10 Things Shaking Up the Retail Industry

By Dr. Marie Gould Harper
Program Director, Management at American Public University

Last week, I had the opportunity to spend time with retail industry executives and a diverse mix of business faculty from some top universities. The event was sponsored by the National Retail Foundation, which should be commended for hosting an event that brought scholars and practitioners together to discuss how to increase interest in the retail industry, especially among undergraduate students. It was a positive experience as I learned what is happening in the retail industry in 2015 and beyond.

What did I learn?

• There is more to retail careers than the store experience.
• Retail is utilizing technology and analytics to meet diverse customer needs.
• There is room for a variety of disciplines, not just retail majors.
• Executives are committed to being transparent about salary so that graduates know their income potential.
• Retail can be diverse, rewarding and exciting. It’s what you make of it!

All of the speakers were excellent and the sessions were engaging. I don’t think they expected academics to have so many questions, but we wanted to hear and learn about what they had to say. The topics held our interest!
Kudos to Stephen Sadove, former chairman and CEO of Saks, Inc, who set the tone and laid the foundation for an engaging event. He was the first speaker and shared his thoughts on industry disruptors, and how they have the potential to shape what occurs next in the industry. His top ten points were:

1. Omnichannel Retail
Today’s consumer wants the ability to purchase products anywhere at any time. Many thought the Web was going to kill the physical store experience. However, retail is finding the lines are blurred between the physical and digital. Omnichannel retail allows customers to “have it their way”. Research has shown that customers buy 3–4 times more from the Omnichannel experience versus one single channel.

I love it when I can go into a store and know that it is possible to purchase an item that may not be available at that particular store. The introduction of fulfillment centers can turn a person’s frown upside down. Retailers now have the ability to identify item availability and give the customer the option of picking it up or having it mailed to a residential address.

2. Mobile Communication
Research shows that approximately 75% of purchase decisions are made on mobile. Customers may not make the actual purchase on mobile, but they do utilize their phones to conduct research on what they should buy. Have you ever walked pass a store, seen an item and wondered if it was the best price and/or the quality was good? Today, consumers are researching while they’re standing in the store. Information is knowledge!

3. Big Data Analytics
Big Data is the new hot commodity, and the opportunities for employment in this field in the retail industry took my breath away. The retail industry has invested capital and resources into effectively using this tool to take consumer behavior and market research to a new level.

4. Vertical Integration
More retailers are selling items unique to their locations and can’t be purchased anywhere else (i.e. Macys and their celebrity brands).

5. Price Transparency
Customers have the ability to research prices online. Therefore, they know where they can purchase items for the best price in the market. The consumer is very educated and expects information on why the same item may be different prices at different locations. Why should they pay more?

6. CyberSecurity
Consumers are concerned with hacking and may curb their shopping habits. Retailers have the task of creating a safe shopping experience and minimizing the risk of hackers taking advantage of their customers.

7. Changing Demographics
Different age groups want different things and they use different sources to research potential purchasing decisions. Therefore, market research has to focus on a variety of factors at any given time. Retailers need to know who is buying specific products and what needs to be done to attract them to make the sale.

8. Cross Border Commerce
We can shop anywhere we want to get the product/service we desire!

9. Mobile Payments
For those who are open to purchasing on the phone, how can the shopping experience be made safe and secure?

10. Talent Requirements
What skill sets are needed to be successful given the disruptors? CEOs may need a different model in selecting candidates as they lead against the competition. Selecting, retaining and developing talent will be crucial.

The retail industry appears to be sincere about being transparent, cutting edge, and attractive to potential employees. The industry has some of the same disruptors as others. However, the leaders in this field took the time out to let us know that they (1) identified their challenges, (2) recommended some possible solutions, and (3) showcased how they are using technology and analytics to ensure their competiveness.

About the Author
Dr. Marie Gould Harper is the Program Director of Management at American Public University System. She has over 25 years of experience assisting organizations and individuals with transformation and change.