Executive Insights

Volume XIX, Issue 24 | March 30, 2017 | By: Remy Ossmann Store selection criteria of French shoppers Top reasons for hypermarket dissatisfaction

French retailers have focused on pricing for too long and have lost track of other key components of in-store client satisfaction. In this Executive Insights L.E.K. explores the three core components of a winning in store customer experience strategy

Volume XIX, Issue 22 | March 27, 2017 | By: Alex Evans Personalized nutrition is at the convergence of four major trends Price and complexity of offerings within the next-generation personalized nutrition market

The market for personalized nutrition programs looks promising. These programs present an alternative to conventional, one-size-fits-all strategies by utilizing information about an individual’s genetic and metabolic characteristics to design a bespoke plan comprising specific foods and supplements. This Executive Insights examines the conditions favoring further expansion of an already vibrant field.

Volume XIX, Issue 16 | March 2, 2017 | By: Chris Randall, Rob Wilson Selling, general and administrative expenses as a % of net sales (2015) State-level minimum wage (2016, 2020) Retailers’ minimum-wage increases Grocery retailer sales per SKU (2013)

The grocery and broader retail industry is at a turning point. In recent years, retailers and grocers have seen rapid evolution, thanks to trends such as consolidation, changing customer preferences and competition from disruptive innovators, chief among them Amazon. Meanwhile, margins — always notoriously thin — have come under stress from rising labor costs. This Executive Insights examines the factors contributing to rising labor costs and how grocers and retailers can respond.

Volume XIX, Issue 14 | February 27, 2017 | By: Jonathan Simmons Real personal disposable income growth (2010 – 20F) UK economic cycle (1980-2014) Recession amplitude and duration by sector (1990 vs. 2008)

The economic implications of Brexit are far from clear. For the retail and consumer sector, further uncertainty will expose the vulnerable. In this Executive Insights, Jonathan Simmons sets out eight key actions that companies and investors should take in order to build business resilience.

Volume XIX, Issue 12 | February 9, 2017 | By: Alex Evans, Gil Moran Time spent consuming various forms of media content (2015) Preference for favorite eSport vs. favorite traditional sport

L.E.K. Consulting recently conducted a survey among different age groups that looks at the various forces reshaping sports fandom in the U.S. In the first of a two-part Executive Insights series, we examine how engagement, preferences and trends across traditional and alternative segments (e.g., eSports), as well as emerging platforms (e.g., over-the-top broadband Internet television (OTT)), are poised to redraw the map for teams, leagues, broadcasters and marketers/retailers.

Volume XIX, Issue 10 | February 7, 2017 | By: Maria Steingoltz, Robert Haslehurst Indicators of fads Fad vs. durable trend characteristics Potential solutions to transform a fad into a trend or generate sustainable revenue from a fad product with limited staying power

Every year, a handful of consumer products become runaway hits. Pet Rocks, Beanie Babies, the Atkins Diet, inline skates and paintball arenas are good examples of fads, whereas Lego, yoga and natural shampoos became part of an established and consistently growing market. This Executive Insights takes a deeper look at fads versus trends, which is crucial to investment strategy and revenue projection across industries, from technology to toys to consumer services.

Volume XIX, Issue 9 | February 6, 2017 | By: Stuart Jackson

Boards of directors play two roles. They must protect value by helping companies avoid unnecessary risks, and they must build value by ensuring that the companies change quickly enough to address emerging competitive threats, evolving customer preferences and disruptive technologies. In this Executive Insights, L.E.K. Consulting discusses four ways boards can become better challengers and champions of change.

Volume XIX, Issue 6 | January 25, 2017 | By: Alex Evans, Robert Haslehurst OTT TV services launched in the U.S., by genre Third-party recommendation engine vendors — revenues in North America WWE Network distribution methods

The modern media industry has excelled at acquiring loyal consumers by enabling each one to create a custom experience out of a mass offering. While the media industry is at the forefront of this shift, the core strategic tenets are relevant to any consumer business. This Executive Insights examines three strategies that retailers and consumer brands can adapt from the media industry to gain critical competitive advantages.

Analysis 1 | January 25, 2017 | By: Alex Evans, Chris Randall Three categories of consumables Consumables engagement by category and segment (2016) Average spend per customer* in the past month (2016) Share of consumer spend by channel and category Share of foodspend and beverage consumer spend by channel and customer type Price, convenience inform channel choices Channel drivers by age Likelihood to purchase a health & wellness product subscription Willingness to purchase private-label brands, by product segment Overall: Perspectives on private label, by category

The 2016 Health & Wellness Study examines consumer spending preferences for nutritional supplements, personal care and healthy grocery products among Millennials, Gen X and Boomers. The study looks at category engagement, drivers of channel selection and, the potential for subscription services, as well as the success factors for private-label products.

Volume XIX, Issue 5 | January 24, 2017 | By: Alex Evans How shoppers use mobile in-store Examples of mobile apps and solutions to address gaps in the customer journey Retail customer journey: Objectives

Traditional retailers are up against some significant challenges in light of consumers’ growing shift to ecommerce using mobile devices. This Executive Insights examines the growing suite of mobile tools that are helping to level the playing field, giving brick-and-mortar retailers the wherewithal to compete effectively with their digital-only counterparts.