Featured post

Your Employees Desperately Want to Find Meaning in Their Work. Here’s a Simple Way to Help Them
Work is in disrepair–but there’s something you can do about it.
CREDIT: Getty Images

The world is suffering a disease. I’m not talking about famine or inequality. I’m not talking about global warming, American politics, or smartphone addiction. I’m talking about work.

The perils of the modern workplace are well documented. Spirit-sapping offices prioritize power dynamics and useless posturing. Work environments oriented around results, where workers are given control, are simply all too rare. Work is in serious disrepair.

Ineffectual management is ubiquitous and bold leadership is an exception. It’s one of the main reasons why we continue to see sky-high employee disengagement around the globe. According to Office Vibe, 60 percent of employees report that their work is taking a personal toll on their life. Physically and emotionally they suffer. Too many workers show up every day at a sorry excuse for a workplace. A whopping 57 percent of employees say they wouldn’t recommend their company as a good place to work. This begs the question–why on earth are they there?

For starters, many feel trapped. They haven’t been given the one thing they need to turbo boost motivation and increase job satisfaction. It all comes down to control. Like all aspects of our lives, we want freedom over how we get work done. We want to exercise judgment over what we work on, and when and where we work on it. Yet in so many workplaces, employees are stripped of these liberties. Restricting workers’ control over how they work is actually one of the surest ways to lower morale, deflate motivation, and stifle innovation.

The Best Places to Work

Edwin Jansen is a recovering manager. After 10 years at a big Toronto-based technology company, he knew it was time for a change. He had to find his calling. An unreasonable fellow, he set about doing every exercise that might help him find his why. In the process, he organized weekly meet-ups to aid others in search of their callings. Prior to facilitating his largest yet meet-up, Jansen explains he felt a tingle throughout his body. It turned out, Jansen found his purpose when he was helping others to connect to meaningful work.

In a series of subsequent events, Jansen soon found himself as head of marketing at Fitzii — a hiring platform that matches people with work they care about. Most notably, Fitzii is a company with no managers. Everyone manages themselves, and by virtue brings their best selves to work. In his quest to help connect people with meaningful work, Jansen has seen an entire generation adopt a new ethos:

“The individual needs to see that their success is going to be self-driven. ‘I am going to pick myself, define what I want to do, what differences I want to make, and how I will be valuable to people. I am my own brand – I am going to own it and make my way.'”

Cliche as it may sound, describing his transformation Jansen says it was as if a weight, that he didn’t even know was there, had been lifted from his shoulders. It should come as little surprise because when he took more control over his work, he became more humble and more hungry to become a better leader. He learned to manage himself better and now helps others do the same. Jansen wakes up each day and knows precisely what he needs to do, and simply does it.

Jansen is adamant that giving control is the real remedy to one of the most pressing problems in business today. Disengagement in the workplace need not be an epidemic. Letting people manage themselves is not just good business, it’s also humane.

Better Questions

We should be modelling our companies more like our cities. As cities grow they get smarter, better connected, and more efficient. More patents are filed, more innovation takes places, more creativity flourishes. But as our organizations scale they tend to get stupider. Decision making is increasingly centralized and slower, artificial power infests every nook and cranny, and people go home feeling diminished and diffused.

Reassuringly, folks at the world’s most pioneering companies are asking better questions about how we can organize in work. Like Jansen, they are experimenting and learning what environments best nourish people. They continually ask: do employees feel empowered to bring their best selves to work? Do they give more than they take? Are there strong social ties between colleagues? Is authority distributed in the right way?

The best places to work have many common characteristics. They prioritize activity-based working (ABW) — whatever mode of work you happen to be in, there is a space that caters to it. These places champion movement, encouraging happy collisions and interesting collaborations. They feature nature heavily, taking note from the science of biophilia which helps boost productivity and creativity. But most importantly, they act as destinations; places that people choose to go because they can both give what they want and get what they need.

Being Human

It’s time for a fresh approach and a renewed attitude towards work. I believe in the years to come, how we choose to spend our time and what we decide to work on is going to make us less mechanical, and more human.

Soon more than half of the American workforce will be independent.  Three-quarters of the world’s workforce is going to be made up of millennials. Success is going to be self-driven. You’ll need to understand how you add value in the world, adopt the right mindset and have the aptitude to carve out and continually craft your career. Along with continuing education, self-awareness is going to be instrumental in helping you perform at your best. You’ll need to keep your peripheral vision popping; to see the connections between industries, disciplines, people, places and beyond.

Self-management will continue to gain more favourability in the workplace. The practice places emphasis on you to direct your own time and cultivate rich rhythms and rituals of work. And self-efficacy is going to distinguish those that flourish versus flounder. In a world that is only changing faster and becoming more complex, being resilient is a need to have ability.

We can undo the dystopian future that lurks around the corner. We can design a future of work that we actually want. We can be sincere with ourselves and understand what each of us yearn for. More importantly, we can ask one another how we can help. Ultimately — each of us should decide how we want to organize in work. If we are what we repeatedly do, then how we direct our energy and spend our time is what really what matters.

One by one we can help put the world of work at ease.

Advertisements

Whole Foods Move to Prime

Whole Foods Retiring Rewards Program, Mobile Digital Coupons

By Randy Hofbauer – 04/18/2018
Whole Foods Retiring Rewards Program, Mobile Digital Coupons

Whole Foods Market is retiring its Rewards Pilot Program and digital coupons through its mobile app, in a change that appears to have the Austin, Texas-based natural grocer switching over to its parent’s Amazon Prime subscription-based program.

The changes – which also will include the closure of in-store loyalty programs such as Whole Body Benefits – come as Seattle-based Amazon and Whole Foods plan to “work on new perks,” telling Amazon Prime members to “stay tuned for additional announcements” in a FAQ on Whole Foods’ website. All rewards, digital coupons and online accounts – including Recipe Box and Shopping Lists – can be used through May 1, and will be “officially retired” starting the following day.

Although it’s not yet known what the “new perks” will be, reports surfaced last month that Whole Foods might be planning 10 percent discounts for Amazon Prime members. The news wasn’t official when reported, but trial-stage marketing materials were seen in a store one evening (removed the next morning) conveying such messages as “blue signs mean special deals,” and one communicating an additional 10 percent off “hundreds of sale prices” for members. Amazon already has offered special rewards on meat, seafood, produce and other products for Prime members shopping Whole Foods stores.

This isn’t the first time Amazon has said or suggested that it would be making its Prime program a bigger part of Whole Foods’ operations: When it acquired Whole Foods, it promised integration of its Prime program into Whole Foods’ POS system, giving “special savings” and in-store benefits to Prime members.

Moreover, the ecommerce giant has since launched free two-hour grocery delivery from Whole Foods stores to Prime members via its Prime Now delivery program, which it said it  would soon merge with its Amazon Fresh grocery delivery service to “eventually streamline a delivery experience for Whole Foods.” At the time of the launch, Amazon said it would expand the service throughout the year, which it has done so far in Atlanta, San Francisco and the Los Angeles area.

It’s unknown exactly how many Prime members shop Whole Foods’ stores. According to research from Morgan Stanley shared by CNBC last September, however, it’s estimated that almost two out of five Whole Foods shoppers – about 5 million households – weren’t Prime members around the time of Amazon’s Whole Foods acquisition. Morgan Stanley said at that time, though, that it expects Amazon to convert half of those shoppers by the end of 2019.

AN ‘INEVITABLE’ MOVE

While some experts might not have seen Amazon’s decision coming, others believe it was inevitable – including Howard Schneider, VP of loyalty strategy with St. Petersburg, Fla.-based loyalty experience company Kobie Marketing, who told Progressive Grocer that he sees the change as being more about the “continuing march of Amazon Prime” than the discontinuation of Whole Foods’ program, which essentially was just an e-coupon program rather than a true loyalty program.

“From a cost-benefit perspective, it makes sense for the Whole Foods brand to piggyback on the popularity and success of Amazon Prime,” he said. “But from a loyalty strategy perspective, the jury is out on whether this move will truly nurture brand loyalty for Whole Foods.”

An IRI Market Shift Study released yesterday found that Amazon Prime’s benefits are likely to motivate 60 percent of Whole Foods customers with Amazon Prime accounts to purchase more groceries at Whole Foods stores. But, Schneider says, this reinforces that Prime, not the Whole Foods brand, is the real focus here.

“The grocery chain becomes just another range of products delivered through Prime,” he stated. “Some loyalists who value the uniqueness of Whole Foods may rebel against this transformation. But I predict most consumers will value the convenience and benefits of Prime.”

The program, Schneider noted, can drive Prime members to the in-store channel. But this won’t necessarily create loyalty of affinity for the Whole Foods brand. Unless Amazon maintains the emotional connection to Whole Foods, nothing will “curb customer churn” when consumers have more convenient or cost-effective options elsewhere on Amazon – or more experiential alternatives in a given market, such as the Pacific Northwest’s New Seasons Market chain.

Amazon Most Shopped Grocer Online

Online, Amazon is Most-Shopped Grocer, but Walmart Wins for Traditional Trips

04/18/2018
Online, Amazon is Most-Shopped Grocer, but Walmart Wins for Traditional Trips

Amazon is by far the most-shopped online retailer for groceries, but Walmart still holds a “confident lead” over brick-and-mortar competitors in the ecommerce space, new research from Coresight Research reveals.

Some 59 percent of online grocery shoppers surveyed said they purchased products from Amazon in the past year, compared to 26 percent for second-place Walmart, whose share of online grocery shoppers is still much lower than its share of in-store grocery shoppers due to Amazon capturing so many online purchases. However, one indication of the Bentonville, Ark.-based retailer’s online strength is that it enjoys a narrower gap between online and in-store shopper penetration rates than its major rivals do.

While the Seattle-based ecommerce giant is most-shopped for grocery ecommerce, that doesn’t mean it’s used for regular trips: The research actually suggests that shoppers typically don’t use Amazon for conventional, full-basket grocery shopping trips, but do use Walmart’s ecommerce for such occasions. According to the report:

  • Those who have grocery shopped online at Amazon are more likely than the average shopper to have done only a small amount of their grocery shopping online. Conversely, those who purchased groceries online from Walmart are more likely than the average shopper to have done most, if not all, of their grocery shopping online, which suggests that online grocery orders through Walmart are bigger than those through Amazon.
  • Amazon’s regular website by far is the most used of the retailer’s online grocery services, used by more shoppers than its Prime Now rapid-delivery and Amazon Fresh full-grocery-delivery services. The namesake site is limited to ambient grocery products that are sent through the mail one or a few items at a time, so it isn’t a viable option for conventional grocery shopping. Amazon Fresh by far is the ecommerce company’s least-popular online grocery service, with only 12 percent of Amazon grocery shoppers surveyed saying they had used it in the past year.
  • Amazon grocery shoppers are far less likely than average shoppers to have purchased fresh and frozen foods online, instead sticking to brand-heavy nonperishables such as ambient foods and toiletries. Meanwhile, Walmart’s online grocery shoppers are far more likely than the average shoppers to purchase fresh and frozen foods online, showing Walmart’s ability to meet ecommerce shoppers’ full-basket grocery-shopping needs.

Alibaba Autonomous Cars

BRIEF

E-commerce powerhouse Alibaba confirms AV testing in China

Grocers Food Waste

Grocers’ Food Waste Efforts Miss the Mark

Report finds nine of top 10 chains don’t publicly report their total food wasteIt’s no secret—America has a food waste problem, and according to the latest report by the Center for Biological Diversity and the “Ugly” Fruit & Veg Campaign, grocery stores are the core culprits.

The report, titled Checked Out: How U.S. Supermarkets Fail to Make the Grade in Reducing Food Waste, graded the top 10 supermarket chains in the U.S.—Ahold Delhaize, Albertsons Cos., Aldi, Costco, The Kroger Co., Publix, Target, Trader Joe’s, Walmart Inc. and Whole Foods Market—on their food-waste reduction commitments, policies and actions, analyzing publicly available information and details provided by company officials. The chains operate a combined total of more than 13,000 grocery stores nationwide.

Not one store earned an A.

Walmart came in at the top of its class with a B as the only company with a variety of clear in-store efforts to reduce food waste, such as improving store fixtures, standardizing date labels and educating associates and shoppers.

“It’s appalling that America’s biggest supermarkets are doing so little to reduce their enormous contribution to the food-waste crisis,” said Jennifer Molidor, senior food campaigner at the Center, in a statement. “Food waste is a growing problem that squanders water and farmland, hurting wildlife and putting food security at risk. We can stop this massive waste, but only if supermarkets are part of the solution.”

According to the report, 40% of food produced in the U.S. goes to waste, and businesses that serve or sell food are responsible for 40% of that number, with retailers accounting for more waste than restaurants or foodservice providers.

Retailers have focused their food-waste reduction efforts largely on donations, as all 10 supermarket chains have food donation programs, with the majority operating companywide. “Ugly” produce programs—where retailers offer imperfect items at a discounted price—have also gained traction among in recent years, such as Walmart’s Spuglies line of irregular russet potatoes. Yet four of the 10 companies have no imperfect produce initiatives, according to the report.

As the primary source where most consumers purchase food, supermarkets influence what food makes it from farm to shelf, what happens to unsold food, and how much and what types of food shoppers purchase. However, the report found that the majority of retailers focus on donating and recycling food waste rather than preventing it, and they fail to track food waste throughout their entire operations.

Walmart, Ahold Delhaize, Kroger and Albertsons were the only companies with specific food-waste reduction commitments, led by Kroger’s commitment of zero food waste by 2025.

“Customers have taken notice of the massive problem of wasted food and want businesses to take responsibility and action,” said Jordan Figueiredo, creator of the “Ugly” Fruit & Veg Campaign, in a statement. “That’s why we’re calling on American supermarkets to do their part and commit to eliminating food waste by 2025. Eliminating food waste in the grocery sector could have a ripple effect across society that could help address hunger, save money and protect the environment.”

Infrastructure Fix on Hold

Trump’s highly touted infrastructure dream nixed for this year

Infrastructure is an early casualty of Washington’s fixation on the November mid-term elections. Retiring House Speaker Paul Ryan, R-Wis., Senate Majority Leader Mitch McConnell, R-Ky., and others are signaling that Trump’s $200 billion federal infrastructure plan is all but dead for this year.

By John D. Schulz · April 18, 2018

Wait ‘til next year. Maybe.

If promises were concrete and asphalt, this country would have the world class infrastructure that President Donald Trump keeps talking about. Unfortunately, it takes careful planning, political will and, most importantly, billions of dollars. All those characteristics are in short supply in the Trump administration.

Infrastructure is an early casualty of Washington’s fixation on the November mid-term elections. Retiring House Speaker Paul Ryan, R-Wis., Senate Majority Leader Mitch McConnell, R-Ky., and others are signaling that Trump’s $200 billion federal infrastructure plan is all but dead for this year.

Even Trump admits infrastructure is dead until 2019—or maybe forever. He has been talking about infrastructure improvements for at least three years since the early days of his candidacy, often calling U.S. roads and bridges akin to “a Third World country.”

“I don’t think you’re going to get Democrat support very much,” Trump said in Ohio recently, before adding: “And you’ll probably have to wait until after the election, which isn’t so long down the road. But we’re going to get this infrastructure going.”

Maybe yes, but maybe no. There is the not-so-small area of how to pay for these improvements without resorting to usual Washington bookkeeping and scorekeeping trickery. Truckers and the U.S. Chamber of Commerce briefly floated a nickel-a-year increase in the fuel tax—18.4 cents a gallon on gasoline, 24.4 cents on diesel, unchanged since 1993—but that trial balloon crashed and burned by the no-tax pledge signed by most Republicans in Congress.

In more bad news, a planned infrastructure fund by the private equity firm Blackstone that was said to be creating up to $40 billion in private money has been slow to get off the ground. Saudi Arabia was supposed to be the fund’s largest backer, but they have backed off. Saudi money was supposed to be half of the $40 billion.

According to a New York Times report, Blackstone’s goal is now $15 billion, but even that figure is suspect because of lukewarm returns on infrastructure investments.

So that leaves truckers and other motorists absorbing billions of dollars in delays and repairs due to outdated infrastructure at highways, bridges and intermodal facilities around the country.

American Trucking Associations President and CEO Chris Spear has estimated the trucking industry currently loses nearly $50 billion annually to congestion. “That is unacceptable,” he said recently. “We must unclog our arteries and highways and make our infrastructure safer and more efficient by investing in our roads and bridges.”

Jim Burnley IV, who was Transportation Secretary under Ronald Reagan, said working on an infrastructure program in an election year is a neat political trick—and one just not possible in the current political climate.

“Sadly, that’s probably true,” Burnley, now a partner with the Venable Inc. law firm in Washington, told LM. “We’re just not in a political environment where big, bold infrastructure programs are available.”

With the Highway Trust Fund collapsing, Burnley said, the time is ripe for bold, new thinking. According to the Congressional Budget Office (CBO), from 2021 to 2026 trust fund revenue is projected to total $243 billion. But outlays will amount to $364 billion, resulting in an imbalance of $121 billion. Each year during this period, the trust fund faces shortfalls of between $19 billion to $23 billion, the CBO says.

“Was it this hard in the 1990s when I was there? Yes,” Burnley said. “I hope Congress will have the political will to really come to grips with that fundamental resource. That doesn’t mean dramatic increases in the fuel tax. There are almost an infinite other ways to do it. But the political will has to be there—and right now it isn’t.”

Even if funding is coming from Washington, a majority of it appears heading to rural states that supported Trump. Transportation Secretary Elaine L. Chao recently said DOT awarded more than 64% of this round of TIGER funding was for rural projects, as opposed to bottlenecks in and around urban areas.

The only thing the White House has been able to produce on infrastructure this year is a vow to expedite review and permitting for major U.S. infrastructure projects. It establishes a lead federal agency with a commitment to oversee any major projects, but few details how this will streamline complex deals. Under the current process, agencies may conduct their own environmental review and permitting processes sequentially resulting in unnecessary delay, redundant analysis, and revisiting of decisions.  Now federal agencies conduct their processes at the same time.

But at least that was welcome news in some quarters of the business community looking for any action on infrastructure.

“(That) is a welcome change that will not only expedite review and approval of important infrastructure projects, but also help increase American competitiveness and economic growth,” said Mike Burke, Chairman and CEO of AECOM and Chair of the Business Roundtable Infrastructure Committee. “While much work remains to revitalize our nation’s aging infrastructure, this is a vital step forward in accelerating long-overdue infrastructure improvements throughout the country.”

Illinois Roads and Transportation Builders Association President and CEO Michael Sturino said while the plan helps cut through red tape, it probably won’t help Illinois because it favors rural (Republican-leaning) states at the expense of blue states.

“This is really going to go to more of the Wyomings, and the Oklahomas, and the Dakotas, those very sparsely populated states,” Sturino told the Illinois News Network.

Amazon Great for Brick and Mortar

Developer: Amazon ‘great’ for brick-and-mortar retail

BY MARIANNE WILSON

The founder and CEO of upscale real estate company Caruso has a somewhat contrarian view when it comes to Amazon.

In an appearance on CNBC’s “Squawk Alley ,” Rick Caruso addressed the so-called “Amazon effect” and shared his belief that the online retailer has actually been “great” for brick-and-mortar business.

Caruso, the only U.S. based developer with two shopping centers (The Grove and The Americana at Brand, in Los Angeles) in the Top 15 in the world based on sales per sq. ft., said he believes that e-commerce companies like Amazon teach retailers how to be more effective and competitive in the marketplace.

He also noted that retail is shifting to a hybrid model as online retailers recognize that “the social interaction with their customer – the sense of discovery and the sense of experience is critical to an overall retail strategy.” The fact that Amazon is opening physical stores “tells us that a hybrid model where you have digital and you have (brick-and-mortar) retail is very important,” Caruso said.

Who Shops for Groceries

Who Shops Where for Groceries—A Look at US Grocery Store Demographics

Knowledge. Know-how. Networks.who-shops-where-featured_image-2nd

KEY POINTS

Our top takeaways from our recent analysis of survey data on US grocery shoppers include the following: 

  • Nonspecialist retailers account for three of the four most-shopped retailers for groceries: Walmart is in first place, Target is second and Costco is fourth. Kroger is the only supermarket retailer in the top four.  
  • By age and affluence, the average shopper at Aldi is very similar to that at Walmart and Kroger, suggesting that Aldi’s aggressive expansion plans could present a particular threat to these two retailers. 
  • Younger shoppers turn disproportionately to mass merchandisers Walmart and Target for groceries, while Costco and some supermarket chains such as Publix see a skew toward older shoppers.
  • Walmart and Target grocery shoppers register a number of differences: Target attracts significantly younger shoppers, Target sees more consistent shopper penetration across income groups and Amazon Prime members overindex at Target but underindex at Walmart.  
  • Amazon Prime members overindex strongly at Whole Foods Market, and this is likely to be a reflection of higher income levels among both Prime members and Whole Foods shoppers. 

Introduction

Where do Americans shop for groceries, and how do those shopping trends differ by characteristics such as age and affluence? In this brief report, we provide answers to those questions. We look at the characteristics of shoppers at major grocery retailers, with a focus on age, affluence and membership of Amazon’s Prime service. This report forms part of our How the US Shops series of reports, each of which is based on proprietary consumer research.

The data in this report come from a proprietary online survey of 1,813 US adults who had bought groceries in-store in the past 12 months, undertaken in March 2018. All survey figures in this report represent the percentage of respondents selecting the respective option.

For data on grocery e-commerce, see our forthcoming report US Online Grocery Consumer Survey: Amazon Is the Most-Shopped Retailer, but Not Yet a Full-Order Grocery Destination.

Where America Shops for Groceries

Unsurprisingly, Walmart dominates the ranking of grocery retailers, with almost 61% of survey respondents saying they had bought groceries there in the past 12 months. Other nonspecialist retailers Target and Costco also take leading positions, and this reflects the fragmented nature of the US grocery market: a large number of supermarket chains are regional operators, and even Kroger, the leading supermarket retailer, does not have national coverage.

This fragmentation also means that chains with a more specialized positioning, such as Trader Joe’s and Whole Foods Market, rank relatively high simply because of their broad geographical coverage. And the long tail of regional grocery chains results in a large number of respondents selecting “other retailers” in surveys such as ours.

Screen Shot 2018-04-11 at 12.28.10 PM

Shopper Profiles by Age and Affluence

The following chart presents the average age and household income of shoppers at each of the top grocery retailers, with bubble size representing their scale.

  • Kroger’s average shopper is almost identical to the overall average grocery shopper in terms of age and affluence. Aldi is very close to the overall average, as well. Aldi’s proximity to Kroger and Walmart on these metrics could alarm these retailers, given the discounter’s aggressive expansion: in June 2017, Aldi announced that it was aiming to open 900 new stores by the end of 2022.
  • Target is highly differentiated by age, attracting a notably younger grocery shopper: its average grocery shopper is aged 43, versus 48 for all grocery shoppers and 46 at Walmart. We see an overrepresentation of young shoppers at Target in other categories, too: we have previously noted Target’s popularity among millennial beauty shoppers.
  • Costco, Trader Joe’s and Whole Foods attract shoppers that are significantly more affluent than the overall average grocery shopper.

Screen Shot 2018-04-11 at 12.28.22 PM

Mass Merchandisers Attract Younger Shoppers

Younger shoppers flock in disproportionate numbers to mass merchandisers Walmart and Target for their groceries. For example, 18–29-year-olds are twice as likely as those over 60 to buy groceries from Target stores, as shown in the chart below. We have previously noted that millennials tend to be frugal grocery shoppers, and this budget consciousness should remind us that millennials are more diverse than the typical stereotype of a healthy-living, ethical consumer suggests.

A number of supermarket retailers such as Trader Joe’s (charted) and Albertsons/Safeway and Publix (not charted) see a skew toward older shoppers, as does Costco.

Screen Shot 2018-04-11 at 12.28.35 PM

Costco Attracts More Affluent Shoppers

Among these leading retailers, Walmart sees by far the greatest variation in shopping levels by income: some 74% of those with an income of less than $25,000 buy groceries from Walmart, compared to 36% of those with an income of $200,000 or more. Target and Kroger see more consistent levels of shopping across the income scale, although penetration tends to increase as household income rises. Costco sees a skew toward more affluent households.

Screen Shot 2018-04-11 at 12.28.46 PM

Prime Members Almost Twice As Likely to Shop at Whole Foods

Why did Amazon acquire Whole Foods Market? One reason could be that Amazon Prime members turn to the store for their grocery shopping in disproportionate numbers. In fact, Prime members are almost twice as likely to buy groceries from Whole Foods than those without Prime membership are, and almost one in three Prime members have shopped at Whole Foods in the past year.

The crossover between Prime members and Whole Foods shoppers is likely due to their characteristic of being more affluent: our survey confirmed that Prime membership rates tend to increase in step with household income, and we have already noted the relative affluence of Whole Foods shoppers.

Prime members are notably more prominent than nonmembers among grocery shoppers at Target, and this is a trend we also saw among apparel shoppers at Target, as we discussed in our recent report on Amazon apparel.

Screen Shot 2018-04-11 at 12.29.00 PM

Key Takeaways

  • By age and affluence, the average shopper at Aldi is very similar to that at Walmart and Kroger, and this suggests that Aldi’s expansion could pose a particular threat to these two retailers.
  • The much-sought-after millennial shopper is more than just the typical stereotype of a healthy-living, ethical shopper: young consumers tend to be frugal grocery shoppers and they turn largely to mass merchandisers for groceries.
  • Nevertheless, Walmart and Target see some key differences: Target attracts significantly younger shoppers, Target sees more consistent shopper penetration across income groups and Amazon Prime members overindex at Target but underindex at Walmart.
  • Amazon Prime members already overindex strongly among shoppers at Whole Foods Market, and this is likely a reflection of their characteristic of having a higher income level.