The Retail Pilot

In this episode of the Retail Pilot Podcast, Ken Pilot engages with retail legend Mickey Drexler, discussing the current state of retail, pricing trends, and the importance of customer experience. Drexler shares insights from his journey at Alex Mill, emphasizing the significance of quality, team dynamics, and the evolving landscape of retail. The conversation also features Ali Dillon, the President of Alex Mill, Alex Drexler, Founder, and Creative Director, Somsack Sikhounmuong, who discuss their roles and the brand's vision, highlighting the importance of community and innovative marketing strategies.

Key Takeaways Include:

Recent Success: Alex Mill has experienced strong sales performance attributed to changes in merchandising and management.

Product Focus: Sweaters and denim are particularly successful categories for Alex Mill, with emphasis on fit and quality.

Retail Strategy: Alex Mill follows a "less is more" approach, focusing on smaller store sizes and selective expansion.

Marketing Channels: Instagram is a primary driver of brand awareness, with the company also exploring TikTok marketing.

Expansion Plans: Alex Mill is planning to open a new store in Rockefeller Center, aiming for an early November launch.

Customer Acquisition: Word-of-mouth marketing plays a crucial role in the brand's growth and recognition.

Product Diversity: Mickey emphasizes the importance of offering multiple color options for key items to create visual impact and customer appeal. Sustainability and reworking products can also create new opportunities.

Team Dynamics: A strong, diverse team is critical for successful product execution and business operations.

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Ken Pilot interviews Simeon Siegel, MD and Senior Analyst, Retail & eCommerce for BMO Capital Markets, for this Flight of The Retail Pilot Podcast

Overview: In this episode, leading retail analyst Simeon Siegel returns to discuss the current state of the retail sector, emphasizing the importance of execution in a challenging economic environment.

• Key Topics: Simeon's Role: Simeon explains his work as a retail analyst, helping investors understand which companies are performing well and which are struggling. He covers 20-30 companies and provides ratings such as outperform, underperform, and market perform.
• Current Retail Climate: The year has been progressively challenging for retail, with lingering effects from the pandemic. While some sectors are struggling, others are thriving, highlighting a divergence between winners and losers in the market.
• Luxury Market Trends: The luxury sector is experiencing pressure for the first time in years, with growth slowing from 8% to 4%. Despite this, some brands like Prada and Hermes continue to perform well.
• Execution Matters: The conversation emphasizes that execution is key in today's market. Companies that adapt and perform well are gaining market share, while larger, established brands face challenges.
• Consumer Health: Despite concerns about credit card debt and inflation, the U.S. consumer remains resilient. Retailers need to balance promotions and marketing to maintain brand value while driving sales.
• Technology Investments: As retailers navigate challenges, there is a focus on investing in technology that enhances both online and in-store experiences. The importance of inventory management and customer engagement is highlighted.
• Winners in Retail: Companies like TJX are noted for their strong performance due to their unique value propositions for both consumers and vendors. Other brands showing potential include Nike, despite recent struggles.

Conclusion: The episode wraps up with reflections on the evolving retail landscape, emphasizing the need for brands to adapt strategically to maintain relevance and profitability amidst changing consumer behaviors and economic conditions.

Listen for More: Tune in for deeper insights into retail trends and expert analysis from Simeon Siegel!

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In this episode of The Retail Pilot - Tech Talk, Ken Pilot speaks with Vic Drabicky and Josh Krepon about performance marketing in the Retail/Fashion Industry.

Summary

In this conversation, Vic Drabicky, CEO and founder of January Digital, and Josh Krepon, President of US D2C and Global Digital at Steve Madden, discuss the current state of performance marketing and the importance of balancing algorithmic marketing with inspirational and influential marketing. They also touch on the challenges of creating and managing content, the role of video in marketing, and the rise of TikTok shops. The conversation covers various topics related to retail and marketing, including the impact of consumer behavior shifts, the role of video commerce, the importance of collaborations and influencers, the use of MarTech in loyalty and data management, and the potential impact of the election on the retail environment.

Key Takeaways

• Performance marketing has dominated the marketing landscape in the past decade, but brands now need to find a balance between algorithmic marketing and inspirational/influential marketing.
• Creating and managing content can be challenging, and brands need to strike a balance between volume and quality.
• Video marketing is becoming increasingly important, and brands need to adapt to the changing landscape of platforms like TikTok.
• The rise of TikTok shops and partnerships with platforms like Amazon indicate that video commerce is on the horizon. Consumer behavior takes time to shift, and it may not always align with predictions or trends.
• Video commerce is a growing trend, but it may take a long time for people to change their behaviors and adopt it on a large scale.
• Collaborations and partnerships with influencers or other brands can be successful if they are authentic, aligned with the brand's values, and provide value to the customers.
• MarTech tools can be used for retention and loyalty programs, as well as data management and analysis.
• The outcome of the election can impact the retail environment, with consistency and confidence being important factors for stability and growth.

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Ken Pilot interviews Mike Natenshon, Founder of Marine Layer, for this episode of The Retail Pilot Podcast.

Mike Natenshon started Marine Layer the day after his girlfriend threw away his favorite shirt. In the ensuing 10 years, Marine Layer has grown into a complete California-inspired lifestyle brand delivering new favorite shirts to wherever their customers are. Although considered 'digital first' Marine Layer operates 50 stores and two 1969 VW buses nationwide.

Summary

MarineLayer is a retail brand that started as an online t-shirt company and later expanded to brick-and-mortar stores. The company focuses on creating high-quality, comfortable clothing for men and women. They have a balanced distribution model, with 60% of sales coming from retail stores, 40% from direct-to-consumer online sales, and a small percentage from wholesale.

MarineLayer has been able to maintain profitability and grow steadily by taking a measured approach to expansion and focusing on building a strong brand. They have plans to continue growing all three distribution channels and are considering international expansion in the future.

Marine Layer is a brand that focuses on creating comfortable and casual clothing for both men and women. The stores are designed to feel like a room in your home, with a familiar and intimate atmosphere.

The company has a program called Respun, which is an upcycling initiative that collects old t-shirts and finds new uses for them. They offer customers a recycling bag and a credit towards future purchases.

In terms of marketing, Marine Layer uses paid social media advertising on platforms like Instagram and TikTok, as well as catalogs. They have also explored connected TV advertising but found it to be expensive and not as targeted as other channels.

In terms of technology, Marine Layer has invested in Endless Isle, which allows them to share inventory across channels and provide a seamless customer experience. They are also exploring the use of AI for customer analytics and predictive product merchandising.

As a leader, Mike is focused on protecting the company's culture and maintaining a fun and collaborative work environment. Marine Layer operates on a hybrid work model, with employees working three days in the office and two days remotely. Mike's favorite Marine Layer item is a t-shirt that he has worn for the births of both of his daughters.

Takeaways

• MarineLayer started as an online t-shirt company and later expanded to brick-and-mortar stores.
• They have a balanced distribution model, with 60% of sales from retail stores, 40% from online sales, and a small percentage from wholesale.
• The company focuses on creating high-quality, comfortable clothing for men and women.
• MarineLayer has been able to maintain profitability and grow steadily by taking a measured approach to expansion and focusing on building a strong brand.
• They have plans to continue growing all three distribution channels and are considering international expansion in the future. Marine Layer focuses on creating comfortable and casual clothing for both men and women.
• The stores are designed to feel like a room in your home, with a familiar and intimate atmosphere.
• Respun is Marine Layer's upcycling program that collects old t-shirts and finds new uses for them.
• Marine Layer uses paid social media advertising and catalogs for marketing.
• They have invested in technology like Endless Isle for seamless inventory management and are exploring the use of AI for customer analytics.
• Mike is focused on protecting the company's culture and maintaining a fun and collaborative work environment.
• Marine Layer operates on a hybrid work model, with employees working three days i...

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A THROWBACK to one of our earlier episodes of The Retail Pilot podcast with Andy Dunn, Founder of Bonobos and Author of Burn Rate.

In this compelling episode, Ken sits down with Andy Dunn, a renowned entrepreneur and co-founder of the game-changing men's clothing brand, Bonobos. However, the conversation goes beyond Andy's professional accomplishments, as Andy delves into a deeply personal and significant aspect of his life: his journey with mental health and bipolar disorder and how it lead to crafting his memoir, Burn Rate.

Listen as Andy bravely shares his experiences, offering a candid and enlightening perspective on the intersection of entrepreneurship and mental well-being. In a society that often glorifies the hustle and overlooks the challenges entrepreneurs face behind the scenes, Andy's story serves as a reminder that success doesn't always come without its struggles.

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Ken Pilot interviews Alexandra Wilkis Wilson for this episode of The Retail Pilot podcast.

Alexandra is an ENTREPRENEUR, INVESTOR & BOARD DIRECTOR.

She is best known as Co-Founder of ecommerce sensation, Gilt, which grew to $650M+ within 5 years of its launch and later sold to Hudson’s Bay Corporation. She was also Co-Founder of GLAMSQUAD, and Fitz, a closet organizing and styling company, which sold to Tradesy the peer-to-peer luxury recommerce company.

Today, Alexandra is Co-Founder and Managing Partner of growth equity fund, Clerisy, investing in consumer and techsumer companies. She has been an avid angel investor and advisor to over 80 consumer tech companies including Rent the Runway, The Mirror and Bubble. Alexandra is an active champion of female founders and the co-author of New York Times bestseller, “By Invitation Only: How We Built Gilt and Changed the Way Millions Shop”.

Summary

Alexandra discusses her entrepreneurial journey, starting with her time at Gilt and later founding Glamsquad. She shares the challenges and successes of both ventures and the lessons she learned along the way. She also talks about her involvement in other startups and her decision to join Clerisy, a growth equity fund. Alexandra discusses her career journey, the founding of Clerisy Partners, and their investment strategy. She highlights the importance of understanding consumer needs and solving problems in a unique way. Wilson emphasizes the hands-on approach of Clerisy Partners, where they actively partner with portfolio companies and provide support beyond capital. She also shares her leadership philosophy, the influence of mentor Mindy Grossman.

Takeaways

Alexandra Wilkis Wilson had an entrepreneurial spirit from a young age and pursued a career in investment banking before venturing into the world of retail and entrepreneurship.

Gilt, founded in 2007, grew rapidly and became a successful online luxury fashion retailer, attracting a large customer base with its timed sales and curated assortments.

Glam Squad, founded by Alexandra Wilkis Wilson, offered in-home beauty services and expanded to multiple markets, providing a hyper-local experience.

Alexandra Wilkis Wilson applied the lessons learned from Gilt to Glam Squad, including managing people, motivating teams, and giving and receiving feedback.

She later worked on other ventures, including Dressr, an app that used AI and machine learning to help users style outfits, and FITS, a service that organized consumers' closets and provided styling recommendations.

Alexandra Wilkis Wilson joined Clerisy, a growth equity fund, to continue her involvement in the tech and consumer-focused industry. Understanding consumer needs and solving problems in a unique way is key to successful investments.

Clerisy Partners takes a hands-on approach and actively partners with portfolio companies.

Delivering tough messages and providing constructive feedback is important for effective leadership.

Mindy Grossman has been a mentor and role model for Alexandra Wilkis Wilson.

Favorite streaming shows include El Tiempo Entre Costuras, Fauda, and Outlander.

Favorite vacation destinations are Key Biscayne and Brazil.

Taylor Swift is someone Alexandra Wilkis Wilson would love to meet.

Clerisy Partners aims to invest in the next unicorn among their portfolio companies.

Chapters

00:00

Introduction and Background

02:36

The Attraction to Gilt

05:34

The Early Vision and Success of Gilt

09:02

Gilt's Journey to Unicorn Status

12:07

Challenges and Exit of Gilt

15:29

Glam Squad: Inception and Expansion

18:44

Lessons Learned and Next Ventures

23:22

Dresser and FITS: Innovative Ventur...

This episode of The Retail Pilot - Tech Talk - features Ken Pilot's interview with Joe Yakuel, Co-Founder & CEO of brkfst.io, and three of his customers.

Soumya Sriraman is an experienced CEO and general manager with deep expertise in building streaming businesses across a variety of media companies. She most recently led Qurate Retail Group’s streaming commerce business, which includes the QVC+ and HSN+ and previous to that she led the Amazon channels business.

Stephen Simonis is a strategic advisor, investor and mentor to many leading CPG brands, and is currently Chief Revenue Officer at The Beard Club.

Cezanne Huq is A veteran marketer and product strategist and brings nearly 27 years of management, product and digital marketing experience leading in-house and agency teams domestically and globally for large-scale brands. Most recently, Cezanne led the digital teams for HelloFresh, Molekule, Lifelock, Intuit and Experian.

In this podcast interview, we learn about how brkfst.io helps brands create authentic content tailored to audience and platform. Receive hundreds of UGC video ads from over 5,000 content creators within 3 weeks.

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Ken Pilot interviews Tim Parr, CEO & Founder of Caddis, for this flight of The Retail Pilot podcast.

Tim Parr is the CEO and Founder of CADDIS, an eyewear brand that crushes age stereotypes. He believes in defying our society’s addiction to youth and fueling getting older and owning it. Tim is an entrepreneur who has also worked for some of the most respected brands. Patagonia, L.L. Bean, Filson. Tim has lectured at the Stanford School of Design, Modern Elder Academy, San Francisco Academy of Art, and the California College of Arts. In 2013 he formed a bluegrass band and hit the road touring the Western United States.

Summary

Tim Parr, the founder of CADDIS, shares his journey of starting a lifestyle brand focused on eyewear for people over the age of 40. He discusses the broken customer experience in the eyewear market and the opportunity to create a brand that is authentic and transparent. Tim emphasizes the importance of owning one's age and challenges the ageism prevalent in society. He also talks about the size of the 50+ demographic and the potential for growth in the market. Tim shares his approach to marketing, including the use of in-person experiences and tangible materials like catalogs. He highlights the significance of strong design, brand position, and storytelling in attracting customers. Tim also mentions his mentors and the challenges of maintaining innovation and creativity in the business.

Takeaways

• The eyewear market for people over the age of 40 has a broken customer experience, creating an opportunity for a brand like CADDIS to provide authentic and transparent products.
• Owning one's age is a powerful message that resonates with the 50+ demographic, which controls a significant portion of household income and spending power.
• In-person experiences and tangible materials like catalogs can be effective marketing tools for a lifestyle brand, allowing customers to connect with the brand on a deeper level.
• Strong design, brand position, and storytelling are essential for attracting customers and building a successful brand.
• Having mentors, both male and female, can provide valuable guidance and support in building a business.
• Maintaining innovation and creativity is a challenge for leaders, but it is crucial for the long-term success of a brand.

Chapters

00:00

Introduction and Tim's Journey

04:04

Identifying the 40+ Market for Eyewear

06:02

The Origin and Importance of the CADIS Name

07:15

Owning Your Age and Challenging Ageism

10:53

The Size and Potential of the 50+ Demographic

14:18

Elevating the CADIS Brand and Attracting Celebrities

19:24

Differentiating from Competitors like Warby Parker

21:47

The Importance of Authenticity and Creativity in Marketing

25:58

The Role of Tangible Marketing in Connecting with Customers

26:05

Tim's Role as CEO and Leadership Challenges

29:04

Margins and Product Manufacturing

32:11

Advice for Tim's Past Self and Lessons Learned

34:30

Mentors and the Importance of Innovation and Creativity

36:23

Rapid Fire Questions

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Ken Pilot interviews Janet Hayes, CEO of Crate & Barrel Holdings, for this episode of The Retail Pilot podcast.

Summary

Janet Hayes, CEO of Crate and Barrel Holdings, shares her journey into retail and her experience leading the company. Crate and Barrel Holdings is a multi-brand, multi-platform, multi-country company with four brands: Crate and Barrel, CB2, Crate and Kids, and Hudson Grace. Hayes discusses the strategy behind physical retail and the importance of providing exceptional shopping experiences. She emphasizes the need to inspire customers and make the buying process easier, especially in the home furnishings industry. Hayes also highlights the investment in store design, technology, and employee training to enhance the customer experience. Crate and Barrel has been addressing tech debt and selectively replacing technology to improve the customer experience. The company has a comprehensive strategy that includes technology, process, and culture changes. The leadership team consists of both tenured individuals and new hires, bringing a balance of experience and innovation. Crate and Barrel is focused on international growth, particularly in Europe and Canada. The company is preparing for the future of home decor by considering the impact of AI and maintaining a focus on quality and sustainability. Collaborations with influential partners have been successful in keeping the brands fresh. The marketing strategy is shifting towards digital and personalized content. Janet Hayes is motivated by the commitment to customers and employees, and she enjoys the energy and growth of the retail industry.

Takeaways

• Janet Hayes has over 30 years of experience in retail and has worked for companies like Macy's, Gap, Nike, and Williams Sonoma before joining Crate and Barrel Holdings as CEO.
• Crate and Barrel Holdings is a multi-brand company with four brands: Crate and Barrel, CB2, Crate and Kids, and Hudson Grace.
• The strategy behind physical retail for Crate and Barrel Holdings is to provide exceptional shopping experiences and inspire customers.
• Investments have been made in store design, technology, and employee training to enhance the customer experience.
• Crate and Barrel Holdings is focused on market share and has gained significant market share in the home furnishings industry.
• The company is investing in a new POS system that will enable associates to take transactions wherever the customer is, providing a seamless and convenient shopping experience. Crate and Barrel is addressing tech debt and selectively replacing technology to improve the customer experience.
• The company has a comprehensive strategy that includes technology, process, and culture changes.
• The leadership team consists of both tenured individuals and new hires, bringing a balance of experience and innovation.
• Crate and Barrel is focused on international growth, particularly in Europe and Canada.
• The company is preparing for the future of home decor by considering the impact of AI and maintaining a focus on quality and sustainability.
• Collaborations with influential partners have been successful in keeping the brands fresh.
• The marketing strategy is shifting towards digital and personalized content.
• Janet Hayes is motivated by the commitment to customers and employees, and she enjoys the energy and growth of the retail industry.

Chapters

00:00

Introduction and Janet Hayes' Journey into Retail

08:23

Taking on the Role of CEO at Crate and Barrel Holdings

11:24

The Strategy Behind Physical Retail at Crate and Barrel Holdings

18:57

Investing in Exceptional Shopping Experiences

23:15

Enhancing the Customer Experience with...

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Enjoy a replay of this beloved episode of The Retail Pilot podcast.

In this episode, Ken sits down with Ryan Babenzien, the brilliant mind behind Greats, a renowned footwear brand that has taken the industry by storm. But today, Ryan is here to share his latest venture: Jolie, a groundbreaking showerhead filter brand.

Join Ken as he delves into Ryan's entrepreneurial journey, from building a successful sneaker empire to tackling a new frontier in personal care.

Discover the inspiration behind Jolie and how Ryan's passion for sustainability and wellness led him to revolutionize the way we experience showers.

Key Takeaways from this podcast include:

· Career Path and Transition to Retail: Ryan initially studied economics and considered a career in finance but pivoted to entertainment, eventually transitioning to retail. His experience in entertainment, where he represented celebrity talent and advised brands on product placement, honed his marketing skills and influenced his later ventures in retail and brand building.

· Founding Greats and Its Success: Babenzian founded Greats, the first digitally native footwear brand, in 2014. His knowledge of footwear and the direct-to-consumer (D2C) model contributed to its rapid success. Greats was sold to Steve Madden in 2019. This venture taught him valuable lessons in brand building and the challenges of online businesses involving products with sizing.

· Jolie Skin Co's Innovative Approach: Inspired by the inefficiencies he observed with products that have sizing, Babenzian founded Jolie Skin Co, focusing on water purity for better skin, hair, and well-being. Jolie offers a subscription-based model with a showerhead that includes a filter to purify water, addressing contaminants that can harm skin and hair.

· Marketing and Growth Strategy: Jolie's growth strategy heavily relies on user-generated content (UGC) and organic marketing. Instead of spending heavily on paid advertising, they focused on influencer marketing at a micro level, leading to 5,000 pieces of UGC in their first year. This grassroots approach has been pivotal in creating a strong community and driving efficient, profitable growth.

· Efficient Business Model and Future Outlook: Jolie became profitable within six months, aided by its subscription model and low churn rate. With a small team of three full-time employees and several contract partners, they have efficiently scaled the business, projecting significant growth. Babenzian aims for a strategic exit within 36 months, building on the lessons from his first entrepreneurial venture and maintaining a clear focus on profitability and sustainable growth.

· Importance of Multi-Channel Distribution: Ryan emphasizes that relying solely on direct-to-consumer (D2C) sales is not sustainable due to the high costs of digital marketing. He advocates for a diverse retail strategy, which includes being in various retail channels and marketplaces like hair salons, Goop, Erewhon, Home Depot, and Target. This diversified approach helps in maintaining profitability and reaching a broader customer base.

· Direct-to-Consumer Still Dominates: Despite the emphasis on multi-channel distribution, over 90% of Jolie's business remains direct-to-consumer. This channel is profitable from the first purchase, highlighting its importance to the company. Additionally, 15% of their top line comes from Amazon, showcasing the significance of leveraging well-established digital marketplaces.

· Potential Retail Expansion: Ryan mentions the possibility of Jolie opening its own retail stores in the future, with innovative concepts like high-tech vending machines and small, productive retail spaces. This would enhance brand presence and provide customers with a unique shopping...