THE retail industry has faced more disruptive changes in consumer behaviour over the last decade than in the last century. The face of retail has shifted dramatically in the past 25 years from brick-and-mortar stores and catalogs to omnichannel.
The era of the connected consumer, spurred by technology innovation, has forced retailers to fundamentally rethink almost every aspect of their operations. Mobile devices are making it easier for customers to find what they are looking for, check competitor pricing on the go, and learn from the buying experiences of friends and family via social media.
Omnichannel retail is here; how should retailers respond?
Many retail executives are asking, “How do we compete in this changed world where the connected consumer is king?” Changing market conditions and new entrants have resulted in retailers being faced with numerous strategic alternatives. The ability to create a truly differentiated position in a crowded marketplace may require bold action and difficult decisions on trade-offs between quality and cost, location and convenience, and service and price.
Given the myriad of options, how should management choose? How do leaders make the right decision? What principles should guide their decision making?
In a recently published book, The Three Rules: How Exceptional Companies Think, Michael Raynor and Mumtaz Ahmed provide guiding principles (“three rules”), based on extensive empirical research, that companies can adopt to differentiate themselves and sustain long-term performance.
To explore this concept, we have selected three current trends that are top of mind for many retail executives—omnichannel presence, globalization, and customer engagement—and discussed how the rules apply in each case.
Our objective is to create a lens through which retailers can consider their choices relative to their peers. In the next few sections, we will discuss how retailers are approaching these trends and adapting the three rules to drive revenue and achieve exceptional performance.
If you have any questions or require a more detailed discussion on any of the topics raised in the article, leave a comment and I will introduce you to the appropriate thought leader at Deloitte.