Tusco Display
Tusco Display


Recognition, Sophistication & Convergence

Traditional retail is catching on. Like turning a battleship, it’s taking time but many of the big retailers are figuring out how to better perform in the emerging retail scene. They are doing it with many tools, three of which I highlight here.

Recognition refers to the fact that retailer c-suites understand that they must drive change to survive. They’ve dumped bad leases and their worst performing stores by the thousands over the last couple of years. Many still play catch up on clicks but haven’t forgotten the importance of bricks too. Target’s CEO understands as they innovate.

Sophistication speaks to the increasing use of technology in physical stores. From iPads with instant client profiles and RFID beacons to untethered POS systems and improved logistics to make sure that they have just the right products on the shelf, stores are upping their game. Apple leads the pack while Amazon Go – cashier-free c-stores – is the embodiment of sophisticated self-service. “Legacy retailers” like Macys and Best Buy are learning these lessons, too.

Finally, convergence brings together the online and in-store worlds like never before. Retailers are catering to wherever the shopper wants to buy. Marc Lore of Walmart.com knows the power of both worlds and sees them as one. He’s an online guy who is “having fun” with Walmart’s Building 8 as they merge digital and physical shopping. And my bet is that they’ll figure it out.

These battleships pack a lot of firepower. Don’t bet against them.