Think Blue

Today’s insights into Walmart’s Q3 performance offer valuable takeaways for brands and retailers. Think Blue closely followed the earnings call and noted key observations that warrant attention: Market Share Gains in High-Income Households: Walmart attributed 75% of its market share gains to households earning $100K+ annually, driven by growth in grocery and general merchandise (GM), fueled by price, convenience, stores, and marketplace offerings. A significant insight is the shift in customer behavior, with many now viewing Walmart as a primary destination. Omnichannel strategies have bolstered growth in categories like fashion, where Walmart’s store business was historically weaker. This shift underscores the importance for grocery retailers and brands to refine their customer value propositions (CVP). Evolving Operating Statements: Traditional store profit-and-loss (P&L) models no longer align with modern retail dynamics. Walmart’s P&L reflects newer omnichannel revenue streams like membership, advertising, fulfillment services, and data monetization. Retailers aiming to replicate this model must go beyond taxing brands—they need to invest in strategies that generate incremental growth, which can be offset by enhanced brand partnerships. This evolving P&L framework is pivotal for next-generation retail success. Omnichannel Growth: Walmart’s omnichannel approach continues to resonate with customers seeking convenience and time savings. Its e-commerce business now represents 18% of total sales, with a 300-basis-point growth. Retailers must adapt to meet growing demand for seamless omnichannel experiences. Investment in Price and People: Sustained investments in pricing strategies and workforce development remain central to Walmart’s success. These pillars are critical for long-term competitive advantage. GLP-1 Drug Impact: GLP-1 medications contributed a 1-point improvement to segment comps. This trend has far-reaching implications not only for specific segments but also for evolving customer behaviors. Brands and retailers must proactively assess and adapt to this emerging influence. Evolving Competitive Landscape: CEO Doug McMillon highlighted the intensifying competition from diverse players in the market, without naming specific rivals. This reinforces the need for continuous learning, studying competitors, and adapting strategies in a rapidly shifting environment. These insights reflect Walmart’s ability to innovate and adapt, offering a blueprint for others navigating the evolving retail landscape. Brands and retailers must prioritize agility and customer-centricity to remain competitive. If you need help with Omnichannel Growth and evolution of your operating capability to build new revenue streams Think Blue can help. With our diverse experience across retail, brand & digital marketing, commercial capabilities, retail media and consumer centricity we could help retailers and brands alike. Manish Sharma Sri Rajagopalan Parag Shah

State of the Food CPG Industry: Decoding the Hidden Signals While the mainstream narratives focus on overarching trends, there are subtler, yet crucial, shifts happening beneath the surface of the food CPG industry. Here's a deeper dive #CPGInsights #FoodIndustry #ConsumerTrends #RetailerInfluence #ProductStrategy #Premiumization #HealthHalo Think Blue Parag Shah Sri Rajagopalan

🔥To win this holiday season, brands must cater to value-driven shoppers by strategically showcasing deals and highlighting product quality. Create a seamless "phygital" experience that merges online and in-store shopping with interactive displays and personalized recommendations. Finally, tap into the power of social media to create memorable experiences with interactive content and community-building events.🔥 Parag Shah Sri Rajagopalan Manish Sharma

#diwali isn’t just lights, fireworks and sweets. It’s a new beginning - the lunar calendars new year. New accounting year for many, the beginning of the change of seasons. With 25% of the worlds population celebrating, its important to tell our story : as kids, Manish Sharma Sri Rajagopalan and Parag Shah couldn’t wait enough for this day each year. We have memories and stories to tell. Here we are today, we celebrate with all of you. A happy DIWALI to all of you. May you be blessed with growth, success and write your own stories to tell 🙏🏻🙏🏻🙏🏻

Groceryshop 2024: Key Takeaways

Think Blue has arrived at Groceryshop 2024! Co-founders Manish Sharma, Parag Shah, and Sri Rajagopalan are excited to see all of you at booth B1601. Stop by to learn how we're revolutionizing space planning with 345. Additionally, we'd like to share 345's product roadmap, digital catalogs, in-store compliance solutions (for both brand and retail perspectives), and collaboration tools that allow brands to work on localized assortments. Check back for regular updates!