Interesting perspectives on some recent retailer failures such as Dick Smith, ABC shops and National Geographic - the causes of retail business failures are not completely attributable to online competition, but are often factors that businesses can control.
Having a clear strategy, and continually re-visiting it to keep it sharp, is the key to remaining relevant to your market and prolonged success.
Interestingly, the future of these retailers was not stunted by the rise in online retail. Nor was it the result of retail globalisation. Rather, the fate of these retailers was entirely within the owners control, and this is where they came asunder. Here are some more commonalities to consider about the three retailers mentioned above: – Expanded too quickly. – Didn’t reinvent themselves in a relevant way to brand, offer and product suite. – Didn’t foresee marketplace trends. – Lost their key retail differentiation. – Used old approaches to new ways of competitive thinking. – Tried to be all things to all people. – Cost down focus as distinct from investment focus. – Lower emphasis on innovation. – Brand attributes diluted and dismantled. – Increasingly expensive rental and wage overheads in prime locations.