MANAGING in the

NEW WORLD

While there is a lot of talk about physical stores struggling thanks to the disruption brought in by online retailers such as Amazon, most of the purchasing still takes place at stores. Amazon’s recent foray into the acquisition of Whole Foods is there to challenge the omnichannel strategy that stores boast of. This however, does not make the future all doom and gloom for the retailers. Instead they ought to focus on several mechanisms, where the market is still very much open. For a start, they must ensure that stores work properly. Offerings need to be differentiated as Costco has been doing. The areas where they have an inherent advantage need to be advertises, such as the touch and feel or product vetting. Sephora has had great success through this. Retailers must also engage the local community, as good feedback especially online, will automatically percolate to digital marketing for the brand. Nordstrom has this reputation for forging strong community links. Them, along with Home Depot and Lowe’s also provide complimentary advice and consultation on their areas of expertise. Sephora for example does so on beauty brands.

Source:https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/where-stores-can-still-compete

Uploaded Date:22 January 2019

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