way to leverage their e-commerce expertise in an offline world?

Suzy Davidkhanian (21:25):

And you know, I appreciate that they're trying new things and new store formats, and that they haven't figured out the store. But again, I just don't know if it's really that under-the-radar, because it feels like since the onset of time they've been trying different... Remember when they had the review store where everything was, all the things that are highly reviewed, and then the bookstore?

Zak Stambor (21:46):

Yes.

Suzy Davidkhanian (21:46):

It's like this is their go-to playbook, try something different, tweak it a couple of times, it doesn't work, and then you move on with your life and try something new until-

Zak Stambor (21:54):

I mean, I do love their willingness to try, innovate, pull the plug, try something new.

Suzy Davidkhanian (22:02):

That is true.

Zak Stambor (22:03):

And I think that's a real attribute to-

Becky Schilling (22:05):

So I almost picked Amazon as my Best in Real Life Activation for finally admitting that they can't do physical retail and pulling the plug. But I thought that was maybe a little too cheeky.

Suzy Davidkhanian (22:18):

Well with that and talking about cheeky, tell us yours, Becky. Who's your nominee? I love this one.

Becky Schilling (22:26):

Well, thank you, Susie. My nominee is HEB, which is a regional grocer out of Texas. And they are so well-known for their tortillas. They make them fresh in store. They have never really leaned into the marketing aspect of what everyone talks about when you go in the store is, "Did you get the tortillas? Did you get the tortillas?"

(22:47):

Oh, and now I finally understand what you talked about, the baby talk. It was mine, and I totally missed it. And they made this whole commercial, and they showed it during the Super Bowl regionally, about a baby and all the moments of the baby growing up and the food that they're getting and he just wants this tortilla. And then finally, he realizes he gets the tortilla. And it was just a fun way to play into what everyone talks about with HEB, but they had never really leaned into in their marketing. And so, that is why I picked HEB.

Suzy Davidkhanian (23:13):

It was really a smart play for them, because it was really engaging and it was filled with stories and things that people can relate to even if you're not a parent. And while it was very regional, it definitely was embedded in so much culture, and they really understood their assignment around the Super Bowl. So I thought it was great. And that they were able to not have the ad leak before the Super Bowl, I think really added to it. Blake, who's your choice?

Blake Droesch (23:39):

My under-the-radar choice is Kroger naming a former Walmart, CEO of the US, Greg Foran, as the CEO of their company this week. And I think it's under-the-radar because even though it is CEO of a huge retailer, I think anybody who's ever covered trade reporting knows that having to report on changes in staffing, even if it's in the C-suite, is typically the most boring thing that you have to do. But I think it's pretty significant just because of where Kroger's business is and has been in the last couple of years. So Foran was really successful at Walmart US for doing two things, sort of taking a back-to-basic approach to fixing their stores, making sure that things were in stock, cleaning up just the appearance of the stores, but also equipping them to support e-commerce and creating new opportunities there. So he was the CEO of Walmart US from 2014 to 2019 and that's when they really started building that infrastructure that they are enjoying today, which is really propelling their e-commerce growth.

(24:56):

Kroger has made a lot of investments in fulfillment technology, particularly with its partnership with Ocado, but that's really fizzled out I think in recent years. I mean a lot of investments that sort of seem to have been scaled back. So I think bringing in a fresh face to sort of re-figure what does Kroger look like for the next generation is really smart. And I think it's not going to make huge waves now, but could set themselves up for success over the next decade just like Walmart was able to do during Foran's tenure there.

Suzy Davidkhanian (25:35):

I love when we talk about hiring changes, because I do think that that's an under-the-radar signal in terms of what the company is going to try and focus on. And we all know that in grocery it's really hard to make money and especially if you're trying to figure out the buy online, pick up in store, all the different variations of delivery, the fresh foods. And he comes with this execution background, so I do think it's very clever. Drum roll please.

Becky Schilling (26:01):

[inaudible 00:26:04].

Suzy Davidkhanian (26:04):

Thanks, Becky. And the winner is HEB, [inaudible 00:26:10] baby. I really think they leaned into the moment in a way that is really like everybody is talking about private label, everybody is talking about the Superbowl, everybody is talking about, how do you go viral and lean into the moments and I think they did that so well.

Becky Schilling (26:26):

Thank you. And we can cut the part where I screamed like a baby.

Suzy Davidkhanian (26:30):

No, You won two out of three. Let me repeat the list. Award number one, Most Impactful Campaign, CeraVe. Award number two, Best in Real-Life Initiative, Nike and Jordan. And award number three, Greatest Under-the-Radar Move, the HEB commercial. And that's all the time we have for today. Thank you, Becky.

Becky Schilling (26:51):

Thanks for having me.

Suzy Davidkhanian (26:52):

Thank you, Blake.

Zak Stambor (26:55):

Thank you.

Suzy Davidkhanian (26:55):

And thank you, Zach.

Zak Stambor (26:56):

Thanks. This was fun.

Suzy Davidkhanian (26:57):

And thanks to the team who edits the podcast and of course, our listeners. Please leave a rating or review and remember to subscribe. I'll see you all next Wednesday for more Reimagining Retail. And we'll be back with the UMRAs at the end of March. And on Friday, you can join Marcus for another episode of Behind the Numbers.