In the future (…near or far? …time will tell…) we will have two radically different types of shopping:
- shopping for everyday items
- shopping for specific, glamorous, out-of-the-ordinary items
Let me get into the details…
Everyday-item-shopping Continue reading
Successfully creating and implementing retail technology solutions is VERY, VERY hard(*)!
[(*): it is a pain both for Retail Tech Vendors/Solution Providers and for Retailers’ ICT teams]
Just to avoid confusion: retail technology solutions are any mix of hardware, software, expertise, etc. packaged together, whose short description liberally includes terms like Web, Digital, Mobile, Enterprise, Windows/Linux, SQL, etc.]
Let’s discuss some of the most significant challenges. Continue reading
As Retailers perfectly know, store floor-space is a scarce resource and as such, it’s absolutely invaluable.
Unlike in the virtual world of online retail where space is not a factor, in brick-and-mortar stores each square foot is expected to make a certain amount of dollars – for example, according to data provided by eMarketer, a couple of years ago Apple Stores generated an amazing $4,798.82 per sq.foot, luxury jeweler Tiffany $3,132.20, while department-stores such as Macy’s made around $160/$200.
Is it true that offering Shoppers a branded Mobile App lets traditional Retailers easily enter the digital world, be omnichannel, look good, etc.?
Cancel “easily”, please…
…and let’s talk about some potential difficulties.
Potential difficulty #1
First thing first: let’s not count on 100% Shoppers installing our Mobile App on their smartphones – we first need to overcome an obstacle called proliferation of branded Mobile Apps, that is, Shoppers have to (utopically) install one branded App for each Retailer they visit (…store/shopping mall/chain of petrol stations/supermarket/…) – dozens and dozens of Apps, actually.
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