The number of SKUs in stores has tripled since the 1980s – but sales have not grown at the same pace. Now, many retailers are reducing the vast number of products and pack sizes offered in-store in an effort to create a more streamlined shopping experience, simplify supply chain logistics, and reduce out-of-stocks. As a result, shelf space is increasingly constrained.

This shift creates greater pressure for consumer packaged goods organizations (CPGs) to optimize their in-store assortment. With fewer items on the shelf, CPGs must be as strategic as possible with the products they do offer. Quantifying the impact of each assortment change will help organizations make smarter decisions about which products to prioritize to fuel growth.

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In recent years, there have been many mergers and acquisitions (M&A) in the retail industry. Examples range from Albertsons’ merger with Safeway to Kroger’s acquisitions of Harris Teeter and Roundy’s, to Alimentation Couche-Tarde’s acquisition of CST Brands and Chilean operator COPEC’s acquisition of all MAPCO stores. In a post-merger environment, there are inevitably competing business priorities; this period is one of the most critical times to cross-pollinate ideas from both organizations and identify where there are winning strategies. Failing to evaluate the best ideas across the organization can be a big missed opportunity for many companies.

In post-merger upheaval, it is often unclear which strategies will be most effective moving forward, and implementing any new program or initiative involves both a financial and reputational risk. Merely continuing along the path of the acquiring company can lead organizations to overlook key ways to refine programs across the business. By learning from both companies’ existing programs, successes, and past approaches, the new company can optimize its go-forward strategy and realize the initial investment thesis.

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“Going local” has been a key ambition for retailers for years now. Recently, some retailers like Target and A.C. Moore have been using new store formats as part of their localization strategy, focusing on smaller-format neighborhood stores. Others are differentiating themselves in more nuanced ways, altering merchandise allocation in each store or group of stores to meet the needs and preferences of local shoppers. Nike, for example, has localized space allocation in some stores – for example, their L.A. store includes a greater assortment of clothing to appeal to soccer fans and a trial zone with fake grass to test out cleats, due to the sport’s popularity locally.

While localization has been front-and-center in the industry for some time, retailers still have a significant opportunity to drive profit with improved strategies to meet local market demands. There are many components of a successful localization strategy, including curating marketing and pricing strategies to a region’s demographics and competitive environment. However, one often-overlooked facet of an effective localization strategy is a connection to the store space planning process. Understanding how to tailor merchandising strategies for local market demands can ultimately lead to significant profit improvement and a better customer shopping experience.

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Since 2012, the meal kit industry has grown, with more than 150 companies competing for their share of the growing market. The rise of brands like HelloFresh, Blue Apron, and others is representative of shifting consumer preferences: Meal delivery kits address key demands for convenience and fresh, healthy options. For grocery and restaurant chains to avoid losing market share as this segment grows, they should respond to meal kit players by innovating, with particular emphasis on convenience.

While meal kit companies are disruptors, they have not completely encroached on grocery and restaurant territory – although they are popular among some consumers, they have yet to gain widespread popularity. They also do present some drawbacks for consumers, namely cost. Purchasing the ingredients for a home-cooked meal at a grocery store, or even eating out in some restaurants, is generally less expensive than many meal delivery kit subscription prices. For example, the average HelloFresh box with three meals for two people is $69, which comes out to $11.50 per person per meal – more than they may spend at many fast-casual restaurants, and more than they would spend on grocery store ingredients.

As meal delivery kits become increasingly popular, grocery stores and restaurants should experiment to prevent share erosion from convenience- and fresh-oriented consumers. This approach empowers grocery and restaurant chains to determine which innovations will drive maximum value in maintaining market share.

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Two years after its launch, Amazon Dash – the Wi-Fi connected device that allows consumers to order their favorite products with the push of a button – has grown to offer products from more than 100 brands. With items in categories ranging from grocery to beauty to baby and pets, consumers can fill their homes with various Dash buttons and never again need to trek to the store.

This automated approach to shopping may only be the beginning. “The real long-term goal is that you never have to worry about hitting that button,” said an Amazon spokesperson, following the product’s 2015 release. With Amazon Dash Replenishment already built into some household appliances – such as Whirlpool washers and dryers that can automatically restock laundry supplies, and Brita pitchers that order new filters as needed – Dash could be a mere stepping stone to an even more automated shopping experience.

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From mobile check-in apps to beacon technology and virtual reality (VR) headsets, hotels are pushing the envelope with cutting-edge innovations every day. With guest expectations for unique and personalized experiences steadily rising, introducing new gadgets is a key strategy to maintain guest loyalty and drive new business. But as exciting as these new tech tools may be, delivering service with a human touch is critical to overall guest satisfaction and financial growth in the hospitality industry.

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In a recent Broadcasting & Cable article, APT SVP Marek Polonski discusses the telecommunications industry implications of YouTube’s new over-the-top (OTT) service, YouTube TV. In the article, Polonski writes that the recent unveiling of YouTube TV should drive home the point that traditional TV providers must test new strategies to maintain market share in the face of new disruptors. However, he notes, the increasing emergence of streaming services also presents an opportunity to grow broadband sales.

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Consumers want convenience, and consumer packaged goods companies (CPGs) must find the winning combination of pricing and pack size to keep up with this demand.  For example, consumers increasingly seek products that fit their on-the-go lifestyles, prompting brands like Campbell’s and Organic Valley to introduce smaller pack sizes. But rolling out new pack size options presents critical challenges, ranging from potential sales cannibalization to shelf space constraints and private label competition. How can organizations determine which pack sizes and pricing will both satisfy consumers and drive revenue growth? (more…)

U.S. car sales are declining, and with them, so is private car ownership. In response, many OEMs like Ford and GM are adapting by offering their own mobility services, like car- and ride-sharing programs.

As car manufacturers continue to roll out their own mobility operations, there are many potential implications to consider. The best way to determine which programs will truly drive profits is by conducting a test vs. control analysis on a smaller scale before widespread deployment, empowering OEMs to strategically implement new programs for maximum ROI.

Here are four key considerations for car manufacturers thinking about developing their mobility initiatives, with insights on how testing can help guide their decision-making for the best possible outcomes.

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Would you pay three hundred thousand dollars for a ski-themed travel package?

Air Canada is hoping to attract customers who will. The airline’s extravagant ski package includes ice skating on the world’s largest outdoor rink, skiing in the mountains, and a dog sled excursion. As part of this deluxe offering, Air Canada is even converting a private jet into a “flying ski chalet.”

While this may be a particularly posh example, it addresses a question many airlines and hotel brands alike are asking themselves: How can we attract and retain high-value customers? Luxurious, one-of-a-kind offerings like Air Canada’s ski package are one strategy in the competition to engage with this group. Many airlines and hotels are also introducing programs like premium services and elite loyalty tiers to capture more high-value customers’ business. In the war to attract the most valuable customers, it’s key for companies to understand whether new offerings actually lead to increased customer spend and new business, or simply generate profits from existing customers who were already loyal to the brand.

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