There’s an interesting contrast between the approaches of two retailers who both discussed their strategies this week, stories that we report in today’s Internet Retailing newsletter below. On the one hand, Morrisons, confirming that its online grocery service will launch next January, said that it would now slow the pace of store development and look to online and convenience outlets for its future growth. The two channels together, it says, boost its potential market by 40%.
On the other, online veteran Next, said that it was planning to set quite a pace in opening new stores. Its chief executive Lord Wolfson went into quite some detail in the fashion retailer’s half-year results as he set out to explain the role of the store in Next’s strategy. One point he made was the important role that the store plays in the more profitable online business. Find out more in the newsletter stories below.
The contrast between the two approaches is striking, particularly in the light of where the two are along the road towards joined-up shopping. Next, with its catalogue background, appears to be shaping its future in the light of what its data tells it about how its customers shop, while Morrisons seems to be looking towards online as its future. The caveat, of course, is that their existing store estates will vary enormously, as does the sector in which each operates. It’s nonetheless an interesting difference, and we’ll be watching to see how that strategy modules as retail evolves.
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