The retail environment is facing significant challenges with intense competition, a slow global economy, and changing consumer demographics. Traditional growth models are no longer as effective. Businesses need to adapt their competitive advantages and strategies to seek new, unique business models that will enable growth. Strategic alliances will be increasingly important for independent retailers. The document proposes rethinking the traditional model of separating sales and customer service into cost centers and profit centers. It suggests making customer service more involved earlier in the sales process to help customers and improve sales, while also allowing more flexible delivery options to increase productivity and sales.

1. The Changing Retail Environnement
Furniture, Appliance and Bedding Industries
Independant Retailers
Identification for Internal Growth - Changing traditionnal business model
Andre Theriault, B.Sc. Organizational Leadership
Chartered Administrator and Member of the Institute of Corporate Directors
Business Development Manager, Cantrex Group
The challenges that retaillers currently face are daunting, and traditional growth models of
yesterday are no longer providing the return on investment they once did. Intense
competition, slow global economy, consumer demographics are some indicators for this
volatility in the retail environnement.
Understand the need to seek this recession as an opportunity to adapt their competitive
advantage and put a new strategy in order to seek a new unique business model that will
procure growth is necessary. The business that we’re satisfied with. The daily day to day
activities will find this uncertain economy to be a toll. However the business that had a plan
for constant research for growth will be more adaptable to review and fine tune to seek the
down turn effect of this economy.
Te need for strategic alliance in the independant retailler challenge will be of greater need
then ever before. The experience, strength and vigour form a buying group can also be a
benefit for small dominant chains which are very regional.
Any growth strategy relay upon keeping the traditionnal business model intact. What if we
we’re to be creative and seek a change in the traditional model. That traditional model which
we are used to have two distinct sectors in the retail environment. This being said you
clearly can think of them and come to the principle that one is called PC (Profit Center -
Sales) and te counter part is a CC (Cost Center-Customer Services). Why would this be the
that way! The year 2009, bring this opportunity to review all processes. Why would’nt we
want to have two profit centers instead by changing some prinicpales guidlines in our
indutry...
Sales activities should be one and only focus of sales ressources. Why not see this great
window of opportunity to get the customer service to take the full relay and do the final so
crutial part of the activity which start by prevention and get the consumer to fully have all
the benefit information to make a choice and then bring our costumer service a step earlier
in prevention. Thsi would then be of significant value to have then finalized the transaction
with the waranty process and get the consumer to be protected more then ever so that the
customer service department can have sales indicators. This would than is part of a huge
change in practices that would be more beneficial to all.
Can we change, transportation charge, delivery at customer preferred period, delivery at late
hours of day to faciliate productivity by traffic barrier buying out of rush hours? Possibilities
are available with the barriers of today’s business environment being the boundries that
alows creativity to emerge and be stronger.