What lies at the heart of retail transformation


December 30, 2018 | By RetailME Bureau

Over the last and the next few years, retail has and will continue to change. There are many dimensions of change. The role of the store is changing. The fundamental needs of the customer and the nature of competition are also changing.

That’s why, retail transformation is a widely discussed topic. Management consulting firm Boston Consulting Group has identified some of the underpinning drivers of retail transformation.

“As we clear the noise and delve deep, some of the main drivers of retail transformation stand out. First is digital connectivity. At the heart of digital connectivity lies fast devices, cheaper bandwidth and customers who are comfortable using technology,” stressed Arun Bruce, partner and managing director, Boston Consulting Group.

“One of the things that stands out as a smart example of digital connectivity is American home improvement brand Home Depot tying up with Google to drive internal navigation within its stores. It wouldn’t have happened in the absence of the rise of a plethora of tech start-ups and had digital not been cheaper,” he added.

“There is a clear push for convenience,” Bruce emphasised. “Almost a decade ago when Amazon, among others, started its same-day and next day delivery service, it made waves. That delivery window gradually dropped to hours. Now brands deliver goods within half an hour. Alibaba’s futuristic supermarket Hema and JD.com’s high-tech supermarket 7Fresh offer a 30-minute delivery timeline to customers residing within a certain radius. These brands are changing the future of shopping.”

Then comes personalisation. “It always existed but riding on the digital wave it has become even more powerful,” Bruce observed. “Think about it – based on performance, Nike sends out ‘outdo you’ videos with product recommendations. That’s the level of personalisation that consumers are looking for.”

Finally, the experience is vital, he stated. “In an age where consumers can buy almost anything online, stores are shifting focus towards experiences. That’s a no-brainer! Retailers with experience baked into the business model have been successful in retaining loyal customers. For example, yoga classes in Canadian athletic apparel brand lululemon athletica stores are a big hit that creates an entire brand loyal community.”

Read the full article in the December edition of RetailME

Comments

comments

Previous Article Next Article

YOU MAY ALSO LIKE /


Almarai, Carrefour, Emirates have the most loyal customers

UAE-based Carrefour will become the first retailer in the region to offer new levels 

Continue Reading

February 22, 2021 | By RetailME Bureau

The Organic Farmers’ Market is back in Bay Avenue for its 12th 

Continue Reading

February 17, 2021 | By RetailME Bureau

UAE-based  Lulu Group recently inaugurated its first-ever all-female staff store in Jeddah, 

Continue Reading

February 15, 2021 | By RetailME Bureau
Jones the grocer

Jones the Grocer, the gourmet grocer and cheese retailer launches the Jones 

Continue Reading

February 1, 2021 | By RetailME Bureau

UAE-based Al Maya Supermarkets is hosting a two-week food festival at select 

Continue Reading

January 17, 2021 | By Lawrence Pinto

Locally-owned supermarket Spinneys has launched its ‘Power of Plants’ initiative in the 

Continue Reading

January 17, 2021 | By RetailME Bureau
Cookit

Carrefour UAE has launched “Cookit Yourself” — a curated recipe box created 

Continue Reading

January 5, 2021 | By RetailME Bureau
Al Islami Plant-Based Burger

UAE-based Al Islami Foods, one of the largest frozen food companies in 

Continue Reading

January 3, 2021 | By RetailME Bureau
Marks & Spencer's plant-based range

Marks & Spencer’s plant-based range now offers over 25 vegan products including meat-free 

Continue Reading

December 23, 2020 | By RetailME Bureau

World’s largest fully integrated online brand in fresh fish and meat e-commerce 

Continue Reading

December 14, 2020 | By RetailME Bureau
Koita

Homegrown, organic and plant milk company, Koita has announced its expansion into 

Continue Reading

December 9, 2020 | By RetailME Bureau
Middle East's vegan revolution

Today’s on-demand streaming services are ripe with docu-series and explainer videos on 

Continue Reading

December 3, 2020 | By Shruthi Nair




Download Images RetailME Magazine