Growing worldwide trend of online retailers shipping to local lockers
The growth of ecommerce is literally old news. Pure e-tailers and traditional retailers with online sites are increasingly winning the hearts and wallets of consumers purchasing good deals online. Beyond "best prices", there is the convenience of being able to shop in your pajamas 24/7/365, and have it delivered to your door. But, what if you are not home? What if you purchase food and you don't know when you'll get off work? The race is on to provide the convenience of buying online and picking up at your local locker.
What you don't see can be far more important than visual store displays
Last stop on my around the world tour of retail was Dubai in the United Arab Emirates. In a land of perpetual heat, it is easy to understand why consumers flock to air conditioned mega malls! The Mall of the Emirates has more than 500 stores plus a sky resort complete with chair lift. The visual merchandising in these stores is as compelling as anywhere in the world. But, the most intriguing store for consumer experience turned out to be one using technology to focus on consumer engagement and experience beyond expectations.
Brands are in a race to buy the retailer's floor to run stores within stores
On my recent stops in Asia Pacific and Africa, it became obvious that major manufacturing brands are investing mega millions to open their branded shops within retail stores. Not only are they paying for space and fixtures, in some retailers they are literally providing the staff. In consumer electronics with razor thin product margins, it becomes very tempting for the retailer to collect the cash and reduce labor costs by using a vendor's staff. Given these current trends, when does the retailer lose its identity and become just a real estate broker?
There is no question that Walmart will transform retailing via Massmart
It is one thing to read about international retailing, but quite another to experience it firsthand. I visited South Africa several times on safaris, but never to specifically focus on retailing. On my around the world tour delivering IMS Retail University workshops, I had an opportunity last week to visit a number of retailers in Johannesburg. While Walmart was only recently approved as the majority shareholder of Massmart, they are already making waves in retail. If you are a South African based retailer trying to compete, life is going to get very interesting very fast!
