Optimizing the In-Store Experience
Description
In today’s ultracompetitive environment, retailers can no longer afford to compete on price alone. Mass merchants have cut margins to the bone through unmatched efficiency and masterful execution. And some—most notably Wal-Mart—continue to grow their market share by using their low-margin grocery business to increase store traffic and boost higher-margin general-merchandise sales.
Moreover, product quality as a whole has increased at lower price points, and merchandising and product assortments at the big-box stores are getting better. Although retailers must still offer competitive prices, “low price” as a leading strategy can no longer lead to long-term business success.
Fortunately, numerous studies have shown that consumers today are looking for much more than low prices...
To successfully compete in a “Wal-Mart world,” retailers must capitalize on the discounters’ weaknesses. And in an environment where, on average, 70% or more of actual buying decisions are made only after the customer is inside the store2, retailers must place a stronger focus on creating a pleasant and memorable shopping experience.
What follows is an executive perspective on three strategic imperatives that enable the level of execution necessary for an optimized in-store experience...