Rose Hamilton, Founder of Compass Rose Ventures, speaks with Andrew Laudato, COO of The Vitamin Shoppe. Together, they discuss how technology, customer focus, and sustainability are shaping the future of retail.

About the Episode

Andrew shares his journey from technologist to retail leader. He explains how The Vitamin Shoppe uses innovation and customer-centric strategies to meet changing consumer demands.

Key Topics

• Customer Focus: Serving customers through multi-channel platforms, personalization, and seamless shopping experiences.
• Technology in Retail: Partnerships with Instacart and DoorDash improve accessibility and convenience.
• Employee Education: Training employees to provide consistent, informed customer interactions.
• Data and Privacy: Using customer data responsibly to deliver personalized experiences while maintaining privacy.
• Sustainability: Adopting eco-friendly practices, like reusing packaging to reduce waste.
• Composable Commerce: Building flexible retail systems to adapt to changing needs.

Episode Highlights

• Andrew’s career from technology to retail leadership.
• How The Vitamin Shoppe integrates online, in-store, and delivery platforms.
• The role of employee training in building trust and loyalty.
• Strategies for balancing personalization and customer privacy.
• Lessons from COVID-19, including the importance of adaptability and omnichannel speed.

Call to Action

Andrew encourages listeners to focus on customer needs, use technology as a tool, and prioritize sustainability in business practices.

Learn More

Visit The Vitamin Shoppe to discover their products and innovative approaches.

Subscribe

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Today’s Sponsors

• Tidio: AI-powered customer success tools for Shopify brands. Start free and save 20% with an upgrade.
• SARAL: Influencer operating system for brands. Claim your exclusive onboarding and consulting offer.

Podcast Transcription: Rose Hamilton Interviews Andrew Laudato, COO of The Vitamin Shoppe

Introduction

Rose Hamilton: There’s one thing that really stood out to me. People often ask, “Oh, what’s your AI strategy?” Or before, it was, “What’s your mobile strategy?” “What’s your cloud strategy?” At The Vitamin Shoppe, we don’t have those. We have a “sell more vitamins to our customers and meet their needs” strategy. Tools like cloud, mobile, personalization, and AI are just ways to better serve our customers.

We aim to solve business problems with technology, not tech problems with business. Start with the customer: understand them, listen to them, and technology will follow.
Welcome, listeners, to The Story of a Brand. I am Rose Hamilton, your host for today. I am thrilled to have this fireside chat with Andrew (Andy) Laudato, COO of The Vitamin Shoppe. As someone who once served as Chief Digital Officer for The Vitamin Shoppe, it’s a privilege to reconnect and discuss the company’s future as we approach 2024. Without further ado, let me introduce Andy.

Andrew Laudato: Thank you, Rose. I’m thrilled to be here. Retail, technology, and omnichannel are topics I’m passionate about, and I’m excited to share.

Andy’s Background

Rose Hamilton: Andy, you’ve had an incredible career, spanning pre-COVID, COVID, and post-COVID retail transformations. Tell us about your journey—what moments shaped your path into retail and tech?

Andrew Laudato: Let’s go back to the 1990s. At The Limited, I had the opportunity to work on a startup that everyone now knows: Bath & Body Works. We created systems for the brand by replicating software from Express, another division. Working closely with leadership gave me a unique perspective—it wasn’t just about tech; it was about business strategy.

That experience flipped my mindset from being a technologist in retail to being a retailer who happens to specialize in technology. It was a pivotal moment.

Writing a Book

Rose Hamilton: You’ve written a book that bridges retail and technology. What inspired you?

Andrew Laudato: During COVID, I was confined to my Manhattan apartment and decided to write. The book shares lessons I learned from my mistakes and how others can avoid them. It’s timeless, focusing on innovation and strategic thinking.

Technology and Strategy

Rose Hamilton: Technology has evolved so much. How does The Vitamin Shoppe approach data, privacy, and roadmaps for the future?

Andrew Laudato: At The Vitamin Shoppe, our strategy is customer-first. Tools like cloud, AI, and personalization help us serve our customers better. We ask, “How can we understand and meet customer needs?” The technology follows that purpose.

Omnichannel Distribution

Rose Hamilton: You’re in many spaces: brick-and-mortar, buy-online-pickup-in-store, auto delivery, and marketplaces. How do you manage this vast network?

Andrew Laudato: We want customers to shop where, when, and how they prefer. Whether it’s visiting a store, subscribing online, or using Instacart, we meet them where they are. For example, we partner with gyms, local events, and marketplaces like Target Plus and Amazon to ensure convenience.

Educating Consumers

Rose Hamilton: How does The Vitamin Shoppe educate customers and support brand partnerships?

Andrew Laudato: Customers today are more informed. We train our health enthusiasts—our in-store employees—to educate customers. We also incubate startup brands, helping them grow nationwide with education and strategic placement.

Managing Data and Personalization

Rose Hamilton: Personalization is critical. How do you handle it with such a diverse customer base?

Andrew Laudato: It’s about treating each customer as unique. We analyze purchase history and trends to provide personalized experiences. However, we’re mindful of not overreacting to limited data—a customer might buy for a family member, for example. Clean, consolidated data is essential.

Privacy and Opt-In Data

Rose Hamilton: How do you manage customer data in today’s privacy-conscious world?

Andrew Laudato: It’s about opt-in. Customers share data when they see value, such as loyalty rewards or personalized offers. Ninety percent of our customers are part of our Healthy Awards loyalty program. For brand partners, we anonymize data to provide insights without compromising privacy.

Lessons from COVID

Rose Hamilton: What lessons did you learn during COVID?

Andrew Laudato: Adaptability. We reprioritized our roadmap, implementing curbside pickup and focusing on health and safety. We also realized the value of omnichannel speed—our buy-online-pickup-in-store orders are ready within minutes, faster than Amazon.

Culture at The Vitamin Shoppe

Rose Hamilton: How do you maintain a strong culture across such a large organization?

Andrew Laudato: Our mission is to improve lives. Many employees have personal connections to health and wellness, which drives their passion. We foster a culture of belonging, ensuring everyone feels valued—whether they’re in stores, distribution centers, or corporate offices.

Sustainability Initiatives

Rose Hamilton: How does sustainability fit into your business?

Andrew Laudato: We focus on initiatives that are both sustainable and cost-effective. For example, we reuse vendor boxes as packing material, reducing waste and saving money. Consumers are more value-conscious, so sustainability needs to be both practical and impactful.

Advice for Aspiring Professionals

Rose Hamilton: What advice would you give to someone starting their career?

Andrew Laudato: Don’t rush into a career path without understanding it. Intern, explore, and align your passions with your career. Retail is a great foundation—it teaches customer service, inventory management, and leadership. If you bring store experience to a corporate role, you’re already ahead.

Closing Thoughts

Rose Hamilton: Andy, thank you for sharing your insights. Your leadership and vision are inspiring. Any final words?

Andrew Laudato: Thank you, Rose. Retail is rewarding—it’s about serving people and making a difference. For anyone considering a career in retail, it’s a great place to start and grow.

Rose Hamilton: Thank you, Andy. It’s been an honor to have you on the show. I look forward to our next conversation!