ALTAVIA WATCH The Best of International Retail 2020 - January 2021 - Thierry Strickler - English version - Altavia Group

ALTAVIA WATCH

The Best of International
Retail 2020

Altavia Watch 2021   January 2021 – Thierry Strickler – English version

ALTAVIA WATCH

                     1
         SURVIVAL STRATEGIES

                     2
          RESHAPING PRIVACY

                     3
     THE DIRECT TO CONSUMER
           TEMPTATION

                     4
      FOREVER PHYSICAL STORE

Altavia Watch 2021

1      SURVIVAL STRATEGIES

Altavia Watch 2021

1    SURVIVAL STRATEGIES

Novel, unprecedented, shattering, the COVID-19 pandemic has thrown our whole world out of balance.
The first lockdown caused a real earthquake. The figures from France’s National Institute of Statistics and
Economic Studies (INSEE) are incontestable: the “quarantine” of a large part of the French economy to
combat the spread of COVID has led to a 36% drop in economic activity. Regarding the second lockdown,
credit insurance specialist Euler Hermes estimates the loss of earnings for “non-essential” trade closed on
30 October 2020 at €4.4 billion. After the initial shock, survival strategies have flourished. Saving what can
be saved, business, jobs, and customer relations.
The balance sheet at the end of May 2020 has been catastrophic for world trade. The fall of large commercial brands, already
weakened before the coronavirus epidemic, was precipitated by lockdown. In the French market, André, a century-old trusted name,
went into receivership. At the end of May, Camaïeu, from the Nord department of France, with 3,900 employees and 634 shops across
the country, also went into receivership. And Orchestra-Prémaman has been under safeguard procedure since September 2019.
In England, British clothing chains Jaeger and Peacocks are filing for bankruptcy: 4,700 jobs are threatened and
500 shops will have to close. Two mega-bankruptcies in British businesses are putting 25,000 jobs at risk. After Arcadia, owner of
Topshop, filed for bankruptcy, the Debenhams department stores went into liquidation on Tuesday 1 December. In the USA,
bankruptcies have also multiplied. J.C. Penney, Neiman Marcus and J. Crew have also given up the fight. Debts are mounting, and
lockdown has put the cash flows of big brands to the test. Nike posted a quarterly net loss of $790 million, while PVH, which owns
Tommy Hilfiger and Calvin Klein, posted a net loss of $1.1 billion! Leading players have also had to drastically scale back business:
Guess is planning to close more than a hundred outlets worldwide, and Victoria's Secret is shuttering more than 250 shops.
The coronavirus pandemic has significantly impacted and shaken the entire global market ecosystem.

Altavia Watch 2021

1    SURVIVAL STRATEGIES

However, actors have also responded by using creativity and agility to improve resilience. The challenge facing shopkeepers is
considerable: continuing while remaining virtually closed. Brands have shown real creativity in coping with the constraints of the
pandemic. Some have gone into “laboratory” mode to test their proposed solutions. This is particularly the case for fast food players
who have adopted “100% contactless” strategies. This means take-away sales and deliveries only. McDonald's France relied on a
scientific committee (virologists, doctors and employees) to design a new structure for its restaurants. A laboratory to take on new
constraints, create new rules, test them in the field and then deploy them throughout its restaurant network.
Agility scenarios have also been implemented to maintain the connection with customers at all costs. This is the case for Norauto with
its “SOS Norauto” programme, a home breakdown service for batteries and punctures. Both DIY stores (Leroy Merlin) and household
appliance retailers (Boulanger, Darty & Fnac) are taking drastic measures to get business up and running again. The idea is to adapt
to these new constraints in order to guarantee health safety for all. Click & Collect, delivery services and Drive are gradually being
deployed to respond to customer emergencies.
The situation of independent shops, however, is alarming. Cash flow has dried up, expenses are weighing on operating accounts
and a more positive prospect seems distant. Uplifting solidarity initiatives have emerged, for example Petitscommerces.fr,
soutien-commercants-artisans.fr, or in Canada, the Rue Principale (Main Street) initiative. These demonstrate the sincere solidarity
shown by everyone and help to cushion the unprecedented shock of this health crisis.
The crisis triggered by COVID-19 has highlighted the weaknesses of some retailers in their customer relationship
management. In the future, retailers will need to offer cross-disciplinary solutions based on both their physical store
and on a digital store. They will need to follow the golden rules of the omni-channel approach: offering customers the choice
between two complementary worlds.

Altavia Watch 2021

1        SURVIVAL STRATEGIES
Pimkie, Camaïeu, Jules...
Some thirty companies
join forces to launch a joint website
“to save Christmas”
More than thirty French ready-to-wear brands such as
Pimkie or Camaïeu, as well as jewellery (LVMH) and
culture (Cultura) brands, came together to offer a single
point of entry. Consumers simply have to log in once to
access their products.

In concrete terms, consumer log in to sauvonsnoel.fr and
are redirected to a store listed on the site to make a
purchase. They can also filter the stores of their choice
by selecting a type of delivery: Click&Collect (online
purchase and pickup at a physical location),
home delivery, “e-reservation” (reserving a product
online, then payment and pick up in store), or even video
purchase (which allows you to chat with a salesperson
by videoconference).

Source: businessinsider.fr

Altavia Watch 2021

1        SURVIVAL STRATEGIES
Leroy Merlin, Castorama
and Brico Dépôt, offer pickup services
for emergency DIY work
Closed since 15 March 2020, the main DIY stores now
offer pickup services for essential and emergency
products. Faced with this situation, Leroy Merlin,
Castorama and Brico Dépôt have put in place a
contactless pickup service after placing an order on the
Internet.

The merchandise is picked up directly from stores,
“which remain closed for the moment”, as specified.
Strict safety and health measures will be put in place for
each store to avoid contact between customers and
employees. The pickup is thus made in the car park at a
precise time slot.

Source: actu.fr

Altavia Watch 2021

1        SURVIVAL STRATEGIES
Rungis now delivering fruit
and vegetables to private customers
and partners with Epicery
Rungis Market has announced the implementation of a
digital delivery platform for private customers, called
“Rungis livré chez vous” (“Rungis delivered to your
home”). This platform is intended for Parisians and Ile-
de-France residents of the inner suburbs. Consumers will
be able to put together their “baskets” of fruit, vegetables
and other fresh produce via the portal and have them
delivered to their homes. As a result of lockdown
measures including the closure of restaurants and many
open-air markets, many wholesalers and producers have
been left with large stocks looking for takers.

Rungis International Market has signed a partnership
with the Epicery platform, which will host “Rungis livré
chez vous” on its site. Rungis plans to provide several
refrigerated transport vehicles to deliver the products to
the platform's delivery drivers' departure points.

Source: reussir.fr

Altavia Watch 2021

1        SURVIVAL STRATEGIES
Auchan extends its
Decathlon corner trial
The COVID-19 crisis and the accompanying closure of
non-essential shops have clearly accelerated things. Five
additional Auchan hypermarkets will have a Decathlon
corner within their sales area.

Decathlon had previously forged a surprising partnership
with a competing distributor, the Casino Group, via its
urban convenience store Franprix. But a more extensive
collaboration between Auchan and Decathlon, as with
other specialised brands of the Mulliez family, now
seems to be a natural evolution. Carrefour has also
forged several partnerships with other retailers: Darty,
Aubert, and very recently Pacific Pêche, as well as Cash
Converters (in a space called Carrefour Occasion) as a
white label.

Source: lineaires.com

Altavia Watch 2021

1      SURVIVAL STRATEGIES
C’est qui le patron?! delivers
to your area and helps
locked down restaurant owners
The idea is to take matters in hand by coordinating
solidarity deliveries and grouping them together to
optimise their cost and environmental impact. This will
provide access to quality products while at the same time
offering an income to those in need (businesses in
difficulty in particular will be helped).

These grouped solidarity deliveries of products that     are
currently in great demand (flour, milk, eggs)            are
organised directly by us, the consumers. They            are
delivered to businesses in difficulty, which receive a   fee
in exchange for dispatching them to consumers.

Source: lamarqueduconsommateur.com

Altavia Watch 2021

1        SURVIVAL STRATEGIES
Monoprix and Franprix create
a toll-free number for seniors
to order and receive deliveries
Positive initiatives are born in times of crisis:
the Casino Group (which includes Monoprix and
Franprix) recently decided to launch a home delivery
service for seniors. A system offered via telephone call,
so that everyone can have access to the essentials
without having to go to the store. The choice of telephone
is judicious: not all elderly people necessarily have
access to the Internet to place their orders.

Which is why a toll-free number has been set up.
Customers will have the choice between 3 shopping
baskets: one priced at €30, which contains food, hygiene
and basic cleaning products; another costing €40, with
100% organic products, and lastly, Monoprix offers
another basket at €45 containing food from its “gourmet”
range.

Source: creapills.com

Altavia Watch 2021

1       SURVIVAL STRATEGIES
“Contactless delivery”
and “Contactless service”
“This pandemic is causing us to rethink our services by
putting the customer at the centre of our thinking.
And to be more responsive and creative, first and
foremost to protect our employees and our customers”,
stresses Louis-Carl Vignon, President of Ford France.

Contactless delivery is supported by the app FordPass,
which allows the customer to unlock/lock their vehicle
remotely. The vehicle, fully disinfected, is delivered by
the dealership to the address requested, with a set of
keys left in the vehicle's glove compartment. The delivery
is made without contact, and the customer can pick up
the duplicate keys later at the dealership.

Source: media.ford.com

Altavia Watch 2021

1       SURVIVAL STRATEGIES
This just in:
Delhaize and Colruyt to collaborate
Belgian retailers are temporarily burying the hatchet, to,
in their own words, “allow as many hospital staff as
possible in Belgium to have their shopping delivered near
their workplace”. What’s more, they’re also inviting other
retailers to join their initiative, so that all Belgian hospitals
can benefit from such a service.

Delhaize and Colruyt are joining forces: together,
they will deliver free food to hospital staff. Both retailers
promise to distribute the hospitals between them fairly,
and other competitors are also welcome.

The epidemic is making for strange bedfellows. For
instance, McDonald's restaurant employees will be
coming to Aldi supermarkets to help out with the large
influx of customers.

Source: retaildetail.be

Altavia Watch 2021

1       SURVIVAL STRATEGIES
Carrefour Les Essentiels:
the new pre-prepared packages
delivered to the home
France has been in lockdown since 16 March, and the
consumer goods sector has seen its sales explode,
creating empty shelves.

Initiatives are multiplying among all distributors to make it
easier for customers to shop. On Monday 23 March,
Carrefour launched a subscription offer for home delivery
of essential products simply called “Les Essentiels”.

The service allows customers to order baskets
delivered to their home, for the moment reserved
exclusively for Parisians, from a dedicated website:
essentiels.carrefour.fr. The offer consists of eight different
baskets (Veggie, Sea, Earth, Babies Stage 1 (under 6
months), and Babies Stage 2 (6-36 months), Dog, Cat
and Maintenance) with prices ranging from €30 for pets
to €90 for baby kits.

Source: lsa.fr

Altavia Watch 2021

2 RESHAPING PRIVACY

Altavia Watch 2020

2      RESHAPING PRIVACY

The COVID crisis has caused us all to reconsider the concept of privacy in many new ways. Lockdown
has brought about a new, personal intimacy. A new professional modernity has been introduced to meet
the challenge of the lockdown for teleworking employees. Working remotely forces us into new habits,
and other ways of communicating and interacting together. A new sort of privacy has also shaken up the
retail world this year 2020.
2020 will consequently have swept away many certainties, and changed many habits in world retail practices. The “Stay at Home”
economy has revolutionised shopping patterns and locations. The French have discovered new ways to consume, with 32%* of
customers discovering at least one new online store, 28%* of previously unknown small retailers and 40% of stores close to their
homes. The same applies to the environmental and societal dimension: the pandemic has highlighted the limits of our world food
organisation. The commercial landscape has also been irreversibly changed.
2020 has also enlightened physical trade actors on the governance decisions that need to be taken in order to adapt,
reinvent themselves and stand firm. First and foremost, it is a question of adapting points of sale to avoid the risks of contamination
and to protect staff and customers. 51% of Americans surveyed by Deloitte are anxious about going to stores for their year-end
shopping. On average, they plan to make 5.2 trips to stores compared to 7 last year. American brand Target has restructured
to encourage customers to come to stores. This involves doubling “curbside pickup” parking spaces, use of their own smartphone at
the self-checkout registers, and provision of an online tool that allows them to calculate the waiting time outside the store and reserve
a slot for their visit. To address this anxiety, customers need strong signs of reassurance. An accelerated transformation needed
to galvanise the company, its evolution and its future prosperity.

*source Critéo 20 July

Altavia Watch 2021

2     RESHAPING PRIVACY

In all business sectors, the aim is to accelerate the digital transformation by adapting the strategy and structure of a company's
organisation and environment to seize the opportunities offered by digital technologies. This means placing the customer at the centre
of the ecosystem and definitively connecting stores to customers. Imagination and audacity from management are essential in order to
develop the mechanics to reconnect with customers.
It’s clear that COVID has accelerated many emerging trends in the retail world. Contactless payment, curbside pickup, Live Shopping,
and conversational channels are striking examples. Astonishingly creative solutions and incredible energies have been deployed, with
investment lines freed up to meet these survival challenges in the face of players much better prepared for a “contactless” world. We
need to reconfigure, push the walls of the possible further to expand the boundaries. It is imperative for physical retailers to play the
“away match” in to maintain the connection with their customers through digital technologies.
What new shopping experiences can we offer customers? How do you allow them to “step foot” into a closed store? Digital
technologies will become long-term alternatives. The health situation has forced retailers to rethink the experience by proposing and
daring to try new approaches. We are witnessing an unprecedented acceleration of the digital transformation. These technological
shifts we once thought would take a long time, are now taking hold.
The main lesson from this rapid change is that retail players must be present in all distribution channels in order to perform.
Retailers' organisations will also certainly evolve with the aim of breaking down decision-making silos to clear the way for
more “horizontality” and more agility. IT infrastructures and information management tools (sales, stock levels,
communication, etc.) are becoming even more essential. Although contactless shopping experiences will become a
permanent fixture in the global retail landscape, the physical store will remain a key distribution and experience channel.

Altavia Watch 2021

2        RESHAPING PRIVACY
Galeries Lafayette
rolls out remote shopping
in 28 shops
Live retail is a recipe for success. This is the observation
made by Galeries Lafayette after the emergency
implementation of the Exclusive Live Shopping service
last May, and now the time has come for national roll-out.
With Exclusive Live Shopping, the retailer is taking the
execution to the next level and offering a real shopping
experience via real salespeople and the use of live video.

Personal shoppers and brand salespeople were used to
answer customers' video calls via a smartphone, show
them the items they wanted and answer any questions.
Equipment was purchased to be able to move around the
shop easily, on the one hand, and on the other hand, to
provide a fixed and well-lit spot to show the products.
The transaction is then completed digitally with the
sending of a payment link.

Source: lsa-conso.fr

Altavia Watch 2021

2        RESHAPING PRIVACY
Nike wants to get you to “play inside”
with its app during lockdown
Nike has launched a communication campaign aimed at
athletes who find themselves confined to their homes.
The equipment manufacturer is thus inviting fitness
fanatics to stay at home, both for themselves and the rest
of the population with the slogan “Play inside, Play for
the World”. With gyms now closed, and running strongly
discouraged in an effort to fight the spread of the virus,
the Swoosh brand is offering the premium version of its
Nike Training Club app free of charge.

The campaign is being publicised by various brand
ambassadors, including Portuguese football star
Cristiano Ronaldo, who is shown working out to personify
the tagline of the campaign's visuals: “If you ever
dreamed of playing for millions around the world, now is
your chance. Play inside, play for the world”.

Source: lareclame.fr

Altavia Watch 2021

2       RESHAPING PRIVACY
Shake Shack Eyes
expansion with curbside pickup,
digital ordering in plans
Shake Shack is among the first restaurants to implement
restaurant designs inspired by the things people did
during the pandemic lockdowns this year.

The “Shack Track” rolled out in May made curbside
pickup a full-time permanent feature, letting users utilise
drive- and walk-up windows for picking up orders. The
chain adapted by adding more suburban locations and
boosting its plans for digital offerings, which will work on
responding to the ways customers order and eat their
burgers.

“Now with all of these formats that we’ve been able to
accelerate during this time, we think we have an even
stronger opportunity to go into suburbs around the
country,” CEO Randy Garutti said.

Source: pymnts.com

Altavia Watch 2021

2        RESHAPING PRIVACY
Ikea offers videoconferencing
Ikea hopes to reopen its European stores by late April. In
the meantime, the chain is already offering advice by
videoconference in Belgium. The coronavirus crisis has
already cost the Swedish company 60% of its turnover.

Consumers can make an appointment online and get half
an hour's free advice from a member of the chain's staff.
The products can then be ordered online with a single
click.

While e-commerce is now experiencing strong growth −
the turnover generated by online sales doubled during
the coronavirus crisis − Jesper Brodin also confirmed his
ambition to focus more on small showrooms and urban
stores.

Source: retaildetail.be

Altavia Watch 2021

2        RESHAPING PRIVACY
Rolling Stones launch
360​° virtual shop experience
Following the opening of their world-first flagship store in
London’s Carnaby Street, the Rolling Stones have
launched an online shop featuring a 360° virtual
experience.

The site offers the visitor a seamless virtual journey
through the physical store, including the sound booth
room. Visitors to the site are also given information on
the artistic history of the physical store location in
Carnaby Street and “insider anecdotes about the
architecture and design features”. “We are excited to be
able to take the brand new RS No. 9 Carnaby store to
the world and to allow customers and fans to shop the
collection from the comfort of their own homes through
an immersive and unique online experience of this
exciting retail space.”

Source: theretailbulletin.com

Altavia Watch 2021

2       RESHAPING PRIVACY
Chipotle responds to social distancing
with live streaming
As social distancing and lockdowns from COVID-19
caused more people to eschew going out to eat and fast-
casual restaurants across the world close down, Chipotle
Mexican Grill has come up with a novel way to keep
customers buying tacos.

In addition to offering free delivery and tamper-proof
packaging at many locations in the US, Chipotle is also
hosting daily “Chipotle Together” sessions on video
conferencing site, Zoom. The sessions include celebrity
guests and are aimed at younger consumers, who are
more tuned in to streaming video and might be looking
for ways to keep busy while in quarantine. The sessions
can include up to 3,000 fans, who are not required to
book a conference room on Zoom.

Source: springwise.com

Altavia Watch 2021

2      RESHAPING PRIVACY
Fnac Darty tries its hand
at livestreaming
Fnac is organising its first livestream with an influencer to
present the new Microsoft console to be released on
10 November. The idea is then to apply it to twenty
products and make it a sales aid in its own right.

Widely used in China, notably by Aliexpress, which has
recruited a million influencers for the cause, and in the
United States by, among others, L'Oréal, the technique
of livestreaming allows consumers who are adept at
online ordering to get a more precise idea of
new products. While this livestream is a first for Fnac
Darty, it is not the last. Olivier Garcia's ambition is to run
twenty of them by the end of the year. Dyson has already
signed, and Xiaomi is interested.

Source: LSA

Altavia Watch 2021

2       RESHAPING PRIVACY
L'Oréal launches a virtual
make-up line
Beauty brand L'Oréal recently launched online make-up
filters adapted for videoconference meetings. A means of
reinventing itself in the face of a market shaken by the
health situation. Dog ears, fairy characters and all kinds
of animals: in online messaging or video applications,
filters have become part of everyday life.

Does this mean we’ll have to get used to also seeing
them on our co-workers’ faces during visioconference
work meetings? This is, in any case, what the L'Oréal
brand seems to want to boost with its latest
announcement. On its website on 4 November, the
company launched a range of virtual make-up available
on the major video call platforms. False eyelashes,
lipstick, eye shadow, you name it!

Source: usbeketrica

Altavia Watch 2021

2        RESHAPING PRIVACY
How Atol is building
an omnichannel customer journey
Atol les Opticiens has, over the         last four years,
accelerated its innovation strategy       to promote its
drive-to-store option. Some of its key   elements include
augmented reality fitting, digital        viewbook, and
geolocation.

On its website, with 6 million page views, customers can
chat with an optician, as well as try on pairs of glasses
using augmented reality. Customers also have the
possibility of making an appointment via the website with
an optician in store. This has become a real standard,
especially with the health crisis, with 15,000
appointments per week for our entire network – that’s
half of all our current customer contacts.

Source: e-marketing.fr

Altavia Watch 2021

2        RESHAPING PRIVACY
At Oxybul, choose your Christmas toys
with a private video call appointment
Specialised toy shops, such as JouéClub, King Jouet
and La Grande Récré have had to close their doors since
30 October due to lockdown. Meaning the only option is
to buy online, either for home delivery directly, or through
a system of in-store order pickup.

But the possibility of asking questions or being directed
to certain toys, as you’d be able to do at the point of sale,
is no longer possible at the moment. The Oxybul group
(ex-Fnac Éveil et Jeux) has decided to offer a new
service to find a solution to this problem. In some of the
company's stores, you’ll soon be able to make an
appointment on the website for a video call with a
salesperson directly at the point of sale.

Source: businessinsider.fr

Altavia Watch 2021

2       RESHAPING PRIVACY
Zappos will help customers
– with anything
Zappos has launched a Customer Service Anything
Hotline. The 24/7 phone service allows consumers who
call the retailer’s customer service center to select a
“help with anything” option. With no purchase required,
consumers can discuss topics such as the weather,
streaming video selections, or even dream vacation
plans with a live customer agent.

In addition, Zappos call center agents will perform tasks
such as calling grocery stores in a customer’s area to
see if items are in stock or checking to see what local
restaurants offer takeout or delivery options. Agents can
also recommend mobile apps to help customers deal
with the isolation caused by COVID-19 social distancing
efforts.

Source: chainstoreage.com

Altavia Watch 2021

3 THE DIRECT TO CONSUMER TEMPTATION

Altavia Watch 2020

3     THE DIRECT TO CONSUMER TEMPTATION

Establishing a close relationship with your customers, freeing yourself from intermediaries to control your
sale prices and manage your brand image are the promises of a Direct to Consumer strategy. The rise of
e-commerce and social selling has reinvented this model, notably under the impetus of the famous DNVBs
(Digital Native Vertical Brands), which have been disrupters on the retail market for the past ten years.
Brands, brand names and manufacturers are also very attentive to the dynamism of this way of doing
business.
Modern American retail trade has been dominated for more than sixty years by a dozen brands (Kodak, Gillette, etc.).
These major brands in more than ten sectors remained unchanged from 1923 to 1983*. The Web has since democratised the tools
that allow new actors to enter the market. Direct To Consumer companies are the heirs of this evolution made possible by the Web.
PipeCandy estimates that the global Direct to Consumer market comprises approximately 22,000 companies. 40% of American
Internet users expect these brands to account for 40% of their purchases by 2024.
Digital Native Vertical Brands are brands that are born online and interact with their customers online, and which have reinvented
this Direct to Consumer model. They offer optimised sourcing and a real customer experience, keeping total control of their brand
image, their price positioning and their customer data. Warby Parker, Bonobo and the Slip Français are very successful examples, and
little by little, all consumer sectors have seen DNVBs shake up their markets. Undeniably, DNVBs have brought a breath of creativity
and innovation to the way they interact with their customers. This craze has of course been identified by major industrial groups, major
brands and major manufacturers, who, in turn, are embarking on this direct to customer sales adventure.

Altavia Watch 2021

3    THE DIRECT TO CONSUMER TEMPTATION

Nike, Adidas, Unilever, Kraft Foods, Gucci and many others have accelerated the deployment of Direct To Consumer strategies.
Leading retail players, who have historically been partners of these brands, find themselves under pressure as they see their market
shares shrinking. Conversely, brands, manufacturers and industrialists are weakening their relationships with traditional retail. Selling
to clients' clients is perilous, and latent with conflicts of interest. European retail has so far solved this problem by referencing product
ranges on shelves that are not found on DTC distribution channels. This is the case with Coca-Cola, which only offers personalised
products in DTC that are not marketed in GSM. However, this status quo is tenuous.
Thanks to its “Consumer Direct Offense” strategy developed since 2017, Nike has accelerated its DTC strategy to its great benefit.
The share of digital (+82%) has reached 30% of its sales — three years ahead of schedule. Its executive directors are now aiming to
reach 50% of turnover by 2021. The group, which is strengthening its direct-to-consumer network, had 1,096 stores worldwide at the
end of May 2020. Unilever, through the acquisition of the DNVB Dollar Shave Club (2016), has fully committed to joining the DTC
dynamic. Procter & Gamble also now markets its iconic Gillette brand live to its customers via subscription.
The pandemic has forced retail actors to reorganise; to strengthen native distribution channels on the one hand, and to
develop new ones on the other. The boundaries between traditional retail and DTC are blurring and mixing. Some DTC
brands are embodied in various physical locations (stores, shop-in-shop, pop-up shops, etc.) to develop their reputation and
sustainability. Le Petit Ballon has even become the wine merchant partner of the Monoprix brand since January 2020.
Decathlon Belgium is welcoming numerous DTC brands to its new marketplace. In France, Maisons du Monde is also
adopting this partnership strategy on its new Marketplace. The temptation for brands and manufacturers to develop new DTC
distribution channels is commendable, even if the adventure is perilous. Ultimately, they too will have to embody themselves
in the physical world by opening stores. Daring has always been part of the history of retail; customers alone remain
the final arbiters.

Altavia Watch 2021

3       THE DIRECT TO CONSUMER
         TEMPTATION
Nike: a new organisation to lead
the Consumer Direct Offense plan
“Through the Consumer Direct Offense, we’re getting
even more aggressive in the digital marketplace,
targeting key markets and delivering product faster than
ever”, says Mark Parker, CEO of the American sports
giant, who is making the new plan the basis for his
group's future growth.

Nike aims to meet consumer expectations ever more
accurately and quickly. The brand is aiming to strengthen
its digital offer and services, accelerate the creation of
new products and bring more and more customisation.
The group has defined a strategy based on 12 key cities
around the world that should enable it to reach key
consumers, according to the Swoosh brand’s
management.

Source: fashionnetwork

Altavia Watch 2021

3       THE DIRECT TO CONSUMER
         TEMPTATION
Heinz Launches Direct-to-Consumer
“Bundle” Delivery Service
Food giant Heinz has launched an online service called
Heinz to Home, enabling consumers to purchase product
“bundles” and have them delivered to their door. The
move comes in response to shoppers’ frustration at not
being able to easily purchase staple items in-store, as
consumers stockpile their pantries during the pandemic.

The initiative comes at a time when packaged foods are
surging in popularity. Across the US, sales were 337%
higher in March 2020 compared to the same month last
year (High Snobiety, 2020). General Mills, Tyson Foods,
Campbell Soup Co and Kraft Heinz all saw US sales
gains of between 10% and 20% in the four weeks ending
March 8 for items such as soup and breakfast food
(Bloomberg, 2020).

Source: stylus.com

Altavia Watch 2021

3        THE DIRECT TO CONSUMER
          TEMPTATION
Under Armour to exit up
to 3,000 wholesale doors,
focus on D-to-C business
Under Armour has joined a growing list of major
consumer brands that are making big changes to their
wholesale strategies. The athletic brand, which saw
some progress in its turnaround during the third quarter,
said it will begin to exit 2,000 to 3,000 stores in North
America, its largest market. By the end of 2022, it
expects to be in about 10,000 doors, executives said in a
conference call.

As it overhauls wholesale, Under Armour is also upping
its focus on direct-to-consumer (D-to-C) channels, where
it plans to offer fewer promotions and discounts to fuel
healthier margins.

Source: mytotalretail.com

Altavia Watch 2021

3         THE DIRECT TO CONSUMER
           TEMPTATION
PepsiCo launches
its own online stores
PepsiCo is launching virtual “snack cabinets” in the USA.
From now on, the producer of soft drinks, chips and
snacks will deliver directly to your home via two online
stores. In this period of coronavirus, PepsiCo is entering
the direct sales to consumers market. With the
clear increase in the consumption of snacks due to
lockdown, the producer of FMCG is opening two online
stores.

U.S. consumers will now be able to order PepsiCo
products from PantryShop.com and Snacks.com and
have them delivered to their homes free of charge within
two days. Orders can also be sent as gifts to friends and
family.

Source: retaildetail

Altavia Watch 2021

3      THE DIRECT TO CONSUMER
        TEMPTATION
Henkel expands in digital D2C
with Invincible Brands Holding
acquisition
Henkel Beauty Care has signed an agreement to
acquire a 75 percent stake in Invincible Brands Holding,
a fast-growing direct-to-consumer (D2C) business
headquartered in Berlin. The transaction comprises three
direct-to-consumer brands: HelloBody, Banana Beauty
and Mermaid+Me, which are mostly sold in Europe.

The three D2C brands capture more than 1.5 million
active consumers and should significantly strengthen
Henkel Beauty Care’s digital footprint. “With this
acquisition we will strengthen our portfolio with fast-
growing premium brands in attractive categories.
Through 1:1 interactions with consumers we will gain
valuable insights that will help us to create meaningful
innovations for the entire retail business,” said Jens-
Martin Schwärzler, Executive Vice President and
responsible for Henkel’s Beauty Care business.

Source: premiumbeautynews

Altavia Watch 2021

3        THE DIRECT TO CONSUMER
          TEMPTATION
Dyson believes in showroom stores
Before the flagship strategy, Dyson had mostly sold its
products online, including on Amazon and through other
third-party retailers. Opening at least 25 showroom-like
stores in 2017 alone, Dyson’s successful retail expansion
has coincided with a double-digit rise in overall sales.
Imagine walking into your local Bed, Bath & Beyond,
Target or Walmart and spilling a handful of Cheerios to
test out a vacuum. The chances are slim.

That’s not to say Dyson isn’t trying to turn mass-market
retail into a showroom channel. In 2017, “Dyson Demo
Experiences” were opened in at least 90 Best Buy stores
(a.k.a. a store-within-a-store) with spaces ranging from
40- to 400-square-feet. Over the last two years, Dyson
has aggressively pushed to control how customers try its
products within lavish flagship stores while creating
gathering spaces that people actually want to go to
instead of shopping online.

Source: retailwire

Altavia Watch 2021

3       THE DIRECT TO CONSUMER
         TEMPTATION
Purple's D2C Revenue Jumps 97.5 Pct
Digitally native sleep brand Purple Innovation, Inc.
reported as part of its Q3 results that its direct-to-
consumer (D2C) revenue surged 97.5 percent and its
wholesale revenue rose 6.9 percent compared to Q3
2019, according to an announcement.
“The investments we made earlier this year to expand
our manufacturing capacity helped support strong year-
over-year growth in our direct-to-consumer mattress
business, as well as a resurgence in our wholesale
channel as our retail partners experienced improved
store traffic,” Chief Executive Officer Joe Megibow said in
the announcement.
In separate sleep product industry news, Casper Sleep
Inc. has collaborated with Nordstrom, Inc. to bring its
products to consumers via the internet and at some retail
locations.

Source: pymnts

Altavia Watch 2021

3       THE DIRECT TO CONSUMER
         TEMPTATION
Birkenstock goes direct to consumer
with second U.S. store
Birkenstock Americas has opened its second company-
owned U.S. location, in Venice Beach, Calif. It comes
after the successful opening of the brand's first U.S.
company-owned retail store (photo above), in
Manhattan’s SoHo neighborhood, in October 2018.
Birkenstock partnered with Southern California artists to
add fresh colorful artwork to the store environment.

The outdoor courtyard includes a vibrant large scale
mural by surf-inspired painter Andy Davis and sculptures
of iconic Birkenstock styles made by artist Inga Guzyte of
recycled skateboard decks. “Doing retail as a brand
today means entertaining people,” says Oliver Reichert,
CEO of Birkenstock, which operates 50 company-owned
stores worldwide. Abbot Kinney Boulevard in Venice
Beach, California, is for sure the perfect neighborhood to
celebrate our global lifestyle brand.

Source: chainstoreage

Altavia Watch 2021

3        THE DIRECT TO CONSUMER
          TEMPTATION
Pernod Ricard opens flagship
China store in Shanghai
Pernod Ricard has stepped up its direct-to-consumer
plans with a new flagship spirits store in China. The
Drinks & Co store, which opened in Shanghai on
Tuesday, is part of Pernod's new expansion into offline
retail channels, the company told just-drinks today.
Drinks & Co is also the name of Pernod's e-commerce
platform. According to the group, the new store, in
Shanghai's up-market Xintiandi shopping district, is an
“interactive one-stop retail experience” that sells both
Pernod's brands and spirits from other companies.

The store is Pernod's first flagship store in China and
joins an inaugural boutique for Cognac brand Martell that
the company opened in Shenzhen last week. The Martell
store also incorporates digital consumer experiences
such as an interactive blending table, with Pernod saying
the concept will serve as a model for other outlets around
the world.

Source: .just-drinks

Altavia Watch 2021

4 FOREVER PHYSICAL STORE

Altavia Watch 2020

4     FOREVER PHYSICAL STORE

It’s been a bad year for physical store owners: Covid has quite simply doomed them, sidelining their assets
and advantages. The impact of the pandemic can be equated to that of a meteorite on the retail planet. But
there will be a before and after. It has been an event of rare intensity, which is forcing the entire ecosystem
to fundamentally rebuild itself. Physical retail is indeed undergoing a phase of radical change, but there is no
doubt that a tomorrow is dawning in which real-world stores will continue to play a leading role.
Changes in the retail sector have been in the news for several years. The digitalisation of our companies, the growth of e-commerce
and changes in customer behaviour have all had a strong impact on the growth of physical points of sale. In the USA in 2019, online
sales accounted for 12% of retail trade, compared with 4% in 2008. E-commerce is experiencing sustained global growth and is
constantly evangelising new sectors. In these troubled times, Black Friday 2020 was a triumph for online sales (sales up 250% over a
Friday in October, +11% over Black Friday 2019).
However, physical trade is holding up well. In 2019 in France, according to the FEVAD (Federation of E-Commerce and Distance
Selling) study, it will still account for 90% of all retail sales. Since the 2000s, again according to FEVAD, e-commerce has thus taken
an average market share of just 0.5% per year over pre-existing trade. It should also be noted that half of these online sales are now
made by “Brick and Click” brands.
Nor is it a question of underplaying the adaptation issues related to physical trade anymore. The list of companies in difficulty and the
associated figures (job losses) are symptomatic of a sector undergoing radical change. This is a considerable phenomenon, amplified
by the health crisis. Already in 2019, 9,300 stores closed in the USA. According to Forbes, there will be 11,000 closures in the United
Kingdom in the first half of 2020 – twice as many net closures as in 2019. The decline of certain brands and certain formats is a reality.
But these signals do not mean the end of physical retail, but rather its need to reinvent itself.

Altavia Watch 2021

4     FOREVER PHYSICAL STORE

The terrible consequences of the brutal store closures have highlighted how fundamental they are in our societies as places of trade
as well as places of social connection. They play an important social function, with subtle slices of life taking place there. The physical
store is a destination, a hobby for some, a topic of conversation. The physical store remains the preferred destination for the younger
generation. In a study conducted by A.T. Kearney, researchers found that 81% of Generation Z shoppers (aged 14 to 24) preferred
physical stores. However, it is imperative that physical stores adapt given that the customer journey is unquestionably omnichannel,
integrating all points of contact on the Web. It is also important to recognise that physical distribution is being skilfully challenged by
e-commerce players, as the success of Amazon, among others, demonstrates.
The function of stores must evolve, and once again, the pandemic has accelerated these trends already under consideration by top
management. So even more than the distribution of products, the mission of stores must be to embody the “voice” of the brand.
Stores remain a wonderful ambassador for brand. They must be a medium that represents the positioning and values of brands in all
their dimensions. Part of their value is of course the discovery of new products, but they must also embody this role as a catalyst of the
customer community, a space that offers a melting pot of remarkable experiences. They must allow for discovery and learning – a new
mantra that must be embodied by the employees of the company. More than ever, they should ensure the connection with the brand’s
digital world, an assurance to extend the customer relationship. They are also becoming a hub that fulfils a first-rate logistics function,
and can support the growing number of online customer orders by significantly reducing costs and lead times.
At a time of unified retail, a retail planet without stores makes no sense. Stores are certainly smaller but more complete,
more agile in the multiple functions that they must offer to always be there for the customer. However, every effort must be
made to support these changes. Some players, not the least of which, Walmart, have successfully initiated these
transformations.

Altavia Watch 2021

4       FOREVER PHYSICAL STORE
Aldi targets 1,200 stores
in the UK by 2025
Aldi is the number five retailer in the UK with a market
share of 7.6%, behind Morrisons, Asda (Walmart group),
Sainsbury's and Tesco. Aldi UK's managing director,
Giles Hurley, said the company had opened 70 stores in
the UK in 2017 and was on track to open another 70 in
2018, and 130 in 2019 and 2020. Aldi then plans to open
50 to 60 stores per year to reach 1,200, concentrating on
cities where it is not yet present, he said.

Last year, Aldi UK announced an investment of £1 billion
in 2017 and 2018 in store openings and the
transformation of existing sites. “We will continue to
maintain this pace of investment over the next few
years”, said Hurley, adding that Aldi UK was “in great
shape, while others are cutting back”.

Source: usinenouvelle

Altavia Watch 2021

4       FOREVER PHYSICAL STORE
Adidas will keep opening new stores
despite Covid e-commerce surge,
CEO says
Adidas CEO Kasper Rorsted told CNBC that the German
sportswear company will continue to invest in brick-and-
mortar stores, despite the boom in e-commerce sales.
“There’s no doubt that online has accelerated two to
three years into the future... but I actually think if you
asked most people, there’s a big social element about
going out and shopping and just seeing and feeling the
products again,” Rorsted said in an interview that aired
Wednesday on “Closing Bell.”

“So, we’ll continue to build stores. We’ll announce that in
March of next year, where we’re going to build and create
a great store experience,” he added. “We think the stores
are still here to stay, but coupled much closer to the
online experience,” he said. “I think most people are
really bored of sitting at home,” Rorsted added.

Source: cnbc

Altavia Watch 2021

4       FOREVER PHYSICAL STORE
Allbirds Plans Expansion After Securing
$100 Million USD in Funding
Co-Chief Executive of Allbirds Joey Zwillinger explained
what the funding would be used for, pointing to areas
including physical retail, product line and direct-to-
consumer sales operations as key for expansion.
Currently, Allbirds has 21 stores around the world, and
the company plans to grow that number alongside new
investment in information technology, warehousing,
distribution and logistics.

Speaking about the investment, Zwillinger said,
“Business can be a force for positive change, and this
additional capital will allow us to further our mission of
bringing more sustainable products to people around the
world. We have seen the power of collective action in
response to the global pandemic, and as we continue
to grow we will push for a similar united response to
another universal threat: climate change.”

Source: hypebeast.com

Altavia Watch 2021

4      FOREVER PHYSICAL STORE
Sephora to install corners
at Kohl's
In the United States, Sephora and Kohl's have just
signed a long-term partnership. By 2023, 850 Sephora
corners will be installed in Kohl's department stores
across the country. Implementation will begin in 2021
with the first 200 shop-in-shops operational in the
autumn.

Sephora will occupy a space of approximately 2,500
square feet (approximately 232 sq.m) and will market
around 100 brands. Sephora's offer will be on sale on
Kohl's e-commerce site, while Sephora corners will
replace Kohl's current beauty offer.

In the United States, Sephora already had corners in JC
Penney department stores, but the struggling company
closed 150 stores this year, impacting Sephora's
business.

Source: LSA

Altavia Watch 2021

4        FOREVER PHYSICAL STORE
The future of retail
may well look like b8ta
Direct-to-consumer brands have realised the value of
also having a presence in store. New retail players
- re:store, b8ta, Neighborhood Goods, Showfields, help
them get closer to their store customers without the cost
and complexity of owning their own store. Neither offline
nor online, they are part of this new generation of retail
platforms where on and off merge.

In addition to providing DTC brands with a roof, customer
traffic and the entire marketing and sales infrastructure
for physical sales, these companies provide them with a
wealth of data, similar to what DTCs get online. Founded
in 2015, b8ta is the first company to have conceived of
Retail-as-a-Service, a model in which brands can access
physical commerce as easily as they buy digital
advertising.

Source: customer-insight-consulting

Altavia Watch 2021

4        FOREVER PHYSICAL STORE
Frasers Group to open 60,000sq ft
Sports Direct Flagship in the heart
of Birmingham
Michael Murray, Head of Elevation for Frasers Group,
said: “This new location in Birmingham demonstrates our
confidence in our elevation strategy and commitment to
opening premium retail destinations across the UK. This
will be our most advanced store to date offering our
multiple sporting and lifestyle brands alongside
specialised services and leisure facilities”.

“Our new Birmingham flagship will be one of the first
stores to fully showcase the synergies of many of the
group’s acquisitions over the past few years, showing
further confidence in our strategy to elevate the sporting
goods industry. At a time of great uncertainty, we are
proud to be one of the few retailers investing in British
High Street and creating job opportunities.”

Source: retail-focus

Altavia Watch 2021

4      FOREVER PHYSICAL STORE
Walmart takes its inspiration
from airports!
In order to rethink its shops, Walmart has gone to
airports for inspiration! When a journey is complicated
and customers are in a hurry, other models are called for!
October 2020: the first stores officially opened a few days
ago. 200 stores will be refurbished by January 2021 and
1,000 by the end of 2021.

Supercentres have been completely redesigned in terms
of their category organisation as well as in terms of
customer path signage. The aim is to make shopping at
Walmart a unique “intuitive” experience and one in which
the mobile app and the store itself speak the same
language.

“We always knew that customers wanted to get in and
out of a Walmart as quickly as possible. You don't want
to waste any more time,” says Janey Whiteside,
Executive Vice President and First Chief Customer
Officer at Walmart.

Source: LSA

Altavia Watch 2021

4       FOREVER PHYSICAL STORE
Lego set to open 120 new stores
despite pandemic
The Danish toy firm told the BBC bricks-and-mortar
stores had a solid future, despite the drop in footfall on
high streets and social distancing restrictions in shops.
“When our stores have reopened after lockdown, there
have been queues,” boss Niels Christiansen said.
“We give people the brand experience in our shops
which we can't do outside.”

The company currently has 612 stores across the globe,
with 14 in the UK. Of the new stores it is opening,
46 were launched in the first half of the year. The big
change the company has noted since the start of the
crisis is that more adults are getting involved in building
Lego kits. “We have a more than a million adult fans
signed up to our website,” Mr Christiansen said. “We saw
a very positive development during the coronavirus
lockdown when families began playing and building Lego
sets together.”

Source: bbc

Altavia Watch 2021

4        FOREVER PHYSICAL STORE
Primarks CEO says those
who think online shopping
shift is permanent are “wrong”
and “naive”
Primark’s chief executive Paul Marchant has slammed
claims that COVID-19 has brought about a permanent
shift to online shopping. Marchant cites research
conducted by his wildly popular fast fashion brand
Primark, which reportedly suggests that shoppers “civic
pride and, by extension, self-esteem” comes from their
hometown, village or city.

Therefore, boarded up high streets full of closed and
collapsed retailers “chisels away” at people’s sense of
self-worth.

He goes on to argue that physical shopping is an
“extremely important” aspect of our social lives across
demographics.

Source: chargedretail.co.uk

Altavia Watch 2021

ALTAVIA WATCH
Thank you

Altavia Watch 2021   January 2021 – Thierry Strickler