The retail industry is rapidly evolving with a dramatic change
in consumer buying habits. Satisfying customers and enriching
their buying experience require fresh fundamentals for retailers
today. Modern retailing, interestingly enough, is a new game with
Despite the gradual rise in consumer discretionary purchases,
the sluggish U.S. economy and recessionary fears in Europe cannot
be ignored. Burdened with the lackluster scenario, retailers have
largely concentrated on buyers' needs and lured them with
innovative products, attractive discounts, free shipping and the
ease of shopping through smartphones and tablets. However, these
strategies only helped generate modest revenues.
Thus, retailers essentially need to ideate brilliant
strategies, while incorporating technological advancements and
utilizing their real estate portfolio to the optimum level. In
short, they need to
Experiment, Differentiate, Optimize and Transform.
With this new mantra, the world's largest retailer of office
products and services and second largest online retailer,
) launched its first omnichannel stores - what it refers to as
the future of retail.
Simply put, through this omnichannel strategy, Staples hopes
to fuse its retail network with enhanced digital capabilities.
The company stated that it's Norwood, Mass, and Dover, Del.,
stores will incorporate its .com and mobile assets. Alongside,
the stores will feature Staples.com kiosks.
This new era store concept, with all its attractions could
well prove to be a game changer in the long run for Staples.
Providing shoppers the ease of shopping on their own terms and
enriching their in-store shopping experience could be a crucial
point of differentiation among other retailers.
In harmony with the evolving retail industry, department store
) also adopted an omnichannel strategy. Despite macroeconomic
challenges and cautious consumer spending, Macy's continues to
post healthy results. Management largely attributes the credit to
its omnichannel strategy aimed at enhancing customers' shopping
Another differentiating factor could be partnering renowned
brands as store-within-a-store or simply displaying different
brands under one roof ensures higher footfall and enhances
profitability. Moreover, it is a viable option for retailers to
optimize the usage of their real estate portfolio.
J. C. Penney Company Inc.
Best Buy Company Inc
Dick's Sporting Goods Inc.
) have been focusing on this business strategy, which we believe
is an astute move to reinvigorate growth.
J. C. Penney showcases shops-in-shop from brands such as MNG
Mango, Liz Claiborne and Sephora, and more remain in the
pipeline, while Best Buy has a dedicated floor area for
Best Buy recently partnered
) to roll out "Windows Store" across its 500 outlets in the U.S.
with an additional 100 in Canada. Alongside, Dick's Sporting
Goods has partnered
Under Armour, Inc
) to strengthen its youth business.
Amid this competitive environment, the players who are able to
cater better to the needs of consumers will have the last laugh.
Moreover, the ratio of converting shoppers to buyers will also
depend on the continued economic recovery and improvement in the
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