The Internet for Retailers: "The Arab Spring of the Commercial World"
There's a major sea change affecting retailing right now, whether we're ready for it or not.
Sea changes have hit retailing in the past, of course.
All those things that specialty retailers prided themselves on delivering in-store, in-person, are now available on-demand, 24/7 to the shopper via their smartphones.
No matter which consumer segment you target, they are increasingly web-reliant. They depend on the web to give them product information, shopping recommendations, price comparisons, store reviews, and more.
For hints of the future, watch the Millennial Generation. Yes, the "Digital Natives". The ones we know only from the tops of their heads, as they are busily texting.
That group now is larger and more influential than the storied Baby Boom generation that drove so many adjustments during the last 50 years. Watch every shopping decision they make: how, where, when and what they shop.
But don't stop there. All other consumer segments are being affected by the sea change as well. Grandmas buying off tablets? Baby Boomers checking prices from INSIDE a store on their smart phone?!
In fact, the fastest growing group of Facebook users is now the over-50 age group. So much so, that the teenagers are deciding to move away from Facebook. Where will they land?
So, which will it be for you?
There are three kinds of retailers:
Sea changes have hit retailing in the past, of course.
- Department stores once ruled retailing. Ah, but they didn't die. Instead, they went horizontal. They became known as Wal-Mart, Costco, Target, etc.
- Then "big box" stores, like Circuit City, Borders, Toys R Us, etcetera, stole the thunder from malls.
- In fact, there was a time when malls essentially had no vacancies. Now, they are being "re-purposed". Retirement homes, anyone? Charter schools?
All those things that specialty retailers prided themselves on delivering in-store, in-person, are now available on-demand, 24/7 to the shopper via their smartphones.
No matter which consumer segment you target, they are increasingly web-reliant. They depend on the web to give them product information, shopping recommendations, price comparisons, store reviews, and more.
For hints of the future, watch the Millennial Generation. Yes, the "Digital Natives". The ones we know only from the tops of their heads, as they are busily texting.
That group now is larger and more influential than the storied Baby Boom generation that drove so many adjustments during the last 50 years. Watch every shopping decision they make: how, where, when and what they shop.
But don't stop there. All other consumer segments are being affected by the sea change as well. Grandmas buying off tablets? Baby Boomers checking prices from INSIDE a store on their smart phone?!
In fact, the fastest growing group of Facebook users is now the over-50 age group. So much so, that the teenagers are deciding to move away from Facebook. Where will they land?
So, which will it be for you?
There are three kinds of retailers:
- Those who make things happen.
- Those who watch things happen.
- And those who say, "Uhh, what happened?!?"
The 5 (only!) essential financial levers of a retail business
Now Available in The Retail Owners Institute® eLearning Portal
The Retail STRATA:G® Kit
(That's "strategy". Every retailer needs one!)
Fact: Every retail business has only 5 essential financial levers. Not 50. Not 500. Just five. Manage these, and you can maximize your future.
Fact: These 5 financial levers are linked. They're integrated. Inter-connected. Changes in one impact all the others.
Fact: Connecting these 5 financial levers has now been "automated". The ROI has developed breakthrough "in the cloud" calculators that "connect the dots". Now, any retailer, anywhere, can produce fully-integrated financial plans for profits, inventory, and cash flow!
The Retail STRATA:G Kit reveals these 5 essential levers, explains how they work and why they matter, and then provides the "calculators" that automate the process for any retailer, anywhere.
Click here for more info.
See how retailers can learn - then use - the basic financial levers of a retail business.
What People Say About the Retail STRATA:G Kit
The Retail STRATA:G® Kit
(That's "strategy". Every retailer needs one!)
Fact: Every retail business has only 5 essential financial levers. Not 50. Not 500. Just five. Manage these, and you can maximize your future.
Fact: These 5 financial levers are linked. They're integrated. Inter-connected. Changes in one impact all the others.
Fact: Connecting these 5 financial levers has now been "automated". The ROI has developed breakthrough "in the cloud" calculators that "connect the dots". Now, any retailer, anywhere, can produce fully-integrated financial plans for profits, inventory, and cash flow!
The Retail STRATA:G Kit reveals these 5 essential levers, explains how they work and why they matter, and then provides the "calculators" that automate the process for any retailer, anywhere.
Click here for more info.
See how retailers can learn - then use - the basic financial levers of a retail business.
What People Say About the Retail STRATA:G Kit
"Our retailers need help with inventory control and cash flow, and how to make better business decisions. Your courses are right on point."
--Manager, Field Business Consultants, National Franchiser
"I want all 28 of our S.B.D.C. Certified Business Advisors to use this whenever they are working with a retailer."
--State Program Director, Small Business Development Centers
McDonald's Remodels - Again! (And for WHICH Customer?)
You probably saw the news. McDonald's is launching a $1 Billion "makeover" of their stores.
The remodeled restaurants will replace bright reds and yellows with subtle colors. They can feature flat-screen TVs, lounge chairs and electric fireplaces. They also are adding free Wi-Fi in most of its U.S. restaurants. Thanks to "seating zones", customers who want to linger will be separated from those who want a quick bite.
What does this mean - or matter - to independent retailers? Simply this: heightened expectations!
When was the last time your store was remodeled? Or, put another way, how many fast-food franchises in your town have been remodeled since your last update? If the price points on your merchandise are somewhere north of a Big Mac, but your store's look places you squarely in the Bush Administration, it may be time to reconsider how you are re-investing in your business. The customers expect no less!
Will McDonald's Remodel Chase Away Families?
Some observers have assumed that this makeover is meant to appeal to laptop-toting workers, and worried that it would drive away the families-with-young-children who depend on McDonald's as a reliable place for food their kids will eat. After all, as her kids run around, how many scowls from someone hunched over a laptop can any mom endure?
Our view is that this remodel is focused on a different market segment: teenagers! Think how Starbuck's has become a cool place for teens to hang out. What if McDonald's could attract them back? Offer a more "grown up" atmosphere, flat screen TVs, Wi-Fi for their texting - and those fries - might McDonald's become a cool place for teens?
The "Theater of Retail"
The "look" of your store says a great deal. It IS an arms race, no question. Once you accept that you need to remodel with some frequency, be certain to keep focused on that customer you most covet. Then make your store a place where that shopper wants to spend her time (and her money!)
The remodeled restaurants will replace bright reds and yellows with subtle colors. They can feature flat-screen TVs, lounge chairs and electric fireplaces. They also are adding free Wi-Fi in most of its U.S. restaurants. Thanks to "seating zones", customers who want to linger will be separated from those who want a quick bite.
What does this mean - or matter - to independent retailers? Simply this: heightened expectations!
When was the last time your store was remodeled? Or, put another way, how many fast-food franchises in your town have been remodeled since your last update? If the price points on your merchandise are somewhere north of a Big Mac, but your store's look places you squarely in the Bush Administration, it may be time to reconsider how you are re-investing in your business. The customers expect no less!
Will McDonald's Remodel Chase Away Families?
Some observers have assumed that this makeover is meant to appeal to laptop-toting workers, and worried that it would drive away the families-with-young-children who depend on McDonald's as a reliable place for food their kids will eat. After all, as her kids run around, how many scowls from someone hunched over a laptop can any mom endure?
Our view is that this remodel is focused on a different market segment: teenagers! Think how Starbuck's has become a cool place for teens to hang out. What if McDonald's could attract them back? Offer a more "grown up" atmosphere, flat screen TVs, Wi-Fi for their texting - and those fries - might McDonald's become a cool place for teens?
The "Theater of Retail"
The "look" of your store says a great deal. It IS an arms race, no question. Once you accept that you need to remodel with some frequency, be certain to keep focused on that customer you most covet. Then make your store a place where that shopper wants to spend her time (and her money!)
Retailers' "Digital Divide"
According to a research study, mobile shopping from a smart phone "is more frustrating than sitting in traffic or visiting the D.M.V." Get this: Some 85% of the shoppers interviewed expect the shopping experience on their phones to be as good or better than on a computer!
Wow! That's quite a high standard!
The pressure for retailers is relentless: build e-commerce websites optimized for the small screen. And while you're at it, create shopping apps. It is an arms race that just keeps escalating.
Happily, a fast pace and rapid changes are not new to retailers. (In fact, that's what attracted many of you to retailing in the first place!)
As you take on these challenges of integrating new technology into your operation, remember to take advantage of "in the cloud" services. These let you experiment without a major investment in hardware/software.
Just remember: "Don't let the perfect be the enemy of the good." It's better to be in the game than on the sidelines.
Wow! That's quite a high standard!
The pressure for retailers is relentless: build e-commerce websites optimized for the small screen. And while you're at it, create shopping apps. It is an arms race that just keeps escalating.
Happily, a fast pace and rapid changes are not new to retailers. (In fact, that's what attracted many of you to retailing in the first place!)
As you take on these challenges of integrating new technology into your operation, remember to take advantage of "in the cloud" services. These let you experiment without a major investment in hardware/software.
Just remember: "Don't let the perfect be the enemy of the good." It's better to be in the game than on the sidelines.
Subscribe to:
Posts (Atom)
