The Death of Brick and Mortar Retail? Really?

            Some strange things have happened since Amazon announced the acquisition of Whole Foods in June.  In my opinion, it opened the idea that Amazon will rule the retail world.  Initially, grocers took the market valuation hit, but soon spread to other retail segments.
            Really?  Is the traditional retail fear of Amazon really warranted?  I believe the answer is both MAYBE and MAYBE NOT. 

MAYBE:

• Tough Year for Traditional Retailers:  2017 has produced some alarming stats.  Numerous store closings, new store openings at the lowest rate in nearly a decade, and bankruptcies seem to capture the headlines on a weekly basis.
• The Strong Survive:  there is a long list of retail bankruptcies:  Payless Shoe Source, Aerosoles, Rue21, Perfumania, HH Gregg, Gander Mountain and most recently Toys ‘R’ Us. . . just to name a few.  Some have closed their doors forever.  Others are on the brink of “filing”.

     I contend those retailers that are dying have failed to have a solid vision of the future to their customer’s expectation.  Other retail venues have stepped in and filled that void.  In some cases, poor financial maneuvers to put the business in a perilous situation.
     The retail landscape has, is changing, and will continue to change.  And it should be changing.  From a macro view; The Home Depot was the game-changer in the hardware / building materials segment, Walmart redefined mass retail, Best Buy created the mecca for the consumer electronics experience, and Costco created the retail membership venue.  And without a doubt, Amazon is bringing a new dynamic force to retail.
 
Is Amazon the reason for the reshuffling of the retail environment?  Not entirely.  Keep in mind Amazon is only 5% of retail sales (that is excluding food products).  Has Amazon created or filled a void to meet consumer shifts in buying habits?  Certainly yes.  At the same time, there are numerous brick & mortar retailers making a big impact on meeting consumer demand through emerging and developing meaningful, high impact strategies.
 
 
MAYBE NOT
     With approximately 70% of the United States GDP being consumer driven and retail being a significant part of that number, brick and mortar retail will survive and thrive.  But will rely on the strong and nimble retailer.
    I personally believe this is a “golden age” for retail and those of us marketing consumer goods.  For the record, this is not a suggestion to shun digital or web-based retail.  In fact; just the opposite - it will grow and is / will be a formable platform connecting with the end-user of our goods and services.  This is a simple, straight-forward way that we should be supporting brick and mortar retail.

1. If you are not thinking Omni-Channel, You’re Not Thinking – a go-to-market strategy has got to think about the engagement of how the purchaser could interact with the product and the ultimate buying decision.  In-store, social media, or web.  This has become hugely important in our mobile world.
   • Brick and Mortar retail has an advantage for the most rounded personal experience.  The ability to touch product, compare most popular alternatives, logical add-on to product that might otherwise not have been considered.  Powerful and fundamental to buying experience.  The personal experience has not been fully replicated with the online retailer.  The ever-increasing use of video will be a big advantage for the online retail world.

      Seeing this as “the advantage” for brick and mortar will fail.  The competition is simply too fierce.  A woven strategy with digital marketing venues does create a strong platform.

1. Mandate to Think Differently – the merchant with progressive retailers is totally open to new ideas on how to reach the end-user’s purse.  A well-conceived and solid plan is required.  This requires thought, preparation, strategy and ultimately results (top line sales, gross margin, solid supply chain to serve the business demands).
2. Innovate – there is nothing more exciting that new products that improve the user experience.  Those marketing to retail must have a solid plan to bring change to their respective product lines.  Failure to do so, opens the doors to competitors…. And they will come.

 
In conclusion, traditional retail is not dead.  In fact; very much alive and the opportunity to leverage products and services has never been greater.  Retailers do not have all the product & merchandising answers.  They look to seasoned, mindful, experienced marketers to bring solutions to complex challenges.  The ultimate WIN-WIN outcome is at hand.

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David Kearsley
Business leader and continuous learner in consumer durable products sold through various partner channels; retail, capital goods, infrastructure product.
   Seeking senior leadership role with a company with a vision to grow, innovate, and create a sustainable value-proposition.      www.davidkearsley.com

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