Retail’s big reset
It’s been happening for a few years now, but the pace is accelerating.
Retailers waking up to the reality of a slow or no growth world.
Retailers beginning to understand that if you don’t garner share of attention, you have little or no shot at share of wallet.
Retailers starting to comprehend that it’s not about the silos of e-commerce, catalogs, social, mobile and physical stores. It’s about one brand, many channels.
Retailers seeing that it’s not only a digital first world, increasingly it’s a mobile first world.
Retailers coming to terms with having too many stores, and being confronted with the cold hard facts that the ones that should remain are often too large and, more importantly, too boring.
Retailers recognizing that continuing to offer up average products for average people is a recipe for either long-term mediocrity or inevitable bankruptcy.
Retailers realizing that most of their e-commerce growth is now coming from channel shift and that much of their “omni-channel” investments are proving unprofitable.
When historically strong brands like Nordstrom and Neiman Marcus start taking a big whack at their corporate staffs and pulling back on capital investments, it’s hard to argue that this is just about low oil prices and weak foreign tourist traffic.
The big reset is upon us.
Some get it. But too many clearly don’t.
Change is happening faster and faster. Disruption is now just part of the ecosystem.
If you believe, as I do, that we are in for an extended period of muted consumer spending, that we are way over-stored in most major markets and that the power has shifted irretrievably to the consumer, then business as usual–and relentless, but vague promises to become “omni-channel”–will not cut it.
The discipline of the market will be harsh. Good enough no longer is.
If you aren’t worried, chances are you should be.
And if you aren’t in a hurry, you might want to pick up the pace.
Originally published at stevenpdennis.com on April 19, 2016.