Time was when the ‘available alternatives’ in retail competition were the remaining Big 3 for any of the four major players in UK retail, and every other retailer worried about the Big 4….
Now it could be said that the consumer enjoys 100% access to any way they choose to buy, whenever they want…
This means that all retailers compete with one another, in a zero-sum game - total available demand - with international online generating worrying amounts of leakage at the edges….
In practice the variables - the bases for comparison – include:
Products & Assortment: ‘I need access to any size, shape or variant - someone will provide…’
Pricing: ‘I want to have this for whatever, whenever, however I choose to pay…’
Promotional activities: ‘I may need help in making my choice, but I believe nothing’
Place i.e. store location: ‘I need to be able to reach out and buy one, ideally via the nearest button…’
Personnel: the ‘people interface’ becoming a liability?
Physical distribution & handling: ‘I don’t want or need to know…’
Presentation of stores & products: ‘If I choose to visit, it had better be my version of good'
Productivity: ‘ If you cannot make money in competition with my 100% access, that’s your problem..’
Retailers no longer have any real choice, and it hurts..
This new ‘retail’ reality also raises a fundamental issue for brand suppliers: we cannot be everything, everywhere, what are the cut-off points within our current business model?
As brand suppliers, we have the advantage of a little warning re this fundamental change in consumer democratisation - the arrival of Sam Walton’s ‘consumer is boss’ realisation - via the retail turmoil occurring further down the supply chain..
Best we anticipate the changes required, before the consumer makes them on our behalf…
Now it could be said that the consumer enjoys 100% access to any way they choose to buy, whenever they want…
This means that all retailers compete with one another, in a zero-sum game - total available demand - with international online generating worrying amounts of leakage at the edges….
In practice the variables - the bases for comparison – include:
Products & Assortment: ‘I need access to any size, shape or variant - someone will provide…’
Pricing: ‘I want to have this for whatever, whenever, however I choose to pay…’
Promotional activities: ‘I may need help in making my choice, but I believe nothing’
Place i.e. store location: ‘I need to be able to reach out and buy one, ideally via the nearest button…’
Personnel: the ‘people interface’ becoming a liability?
Physical distribution & handling: ‘I don’t want or need to know…’
Presentation of stores & products: ‘If I choose to visit, it had better be my version of good'
Productivity: ‘ If you cannot make money in competition with my 100% access, that’s your problem..’
Retailers no longer have any real choice, and it hurts..
This new ‘retail’ reality also raises a fundamental issue for brand suppliers: we cannot be everything, everywhere, what are the cut-off points within our current business model?
As brand suppliers, we have the advantage of a little warning re this fundamental change in consumer democratisation - the arrival of Sam Walton’s ‘consumer is boss’ realisation - via the retail turmoil occurring further down the supply chain..
Best we anticipate the changes required, before the consumer makes them on our behalf…
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