The Evolving Landscape of Retail: Insights from Carl Boutet

In the second episode of "The Retail Power Talks," where we bring you insights and discussions with leading experts in the dynamic world of retail. We had the pleasure of speaking with Carl Boutet from Montreal, a renowned retail innovation expert and executive advisor. Carl's extensive career journey and his dedication to supporting retailers through the ever-changing industry landscape make him a valuable voice in the field.

In this engaging Q&A, Carl shares his experiences, from launching wireless retail across Canada with Costco to founding studiorx.world. He delves into the importance of differentiation, the impact of emerging technologies like Agentic AI and retail media, and the lessons learned from the COVID-19 pandemic. Carl also discusses his academic contributions and offers valuable advice for businesses looking to thrive in the evolving retail landscape.

Q: You have an impressive career journey, Carl. Could you share what led you to specialize in business strategy and become an executive advisor? 

A:  I was a retailer for the better part of a decade, launching wireless retail across Canada with Costco. It was my own business within Costco, and we were the first national retail chain in that industry, both within and outside Costco. Being part of rapidly emerging technology and playing within a rapidly emerging global retailer exposed me to a lot of interesting dynamics. From there, I decided to focus my energy on supporting other retailers to remain competitive in this challenging landscape. Since then, in various forms, I have supported both small and large retailers globally, especially around their use of technology, data, and design to stay relevant to the consumer.

 Q: Speaking of your current endeavors, as the founder of studiorx.world, you advise a variety of executives and solution providers. Can you tell us more about the kinds of strategies you help them develop?

A: Absolutely. I spent a significant part of the decade following my time at Costco working closely with retailers, supporting their initiatives. As technology continued to emerge and play a bigger role in the space, I began working with technology companies to help them better understand retailers' pain points. My focus is on areas where technology can significantly improve their outcomes, such as visibility, reach, conversion, average basket size, and margin.

Additionally, I ensure that retail technology providers speak the same language and that their solutions meet the needs of retailers. Our core value proposition is differentiation. We help both retailers and technology providers understand how they differentiate in the market and earn the business of their customers uniquely. I developed a model called the Retail Relevance Index to help measure and achieve this differentiation. I teach this model in several universities worldwide, including McGill and the Asian Institute of Technology, where I recently returned from in Vietnam.

In essence, we leverage the intersection of technology, data, and design to differentiate, and that's where I strive to add the greatest value.

Q: As a faculty lecturer at McGill and the Asian Institute of Technology, what are some emerging technologies and business models you find most exciting?

A: The one I've been sharing a lot with the students, and they know because I repeat it often, is retail media. It is emerging, and I don't think we fully appreciate the importance it's going to have in the retail landscape. Right now, it is mainly in the arena of the very large players.

Amazon was the one that really brought it to the forefront. Then we have the Walmarts, Tescos, Carrefours, and others that are quickly trying to follow suit because it makes a big impact on the business model. It creates a lot of high-margin dollars for those retailers to leverage to remain competitive. I encourage my students to really better understand the implications that retail media will have, even for smaller retailers who will increasingly be part of these networks.

On the marketing and technology side, anything related to automation and Agentic AI is significant. I think Agentic AI will be the big word for 2025. We will hear it more and more, and it will eventually encompass all things general in AI. The AI revolution is in full swing, and I often compare it to how businesses must have felt 100 years ago as electricity was making its way through and changing how they operated. However, this is now at a cognitive level, not just an operational one.

Q: Teaching the next generation of leaders must be incredibly rewarding. Speaking of your book, The Great Acceleration, can you share the key insights from your book and how the COVID-19 pandemic has reshaped business strategies?

A: In 2020, I was just coming back from Asia. I was in Shanghai on January 16th, getting back on a plane to return to Montreal after speaking at a conference. I was at the forefront of the pandemic and heard the word "acceleration" more and more from business leaders.

In April 2020, I coined the term "The Great Acceleration," referring to how we would look back on the pandemic's impact on business. It wasn't about transformation; it was about catching up on our digital transformation agendas. Business leaders worldwide began pulling forward projects they had postponed, recognizing that the path to purchase was becoming rapidly digitized in constrained environments, especially with lockdowns.

My team and I measured the pandemic's impact globally, which led to my second book, Blind Spot. This book explores the vulnerabilities left from that period. AI is a significant part of the conversation in Blind Spot and its impact on business continues to be profound.

Blind Spot is launching in 2025, and I'm excited to move on to that topic. I feel the word "acceleration" and the "race to resilience," the subtitle of my first book, have now given way to concerns about blind spots. Business leaders are most concerned about these vulnerabilities as we move forward.

Q: Talking about accelerating trends, what do you see shaping the future of retail, particularly in the context of digital transformation?

A: Yeah. We are being pulled in different directions. One trend is clearly around personalization, which is the main agenda of AI right now. The goal is to personalize at scale, especially for larger institutions that may be less close to their customers and for smaller ones. They want to create bespoke experiences where each customer feels special and attended to.

Let's see how this evolves between the front end, the customer experience, and the back end, the logistics, and supply chain side. I think data science is going to impact all these elements, especially automation within them.

Then there's the increasing pressure around convenience. The term "frictionless" has been around for a long time, but now we see technologies and their costs catching up, allowing for very seamless experiences supported by data science. Business leaders are not looking for new challenges—they already have plenty. But the market is moving quickly, and consumers are also moving quickly in their spending habits. There's a push towards convenience, price, the whole experiential side, and even the purpose and values of companies.

These are all things I track in the Relevance Index and promote as ways to differentiate in the market. These are the key takeaways right now.

Q: So my last question for you would be, what advice would you give to businesses looking to thrive in an ever-evolving retail landscape?

A: I think we have been talking about the need to really differentiate. This is crucial both personally and professionally. To be truly relevant means to be different. Retail faces the challenge of being pulled toward common practices. With technology, we can replicate convenience and other essential aspects. However, businesses must remain relevant and different, ensuring their target market understands their unique value proposition.

What makes them special, different, and desirable in the consumer's eyes? Accessibility and price are important, but what truly sets a business apart is its unique value and investment in people. Retailers must invest energy and capital to stand out and ensure customers choose them for the right reasons. These reasons are the ones that retail leaders should be choosing themselves and backing with investments.

And that wraps up this dynamic episode of "The Retail Power Talks"! Our extensive conversation with Carl Boutet has provided a treasure trove of valuable insights and practical advice for navigating the complex world of retail.

We hope you found Carl Boutet's insights as enlightening and actionable as we did. Make sure to join us for future episodes, where we will bring you more engaging discussions with leading experts. If you have any questions or topics you would like us to cover, feel free to reach out—we're all ears. Until next time, keep pushing the boundaries of what’s possible in retail!

To watch the interview, click https://www.youtube.com/watch?v=URm9llzo8yA