Where’s the money in Retail…??

As ecommerce is becoming widespread (…we’re in the post Amazon-era, aren’t we…?), traditional Retailers are losing their exclusive role of distribution-points for goods.

That’s why the old, traditional store business model is not sustainable anymore: retail revenues and profits move elsewhere, while costs and investments don’t.

By the way, where do retail revenues and profits move to, exactly? Continue reading

It’s an OMNICHANNEL world (…even if you don’t like the word OMNICHANNEL!)

Today Retailers have fundamentally two sales channels: offline (traditional stores) and online: around 90%* of sales are completed in-store, what’s left takes place online, using ecommerce sites or mobile applications.

*: in the US (…and abroad?…trust me, it doesn’t change so much…)

  • Comment-#1: brick-and-mortar stores are essential since it’s in-store that the vast majority of purchases occur… …so, citing Mark Twain, reports of their (…premature…) death have been greatly exaggerated
  • Comment-#2: ecommerce is very important (…seriously, we aren’t underestimating it, are we?!) since it’s growing like hell, going from 0% just a few years ago (in the pre-Amazon era), reaching approx 10% today (…ten-percent!!!), and still accelerating

Stores and ecommerce have been considered absolutely independent by Retailers: they have different processes, different people, different tools; to make matters worse, essentially they compete. Continue reading

Retailer vs. Manufacturer: (four) rules of engagement

…it’s better to know the rules in advance, isn’t it?

First rule

Shelf space is priceless

Retail shelf space is a scarce resource and as such, it’s absolutely invaluable; unlike in the virtual world of online retail, space is VERY limited in brick and mortar stores, and each square foot is expected to make a certain profit (I’ll tell you a secret: Retailers don’t make money selling products to consumers, they make money selling “space” to ManufacturersRetailers are LANDLORDS). Continue reading

Five potential mistakes about our point-rewards loyalty programs

 

Potential mistake #1

Our point-rewards loyalty program resembles those of our competitors

From the point of view of our Shoppers, all point-rewards loyalty programs sadly feel all alike – the Shopper knows that she will (hopefully) be rewarded later for what she buys now… (…and the more she buys, the more she will be rewarded…).

“Just for you” special gifts? Personalized promos? …just white-noise… Continue reading

“Traditional” vs. “Modern” shopping

“Traditional” vs. “Modern” shopping:

"Traditional" and "Modern" shopping

Andy Cavallini