An introduction to Total Retail

Retail is going through unprecedented change with rising ecommerce and increasingly digitally savvy consumers. Retailers are struggling to keep up with consumers and hold costs down. The successful retailers have created a customer focused business structure that operates at a lower cost with greater agility.

Listen to Matthew Tod talk about what’s critical to a retailer’s survival and future success

 

View transcript

Retailers are going through a period of record change, with rising e-commerce, against low growth and increasingly digitally savvy consumers.

Which means they’re struggling to keep up with the demands and behaviours of the consumers who want to have a seamless shopping experience and move between channels as and when it suits them.

The majority of retailers have adapted by implementing a multi-channel strategy resulting in a siloed organisation. This effectively duplicates functions and therefore cost. And with too many channels, the consumer can get an inconsistent shopping experience which impacts the retail brand and therefore growth.

So, what is the solution? How can retailers move away from increasing costs and deliver the perfect shopping experience to their customers? It’s by moving to a single, focused organisation that puts customers, not its channels at the centre. We call it “Total Retail.” This can be achieved by creating a customer focused business structure that operates at a lower cost with greater agility. It does mean significant change to the business strategy and the operating model

As the retail world is constantly evolving, a total retailer will have a better ability to respond to changes in consumer behaviour and will be able to adapt in the digital world.

We believe this change is critical to a retailer’s survival and to future success.

The changing business model for retail

Retail is evolving. It is moving away from the focus on bricks and mortar of the pre 1990’s, characterised by a product centric transactional experience. The dotcom boom revolutionised online shopping in the naughty’s. Now the successful retailer has adopted Total Retail which is customer centric and which interacts with consumers.