It’s Time To Rethink Retailing For The Digital Age

The same technology disrupting retail may also be its salvation, according to SapientNitro’s third annual retail study.

The retail industry remains poised on a knife’s edge. Dropping foot traffic, new online-only competitors, and profound changes in customer preferences have buffeted the industry for a decade or more.

Yet the same technology disrupting retail may also be its salvation. Click and collect in-store. Mobile apps. E-commerce. Instagram. Beacons.

In this, SapientNitro’s third annual retail study, we’ve tried to take a fairly comprehensive look at how retailers are responding to this new environment. How effectively are retailers weaving together mobile apps, e-commerce platforms, and in-store innovations? What does the current state of retailing tell us about the future?

Our hypothesis was that retailers were already adapting to this changing environment. We wanted to understand how they were adapting and explore how subsegments (luxury, apparel, mass merchandisers, etc.) have developed and were competing. In reviewing 99 retailers across four major global cities, we, of course, discovered major variances in competitive intent, degree of vision, and quality of execution. There is no one-size-fits-all here, and not every innovation is appropriate for every business. Each marketer has to evaluate the fit to their specific business—to learn from the best and decide what makes the most sense for their needs.

In fact, our big realization is that retailing in the digital age doesn’t mean introducing “digital” (e.g., kiosks or tablets) to the physical space. Instead, it means redefining your entire business around operating in a digital world.

Click here to continue reading (PDF).

Also from SapientNitro: “Digital Transformation Is Business Priority For 21st Century”