STORES Magazine - July 2015 - S4

TOP 100 RETAILERS

TOP 100 RETAILERS
It's no longer bricks-and-mortar versus
e-commerce - omnichannel is the path to success

by DAVID P. SCHULZ

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.

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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

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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.
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Table of Contents for the Digital Edition of STORES Magazine - July 2015