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Also from Herb Sorensen, Ph.D....

Braintrust Resource

TNS Global Retail & Shopper Practice
Selling Like Amazon... ...in Bricks & Mortar Stores!
Whitepaper (pdf)

Links by Herb

 
[Image of: Herb Sorensen, Ph.D.]

Herb Sorensen, Ph.D.

Scientific Advisor Kantar Retail; Adjunct Ehrenberg-Bass
Shopper Scientist LLC

The two solid drivers for growth in any business are investments in research and development, R&D, and marketing and sales — sales here meaning investments, not ongoing operational expenses. Both these investments are seriously fraught with risk. But what is going on with Amazon is massive winning over massive investments...

It's very hard to be critical of Costco, even though they have a couple major deficiencies, that they actually leverage as advantages. First, they have chopped off the long tail, that DRIVES TRAFFIC to most stores, even though it sells very little. Costco has 4,000 SKUs in stores twice...

This has only been going on for 100 years. File this right along with Amazon's purchase of a fleet of airplanes to support its own deliveries. Retailing is the largest industry in the world, and it has repeatedly made sense over the past century for retailers to supply themselves....

I've pointed out that the real conundrum for bricks retailers in responding to online competition, is that their operational business model is built on pallets of merchandise delivered to stores, and unpaid stock-pickers, aka shoppers removing the inventory and handling delivery to themselves, too!

The robot described in this article...

I heartily applaud this move, but there are baked-in features of traditional self-service retail (the lion's share of bricks-and-mortar) that are given short shrift in a lot of the thinking about these problems. To understand, you must deal with the accurate scientific description of self-service stores.

The self-service store is...

What it says is that like ALL bricks-and-mortar retailers, Nordstrom has massive "parked capital" and has no idea what to do about it. This, in a rapidly changing world with Amazon having close to zero parked capital. What has worked so well for a century, is NOT...

It's really quite simple: In ANY store in the world, of ANY kind, more people leave the store with a single item purchase than ANY other number! For supermarkets, HALF the shoppers leave with FIVE or fewer items. Smaller stores eliminate more than half of the barely functional "

There are THREE components to the SALE: 1. the meeting of the minds of buyer and seller — the brain part; 2. the delivery of the goods/services; 3. payment.

Amazon is in the catbird seat for global retail dominance because they manage the "meeting-of-the-minds" online, better than any other major player....

As others have noted, the bulk of purchase events in FMCG (fast moving consumer goods) do not involve much selling, other than the shopper "selling themselves," SELF-service retail. But don't think that that "selling themselves" platform can't be massively assisted. See: "Selling Like Amazon... in Bricks &...

Apple has effectively invested billions of dollars in their iconic logo. That investment has resulted in trillions of subconscious impressions, and is a MAJOR selling asset of the company. Bringing new creatives to the table, wanting to make their OWN impression on the company, often their first moves are...

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