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Retail is not dying. Today's consumers are being presented by an increasing number of shopping options. Online versus in-store engagement trends are converging and technology is increasingly the differentiating element.
A recent IHL research study titled "Out-of-Stock, Out of Luck - How Retailers Alienate Customers and Lose Billions Due to Poor Inventory Practices" prompted this relook at retail RFID. The top answers as to why consumers still prefer to shop in-stores include: want / need the product immediately, desire to touch and feel the item (try it on), don't want to pay expedited delivery charges, support local retailers, and convenience / easier than online.
Fast checkouts and products being in-stock are the two most relevant components of positive instore experiences.
Being a firm believer that branding is a critical component to the future success of all companies, every year I look forward to the latest edition of the BrandZ Top 100 global brands report. Disruption, disintermediation, and differentiation are the three words that stood out in the nearly 300-page 2018 edition.
With an increase of 21% in 2018, the BrandZ global top 100 brands added a record $748 billion, to reach $4.4 trillion in total value, an increase of $2.9 trillion since 2006. 2018 set a record as the largest one-year value increase in the 12 years publishing the global report.
Every industry category had an increase with retail rising the most and for the second consecutive year in a row. The brand value of the retail sector rose 34% as e-commerce brands spiked in value and the category adjusted to disruption.
With the USA NRF Loss Prevention Trade Event taking place this week, it is time to revisit the new Sensormatic Global Retail Shrink Index published earlier this year. Covering 14 countries representing 73% of global GDP and 80% of global retail sales, it is the authoritative document on worldwide loss prevention trends.
In 2017-2018, the cost of retail shrinkage was $99.56 billion for the countries surveyed. This post focuses on my two favorite charts from the entire study.
"There is no end. There is no beginning. There is only the infinite passion for life." - Federico Fellini
Officially I announced my early retirement from Sensormatic / Tyco / Johnson Controls on social media last week. Culminating an amazing 25+ year career, this life changing event was nearly a decade ahead of my long-term plans.
Continuous learning in building a personal brand has opened some interesting new possibilities. The foundation of this post are the comments that I shared with the Tyco retail team at my farewell celebration where I answered four simple questions.
This past week had the pleasure of visiting the new Zara Concept Store in Milan, Italy. Located near to the Galleria Vittorio Emanuele II, one of the oldest retail malls in the world, this Inditex owned location is the perfect bridge to the future of retail.
What do you do when you decide that a major flagship location in the fashion capital of the world needs a physical upgrade? If you are Zara, you close the majority of the store and leverage the elegant entrance to test a new retail concept.
Walking through the entryway you can very quickly visualize the intersection of online and the physical retail store. Uncluttered physical clothing racks are overshadowed by a large digital screen displaying the latest fashions. Simplicity meets digital innovation.
"A sea change is clearly taking place in the retail market with major upheaval, but it is surely not the retail apocalypse. In our view, the retail industry is strong, but it is undergoing a major renaissance, a renewal akin to the renaissance that took place between the 15th and 17th centuries." - Deloitte, The Great Retail Bifurcation, 2018
New research and the continuous digital disruption of retail inspired this re-examination of the retail success formulas published in a post late last year. Discussed in the original blog, I remain an advocate of the McKinsey consumer personalization value equation.
"Customers see value as a function of how relevant and timely a message is in relation to how much it "costs", meaning how much personal information has to be shared and how much personal effort it takes to get it. Importantly, trust in the brand will boost overall value, though that can grow or recede over time, depending on the customer’s satisfaction with various interactions with the brand."
The announcement of Amazon Go in December 2016 sparked the Western imagination on the potential of frictionless cashierless shopping. Roughly 18 months later, we are still on the road to the fully autonomous retail store.
This post summarizes the opportunities and challenges of this global innovation journey. Primary focus is on the state of self-checkout, mobile scan-and-go adoption, and an update on global autonomous store deployments.