Chapter Fifteen: Retailing Trends

and Best Practices

Progress is impossible without change; and those who cannot change their minds, cannot change

anything.

– George Bernard Shaw Nobel Laureate in Literature, 1975

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Integrated Retail Management Flowchart

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Objectives

• Outline current trends in retailing.

• Describe some best practices in the retail environment.

• Apply the integrated retail management flow chart to a hypothetical retail outlet.

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Trends in Retailing

• Globalization

• Multi-channel retailing

• Increased use of technology

• Personalization

• Evolution of brick and mortar stores

• The sharing economy

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Globalization

• Retailers expanding in growth markets

• Customized products based on location

• Globally networked supply chain

• Pressure to find sources closer to point of distribution

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Multi-channel Retailing

• Integration of multiple channel retailing

• Seamless approach – Omni-channel retailing

• Capabilities of tracking customers across channels

• Comprehensive multi-channel strategy necessary

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Increased use of Technology

• New technologies will continue to be adopted

• Smartphone technology a major force

• Interactive technology increase

• Use of robotics will increase

• Wearable technology will be more common

• Shopping wherever/whenever

• Data privacy concerns will challenge retailers

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Personalization

• Information collection on consumers will continue to grow

• Data used to provide more personalized shopping

• Personalization leads to creation of brand experiences

• Subscription commerce – delivery of a product/service on a regular basis

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Evolution of Brick and Mortar Stores

• Bankruptcies of brick and mortar stores on the rise

• Malls experiencing high vacancy rates

• Trend – very big stores or smaller stores

• Experiential retailing and shoppertainment help traditional stores to thrive

• Specialized stores will grow

• Pop up stores will increase in popularity

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The Sharing Economy

• Also known as collaborative consumption • A system that allows shared access to under-

utilized assets • Information technology is leveraged to allow

entities/people to share information about rentals or asset trading opportunities.

• Idea is to increase value of the goods and services for all involved

• Many new businesses will rely on sharing economy

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The Changing Consumer

• Consumer power increasing

• Increasing diversity will put pressure on retailers to meet the needs of a variety of groups

• Changing wants and needs (stimulation vs. sanctuary)

• Behavioral changes – new norms

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Best Practices in Retailing

• Simplicity

• Transparency

• Accessibility

• Making every experience count

• Using social media

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Five Pillars of Retailing

• Solve your customers' problems

• Treat customers with respect

• Connect with your customers' emotions

• Set the fairest (not the lowest) price

• Save your customers' time

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Market Adaptability

• Knowledge about environmental changes; and the ability to react to these changes

– Decentralizing decision making

– Streamlining processes

– Focusing on core competencies

– Implementing free exchange of information,

– Developing reward systems based on responsiveness to customers

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