The Relevant Retailer
This week I was talking to some analyst friends. We were bemoaning the unproductive thoughts and ideas the stupid term “Retail Apocalypse ” had put into retailers’ heads. So it seemed many retailers are either cutting budgets for the [impending] apocalypse, or putting their faith in bright shiny objects.
One observed, “I wish there was one overarching term we could use to describe the retailer of the future. ” I replied, “Retail will always be retail. We buy stuff, sell it, analyze the results, rinse and repeat. The difference is that as times change, retailers must remain relevant to consumers. ” And boom! I’d hit on that one term: Relevancy.
So the overarching question retailers need to ask themselves is “Are we still relevant to our customer? ” Is self-service relevant to an in-store shopper? In general, if they want to self-serve, they’ll do it from home, thank you very much.
If the in-store associate is going to be relevant to the shopper, he or she has to be armed with information. When the customer knows more than the store associate, the store associate is irrelevant. And who needs that?
If the assortment is going to be relevant to shoppers, it has to match their lifestyle needs. Today, most shoppers either want a treasure hunt, like they find at off-price retailers (think TJX and Costco), or tailored assortments (think Ulta Beauty or certain specialty stores).
If the customer needs something soon, and you can’t promise delivery for a week or two, you’re just not relevant. There are others who likely can. Sure, certain products are hot enough that customers are willing to pre-order, but for the most part, they want what they want when they want it, not when you’re ready to give it to them. What you want as a retailer isn’t relevant.
In our sometimes torturous world, fun is very relevant. Ask yourselves, “Is my in-store experience a torture, fun, or just ‘meh’? ” Costco’s moveable feast is fun. Trunk shows can be fun. Trying the latest consumer tech toy can be fun. That seems to be the secret to the Apple store’s success, for one.
This sounds simple, but it isn’t easy. We have seen some retailers fade away this year. They became irrelevant and died off. The mantra of Project Runway really does come to mind… “One day you’re in, the next day, you’re out. ” The show, of course, refers to fashion, but it clearly can be applied to grocery, hard goods and most other segments as well. Remain relevant or die. It’s that simple.
What does this have to do with technology? The most important technologies will help a retailer remain relevant to consumers. That means analytics to help them put the right product in the right place at the right time, employee-facing technologies that help make them more educated, and an understanding that as it always was, one size does not fit all… for some customers, mass retailing is great. For others, it’s a torture they prefer to ignore (I fit in the latter category). It means that you can’t waste their time… you have to be crisp. Do you know where your inventory is? Can you find it quickly? If not, it’s frustrating, and shoppers have too many other options and not enough time to tolerate your inability to meet their needs.
I think that’s the new lens we have to put on any kind of technology roadmap. What will keep us relevant? What will make the shopping experience fun?
All the rest are really just bright shiny objects. By now, I think we all know that the “Retail Apocalypse ” is a false flag. The fate of retail is in OUR hands, not in the hands of one on-line only retailer who’s dabbling in stores. So just keep asking yourself these questions:
- Am I relevant to a segment of the consumer market?
- How big IS that segment?
- How can I expand my relevancy and perhaps, my market?
- What technologies can help?
The future really is in our hands. Really.