This week, retailers from John Lewis, M&S and The Co-op to Morrisons and Dunelm showed how they are changing the way they sell in response to customer behaviour.
These approaches all reflect the importance to retailers of understanding how customers want to buy. Adding functionality that shoppers don’t want may prove an expensive white elephant. On the other hand, failing to deploy the approaches that they do want could be equally expensive. Certainly, John Lewis is planning to invest up to £500m a year in technology, even if that comes at the expense of short-term profits – as seen in the first half of its financial year, when its top-line profits were 99% down on the same time last year. That said, adapting to customer demand is also about delivering profitability over the long-term. But at a time of what John Lewis’ Charlie Mayfield has dubbed a “generational change” in the way we shop, it’s perhaps inevitable that profits will be hit in the short term. That’s likely to continue to reshape the retail landscape over coming years.
Find out more about the first two episodes of InternetRetailing’s RetailCraft podcasts featuring Heals and the Rug Company.
RetailCraft 01 – David Kohn of Heals – “probably the most sceptical man in the industry”? Surely not!
RetailCraft 02 – Sarah Stagg of The Rug Company and the 2018 IREU Top500
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