Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
RETAILOMANIA THE END OF THE RETAIL WORLD AS WE KNOW IT,AND WHAT TO DO ABOUT IT
RETAILOMANIA SO	  THE	  FUTURE	  SEEMS	  A	  BIT	     DARK	  AT	  THE	  MOMENT?	  GLOBALIZATION HAS  MADE THE WORLD INTERC...
RETAILOMANIA     RECESSION	  OR	  NOT,	  WE	  NOW	  SEE	               TEOTRWAWKI	  	  	  GLOBALIZATION orld	  As	  We	  K...
RETAILOMANIAToday’s	  retail	  business	  is	  a	  ba1lefield	  and	  as	  on	  a	  modern	  military	  ba1lefield,	  the	  ...
RETAILOMANIAOr	  even	  brands	  without	  a	  tradi=onal	  media	  budget,	  using	  social	  media	  and	  branded	  con...
RETAILOMANIA	  In	  the	  new	  world	  of	  retail	  then,	  as	  on	  the	  modern	  ba1lefield,	  size	  is	  not	  nece...
RETAILOMANIA               THAT`S	  WHAT	             TEOTRWAWKI	  	  	  GLOBALIZATIONN	  THAT	  A	  HIGHLY	    IS	  ALL	 ...
RETAILOMANIALET´S	  TAKE	  A	  QUICK	  LOOK	  AT	  	    ”THE	  RECESSION	  ISSUE”	  GLOBALIZATION HAS  MADE THE WORLD INTE...
RETAILOMANIAQuick Global Overview 2012:American depth crisis…Peak oil…Euro crisis…Fallingconsumer confidence…China´s growt...
RETAILOMANIAGLOBALIZATION HAS  MADE THE WORLD INTERCONNECTED
RETAILOMANIAIT HAS BECOME APPARENT THAT WE LIVE IN A FRAGILE WORLD AND THE STATE OF DEBTS VS ECONOMIC STRENGTH IN THE  US ...
RETAILOMANIA  RECESSIONS COME      AND GO   IF THE ECONOMY FALLS INTO ADEPRESSION IT WON`T BE THE FIRST OR      THE LAST T...
RETAILOMANIARECESSIONS FOLLOW A PATTERN  WITH A START AND AN END
RETAILOMANIABUT	  YOU	  HAVE	  TO	    THE TRICK IS TO SURVIVE IN START	  IN	  TIME!	   THE MIDDLE…
RETAILOMANIACONSUMER BEHAVIOUR DURING RECESSION-­‐SPENDING	  LESS	  	  -­‐PUTTING	  OF	  MAJOR	  PURCHASES	  AND/OR	  PRIO...
RETAILOMANIA   …THIS	  MAKES	  RECESSION	  A	  RETAIL	      GRAVEYARD	  
RETAILOMANIABUT YOU DON´T NECESSARILY HAVE TO JOIN   “I was asked what   I thought about   the recession.   I thought abou...
RETAILOMANIASO WHAT IS ALL THIS ABOUT?              ”It	  is	  not	  the	  strongest	                species	  that	  surv...
RETAILOMANIABUT,	  ONLINE	  AND	  SOCIAL	  CHANGES	       THE	  CONSUMER	  DECISION	  PROCESS…	  AND	  THERE	  HAVE	  NEVE...
RETAILOMANIA                                                               TRADITIONAL	                ONLINE	            ...
RETAILOMANIAHARSH	  COMPETITION	  AND	  ONLINE	  HAS	   LED	  TO	  A	  CHANNEL	  DEVELOPMENT	  IN	      RETAIL	  THAT	  MA...
RETAILOMANIANEVER	  BEFORE	  HAVE	  SO	  MANY	   RETAILERS	  HAD	  SO	  MUCH	  TO	   SELL	  IN	  SO	  MANY	  CHANNELS	  
RETAILOMANIA                                                                          FROM MULTICHANNEL TO HYPERCHANNEL   ...
RETAILOMANIAAND COMPETITION STILL GETS TOUGHER          BY THE MINUTE           ”The	  only	  easy	  day	  was	  yesterday...
RETAILOMANIATHE	  CREATIVE	  RETAILER	  HAS	  NEVER	          BEFORE	  HAD	  SO	  MANY	   POSSIBILITIES	  TO	  COMMUNICATE...
RETAILOMANIA  RECESSION	  IS	  A	    POSSIBILITY	  TO	  STARVE	  OUT	  YOUR	    COMPETITORS	  
RETAILOMANIA       BUT	  YOU	  HAVE	  TO	          START	  IN	  TIME!	  ACT	  WHILE	  YOU	  CAN	  AND	  NOT	  WHEN	  YOU	 ...
RETAILOMANIATwo guys are in the jungle when they see a lionrunning towards them. Frantically, one of the menstarts putting...
RETAILOMANIA  NEW	  FANCY	  MEDIA	  OR	  SALES	   CHANNELS	  DOES´NT	  MEAN	  THAT	  YOU	  CAN	  SKIP	  OLD	  SCHOOL	  MAT...
RETAILOMANIACash	  flow	  is	  the	  blood	  stream	  of	  you	  company.	  Make	  two	  cash	  flow	  budgets	  for	  the	 ...
RETAILOMANIA   INVENTORY	   CONTROL	  IS	  AS	   IMPORTANT	  AS	     BREATHING	  OR	  HOW	  MANY	  VARIATIONS	  OF	    MUS...
Evaluate	  every	  outstanding	  buying	  order.	  Do	  you	  really	  need	  the	  merchandise?	  Do	  you	  really	  nee...
RETAILOMANIACUT	  COSTS	  –	  EVEN	  IF	  IT	            HURTS	  
RETAILOMANIAGo	  through	  every	  line	  on	  your	  P&L	  –	  are	  there	  any	  possibili=es	  to	  cut	  costs	  or	 ...
RETAILOMANIAWHERE	  CAN	  YOU	  FIND	    MORE	  MONEY	  
RETAILOMANIACan	  you	  a1ract	   Can	  you	  convert	   Can	  you	  make	  new	  visitors?	   more	  visitors	  into	   e...
RETAILOMANIAOPTIMIZE	  THE	  STORE	  
RETAILOMANIAStore	  layout/presenta=on	  will	  drive	  sales	  by:	  -­‐ 	  Improving	  conversions	  -­‐ 	  Sell	  more	...
RETAILOMANIAFIELD	  TIP:	  Photograph	  your	  store,	  print	  the	  photos	  and	  put	  them	  on	  a	  wall.	  Photogr...
RETAILOMANIAFIELD	  TIP:	  Get	  a	  drawing	  of	  the	  store	  and	  stand	  right	  inside	  the	  entrance.	  Follow	...
RETAILOMANIAChange	  your	  store	  according	  to	  visitor	  frequency:	  -­‐ Customers	  habituate	  to	  your	  stores...
RETAILOMANIAMaking	  the	  perfect	  store	  layout:	  h1p://retailomania.blogspot.com/2010/04/everything-­‐you-­‐ever-­‐w...
RETAILOMANIAFOLLOW	  THE	  FIGURES	  
RETAILOMANIAReward	  loyalty.	  20	  %	  of	  your	  customers	  are	  most	  likely	  accountable	  for	  70-­‐80	  %	  o...
RETAILOMANIAFollow	  up	  on:	  -­‐ The	  number	  of	  visitors	  -­‐ Conversion	  rate	  -­‐ Number	  of	  add-­‐on	  sa...
RETAILOMANIAwww.morm.se	  Retailomania.blogspot.com	  @retailomania	  h1ps://www.facebook.com/Retailomania	  
Upcoming SlideShare
Loading in …5
×

The end of the retail world 2012

7,152 views

Published on

How to survive in a tough retail environment

Published in: Business, News & Politics
  • Since the presentation, 'The end of the retail world as we know it, and what to do about it', made a few readers ask for more hands on advice on how to develop a better competitive strategy, I decided to repost a few earlier articles on positioning, store layout, range presentation and service development:

    http://www.businessinsider.com/here-are-the-exact-steps-retailers-need-to-take-to-stand-out-from-the-crowds-2012-5
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

The end of the retail world 2012

  1. 1. RETAILOMANIA THE END OF THE RETAIL WORLD AS WE KNOW IT,AND WHAT TO DO ABOUT IT
  2. 2. RETAILOMANIA SO  THE  FUTURE  SEEMS  A  BIT   DARK  AT  THE  MOMENT?  GLOBALIZATION HAS MADE THE WORLD INTERCONNECTED
  3. 3. RETAILOMANIA RECESSION  OR  NOT,  WE  NOW  SEE   TEOTRWAWKI      GLOBALIZATION orld  As  We  Know  It)  (The  End  Of  The  Retail  W HAS MADE THE WORLD INTERCONNECTED
  4. 4. RETAILOMANIAToday’s  retail  business  is  a  ba1lefield  and  as  on  a  modern  military  ba1lefield,  the  enemy  isn’t  always  visible  or  doesn’t  fight  using  the  same  methods.  Fire,  protec=on  and  movement  remain   GLOBALIZATION HASthe  key  principles  of  combat,  but  an  enemy  can  also  infiltrate  the  ba1leground,  hide  among  civilians  or  plant  IEDs  to  fool  and  unnerve  his  adversary.  In  the  retail  context  this  would   MADE THE WORLDtranslate  to  small,  fast  growing  and  digital  retailers  challenging  an  established  global  giant  on  its  home  turf,  or  consumers  joining  together  to  create  a  secondhand  market  instead  of  always   INTERCONNECTEDbuying  the  latest  products  from  a  store.    
  5. 5. RETAILOMANIAOr  even  brands  without  a  tradi=onal  media  budget,  using  social  media  and  branded  content  to  build  a  loyal  customer  base  without  a1rac=ng  a1en=on  from  the  compe==on.  In  short:  The  future  is  not  what  it  used  to  be,  but  rather  a  flickering,  confusing  place  where  the  established  marke=ng   GLOBALIZATION HASmethodologies  of  the  retail  giants  may  well  be  undermined  by  their  newer,   MADE THE WORLDmore  dynamic  adversaries  who  are  poten=ally  be1er  placed  to  fully  meet  the  marke=ng  challenges  created  by  new  and  emerging  markets.   INTERCONNECTED
  6. 6. RETAILOMANIA  In  the  new  world  of  retail  then,  as  on  the  modern  ba1lefield,  size  is  not  necessarily  an   GLOBALIZATION HASadvantage.  Instead,  over  what  is  likely  to  be  an  economically  turbulent  next  10  years,  retailers  will  need  to  be  able  to  move  swiKly  in  order  to  adapt  to  consumers’  rapidly  changing   MADE THE WORLDpreferences.  Some  of  the  brands  of  yesterday  will  die  some  with  a  bang  and  some  slowly  as  if  from  an  incurable  was=ng  disease.  The  future  will  be  characterized  by  asymmetric   INTERCONNECTEDcompe==on,  where  crea=vity,  intelligence  and  adaptability  are  more  important  than  size  and  brute  force.  
  7. 7. RETAILOMANIA THAT`S  WHAT   TEOTRWAWKI      GLOBALIZATIONN  THAT  A  HIGHLY   IS  ALL  ABOUT.  ADD  O HAS MADEPROBABLE  RECESSION.   THE WORLD INTERCONNECTED
  8. 8. RETAILOMANIALET´S  TAKE  A  QUICK  LOOK  AT     ”THE  RECESSION  ISSUE”  GLOBALIZATION HAS MADE THE WORLD INTERCONNECTED
  9. 9. RETAILOMANIAQuick Global Overview 2012:American depth crisis…Peak oil…Euro crisis…Fallingconsumer confidence…China´s growth is slowing down…
  10. 10. RETAILOMANIAGLOBALIZATION HAS MADE THE WORLD INTERCONNECTED
  11. 11. RETAILOMANIAIT HAS BECOME APPARENT THAT WE LIVE IN A FRAGILE WORLD AND THE STATE OF DEBTS VS ECONOMIC STRENGTH IN THE US AND EURO ZONE MIGHT LEAD TO ADECENNIUM OF VERY THOUGH ECONOMY OR EVEN RECESSION.
  12. 12. RETAILOMANIA RECESSIONS COME AND GO IF THE ECONOMY FALLS INTO ADEPRESSION IT WON`T BE THE FIRST OR THE LAST TIME IT HAPPENS
  13. 13. RETAILOMANIARECESSIONS FOLLOW A PATTERN WITH A START AND AN END
  14. 14. RETAILOMANIABUT  YOU  HAVE  TO   THE TRICK IS TO SURVIVE IN START  IN  TIME!   THE MIDDLE…
  15. 15. RETAILOMANIACONSUMER BEHAVIOUR DURING RECESSION-­‐SPENDING  LESS    -­‐PUTTING  OF  MAJOR  PURCHASES  AND/OR  PRIORITIZE  BETWEEN  THEM  -­‐TRADING  DOWN  TO  CHEAPER  PRODUCTS  BUT  -­‐PEOPLE  WILL  ALLOW  THEMSELVES  TREATS  IF  PROPERLY  PRESENTED  WITH  CARE  AND  SMARTNESS  -­‐VALUE  FOR  MONEY  
  16. 16. RETAILOMANIA …THIS  MAKES  RECESSION  A  RETAIL   GRAVEYARD  
  17. 17. RETAILOMANIABUT YOU DON´T NECESSARILY HAVE TO JOIN “I was asked what I thought about the recession. I thought about it and decided not to participate” Sam  Walton,  founder  of  Wal-­‐ Mart  
  18. 18. RETAILOMANIASO WHAT IS ALL THIS ABOUT? ”It  is  not  the  strongest   species  that  survive,  not   the  most  intelligent  but   the  ones  most   responsive  to  change”   Charles  Darwin  
  19. 19. RETAILOMANIABUT,  ONLINE  AND  SOCIAL  CHANGES   THE  CONSUMER  DECISION  PROCESS…  AND  THERE  HAVE  NEVER   BEEN  SO  MANY  CHANNELS  OF   COMMUNICATION  
  20. 20. RETAILOMANIA TRADITIONAL   ONLINE   RETAIL   RETAIL   SERVICE   RETAIL   PRE-­‐TAIL   RETAIL   POST-­‐TAIL  Researching  and  comparing  alterna=ves  by   GeYng  more  detailed  informa=on  while   Sharing  experiences  and  conquests  using:   in-­‐store:   Word  of  mouth  On-­‐line  search     In-­‐store  communica=on/Signage   Social  networks  Word  of  mouth   Staff  Social  networks   In  store  search  with  help  of  mobile  Ads   devices  Apps   Good  and  bad  experiences  are   beeing  used  by  other   consumers  to  facilitate  their   own  decision  process  
  21. 21. RETAILOMANIAHARSH  COMPETITION  AND  ONLINE  HAS   LED  TO  A  CHANNEL  DEVELOPMENT  IN   RETAIL  THAT  MAKES  THE  WORD   ”MULTICHANNEL”  AN   UNDERSTATEMENT  
  22. 22. RETAILOMANIANEVER  BEFORE  HAVE  SO  MANY   RETAILERS  HAD  SO  MUCH  TO   SELL  IN  SO  MANY  CHANNELS  
  23. 23. RETAILOMANIA FROM MULTICHANNEL TO HYPERCHANNEL RETAIL DEVELOPMENT 2012-2022 Online retailers are retailers using only the online world as their field of operations. Online Traditional retailing will retailing are likely to rise the continue to develop with focus Online retailing on coming decade as more on smaller concepts as Mobile internet has exploded communities and online consumers are online, more social media platforms The C2C-market is likely to rise turnover/square meter will over the last couple of years consumers feel safe online and due to both economical and become a critical KPI as due to smart phones and are likely to be more the evolution of payment environmental concerns. competitions get harder. Small various need-to-have and specialized as the systems will make payments format also means: Online kiosks nice-to-have apps. platforms mature. easier. - Quicker, easier shopping inside stores More retail functionality will be - Smaller investments (risk) - Coming closer to the makes it possible to research online built into apps and both ecommerce and in-store Online customer implies less fuel and compare interactivity will be standard retailers spending - More possibilities to optimize functions and features of the features. C2C Multichannel retailers includes offline retailers store location density. assortment. going online, but also Mobile retail EBay those online retailers that chooses to open a services Online physical store. Traditional Some use the online ”Social” media services world to gather information before retail platforms retail going to the store, while Spotify others use the physical Popup- In-store Facebook et al Voddler store as a showroom before ordering online, online kiosks stores perhaps via smartPopup stores started asguerilla activities but have now Multi- Online virtual phone while still in the Virtual goods are products ormatured as a new format channel goods retailing Farmville etc services consumed online and storewhen and where temporary Why should people need to go are never an actual asset of theinstallations are necessary. outside to grab a prescription or use.Here Telenor, mobile phone pick up a preordered bag of Drive-thrukiosk. groceries. Drive-thru are a reality stores in many places and are likely to rise. Several banks have launched retail store Vending Retailers looking concepts in order to appear as a machines O providing utlet modern service s services provider. Photo from Danish Jyske Bank Vending machines are not what they used to be. Here is U´tiques luxury product vending machine, In order to improve the and its modern cousins from Third party co-op share of wallet ratio from existing customers Service providers other vending operators are selling everything from shoes to several retailers are using retail tactics moving into the service vodka from designed machines. Hotels, gyms, spas industry providing banking, insurance, Retail banking, Retail opportunities for gardening wedding and situational shopping. Shoes and insurance companies, even funeral services. training equipment at the gym, travel agencies wellbeing at the spa and so on.
  24. 24. RETAILOMANIAAND COMPETITION STILL GETS TOUGHER BY THE MINUTE ”The  only  easy  day  was  yesterday”   US  Navy  Seals  
  25. 25. RETAILOMANIATHE  CREATIVE  RETAILER  HAS  NEVER   BEFORE  HAD  SO  MANY   POSSIBILITIES  TO  COMMUNICATE   AND  REACH  ITS  CUSTOMERS  
  26. 26. RETAILOMANIA RECESSION  IS  A   POSSIBILITY  TO  STARVE  OUT  YOUR   COMPETITORS  
  27. 27. RETAILOMANIA BUT  YOU  HAVE  TO   START  IN  TIME!  ACT  WHILE  YOU  CAN  AND  NOT  WHEN  YOU  HAVE  TO!  
  28. 28. RETAILOMANIATwo guys are in the jungle when they see a lionrunning towards them. Frantically, one of the menstarts putting on his running shoes.Surprised, the other man says “What are youthinking, you can’t outrun a lion!!!”“I don’t have to outrun the lion,” said the man, “Ijust have to outrun you.”
  29. 29. RETAILOMANIA NEW  FANCY  MEDIA  OR  SALES   CHANNELS  DOES´NT  MEAN  THAT  YOU  CAN  SKIP  OLD  SCHOOL  MATH  FOR  INSTANCE,  WATCH  THE  CASH  FLOW  LIKE  YOUR  LIFE  DEPENDED   ON  IT  (IT  DOES)!  
  30. 30. RETAILOMANIACash  flow  is  the  blood  stream  of  you  company.  Make  two  cash  flow  budgets  for  the  12  months  to  come  In  best  case,  project  flat  sales  to  a  10%  decline,  in  worst  case,  go  as  much  as  a  30%  sales  decrease  In  best  case,  project  expenses  10%  lower  than  last  year  and  in  worst  case,  expenses  at  last  year  levels  
  31. 31. RETAILOMANIA INVENTORY   CONTROL  IS  AS   IMPORTANT  AS   BREATHING  OR  HOW  MANY  VARIATIONS  OF   MUSTARD  DO  YOU  NEED?  
  32. 32. Evaluate  every  outstanding  buying  order.  Do  you  really  need  the  merchandise?  Do  you  really  need  that  many  items  of  each?  Do  you  really  need  them  now  or  can  you  delay  the  delivery  to  a  =me  closer  to  when  it  is  supposed  to  be  sold?  Check  the  stock  ra=o  for  each  item  in  stock  and  see  if  you  could  lower  the  levels  to  get  more  cash.    Prepare  an  aged  inventory  list,  iden=fy  and  clear  out  the  dogs  at  any  price  you  can  get  for  them.  It  will  not  be  more  worth  later  on.  Send  back  damaged  items  from  your  stock  room  for  credit  or  refund  Re-­‐nego=ate  terms  of  payment  with  vendors  and  see  if  you  could  return  slow  moving  merchandise  when  placing  new  orders.  When  things  get  tough,  vendors  will  come  to  you  with  offers  you  have  never  seen  before.  Use  some  of  the  cash  to  make  good  deals.    
  33. 33. RETAILOMANIACUT  COSTS  –  EVEN  IF  IT   HURTS  
  34. 34. RETAILOMANIAGo  through  every  line  on  your  P&L  –  are  there  any  possibili=es  to  cut  costs  or  get  other  terms  of  payment?  Re-­‐nego=ate  everything  possible!  Do  you  balance  staff  costs  in  =me?  
  35. 35. RETAILOMANIAWHERE  CAN  YOU  FIND   MORE  MONEY  
  36. 36. RETAILOMANIACan  you  a1ract   Can  you  convert   Can  you  make  new  visitors?   more  visitors  into   every  customer   customers.   buy  more?   Can  you  make   them  come   more  oKen?  
  37. 37. RETAILOMANIAOPTIMIZE  THE  STORE  
  38. 38. RETAILOMANIAStore  layout/presenta=on  will  drive  sales  by:  -­‐   Improving  conversions  -­‐   Sell  more  to  exis=ng  customers  -­‐   Get  them  back  more  oKen  -­‐   Increase  margins  through  adding  value  to  your  offer  -­‐  Keep  the  customer  longer  in  the  store  –  the  longer  they  stay,  the  more  they  buy  
  39. 39. RETAILOMANIAFIELD  TIP:  Photograph  your  store,  print  the  photos  and  put  them  on  a  wall.  Photographs  don´t  lie  –  this  is  what  your  customers  see.  Mark  everything  that  does  not  contribute  to  sales  and/or  a  be1er  experience  with  a  red  ”x”.  Make  a  list  and  fix  it,  star=ng  today.  
  40. 40. RETAILOMANIAFIELD  TIP:  Get  a  drawing  of  the  store  and  stand  right  inside  the  entrance.  Follow  visitors  around  the  store  and  mark  their  path  on  the  drawing.  AKer  some  20  visitors  a  pa1erns  usually  emerges,  showing  the  ”hot”  and  ”cold”  zones  of  the  store.  This  will  be  an  important  input  to  op=mize  the  customer  flow  and  increase  sales  steering.    
  41. 41. RETAILOMANIAChange  your  store  according  to  visitor  frequency:  -­‐ Customers  habituate  to  your  stores  -­‐  Change  offerings  weekly,  move  everything  around  as  much  as  possible  
  42. 42. RETAILOMANIAMaking  the  perfect  store  layout:  h1p://retailomania.blogspot.com/2010/04/everything-­‐you-­‐ever-­‐wanted-­‐to-­‐know.html  On  great  range  presenta=on:  h1p://retailomania.blogspot.com/2010/03/everything-­‐you-­‐always-­‐wanted-­‐to-­‐know.html  Define  more  seasons:  h1p://retailomania.blogspot.com/2011/08/more-­‐seasons-­‐more-­‐cash-­‐for-­‐retailers.html  
  43. 43. RETAILOMANIAFOLLOW  THE  FIGURES  
  44. 44. RETAILOMANIAReward  loyalty.  20  %  of  your  customers  are  most  likely  accountable  for  70-­‐80  %  of  your  sales.     !  
  45. 45. RETAILOMANIAFollow  up  on:  -­‐ The  number  of  visitors  -­‐ Conversion  rate  -­‐ Number  of  add-­‐on  sales  -­‐ Average  basket  value  -­‐ Average  number  of  ar=cles  per  transac=on  Benchmark  several  stores  to  find  room  for  improvement  
  46. 46. RETAILOMANIAwww.morm.se  Retailomania.blogspot.com  @retailomania  h1ps://www.facebook.com/Retailomania  

×