Made possible by

INDUSTRY INSIGHTS:
RETAILERS SPEAK OUT
December 2020

The coronavirus pandemic and the ensuing recession have constrained ad spending growth
for nearly every industry—and retail is no exception. eMarketer has curated this collection
of interviews with retail marketing leaders to help you understand how they are facing the
challenges in this industry today.
TABLE OF CONTENTS

3 Overview
4 Canada Goose CMO Talks Store Experiences, Sustainability Commitments
5 How Cuts Clothing Pivoted and Adapted amid the Pandemic
6 How Honeygrow Repositioned Its Businesses During the Pandemic
7 4 Ways Retailers Can Rebound from COVID-19 with Loyalty Program Data
9 The North Face CMO on Outdoor Efforts, Ecommerce, and the Holidays
10 About This Industry Insights Collection

INDUSTRY INSIGHTS: RETAILERS SPEAK OUT MADE POSSIBLE BY: 2

OVERVIEW

Traditionally, direct-response advertising has forecast that the industry will see 27.8% growth in display and
held a slight edge over brand advertising among 24.6% growth in search in 2021.
retailers. Thus, we expect search spending by the As a vertical, retail will likely always have a wide range of brands
retail industry will slightly exceed the US digital ad and products that will find value in both search and display
spending average in search, but not display, this year. advertising. Retail and ad industry insiders regularly offer a
The industry will nonetheless be extremely balanced vast—and, at times, contradictory—array of opinions about
in allocating its digital ad dollars evenly both how retailers prefer to allocate their digital ad budgets, which
between and within formats. speaks to the great diversity within retail. In containing these
multitudes, no other vertical we cover but retail will spread its
Retailers will spend $13.53 billion on digital display advertising digital ad dollars quite so evenly.
in 2020, a marginal 2.3% uptick from 2019. Display will represent
47.9% of the vertical’s overall digital ad spending, compared with
search’s 47.5%. This is right in line with the display-to-search ratio
that retail has seen over the past few years.

Of the $13.53 billion in display spend, video will claim $6.55

billion, a balanced 48.4% share of the format’s digital ad dollars.
Video’s share of retail’s display spending has skyrocketed
from 28.1% in 2016 to nearly 50% this year, a surge that can be
attributed to the emergence of viable connected TV (CTV) ad
opportunities and the increasing popularity of video advertising
in social media.

In 2020, search ad spending for the retail industry will increase

by 4.8%. At $13.42 billion, that’s a healthy 24.7% of total US
search ad spending.

Though spending on these formats will rise, these increases

signify dramatic decelerations when compared with 2019
figures. The coronavirus pandemic and the ensuing recession
have constrained ad spending growth for nearly every industry,
and retail is no exception. Display and search spending in the
retail category, however, should rebound nicely next year. We

INDUSTRY INSIGHTS: RETAILERS SPEAK OUT MADE POSSIBLE BY: 3

CANADA GOOSE CMO TALKS STORE EXPERIENCES, SUSTAINABILITY COMMITMENTS
November 13, 2020

During the pandemic, outerwear brand Let’s talk about some of your stores internationally. Your
Canada Goose looked at different ways business in mainland China is back to pre-pandemic levels,
it could engage and reach consumers. which is incredible. Your retail footprint there also more than
So when it came time to reopen its doubled this past quarter. What do you attribute that to?
stores earlier this summer, the brand We entered the market in China just a few years ago. We’re really
decided to try something new and just at the start of our journey there. Consumers in China have
work with local artists to showcase a great love for quality, authentic brands, and they’ve taken the
their work, which captured the hope brand very close to heart. We’re just at the start of bringing the
and optimism of the future. brand to its full life in that market. We’ve got some amazing
We recently spoke with Penny Brook, representation there, some great ambassadors in China that
the brand’s CMO, about this effort, as well as Canada Goose’s we work with, and some amazing future collaborations coming
success in China and its upcoming 2021 projects. down the pipeline.

When Canada Goose started to reopen stores over the summer,

it invited artists to exhibit their work in its store windows.
How’d that project come together?
“During the pandemic, our stores
At Canada Goose our purpose is to keep the planet cold and were a blank canvas for local
keep the people on it warm. We also want to share warmth at
times when people really need it. During the pandemic, our artists to create optimism around
stores were a blank canvas for local artists to summarize the
zeitgeist, to talk about that relationship that’s so important the future.”
between humans and their environment, and to create some
kind of celebration and optimism around the future.
This year has been a roller coaster, and many brands have
Human beings need to see the light at the end of the tunnel, learned a lot. As you look ahead to 2021, what will Canada
and it was important to help represent a community, and to put Goose do differently?
forward inspiring content out there for our consumers to lift We’re going to launch Human Nature in earnest, which is
them up, and lift ourselves up in the process. We use our stores our purpose commitment. An essential part of that is our
as a platform to represent Canadian art with a specific focus sustainability commitment, which gives our commitment to
on indigenous art. Indigenous art is exceptionally beautiful and net zero emissions direct and indirect by 2025, as well as our
intriguing in its storytelling, but it’s not very well-represented. commitments on Bluesign and responsible down-sourcing
We’re honored to be displaying this beautiful, lesser-known art (RDS). In 2022, we’re going to move to reclaimed fur by
throughout the globe in all of our retail stores. upcycling fur and no longer using virgin fur.

INDUSTRY INSIGHTS: RETAILERS SPEAK OUT MADE POSSIBLE BY: 4

HOW CUTS CLOTHING PIVOTED AND ADAPTED AMID THE PANDEMIC
July 24, 2020

For most retailers, the past few No one really expected the pandemic to go on this long. You’re
months have been a learning curve. seeing consumers finding other forms of media to fill up their
Many have had to adjust their time. So we said, ‘Hey, you know what? It’s time.’ We started
marketing spend, as well as look back with a pretty hefty podcast [budget], and we’re careful on
at how to best reach and engage where we advertise. For example, there’s no sports on now, so
consumers amid the pandemic. we’re not going to buy media on those as much, as opposed to
political channels, where they’re talking about the pandemic, as
We spoke with Steven Borrelli, founder well as health and wellness channels.
and CEO of Cuts Clothing, about
the changes the company has made Outside of podcast advertising, were there any other channels
during these past few months and how the brand is looking to that you also pulled back on initially?
make its shirts the new Zoom attire. We had plans to do connected TV, again with a sports focus, with
ESPN. We decided not to do that and just focus on what we’re
Have you seen a difference in consumer behavior? great in. Right now, it’s important not to get too cute, and to
Yes. Before, we saw a lot of our returning customers [shopping really double down on your strengths. We do well on Facebook
for the same thing]. For example, if they really liked the color and Instagram, as well as Google and Snapchat. So we’ve really
black, they would continue to wear black. One of the things focused on making those better and going deeper.
we’ve noticed with Zoom calls is that people don’t want to look
like they’re wearing the same shirt every day. So we’ve had to
expand the amount of colors we have per product.
Want to learn more about Cuts’ response to the
What’s more, during the pandemic we launched polos, and we’re
seeing a huge uptake in sales. We sold out in our very first week. coronavirus pandemic? Watch our video interview.
We’ve coined polos as the perfect Zoom work attire shirt, simply
because you may only have a little screen to show your style
and the Zoom polo will allow you to look like you’re dressing
up—even if you’re wearing underwear and no shoes.

In the past few months, brands have changed their investment

in advertising—both traditional and digital. Cuts initially
pulled back its investment in podcast advertising, given that
people were no longer commuting. But the company has since
reinstated podcast advertising. Tell us what led to this change.

INDUSTRY INSIGHTS: RETAILERS SPEAK OUT MADE POSSIBLE BY: 5

HOW HONEYGROW REPOSITIONED ITS BUSINESSES DURING THE PANDEMIC
October 28, 2020

After graduating college, attending Honeygrow has always bought its ingredients locally. How has
business school and beginning a the brand pledged to continue to help other local businesses
career in commercial real estate, and farms during this time of economic uncertainty?
Justin Rosenberg, founder and CEO of I’m a board member of The Common Market Mid-Atlantic group,
Honeygrow, looked to make a change and it’s a farmer-aggregator group where nonprofits gather a
and revamp the fast dining category. bunch of stuff from local farms and distribute it to restaurants,
hospitals, and schools. The key thing right now is just staying
He launched the restaurant chain in
open and being able to continue to provide product.
2012 in Philadelphia, and has since
expanded to other locations, including
Boston and New York. Like many
restaurants this year, Honeygrow has had to navigate the waters “We opened a restaurant in the
because of COVID-19. We recently spoke with Rosenberg about
the company’s new on-demand grocery and curbside pickup middle of the pandemic. And we
efforts, and how the company is working with local businesses.
figured out what to do, what not to
At the start of the pandemic, many restaurants were forced to
close their doors and get creative. Honeygrow was no exception,
do, mistakes not to make again.”
and because of that, you launched Honeygrow at Home. Tell us
more about that program. What’s next for Honeygrow?
When we found out we weren’t [classified] as an essential Our first five years were amazing, and then we got a little
business and weren’t allowed to have guests come inside the arrogant thinking we could open everywhere. We took about
restaurant, we had to adapt pretty quickly. The first thing we did two years off from growth, which was one of the best things we
was offer curbside pick-up via our app. We adopted curbside could have ever done as an organization. By the end of 2019, we
pick-up the third week of March and have really made it a were more profitable than we’ve ever been. And then of course
contactless experience. the pandemic happened.
In terms of drawing awareness, we did a lot of homemade We opened a restaurant in the middle of the pandemic. It
beta content, pushed it on social media, and worked with a actually was our most successful restaurant opening we’ve ever
digital agency to target consumers that may not be following had, and continues to be one of our most profitable restaurants
Honeygrow or turn casual guests into super loyal guests. in our portfolio. And we figured out what to do, what not to do,
mistakes not to make again. And we’re all excited for continued
smart growth in the upcoming years.

INDUSTRY INSIGHTS: RETAILERS SPEAK OUT MADE POSSIBLE BY: 6

4 WAYS RETAILERS CAN REBOUND FROM COVID-19 WITH LOYALTY PROGRAM DATA

This article was contributed and sponsored by Oracle Marketing.

Even before the COVID-19 pandemic and subsequent research finds that consumers are willing to complete engagement
recession, the retail industry faced its fair share of activities in exchange for rewards. Consider including surveys,
challenges. To survive, retailers are adapting to new friend referrals, and reviews as point-earning activities. Having
consumer shopping habits and drivers of brand loyalty. access to this valuable customer feedback arms retailers with
A recent McKinsey report found that more than 75% of greater conviction on where to allocate their budget and focus
consumers have tried new brands, places to shop, or their strategies.
shopping methods during the pandemic.
3. Offer unique perks and experiences
Leading retailers are investing in omnichannel loyalty and Customers deserve special treatment and recognition for their
engagement programs to reward customers, collect data, and brand loyalty—now more than ever. Brands can achieve this by
personalize experiences across all touchpoints and channels. Here providing member-only perks and exclusive rewards. Given the rise
are four ways omnichannel loyalty programs can help retailers in online shopping, perks, such as free shipping or free returns, are
deepen their relationships with customers and bounce back from attractive member-only benefits. One-of-a-kind rewards that align
the pandemic. with your brand offerings encourage members to stay active in the
program. Reward redemption data helps retailers understand what
1. Reward customers for every transaction
motivates their most loyal customers.
Retailers can leverage loyalty programs to ensure consumers are
rewarded for every transaction they make. According to McKinsey’s 4. Recognize and encourage customer advocacy
US consumer sentiment during the coronavirus survey, many The data collected in an omnichannel loyalty program helps
consumers intend to continue their new shopping habits even after retailers identify their most high-value customers and acknowledge
the coronavirus pandemic is over: them with surprises. The benefits of brand advocacy are
immeasurable, and include increasing spending, growing positive
• 81% intend to continue to use in-store self-checkout
word-of-mouth, creating long-lasting relationships, and maximizing
• 52% intend to continue with curbside pick-up customer lifetime value (CLV).
• 65% intend to continue making purchases online and The Takeaway
collecting in-store
Omnichannel loyalty and engagement programs provide retailers
By rewarding customers for these new shopping behaviors, in with the consumer insight to drive critical business decisions, gain
addition to the traditional offline and online transactions, retailers a competitive edge, and ultimately win and retain loyal customers
can capture critical data to power product promotions and create in this uneasy economy.
personalized recommendations.
Learn more in “How Retailers Can Leverage Loyalty Program Data
2. Drive brand engagement to Create Exceptional Customer Experiences.”
Omnichannel loyalty programs reward customers not only for
—Emily Rudin, senior director, loyalty product strategy & growth,
spending with the brand but for their engagement as well. Our
Oracle CrowdTwist

INDUSTRY INSIGHTS: RETAILERS SPEAK OUT MADE POSSIBLE BY: 7

Exceed customer
expectations with
personalized
retail experiences
The monumental shift in consumer shopping
is challenging the retail industry like never
before. Leading retailers are leveraging
Oracle Marketing to unify customer data,
execute sophisticated campaigns, and deliver
meaningful experiences that drive brand
loyalty.

Take a tour of Oracle Marketing and learn how

our customers are recapturing market share
and retaining their most valuable customers:
oracle.com/cx/marketing
THE NORTH FACE CMO ON OUTDOOR EFFORTS, ECOMMERCE, AND THE HOLIDAYS
November 6, 2020

The pandemic has driven many Many consumers are still wary about shopping in-store. How
consumers to appreciate the has The North Face leveraged its digital and social channels to
outdoors—especially as many continue engage these customers?
to spend a majority of their time
Most people pivoted to online. For us, it’s been a great
indoors as part of lockdown orders.
opportunity to accelerate what we were already doing. We sell
In the past few months, The North Face products that are very activity-specific and weather-dependent.
has seen an increase in online searches What we’ve done is really supercharged our digital capabilities
for outdoor activities, which has led the around that time so that we could serve our customers better.
brand to get creative in how it reaches We also leveraged ship-from-stores and pick-up in-store
consumers. We recently spoke with Steve Lesnard, CMO and capabilities to make the customer journey as seamless as
global vice president of product creation at The North Face, about possible. As a result, it allowed us to create more personal
what these efforts look like and why it’s important to be nimble. connections with customers because they tell us what they like,
what they need, and it gives us an opportunity to follow through
After being home-bound for the majority of 2020, many people and make sure they have the best experience throughout
now have a greater appreciation for the outdoors. How has this the journey.
trend changed your retail business?
We’re nearing the holiday season. What will The North Face do
During the pandemic and the first lockdown, we saw a massive differently this year?
surge [of people] searching online for outdoor activities. We also
This is a time to inspire people. That’s a big part of our recent
saw a massive surge of people buying tents, and starting to plan
message—inspire people to give the gift of exploration or spend
their summer vacation through local exploration—or frankly—
time outdoors. A lot of our athletes are actually sharing pledges
even creating a garden and backyard camping [site] to keep
and we have some fun activation on social, including Instagram
themselves entertained.
and TikTok.
With summer camps closed across the US—and with parents
We’re also spending a lot of time making sure that we can be
questioning what to do with their family in the summertime—
as appropriate and geo-specific with consumers so we can
we came up with the idea of creating The North Face Summer
offer the right solution at the right time. Having the ability to be
Base Camp, a two-week virtual summer camp that offered free
nimble, to be able to react and offer the right product to the right
classes with our athletes as a way to reach young explorers and
communities in the right places at the right time, is going to be a
have them [participate in] fun activities with their parents in
big part of our focus.
the outdoors.

INDUSTRY INSIGHTS: RETAILERS SPEAK OUT MADE POSSIBLE BY: 9

ABOUT THIS INDUSTRY INSIGHTS COLLECTION

Read Next
Online Grocery Sales Will Increase by Nearly 53% This Year
Walmart Is US Amazon Prime Members’ Site of Choice for Products Unavailable on Amazon
The Future of Commerce? Social Commerce, Verishop CEO Says
Alleyoop CEO on Pop-Up Activations, Remote Photoshoots, and AR
SMS Is Still One of the Most Effective Channels—Just Ask These Retailers
Listen Next
Around the World with … Holiday Shopping: Thanksgiving Weekend, Singles’ Day, and the Buen Fin
The Ad Platform: Recapping Retail Media’s Year to Date with Bryan Wiener
Free Shipping, Drones, and Click-and-Collect, Oh My!

Want more data and insights? Subscribe to the eMarketer Retail Newsletter for our latest articles, videos,
and podcasts.

Contributors and Production

Danielle Drolet Senior Editor & Program Director, Content Studio
Dana Hill Director of Production
Rimma Kats Executive Editor
Stephanie Meyer Senior Production Artist
Ina Gottinger Vice President, Media Solutions & Strategy

INDUSTRY INSIGHTS: RETAILERS SPEAK OUT MADE POSSIBLE BY: 10