Over and over in this blog we have warned that retailers must focus on enhancing the in-store customer experience or risk closing their doors. Wednesday, Forbes ran an article echoing that very argument. John Karonis and Madison Riley even went so far as to suggest that this trend started well before the recession and has only been exacerbated by the economy. Their analysis in, “Why Retailing Will Never Be the Same Again” is very interesting. Below are highlights we thought most important to note:
- “A major shakeout of retail chains is under way, as the bankruptcies of Circuit City, Linens ‘n Things, Mervyns and others make clear. What is less well understood is that an economic and technological tsunami has begun to force merchants into one of two camps: They must be either discounters that sell national product brands on the basis of price or stores that don’t need to discount because they offer uniquely compelling products and shopping experiences.” (This is who you want to be in order to sustain positioning after the recession ends.)
- “The result: Retailers that can’t compete on price or convenience have to find another way to differentiate themselves–with distinctive offerings, and with engaging customer experiences that drive home what’s compelling about those offerings.”
- “The retail territory of the next 10 years is truly up for grabs. New retail concepts, and even manufacturers that want their own stores, have big opportunities to become the big retail success stories of the next decade. Those that dazzle their customers with distinctive offerings and environments for purchasing them will thrive alongside the Wal-Mart’s and Amazons of the retail world.”
Very interesting!
