Cross-Merchandising Techniques

Loyalty is failing. Gen Z & long-term commitment. 22% of Gen Z consumers consider themselves loyal to one brand is a clear warning for legacy loyalty strategies. Unlike previous generations, Gen Z doesn’t see brand loyalty as a long-term commitment, they’re loyal to moments, not just names. +43% increase in engagement and sales conversions among Gen Z Beauty brands offering "limited-edition drops" and collaborative experiences. +71% Gen Z say they would rather spend money on an experience than a product. >>Loyalty is FAILING, but why<< +Transactional systems feel outdated: Point-based rewards for repeat purchases don’t excite this audience. They expect more than discounts or free samples. +They’re brand-agnostic but experience-driven: Gen Z freely switches between brands if the experience, aesthetic, or values feel fresher or more aligned with their identity. +They buy into stories, not just products: They want to align with brands that represent something, social causes, cultural movements, or communities they relate to. >>DYNAMIC LOYALTY<< What’s this? as it name indicates its a system that rewards interaction, aligns with their values, and constantly evolves. And that is what your brand needs. → Create experience-driven loyalty programs: Offer early access to limited drops, invite-only events, or backstage content. Think like a fan club, not a punch card. +Example: A loyalty tier that unlocks tickets to a pop-up experience or an exclusive AR filter. →Let them co-create: Invite Gen Z customers to co-develop product ideas, designs, or campaign themes. Give them ownership in your brand’s creative journey. +Example: Voting on packaging designs or joining beta tester groups. →Align with their values: Sustainability, inclusivity, and social good aren’t nice-to-haves. they’re expectations. Use loyalty programs to reward actions too, like recycling, sharing causes, or supporting small creators. +Example: “Earn loyalty points by returning empties or attending a sustainability workshop.” →Deliver constant novelty: Rotate limited editions regularly. Use scarcity and surprise to create FOMO and buzz. +Gen Z doesn’t commit to a single brand, but they’ll keep returning if each visit feels fresh and share-worthy. →Go omnichannel but social-first. Should live across TikTok, Instagram, pop-ups, and web. Let them earn or unlock rewards through social engagement, not just purchases. +Example: A user gets exclusive content or perks for creating UGC with your brand. Bottom Line. Loyalty must be earned over and over through experience, relevance, and emotional connection. Think dynamic loyalty: a system that rewards interaction and go for it. Find my curated search of examples and get ready for your next HIT. Featured Brands: Balmain Benefit Chanel Charlotte tilbury Cerave Fennty L’Oreal OGX YSL #beautypackaging #beautybusiness #beautyprofessionals #experienceretail #luxuryexperiences #genz

Hotel brands don't sell rooms, they sell loyalty cards and franchises. If you’ve watched hotel sponsorships lately you may have noticed: the name they are advertising aren’t the company or hotel brands. Instead of Marriott or Accor, it’s Bonvoy or All. These loyalty programs are becoming the central identity of the big hotel groups—and that’s by design. Subscribe to my newsletter for weekly updates: https://lnkd.in/eHfpRjnr Across the global hospitality landscape, we can observe two main types of offerings: loyalty (or reward) programs aimed at guests, and brands (or labels) aimed at investors. This dual model has shaped how the major hotel companies operate and grow. For the traveler, loyalty programs are the unifying product. They tie together a wide variety of brands under a single membership and consumer brand, and in doing so, they create consistency of recognition and rewards. As the products are much harder to keep consistent this is a good alternative. These programs are where hotel groups invest in marketing, technology, and partnerships (high profit sales of points to credit card companies) because they drive repeat business and data-rich relationships with guests. On the other hand, hotel brands—the individual names like Moxy, Pullman, or Crowne Plaza—play a different role. These are created and refined with investors in mind. Each brand represents a specific positioning or price point, offering developers and owners a playbook for what to build and how to operate. It’s an ecosystem built for scale. This isn’t to say that hospitality is no longer a focus. It’s just that in the largest hotel companies, the responsibility for guest experience increasingly sits with the individual properties and their operators—often management companies or franchisees. Meanwhile, the hotel brand owner focuses on system design, loyalty strategy, and brand architecture. It’s a model that has clear advantages. Guests get access to a global network of hotels and familiar standards. Owners benefit from the distribution and brand equity. And the hotel groups can grow efficiently through partnerships and franchise arrangements. Of course, this also means that the more personalized, handcrafted hospitality experiences are often found in smaller or independent properties—especially those at the high end. But the big brands still play a vital role in providing consistency and reach, especially for frequent travelers. So rather than asking whether hotel brands have lost their meaning (as I have done so many times before), perhaps the better question is how they’ve evolved. In today’s hospitality world, loyalty programs provide the connective tissue, and the brands provide the structure. Understanding that helps clarify not just how hotels operate—but also why they look the way they do (and the increasingly confusing lineup of “brands”). Thanks for reading, (see link in bio as they say).

As we step into 2026, the retail landscape is undergoing profound #transformation. Capgemini’s latest “Retail Trends 2026” report highlights five strategic shifts that demand our attention as leaders shaping the future of retail: 1️⃣ 𝙈𝙤𝙢𝙚𝙣𝙩𝙨 𝙤𝙫𝙚𝙧 𝙢𝙚𝙧𝙘𝙝𝙖𝙣𝙙𝙞𝙨𝙚 Consumers are prioritizing experiences - travel, wellness, and community - over material ownership. With travel spending outpacing high‑end goods, retailers must craft authentic, experience-led offerings (e.g., interactive in-store classes or curated kits linked to lifestyle moments). 2️⃣ 𝙏𝙝𝙚 𝙮𝙚𝙖𝙧 𝙤𝙛 𝙩𝙝𝙚 𝙥𝙧𝙞𝙫𝙖𝙩𝙚 𝙡𝙖𝙗𝙚𝙡 Private-label products are no longer second-tier - they’re grown into trusted, premium alternatives. 78% of consumers now opt for private labels for cost and value. The next frontier is elevating quality, trust signals, and innovation. 3️⃣ 𝙎𝙚𝙖𝙧𝙘𝙝𝙡𝙚𝙨𝙨 𝙧𝙚𝙩𝙖𝙞𝙡: 𝘼𝙄‑𝙛𝙞𝙧𝙨𝙩 𝙙𝙞𝙨𝙘𝙤𝙫𝙚𝙧𝙮 “Search” is giving way to suggestion - powered by #GenAI and #GEO. With 43% buying via AI recommendations and 45% willing to order through AI tools, retail is moving toward ambient commerce where algorithms anticipate needs. 4️⃣ 𝙄𝙣𝙫𝙞𝙨𝙞𝙗𝙡𝙚 𝘼𝙄: 𝙨𝙚𝙖𝙢𝙡𝙚𝙨𝙨, 𝙩𝙧𝙪𝙨𝙩‑𝙖𝙬𝙖𝙧𝙚 AI systems are working behind the scenes to streamline experiences - from checkout to inventory - without drawing attention. Customers want transparency and ethical use of their data; retailers must build AI-backed solutions that are both invisible and trustworthy. 5️⃣ 𝙏𝙧𝙪𝙨𝙩 𝙖𝙨 𝙖 𝙥𝙧𝙤𝙛𝙞𝙩 𝙙𝙧𝙞𝙫𝙚𝙧 Margins today are earned through trust - built on consistency, care, and contextualization. With only 36% trusting AI product recommendations, and over half willing to switch brands over data policy, trust is now a strategic currency. 🚨 𝙒𝙝𝙮 𝙞𝙩 𝙢𝙖𝙩𝙩𝙚𝙧𝙨 𝙛𝙤𝙧 𝘾𝙓/𝙘𝙤𝙢𝙢𝙚𝙧𝙘𝙚 𝙡𝙚𝙖𝙙𝙚𝙧𝙨: Strategic Alignment: These trends aren’t buzzwords, they demand integration into business strategy, operations, and marketing. Competitive Edge: Retailers who create meaningful experiences, build private-label equity, and leverage subtle AI-driven discovery will stand out. Trust & #loyalty: In a digital-first world, trust isn’t optional, it’s foundational. #MakeItReal frog Capgemini Invent

You don’t build loyalty through rewards—you reward customers for already being loyal. Big difference. Loyalty programs are primarily designed for customers who have already demonstrated consistent engagement and loyalty to your brand. The goal isn’t to create loyalty through rewards, but to recognize and strengthen it. By offering rewards, perks, and recognition, you can maximize their lifetime value, whether by increasing purchase frequency, boosting basket size, or encouraging referrals. Tactics like tiered rewards, exclusive access, and personalized incentives help reinforce their commitment and make them feel valued. 𝗦𝗲𝗰𝗼𝗻𝗱𝗮𝗿𝘆 𝗙𝗼𝗰𝘂𝘀:  For customers with the potential to become loyal, the strategy shifts. These customers have shown higher engagement but haven't fully crossed into the loyal customer category. To convert them, 𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 is key. Tailor rewards based on their behaviors and preferences to create a sense of exclusivity and recognition. It’s also crucial to stay top of mind through strategic touchpoints—whether via targeted email campaigns, loyalty app notifications, or personalized offers that speak directly to their interests. Offering a path to higher-tier rewards as they engage more frequently can further motivate them to commit to your brand long-term. 𝗖𝗮𝘀𝘂𝗮𝗹 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀:  Casual customers require a different approach. They won’t become loyal overnight, and the objective here is gradual nurturing. For this segment, it's all about increasing touchpoints and staying relevant. Broader offers, such as discounts, time-sensitive promotions, or entry-level rewards, help keep them engaged without overwhelming them. The goal is to activate them periodically, ensuring they interact with your brand from time to time. By keeping consistent offers flowing, you maintain visibility, and over time, some of these casual customers may transition into the potential loyal customer segment. ----- Ultimately, loyalty is about retention, not conversion. The focus is on maintaining a strong relationship with those who already support your brand and steadily nurturing others to deepen their commitment over time.

UK retail is in the middle of a stress test, where a clear divide is opening up between winners pulling ahead and those losing ground. After speaking to Retail Week’s Hugh Radojev for his trading analysis piece, a few points stand out. We’ve been operating in a state of ‘permacrisis’ for years now – from Covid and supply chain chaos to inflation and geopolitical shocks. But disruption doesn’t explain why some retailers are struggling and others such as Marks and Spencer, Next and Tesco continue to grow market share. An execution gap has emerged. Our Retail Economics research with Barclays Corporate Banking, based on a survey of more than 100 senior retail executives, shows a widening divide – with three in five leaders saying the gap between high and low performers is growing. Complexity has crept in where: ·      Many retailers misread post-Covid demand as structural growth ·      Inflation masked weak trading ·      Digital touch points ballooned, creating operational drag and margin pressure ·      Leadership teams misaligned and slower to adapt   Retail today has become far more technical, where instinct combines with data, analytics and cross-functional execution. Those pulling ahead combine old-school merchant discipline with targeted investment, to build relevance and agility and better respond to adversity, including: ➡️       Relentless focus on pricing, stock discipline and cash ➡️       Investing in customer-led growth – personalisation, new channels, partnerships ➡️       Using technology to enhance decision-making The leaders now are often those with the agility to reprice, reroute and rebalance stock faster than everyone else to secure market share. ____________________________________ ⤴ Follow me for weekly retail, consumer and economic insights. ____________________________________

This peak season, protect your margins by controlling discount stacking. As we approach peak trade and the peak discounting period, brands often default to the bluntest tool in the box: heavy sitewide sales. The logic is simple “drop the price, drive volume, clear stock.” But too many brands forget one crucial detail: stacking discounts can quickly turn profitable orders into loss-making ones. The Overlooked Discounts: Sitewide promotions don’t operate in isolation. Sitting in the background are your: High-intent pop-ups Welcome series discounts Cart abandonment flow incentives These are designed to capture incremental conversions in normal trading periods. But when layered on top of aggressive sitewide offers, they often wipe out already-thin margins. A Quick Example: RRP: $100 Sitewide discount: 30% → Sale price = $70 Product cost (COGS): $20 Customer acquisition cost (CAC): $30 Shipping / merchant / pick & pack costs: $15 At this stage: Revenue: $70 Costs: $20 + $30 + $15 = $65 Profit: $5 per order (5% margin) Not great, but still positive. Now add in an additional 20% discount from a pop-up or triggered flow: Extra discount: 20% off $70 = -$14 Adjusted sale price = $56 Recalculate: Revenue: $56 Costs: $65 🛑 Net loss: -$9 per order Why It Matters At scale, these “hidden discounts” mean businesses spend thousands acquiring customers and fulfilling orders at a negative contribution margin. Instead of driving growth, they quietly erode cashflow and profitability during the most critical sales period of the year. How to Avoid This Trap: Audit your flows before peak trade. Adjust high-intent pop-ups, welcome offers, and cart abandonment discounts during sitewide promotions. Set a CAC ceiling. Ensure that even with discounts applied, your contribution margin remains positive. Model scenarios. Calculate “worst case” blended discounts and costs before launching campaigns. Use AI or rules-based systems. Automate safeguards so discounts can’t stack beyond a certain threshold. Discounting can be a powerful lever, but unmanaged, it becomes a profit killer. You may risk turning your busiest period into your least profitable one.

📊 Retailers are rewriting the playbook - and it's not just about selling products anymore 🛍️ Bain's latest research reveals a seismic shift: "Beyond trade" activities now account for 15% of sales and 25% of profit for retailers in 2024, up from 10% in both cases in 2021. The new profit pools retailers are diving into are services: 💰 Retail media networks 🏪 Third-party marketplaces 💳 Financial services 📦 Logistics solutions 📊 Data monetization Traditional B2C sales are becoming commoditized. Smart retailers are building diversified revenue streams that often deliver higher margins than core retail operations. The 6 game-changing trends reshaping retail: 🤖 AI & Automation Takeover - Core functions like pricing and merchandising will run on autopilot 🛒 AI Shopping Agents - Consumers will delegate purchasing decisions to AI, threatening traditional brand loyalty 🎯 Hyper-Personalized Value - What shoppers value on Monday morning vs. weekend leisure time requires different approaches 🏷️ Private Label Explosion - Grocers becoming FMCG businesses as private label could hit 70% market share by 2035 🏬 Store Network Contraction - The US grocery market may need to trim 10% of retail space and 15% of stores 🌍 Cross-Border Scale Hunt - Local dominance isn't enough; absolute scale drives the biggest growth Retailers that don't embrace this transformation "might give away a few percentage points of profit margin" while bolder rivals reinvest those savings to gain traction with shoppers. We're witnessing retail's evolution from transaction-focused to ecosystem-focused businesses. The winners will be those who can seamlessly blend traditional retail excellence with new profit streams - think Amazon's playbook becoming the industry standard. 💥 Are you seeing this shift in your industry? 💬 How do feel towards these trends as a consumer? 🤷♂️ Which "beyond trade" opportunities are you most excited about, and which feel most threatening to traditional retail models? #Retail #Trends #DigitalTransformation #RetailMedia #Marketing #AI #Strategy #Commerce

Are store openings making a comeback, or is the future still digital? After years of predictions that physical stores were finished, 2025 is telling a different story. According to CBRE, store openings in the US actually outpaced closures in 2024, with net growth led by value retailers, specialty food, and experience-focused concepts. In the GCC, new mall expansions and pop-up activations remain on the rise, with UAE retail sales projected to reach $63.6 billion by 2025 (Dubai Chamber of Commerce). Why the shift? Consumers want more than transactions. From Gen Z to Boomers, shoppers are seeking experiences, whether it’s in-store events, live demonstrations, or interactive tech. Gen Z is surprisingly pro-physical: A 2024 NRF study found that 81% of Gen Zers prefer to shop in stores for fashion and beauty, valuing instant gratification, social interaction, and immersive brand storytelling. Millennials still drive online spending but now use stores for pick-up, returns, and brand discovery. Older generations favor physical for trust and service, but even they are using retailer apps for loyalty and convenience. E-commerce sales, on the other hand, continue double-digit growth, especially in categories like electronics, home, and health. “Hybrid” shopping, think click-and-collect, QR code browsing, and virtual store assistants, is becoming the new norm. Is this retail renaissance a sustainable shift or simply a response to post-pandemic fatigue and novelty? As customer expectations evolve, the future may belong to brands that blend the best of both worlds. How has your own shopping behavior changed? Are you visiting stores more, and what’s drawing you in? For retailers, what’s actually working to get people off their phones and into physical space? Share your thoughts, stories, or predictions for the future of retail. #retailtrends #consumerinsight #shopping #storeexperience #futureofretail

#SeeItFixItSellIt The shelf just moved, and most brands are still exporting feeds. Here's what happened in the last 30 days: Google AI Overviews now appear on 14% of shopping queries. That's a 5.6x increase in four months. Google's Universal Checkout Protocol lets AI agents complete purchases end to end. Shopify, Target, Walmart, and 20+ partners are already on board. The Digital Shelf Institute says brands will need 5x more content to serve AI agents. And here's the part nobody's talking about: stores with 99.9% attribute completion are seeing 3-4x higher visibility in AI recommendations. So what does this mean for CPG brands? The shelf isn't a page anymore. It's an AI surface. And that surface changes faster than any human team can monitor manually. Most brands today have a content workflow that looks like this: create in PIM, export to retailer, hope it sticks. That's a feed export. It's one-directional. It's blind. What you actually need is a closed loop. See it: monitor every AI surface where your product appears (or doesn't) in real time. Fix it: detect content gaps, attribute mismatches, and retailer overrides automatically, then resolve them before they cost you visibility. Sell it: turn content accuracy into conversion. Because on an AI shelf, incomplete data doesn't just hurt rankings. It makes you invisible. The brands winning on AI surfaces aren't the ones with the best creative. They're the ones with the fastest feedback loop between what's happening on the shelf and what gets fixed. Feed exports are a one-way ticket to invisibility. Closed-loop systems are how you sell when the buyer is an algorithm. Is your content workflow built for a shelf that changes every hour? #AgenticCommerce #DigitalShelf #CPG #RetailMedia #AICommerce

Random upsells rarely convert. Strategic ones do Here’s what consistently works across high-performing stores: ✔ Start with the product journey Analyze common entry points. Then match complementary products. Example: Protein powder -> shaker, creatine, or a bundle ✔ Nail the timing Three proven touchpoints: > Product or cart page > Post-checkout > Follow-up email Best results come from testing one placement at a time ✔ Keep it customer-first The offer should feel like a helpful nudge, not a push “Customers often pair this with…” performs better than hard sells ✔ Segment the experience New vs. returning buyers = different logic, different offers Avoid repeating the same upsell to every visitor ✔ Track and refine AOV, conversion rates, and qualitative feedback reveal what’s working Upselling isn’t a trick; it’s part of a well-structured journey Done right, it lifts AOV, improves retention, and grows revenue without additional ad spend