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.
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.
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.
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.
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