Friday 4 May 2012

Retailing Used to be “Location, location, location”

Apple is said to be worth $600 billion and exceeds the entire stock market value of Spain, Greece and Portugal combined. It exemplifies the move from agriculture through the industrial revolution to today’s information economy and that has significant relevance for retailing.
Many of last centuries movers and shakers in retailing owned huge property portfolios and attempted to secure dominance positioning themselves across the suburban landscape. But retailers like the famous US stalwart Sears and Walmart are now stagnating. Yet Amazon, who own no land or buildings, has quadrupled its business in the last 5 years by applying an information strategy and, through computers, reaching more customers than could ever be hoped with physical stores.
In 2012 (and beyond) it will all be about meeting your customers needs whatever they want, wherever they are, and wherever you are. If you are relying on all your customers to physically come to you for business you could be waiting for some time (or until your bank account runs out). If you allow them to access you through the information system, you may survive this retailing revolution.