Can the "Blue Light" specialist even begin to compete with Amazon?
Kmart is actually the third largest mass merchant retailer in the US. It still has over 1,000 big box style stores, offering everything from groceries to electronics. But, its legacy was greatly tarnished when it filed for bankruptcy, only to be purchased by Sears, another retailer struggling to survive. While the press is full of headlines on Amazon, Walmart and Target, Kmart has literally faded from the US retail scene. That was until one single video went viral. Could "Ship My Pants" be the "Gangnam video of retail? Does it signal Kmart's comeback?
You can see the future of retailing today … at Walgreens, not Walmart
When you specialize as a consultant, it is a mixed blessing. On the positive side, you gain deep knowledge about an industry. After working in the field of technology and retailing for 30 years, I've accumulated a wealth of experience and first-hand knowledge of the challenges and success factors for retailing technology products. The danger of specialized focus is that you can completely miss trends in other areas. Frankly, I was shocked when I started poking to find just how far "drug store" retail chains have come. The most innovative, consumer centric retailer in North America starts with a "W" … but it is Walgreens, not Walmart.
Online retailers are turning to "chat" to engage you & close sales
In our last blog "The Power of How," we discussed a major difference between ecommerce and retailer stores. Online retail is very effective and efficient IF you know WHAT you want and need. A tremendous advantage of retail stores is the Associate, who both can ask "How" they can help and showcase ways how they can create a personal solution for you. What if online websites could provide personal assistance if you get "stuck", or just need more information to make a decision. There are online retailers that are doing just that by making a "digital Associate" available to you through a "chat" dialog box. It sounds great to have someone accessible at your fingertips! Does it work? What are the risks?
How one three letter word can create a personal buying experience
Much has been written and continues to be written about the battle between online ecommerce and retail stores. If it is only about lowest price, game over. Online wins IF you, the consumer, already know what you want. Online retailers are really efficient at helping you find the "what" at best price. The real potential of bricks and mortar stores is being able to address "how" to help you buy a better solution. "How can I help you" is the foundation for stores to offer personalized service required for the consumer centric world of today.
Dealing with the reality of consumer centricity requires a new mentality
A hundred years ago, retail was all about individualized service. The small, local corner shops only survived based upon the personal relationships they built. In the Era of "big box" retailing, success was redefined in terms of "scaling" the size of stores to deliver goods more cost effectively. The retailer's focus shifted to growing sales and taking market share. In a new era where the consumer is queen, things have come full circle back to relationships with consumers. Sustainable profitability is now a byproduct of pleasing people.
Showrooming is not a fait accompli … or the death of bricks and mortar
The term "showrooming" is the new buzzword in the dictionary of retail. It refers to the act of consumers literally shopping on their smartphones while in the aisle of a retailer. Consumers using mobile devices to shop in aisle has been noted as particularly impacting consumer electronics retailers like Best Buy. In fact, it has been portrayed that bricks and mortar retailers have become "helpless has beens". But, Best Buy and others are fighting back. There are 5 ways that retailers can beat showrooming by changing the consumer experience.
When you are in charge … it's all about personalization for "me"
It's the "Age of the Consumer". That's not new news. The lead articles on retail are chocked full stories about how consumers are now empowered through their mobile devices and online shopping. Consumers have indeed changed their behaviors, and more importantly their expectations. With the ability to shop any time anywhere, consumers have come to expect new levels of personalized service. This age of retail has truly become all about what you can do for me. What does this new level of personalization mean for retailers?
Amazon is a classic case study of how to excel at both simultaneously
The term "consumer-centric" has been bandied about in retail a lot recently. What does it really mean to be a consumer centric retailer? Obviously, it means to be focused on a consumer's point of view and their interests. Yet, retail has historically focused on merchandising and selling products when consumers come to the store or website. To survive, retailers must profitably sell products. But today, omni-channel is the new retail normal. It’s not a question of either or. To be successful long term retailers must essentially become schizophrenic and master the art and science of both consumer and product centricity.
Are traditional retail stores dead … or being invented in the lab?
You only need to peruse the headlines to see the stats on the phenomenal growth of online retailers, while retail stores are flat lined or declining. Indeed, some are predicting the traditional retail store will be dead in 20 years as consumers go ecommerce.
To paraphrase Mark Twain: "predictions of death of the retail store might be premature". Some of the largest and well known retail brands have purchased or created innovation labs. What are retailers cooking up in those labs that will get us, as consumers, back in store?
Maybe the newest member of the C Suite needs to be a Theater Director
One only needs to peruse the retail headlines to see the wide ranging discussion on the importance of customer experience in retail. In IMS Retail University we make the case very bluntly: "Differentiate or Die". If it only comes down to selling at lowest price, game over. Online and the largest retailers win the price battle, and Amazon wows consumers with both service and price. So, how do you create and sustain experience consumers will value? Retailers would do well to borrow from the playbook of Disney who understands a high quality experience is all about "theater" … and requires a blend of Stage + Actors + Script.
