Want to learn about today's consumers' wants, needs, and goals while also gleaning insights into potential partnerships with major national retailers? There’s no better place to look than at the behaviors of both.
Indeed, retail giants like Costco, Kohl’s, Target, and Walmart have a lot to teach us about what matters at the moment and what we can learn from it.
Here’s a look at the latest news from these big-box retailers, along with potential takeaways for the rest of us.
Costco
February was a relatively slow month for Costco, but the wholesale club’s Costco Next initiative continues to generate buzz. Available for free to all Costco members, Costco Next is a free online service comprising a network of partnerships offering exclusive direct-from-supplier-site discounts just to Costco members. While the program has been around for five years, news of plans for an expansion — which will add more brands and products in the year ahead — is raising awareness about this little-known perk.
Costco also made news when Dana Blankenhorn proposed for Yahoo! Finance that it’s become one of the safest retail bets for investors.
Brand Takeaways
The expansion of Costco Next underscores Costco’s commitment to delivering value to its customers, while the consistent performance of its stock signifies consumer confidence in the brand. Adopting a similar focus may help other brands continue to attract customers (and investors) — even in uncertain economic times.
Kohl's
Kohl's was busy throughout February, with developments including news of the launch of a new spring capsule collection from Reese Witherspoon’s Draper James RSVP and the expansion of Sephora at Kohl’s, a 2,500 square-foot immersive in-store experience that will look and feel like an independent Sephora.
The company was also recently recognized with two awards from the U.S. Environmental Protection Agency (EPA) for excellence in waste management.
Brand Takeaways
Kohl’s recent developments yield several big picture takeaways, including the prioritization of creating and inspiring “destination-focused” shopping experiences that capture consumers' attention.
And, of course, Kohl’s will continue to seek partners who share its commitment to the environment and sustainability. Kohl’s also serves as an example to brands looking to make similar statements through something simple, like exploring different types of corrugate to identify the most eco-friendly option.
Target
Like Kohl’s, Target had a busy month. Beauty was a primary focus with the announcement of plans for Ulta Beauty to come to hundreds of stores in 2022 and the addition of 40 new brands to its beauty offerings, including clean beauty and Black-owned brands—many of which will be exclusive to Target.
In alignment with Black History Month, the company also announced a new partnership with the fifth-generation Black-owned family farm, Bridgeforth Farms.
Additionally, Target had news on the corporate leadership front, announcing that Kamau Witherspoon would assume the CEO role at Target-owned delivery service, Shipt.
Speaking of Shipt, Target also made headlines by stepping up its online shopping and delivery investment in Shipt to keep pace with Walmart and Amazon.
Brand Takeaways
Target’s commitment to Black-owned businesses and other social justice causes is yet another indicator of the importance of corporate social responsibility and an example to other companies looking to ensure that their morals align with the morals of their customers.
Additionally, Target’s dual prioritization of delivering satisfying in-store and online experiences also speaks to the importance of both channels moving forward.
Walmart & Sam's Club
A lot was also happening at Walmart and Sam’s Club in February, including:
- The announcement of its 49th consecutive year of dividend increases
- A reflection of its ongoing commitment to fashion for everyone through partnerships with brands like Free Assembly and Scoop
- The continuation of its focus on creating “wow-worthy” in-store experiences designed to make Walmart a place where consumers want to spend their time
The low-cost fulfillment solution, Walmart Fulfillment Services, has continued to grow since its launch two years ago, demonstrating the tremendous value of trust between the retailer and sellers.
Walmart also made news on the technology front. A recent Forbes article asserted the momentousness of Walmart’s use of RFID smart-labels for in-store shopping (despite the lack of media attention surrounding it). At the same time, Walmart’s “exclusive access” sale for Walmart+ members did garner ample attention.
Brand Takeaways
As with Target, Walmart’s focus on creating engaging in-store experiences demonstrates that while the online channel is thriving, there’s still a great deal of potential in brick-and-mortar retail — with the right strategies in place, that is.
Meanwhile, while the potential of RFID smart-labels may not be widely recognized or understood at the moment, this technology has transformative potential when it comes to helping traditional retail stores keep up with the likes of Amazon.
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