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Executive Insights

Volume XIX, Issue 52 | August 15, 2017 | By: Chris Randall, Jon Weber Operational inefficiencies in a consumer organization Identifying complexity in a retail organization

It’s no secret that traditional brands and retailers are under siege. Consumer behavior is changing rapidly. Low- and off-price players are moving in. Labor costs are on the rise, while consumers are moving their spend online — and away from tangible goods. This Executive Insights is about how brands and retailers can operate in the kind of environment we have today.

Analysis 2 | August 8, 2017 | By: Rob Wilson, Jon Weber, Dan McKone U.S. grocers: increased focus on high-quality fresh prepared foods Fresh prepared foods comprises five categories Which trends are contributing to strong growth in the U.S.? Most retailers are underpenetrated in fresh prepared foods Fresh prepared foods expected to continue stealing shelf space Retailers struggle with consistency in a patchwork supply network Rapid growth with continued upside opportunities

This Executive Insights profiles the high-growth category of fresh prepared foods and why retailers and suppliers alike can expect to find significant opportunities in this market for years to come.

Volume XIX, Issue 50 | July 28, 2017 | By: Robert Haslehurst Millennial consumer segments Average annual dollar spend by retail product category and millennial segment Annual frequency of purchases for household by category and generation Top words respondents use to describe brand authenticity Social media usage by generation

Consumers are a moving target, powered by major generational shifts. Retailers that ignore generational change risk obsolescence. Recently, L.E.K. Consulting surveyed more than 3,800 Americans, including roughly 2,200 Millennials aged 18 to 34, about their shopping preferences. This Executive Insights delves into important insights on how retailers can win the generation game.

Volume XIX, Issue 48 | July 26, 2017 | By: Rob Wilson, Maria Steingoltz Estimated U.S. meal kit delivery market (2016) Percentage of customers still ordering Top reasons why a former meal kit company customer decided to discontinue

Meal kits have emerged as one of the hottest topics among food and beverage executives. That’s because in the past few years, more than 150 companies have jumped into the meal kit game in the U.S. Industry leaders include Blue Apron, Plated, Home Chef and HelloFresh, followed by a long line of specialized and regional players. This Executive Insights examines multiple factors affecting the evolving the meal kit industry and why a shakeout is likely.

Volume XIX, Issue 45 | July 12, 2017 | By: Dan McKone, Robert Haslehurst, Maria Steingoltz V-commerce as the next wave of retail A substantial portion of respondents have used AR or VR at least once Interest in shopping concepts AR and VR will impact the entire customer journey

Virtual reality and augmented reality will transform retailing. But how, exactly? L.E.K. Consulting recently surveyed 1,000 consumers who had already experienced AR and VR technology. The results offer an initial look at what consumers hope to do when they shop in augmented or virtual realities.

Volume XIX, Issue 36 | June 7, 2017 | By: L.E.K. Consulting How value drivers link to value creation Aligning management responsibility for value drivers Value driver matrix Value driver map for petroleum marketing Value driver sensitivities — petroleum marketing Key value driver matrix — petroleum marketing

While maximizing shareholder value is an important corporate objective, it is not specific and accountable enough for operating management, who must also know which factors most influence value and which factors can be most easily affected. This Executive Insights presents an approach to increasing performance that will forge stronger links between operating performance measures and shareholder value creation.

Volume XIX, Issue 34 | June 1, 2017 | By: L.E.K. Consulting Intensive strategy analysis: A three-session approach Strategic programming spurs strategic execution

Successful strategic planning is not a mysterious process available to an exclusive group of top-performing companies. Value-creating strategies are the result of executive commitment, hard work and a well-defined approach. This Executive Insights illustrates some practical techniques for managing the development and execution of business strategies.

Volume XIX, Issue 27 | May 8, 2017 | By: Manny Picciola, Rob Wilson, Maria Steingoltz Rising food and labor costs Retail prepared foods pose a growing threat to foodservice operators

For the past decade, foodservice sales have been on a tear, outpacing those of the retail sector. In fact, in 2015, foodservice revenues surpassed retail revenues for the first time, as more and more consumers, emerging from a painful recession, opted to dine out with greater frequency. But foot traffic has begun to slow, stabilizing at or below 1% growth. As a result, foodservice operators will need to look elsewhere in order to build revenue. In this Executive Insights, we discuss findings from the 2017 L.E.K. Consulting U.S. Foodservice Operators Study.

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.

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