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

Braintrust Resource

TNS Global Retail & Shopper Practice
Thinking About Merchandising
Whitepaper (PDF)

Links by Herb

 
[Image of: Herb Sorensen, Ph.D.]

Herb Sorensen, Ph.D.

Scientific Advisor TNS Global Retail & Shopper
Adjunct Senior Fellow, Ehrenberg-Bass Institute

EDLP is clearly the sanest, most rational approach. However, shoppers are not strictly sane/rational. They still go to Vegas, right? Because you MIGHT win!!! Same with hi-lo pricing. Some bouncing around of prices is fine, to add some spice. For the very same reason there is no such thing...

The number one challenge facing self-service retailers is their #1 source of profits: their suppliers - trading allowances, slotting fees, promotional money. These, essentially "advertising costs" for their suppliers, have made self-service retailers into merchant warehousemen over the past 100 years.

It is a devilish fiction that their main business...

The Convergence of Online, Mobile and Bricks (COMB) WILL continue, apace, in retail. Shoppers have their brains (shopping centers) glued into their bodies, and wherever they go, and whatever they need, will serve them, not the supply chain. This is why I have said, "As long as people live...

Would it be healthier, in the long run, to just move straight to crony capitalist socialism, where everyone in the middle class either moves up to become a direct beneficiary of crony capitalism government, or down to become a welfare client of the same government? That is exactly what...

The vast majority of profits for self-service retailers come from leveraging their suppliers - NOT THE SHOPPERS!!! Not long ago there was a new book out of Wharton and Harvard, subtitled, "The new science of retailing." Surprise! It's all about supply chain management. Get a clue: NO ONE is...

The successful part of my career has been built, nearly 100%, on applying personal selling thinking, to SELF-service retailing. I do think the industry is blind to the loss of true selling at retail, due to a century of massive reliance on shoppers to sell themselves.

My book, "

OK, so here we are in 1960. And some Jetson invents GPS, and since you can have one for $20 in your car, everyone gets one. Now, how much are people going to use it? You think the winning retailer will be the one who harnesses this new-fangled device...

You can either invest in the future, and grow like Amazon is, downplaying immediate profits, or you can hang onto outmoded ways and thinking and either disappear from the scene, and cripple along as "once giants" like A&P and Sears have done.

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It doesn't matter. Shoppers, en masse, don't look at this stuff anyway. Another arm-waving exercise to reach a tiny slice of the market, and give Michelle Obama something to claim.

...

I briefly covered this issue generally in a recent CatMan webinar on the Retail Multiverse. You can download the PDF here if you like. The basic idea is to create a multidimensional spread sheet with retailers, brands and shoppers constituting the 3 most important dimensions. Then, each...

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