Between inaccurate statements about a NASA telescope and the (presumably) very annoyed wife of a New York Times tech reporter, the chatbot search hype has gotten off to a strange start.

The conversation and concerns around the rapid development and mainstreamization of large language models (like those that power ChatGPT, Google’s Bard, and the new Bing) aren’t new.

But the possibility that consumers may find products in a chat-style interface brings a new challenge for retail brands that have built web presences optimized for search as we know it, and begs the question: What does the future of product discovery look like?

And while there are clearly some kinks to work out when it comes to the accuracy and readiness of conversational AI tools, retail industry and AI experts say the time to start thinking about the future of search is now.

Conversational starters

Now, the retail industry isn’t new to AI—far from it.

Conversational search itself is still new, but could soon be a viable option for consumers, said Sameer Maskey, an AI professor at Columbia University and the founder and CEO of Fusemachines.

“The releases [of conversational search engines] will get wider and wider, and soon a lot of people—especially if they start to be able to confidently say the information they’re getting back is quite accurate—they’ll start relying on it more,” Maskey told Retail Brew.

With that in mind, the retail industry is preparing for a shift.

One seemingly obvious function impacted by conversational AI is search engine optimization. But Jason Hartley, head of search, social, and shopping at digital marketing agency PMG, said optimizing for chat search is more about cranking up content quality, and less about throwing years of strategy out the window.

Keep reading here.—MA

Between inflated costs and a very up-and-down funding environment, the CPG industry has changed a lot in recent years, and to navigate this, companies are shifting their approach to hiring.

CPG recruitment company ForceBrands works with some brands you may have heard of, like General Mills, Coca-Cola, and Glossier. It’s been tracking the shifts in what roles brands are looking for, and in recent surveys of 500+ CPG companies making between $10 million and $150 million in revenue, it found some notable stats about the types of spots they’re filling the most—and the $$ they’re paying.

Role with it: The reports found that companies across categories were prioritizing finance and operations roles, with CFO and COO positions the top priorities for food & beverage and beauty companies between January 2022 and February 2023.

• ForceBrands saw a 42% increase in operations roles year over year, according to Sean Conner, ForceBrand’s co-founder and chief progress officer.

CPG brands used to bring in finance heads in the later stages of growth to prep for an acquisition, Conner explained, but starting last year, brands began to seek that “strategic finance support” earlier on, a trend he anticipated will continue this year.

“[Company leaders] have expanded their focus to ensure they have tight controls around cash flow management, a clear path to profitability, and opportunities for margin expansion in this inflationary market,” Conner said. “To achieve this, brands are investing in experienced CFO and COO talent.”

• According to ForceBrands, food and beverage COOs made between $245K and $350K, while CFOs got between $275K and $350K. Beauty COOs scored anywhere from $245K to $400K, with CFOs bringing in $275K to $400K.

Keep reading here.—EC

“Kroger, the largest supermarket operator in the country, spent $2.5 million, per iSpot estimates, on an ad [during this year’s AFC Championship Game] that emphasized the brand’s own private-label products, about a fifth of what Kroger spent nationally in 2022,” writes Marketing Brew’s Ryan Barwick:

Private labels are having a moment. Many shoppers have turned to them in response to inflation, according to a recent IRI report. Retailers have responded, expanding their private-label offerings and looking to “lure cost-conscious shoppers,” according to the Wall Street Journal.

Kroger made almost $28 billion in sales from its private-label brands alone in 2021, according to the retailer, which brought in nearly $140 billion in sales that year. Suffice to say, the brand probably could have bought a Super Bowl commercial, had it been interested.

Read the whole story here on Marketing Brew.

Today’s top retail reads.

Lunch time: As part of a major initiative, Kraft Heinz will be making its famed ready-to-eat Lunchables available to school lunch programs this fall, but the company had to make some changes in order to comply with federal guidelines. (CNN)

New kid on the block: At the end of last year, Target announced it would unveil a new concept store, which included more space for retail. Footage of the new store is now available, and it seems like Target delivered on its promises. (Apartment Therapy)

Left in the dark: The collapse of Silicon Valley Bank had far-reaching consequences, including in the retail industry, where some companies are still unclear if they will be able to access their capital. (Retail Dive)

Docs for days: The collection of documentaries on Curiosity Stream has every other streaming service beat. With countless topics and new shows added every week, there’s entertainment for every interest. Get 25% off your subscription.* 

^{*This is sponsored advertising content.}

What happened in the world of retail this week in…1893 and beyond? Retail Brew takes you way, way, way back.

• On March 12, 1893, Eskimo Pie inventor Christian Kent Nelson was born in Denmark.
• On March 12, 1929, Asa Griggs Candler, who bought the formula for Coca-Cola for ~$2,300 in 1887, died. Candler later sold the company for $25 million.
• On March 15, 1985, the first internet domain was registered. Today, the global e-commerce market is worth trillions of dollars.
• On March 18, 1931, Schick’s electric razor went on sale for the first time.

Catch up on the Retail Brew stories you may have missed.

• This Virginia development is prime for experiential retailers
• What it takes to build metaverse fashion week
• When will CPG prices come down?