![]() ![]() You've also got to have strong logistics, allowing customers to get what they want quicker. If they have a bad experience online, they'll only shop the store when desperate. Most customers browse online first, even if they intend to buy in person. I think it does change the strategy, though, and retailers with brick and mortar and online have to really step up their game to make the shopping experience seamless. A lot of the online only retailers, once you dig into their financials, aren't quite in the black. That's what allows them to do crazy things like two day shipping for a $5 item. Huge revenue, sure, but Amazon makes their money on cloud services. Online stores aren't as large a percentage of total business as you would think, and they're normally not that profitable. Not OP, but a former JCP corporate employee. Plus make up, accessories, shoes, etc.ĭo you think Amazon and other e-commerce businesses killed brick and mortar stores? But once you get her inside the store, she will also buy stuff in store for her kids, husband and house. It's one reason JCP is investing so heavily in special sizes, which is a growing segment and a marginalized customer who had been trained to buy online. Especially in women's apparel, where sizing is so inconsistent, customers still want to buy in store. Apparel is Amazon's fastest growing category, but it's still a minuscule part of their business. Brick and mortar stores have to play in that space to compete, but they also have to figure out a way to keep customers coming inside. Huge revenue, but their profit comes elsewhere. The tricky part is that online sales aren't profitable - even Amazon doesn't make a profit on their sales. Have there been plans to work on online shopping, or do all the big stores just seem to be holding onto the cliff until Amazon finally steps on their fingers?Įvery retailer is investing in online. :( My main problem with retail stores is the obvious: I can usually find it cheaper and in a better style on Amazon. It's not as many old ladies as many would guess. Attract the new customer, sure, but don't throw away the existing, especially the ones who are in the target demographic. And then I remembered I'm not the target customer at all, and realized they were totally effed. ![]() After I left corporate the first time and went to work for another retailer, I remember going into a newly remodeled store and thought it was fabulous. He actually had some amazing ideas and the store experience was stronger, but not testing and going after the aspirational customer was killer. He also killed some very successful private label brands like St. He should have tested the pricing strategy - most people say they want a straightforward price, but when it comes to shopping, that customer prefers to play the coupon shopping game. (): Former corporate employee here: he had a ton of amazing ideas, but forgot about the core customer. What do you think was the reason he failed so rapidly at JCP? (): I worked under Ron Johnson in Apple retail during their massive success of Apple retail stores, and then he left to head up JCP. ![]()
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