To the Victors Go the Spoils
With the holidays behind us, it's time to turn our attention to the more fundamental challenges retailers are facing. For the foreseeable future, even as the economy continues its slight upward trend, the retail industry will be stuck in The New Mediocre -- a period of declining store traffic, sluggish sales growth, and downward pressure on margins and profitability.
There is no magic bullet, yet, for most retailers, we believe a common theme -- Customer First -- can point the way to success. This approach puts customer insights (of all types) at the center if the business, enabling new ways of running a retailer's most critical functions -- Product Development, Merchandising, Marketing, and Stores (both physical and digital).
Customer First is a new way of thinking about -- and operating -- the business, and has ramifications on process, structure, systems, and metrics. And most retailers have many of the fundamental building blocks in place to begin the transformation. With omni-channel consumers already making the case for change, what’s needed is a potential path forward. We hope our 2015 Retail Outlook “To the Victors Go the Spoils” can be that guide.