STORES Magazine - July 2015 - S4
n TOP 100 RETAILERS TOP 100 RETAILERS It's no longer bricks-and-mortar versus e-commerce - omnichannel is the path to success 4 by DAVID P. SCHULZ C onsumers have myriad ways to shop, and retailers are scrambling to keep up with them. "New [technology] tools ... are transforming the way consumers want to shop," says Anne Zybowski, vice president of retail insights at Kantar Retail. In response, retailers are re-thinking their operations, from infrastructure and inventory systems to delivery and marketing. Have a comment about this year's Top 100 Retailers? Tweet us at @STORESmedia and use #STORESTop100 to join the conversation! Bonus Power Player content and charts are available at nrf.com/stores S4 STORES July 2015 As measured by STORES' annual Top 100 Retailers report, compiled by Kantar, the evolution of the retail industry displays the fitness and survival skills of some long-time inhabitants. For the most part, chart-topping stalwarts - Wal-Mart, Kroger, Costco, The Home Depot, Walgreen, Target and CVS - have maintained dominance through an ability to meet consumers' changing desires, including their appetites for online shopping and digital interaction. Amazon's dramatic ascent continues, and while e-commerce has not proven to be the tidal wave that knocks bricks-and-mortar off its pedestal, the old "location, location, location" mantra doesn't carry the same weight it once did. Instead, the two channels continue to converge: Physical store operators are experiencing considerable digital success, while online merchants - including Amazon - are expanding with showrooms, pop-up shops and other ways of meeting shoppers face-to-face. "The notion of omnichannel remains aspirational. Today's demanding omni-shoppers know what they want," Zybowski says. "They want retailers to offer whatever, wherever, whenever they want. And when it comes to value, they want [to have] their cake and eat it too - they don't expect to pay more for convenience." The challenge for retailers is meeting consumer's reset expectations. "Retailers must figure out how to fundamentally transform their business models, ones that QVC 70 73 have been built for maximum efficiency and scale, and transform them into more nimble, effective ones," Zybowski says. This transformation primarily focuses on two key retail functions: selling and marketing. Retailers must sell across all channels, what Zybowski calls being "channel-agnostic or channel-agile," while the marketing transformation involves personalization and shopper engagement. NRF.COM/STORES
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