Retailing is in desperate need of new metrics – "Cost to sell through"
By Chris H. Petersen
Omnichannel is all the rage and a still a key topic at most retail conferences. You have seen the phrase used many times in our posts: "Omnichannel is the New Normal". There is little question that omnichannel has become the new way customers shop and purchase across time and place. While omnichannel is normal for consumers, retailers are still scrambling to meet the rising expectations of seamless shopping online, in store, and hybrids of "click and collect". The dirty little secret about omnichannel that is not getting nearly enough attention – omnichannel can cost a lot more than simply running stores. Retailing has entered the age of desperately needing new metrics reflecting the "net cost to sell through and deliver".
Why this is important: On the surface, omnichannel sounds like a panacea to bolster sales. But, some channels are far more costly than stores. CFOs face new challenges of balancing sales versus the increasing cost burden of omnichannel.
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