Hi Reader,

As we navigate the final trading days of 2023, our focus naturally pivots from the immediate challenges of the festive season to the broader horizon of 2024. While the strategic plans for the new year have been in the pipeline for some time, there's a more personal aspect to this transition that often gets forgotten: our own individual ambitions and aspirations.

The start of a new year shouldn't only be about looking back at peak performance and results; it should also be a time for personal reflection and refining goals. What are your aspirations for 2024? Perhaps you're aiming to enhance your leadership skills, deepen your understanding of specific aspects of retail or transformation, or expand your professional network. Whatever your goals may be, sharing them can be incredibly powerful. It not only commits you to these ambitions but also opens up opportunities for collaboration and support from like-minded peers.

In this spirit, I'd like to share one of my own goals for the upcoming year. My book, 'Driving Retail Transformation', is out soon and I am very keen to bring its insights and lessons to a wider audience. So one of my key objectives for 2024 is to engage with companies and events as a speaker, delving into the themes and strategies explored in the book. This goal aligns with my broader mission of supporting retail leaders and businesses to navigate the ever-evolving world of retail and the journey of change.

I encourage you to reflect on your personal (and professional) goals for 2024. Feel free to share your aspirations by replying to this newsletter or via LinkedIn DMs. Sharing goals creates a unique opportunity for connection, inspiration, and collaboration. It would be great to discuss your ideas, and perhaps explore how I or OB&Co can help you to turn aspirations into achievements.

---

Retail transformation news headlines

🔨 Kingfisher Group have launched their retail media network which will extend across the various retail brands they operate across Europe. Advertising opportunities will exist only on their ecommerce sites and they're forecasting to build this to 3% of the total ecommerce revenue, however, given the increased margin, this will present a larger slice of the profits.

💰 Iconic department store Macy's is reported to be considering a buyout offer of $5.8b. The US chain has been struggling with performance over recent years and has continued to look at various transformation efforts. However, strained consumer spending has weakened results. However, they still have a large real-estate portfolio and a recognised brand - although you could argue that is a two-edged sword!

🤑 Shein are considering an IPO in the UK. Recently, Shein have been investigating an IPO in the US. It's not clear whether the company will break into smaller sub-divisions, each listed in their respective countries - however, it seems unlikely. Either way, a listing will come with calls for greater transparency around aspects like taxes and import duties, ethics across the supply chain and sustainability - all elements which have been queried about Shein's business and operating model.

✂️ PE investor, Kelso Group, are encouraging THG to demerge the business into separate factions. The suggestion splits the 3 divisions up into companies focused on nutrition, beauty and ecommerce services. Kelso owns a stake in THG and believes this approach will maximise shareholder value and increase the valuation substantially. Operating as a group presents a number of operational and financial synergies, however, there have been examples where companies have positively demerged. This has also led to fully selling off some businesses, for example, Whitbread splitting off Costa Coffee which then was sold to Coca-Cola.

🏭 The UK's largest supermarkets are actively working to reduce emissions through supply chains. Tesco, Sainsbury's, Asda, Aldi, Morrisons, Lidl, Co-op, M&S, Waitrose and Ocado are working with Manufacture 2030 to collaborate across their supply networks with the mission of decarbonisation. The supermarkets will be able to equip their suppliers with resources to help boost their environmental sustainability performance.

📈 Frasers Group and In The Style have both reported a boost in performance following positive transformation efforts. Frasers have been looking to deliver strong trading performance and grow through acquisition. Meanwhile, In The Style focused on reducing stock levels and optimising stock holding, celebrity collabs and increased effectiveness from marketing investments.

💥 In the UK, Lakeside shopping centre is planning to demolish stores and build a warehouse and distribution centre. Some retailers, including Asda, Boots, TK Maxx will be impacted by the plans and will be relocated to currently empty units on the site. Shopping centres and malls struggle with empty units, which brings down the overall feel of the site as well as makes it harder to shop, with longer walking times for customers. Repurposing the space in this way is a recognition of the changing world of shopping.

💅 Boots have launched their first standalone beauty store. Over the past couple of years, there have been a number of upgrades to their beauty offering. The new store will include brand-led masterclasses, hair demos, analysis stations to help customers understand their unique skin and hair characteristics, an express beauty bar for quick services as well as recycling and refill points.

---

Driving Retail Transformation: Book spotlight

"The ultimate purpose of data is to change the future for the better."

In Chapter 1, of my upcoming book "Driving Retail Transformation: How to navigate disruption and change" we take a look at the key factors which are driving the evolution of the industry. These are the catalysts for change and transformation at an industry-level, which in turn trigger company-level changes. And the data revolution is one of these evolutionary factors.

Data has undoubtedly swung countless discussions and decisions to be based more on facts than opinions. However, the data by itself is not what we need. Ultimately, the action resulting from data is the essential aspect here. This is what helps change the future in meaningful ways, rather than just telling a lovely story of the past.

And when we get a solid handle on making data-driven actions, they present vast numbers of opportunities to improve the business. From understanding the profit drains to eliminating customer frustrations. Yet many businesses and teams still struggle to truly get a handle on data in a way that can deliver profitable changes.

So, how are you looking at data with a view of changing the future for the better, not just reacting to historical events?

And in other exciting book news - this week, the first bulk order was sent to the printers - so we'll soon be able to physically see the book!

---

New podcast episode: Unlocking new value from waste streams - #268

In a world grappling with environmental challenges and a cost of living crisis, this episode dives into the evolving sustainability narrative. Alice Rackley, CEO of Polytag, joins Oliver Banks to shed light on the resurgence of sustainable initiatives amidst global challenges. Explore the intricacies of supply chain transparency after purchase and the viability of deposit return schemes. Alice helps you discover how innovations allow leading retailers to blend effective recycling and meaningful customer engagement whilst unlocking new data sources and valuable insights.

Take a listen to episode 268 of the Retail Transformation Show podcast and discover:

• Understand the impact of supply chain visibility on the business and the planet.
• Expert viewpoint on the UK’s deposit return scheme, and similar recycling schemes worldwide, and how they influence retail.
• Explore innovative retail trials linking recycling with customer rewards engagement and data insights.

Check out these recent episodes too:

​#267: The art and science of retail technology​

​#266: Achieving alignment across silos ​

​#265: The challenges of unified commerce​

---

This is the final Briefing of the year. However, I'm delighted to let you know that the podcast will continue to serve you over the next few weeks. Here is a quick look at the schedule:

• Episode 269 (out on Monday) takes a look at the key news stories from the past 12 months.
• Episode 270 is my (hopefully) entertaining festive gift to you. And that's all I'll say about that for the moment...
• Episode 271 looks at the key trends and themes which will impact the retail industry in 2024.

So, enjoy these episodes in your usual podcast app and I'll look forward to sharing the next Briefing on 3rd January.

Good luck in the final couple of trading weeks and I wish you all a Merry Christmas and a Happy New Year,

Oliver