As part of their ongoing mission to help clients stay ahead of the competition in a fast-paced, constantly evolving marketplace, Mars United Commerce’s Customer Development team closely monitors the strategic activity taking place across all key retailers and channels.
Each month, the teams compile Marketplace Assessment reports on the retailers (including Walmart, Target, Amazon, and Kroger) and channels (such as Regional Grocery, C-Store, Club, Pet, Beauty, and On-Demand Delivery) that are most important to the business success of our clients. The following report outlines noteworthy events across six key retailers from the team’s most recent round of assessments. (To receive copies of the full reports, contact EVP-Customer Development Kandi Arrington at [email protected].)
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Walmart Canada Invests in the Store Footprint
Walmart Canada plans to invest CA$6.5 billion over the next five years to expand its footprint, including the rollout of five new supercenters by 2027. (The retailer currently operates 344 supercenters across the nation.) The announcement came soon after the company concluded a $3.5 billion investment project launched in 2020 that involved additional stores, renovations, and five new distribution centers.
In other operational moves, Walmart Canada sold its trucking business to Canada Cartage, one of North America’s largest providers of transportation and logistics services. Canada Cartage will continue operating the fleet on Walmart’s behalf, allowing the retailer to focus on its stores and supply chain.
Relevance: Walmart Canada continues looking for ways to improve its operations by identifying gaps in its store footprint and distribution strategies. The moves signal its commitment to expanding its presence in the country.
Opportunity: These initiatives underscore the ongoing importance of the physical store in Walmart’s overall strategy and the corresponding need for brands to keep in-store marketing in the mix when developing their omnichannel plans.
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BJ’s Wholesale Seeks Professional Help
To help guide its growth plans, BJ’s Wholesale Club has hired global business management consultants Genpact. BJ’s will utilize Genpact’s AI-powered solutions to enhance both operational efficiency and the customer experience by optimizing the supply chain, member services, and business processes.
Relevance: BJ’s’ focus on data-driven improvements could improve product availability, demand forecasting, and supply chain transparency — all critical factors in effective planning and distribution.
Opportunity: As the work with Genpact starts to influence inventory planning at BJ’s, brands should stay informed to anticipate potential changes in supplier requirements and expectations.
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Dollar General Grows Private Label Portfolio
Dollar General plans to add approximately 100 private-label products to shelves during the first quarter. Over half of the items will be marketed under the retailer’s Clover Valley grocery brand, which currently spans roughly 600 products.
Dollar General capitalized on the inaugural “National Store Brands Month” (as designated by the Private Label Manufacturers Association) in January to spotlight its expanding portfolio via social media posts, store flyers, and emails.
Relevance: Clover Valley is Dollar General’s largest own brand, accounting for more than $2.3 billion dollars in annual sales and 600 of the 3,200 private label grocery items carried by the extreme value chain. The retailer’s emphasis on private label packaged goods follows a push to add fresh produce to more than 5,000 stores in recent years; plans call for expansion to 300 additional locations throughout 2025.
Opportunity: Understanding market trends, such as the increased shopper demand for more affordable food, is essential for brands to make informed decisions about new product innovation and pricing strategies. Brands should also explore ways to cross-promote their products with relevant and non-competitive private-label items to deliver easy solutions for shoppers while addressing their pricing needs.
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Albertsons Ramps Up App Capabilities
Albertsons is introducing three capabilities to its store app in a bid to attract more digital shoppers:
- ShopAssist: An app-only feature that lets online shoppers chat with their in-store order picker in real time to make substitutions or discuss preferences.
- Flash Mode: A curated selection of grocery items that are available for pickup or delivery in as little as 30 minutes.
- Omni-Cart: A feature available on Albertsons’ app and website that allows shoppers to build a personalized basket based on frequently purchased items.
The nation’s second-largest grocer launched a digital advertising campaign in tandem with the updates to bring more awareness to its overall ecommerce services. The campaign features a series of 6- and 15-second videos emphasizing the convenience, ease, and value of online shopping with Albertsons. The videos are available on YouTube and Instagram, as well as streaming audio and DOOH platforms.
Relevance: Albertsons posted a 23% increase in ecommerce sales in the third quarter of fiscal 2024. Online sales now account for 7% of the company’s total revenue, but app engagement is also becoming increasingly important for retailers looking to offer brands a full suite of retail media opportunities.
Opportunity: Albertsons is looking to grow its app audience to drive ecommerce sales and retail media audiences. Brands will need to keep up with the retailer’s initiatives (Mars United’s quarterly Retail Media Report Card can help) and work with Albertsons Media Collective to engage shoppers in the app and across the retailer’s digital ecosystem.
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Best Buy Plans New Digital Marketplace
Following the lead of Amazon, Walmart, Target, and other major retailers, Best Buy will team with ecommerce software company Mirakl this summer to launch a digital marketplace that lets third-party sellers integrate their products into the retailer’s website and app. Sellers on the new Best Buy Marketplace will also have access to Best Buy Ads and partnership opportunities with the retailer.
Relevance: The new marketplace gives sellers a chance to expand their reach and grow their brands through exposure to Best Buy’s shopper base of 180 million. It gives Best Buy an expanded assortment of products, additional categories, and emerging technologies that can help grow its own customer base.
Opportunities: As Best Buy Marketplace grows, brands will need to strengthen their presence to stay competitive and should consider working with Best Buy Ads to maintain their visibility.
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Lowe’s Renovates its Digital Home Platform
After showcasing its recent product and service innovations at CES in Las Vegas last month, Lowe’s unveiled plans for a revamped and rebranded Lowe’s Digital Home Platform — just a few months after its original November 2024 launch.
An exclusive service for members of the retailer’s free MyLowe’s Rewards loyalty program, the renamed MyLowe’s Home platform will boast new features designed to help shoppers manage their home improvement needs. Among them:
- A generative AI-powered chat interface that provides project troubleshooting, guidance, and insights in real time.
- Personalized suggestions and reminders about repairs, product replacements, and seasonal care.
- A centralized library of relevant product information, such as manuals, warranties, and item details.
Relevance: This update positions the retailer as an indispensable destination for home maintenance and improvement needs by giving shoppers personalized services and recommendations.
Opportunity: Brands should work with their Lowe’s partners to understand how to leverage the platform for product discovery and consideration (like through the personalized suggestions feature). Additionally, it will be important for brands to keep their product information updated, as these details will be prioritized in the MyLowe’s Home environment.
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Mars United Commerce’s Customer Development practice is an unrivaled team of in-market commerce experts who simplify the complexity of retail for our clients. Located in Bentonville, Minneapolis, Cincinnati, Chicago, Tampa and the “backyards” of other key retailers, they provide deep knowledge of the retailer, expertise in key business areas (like strategy, media and creative), and door-opening personal relationships with key executives to deliver an unmatched level of business success for clients across accounts, channels, and shopper engagement platforms. For more information, contact EVP-Customer Development Kandi Arrington at [email protected].
