Campaign corner
It’s not just water. Culligan is launching its first-ever global brand campaign, “It’s just water until it’s Culligan,” as part of an effort to unify its messaging worldwide. The new initiative also marks the brand’s first collaboration with Highdive, the Chicago agency it brought on six months ago to spearhead its global expansion.
The American spirit. “A Lovely Day” offers a modern take on Guinness’ classic tagline, “Lovely Day for a Guinness,” which first appeared in ads in the 1930s. The new film, airing across TV, digital, and social platforms, celebrates community by documenting a 5,057-mile journey across the country, showcasing real people and diverse groups from every state.
What happened in Retail tech?
All-in for generative AI. Over the past two years, Walmart has deeply integrated generative AI across its operations, focusing on balancing innovation with data privacy and security. Through initiatives like the Element platform and expanded AI toolkits, the company has improved code governance, empowered developers, and is fostering a culture where AI is embedded in daily workflows. Leaders emphasize a careful, collaborative approach to AI deployment, aiming to make the technology both approachable and safe for employees at every level.
Shopping experience. Wegmans has revamped its mobile app and website to blend the best of in-store and online shopping, focusing on personalization, faster shopping, and improved product discovery. New AI-driven features enhance search functionality, offer personalized recommendations, and organize shopping lists based on purchase history and store locations. These updates aim to boost digital engagement, especially around curbside pickup and app usage, as customer interest in online shopping rebounds.
What experts say…
Discounters and Sales. U.S. consumers are cutting back on snack purchases, increasingly waiting for discounts or switching to private-label options as inflation and tighter budgets drive more price-sensitive behavior. Shoppers are sticking more closely to planned shopping lists, buying essentials over impulse treats, and often opting to buy snacks in bulk to portion at home. Brands like Frito-Lay are responding by offering price cuts and promotions, as consumers now expect more value in "nice-to-have" categories like snacks. Here’s what Neil Saunders mentioned on the topic:
Weight-loss drugs reshaping grocery. Research shows that users of GLP-1 drugs like Ozempic, Wegovy, and Mounjaro are cutting back on processed, calorie-dense foods, leading to modest declines in grocery spending, especially among higher-income households. While food makers are beginning to explore product adjustments like smaller portions and healthier options, major companies largely downplay the potential disruption, believing the impact will be gradual due to adoption barriers like cost and insurance coverage. Studies suggest growing consumer interest in fresh produce, protein-rich snacks, and functional foods aligned with weight-loss goals. Here’s what James Tenser mentioned:
Statistic of the week
⅔ of consumers are willing to pay 25% more for their favorite brands.
Despite economic pressures, many consumers remain loyal to trusted brands, with nearly three-quarters of U.S. shoppers willing to stick with their favorites even if prices rise significantly, according to a UserTesting survey. Loyalty is strongest in categories like food, clothing, and electronics, and can be further strengthened through nostalgia and consistent, high-quality customer experiences. However, consumers may switch brands if a competitor offers better value or superior products.
In other news
Return policy. A new survey from Forter found that 68% of U.S. and U.K. consumers believe retailers make it easy to abuse flexible return policies, with nearly half admitting to doing so in the past year. Many shoppers exploit policies to avoid full prices, "wardrobe" expensive items, or over-purchase for free shipping benefits, especially among younger consumers. While lenient return policies can drive more purchases, stricter policies risk losing customers, highlighting the need for retailers to balance customer-friendly practices with protections against abuse.
Customer sentiment. U.S. consumer sentiment fell for the fourth straight month in April, dropping to its lowest level since July 2022 amid growing concerns about economic policy, inflation, and trade. The University of Michigan’s Consumer Sentiment Index plunged 8.4% to 52.2, with expectations for the future hitting their lowest point since 1980. Rising inflation expectations, fears of higher unemployment, and weakened income growth are fueling widespread economic unease across all demographics and political affiliations.
