2012 100 - Networld Media Group

Retail sales are expected to grow about
10 percent in 2012, a slightly optimistic
uptick from the 8 percent expected in
2011. One unpredictable factor that
might lower 2012 sales is the sovereign
debt crisis in Europe, which could keep
markets volatile and consumers concerned
about the future. Still, a reliable
disconnect between consumer confidence
and actual spending bodes well
for retailers. Sales began to climb in
October 2011, due in large part to a 3.7
percent jump in electronics sales (the
largest monthly increase in two years)
even as confidence fell to its lowest level
since 2009.
If the euro crisis spins out of control,
fear of a new credit crunch may deter
spending by business owners. Another
factor that could lower next year’s forecast
is slower-than-expected growth
of personal income, which hasn’t been
keeping up with the rise in retail sales.
If lower wages and high unemployment
persist during the second half of
the year, expect retail sales growth to
slow even further.
Retailers have the power to drive
growth, though. Noting that new economic
realities have resulted in a new
order of buyers who are more priceconscious
and careful about the purchases
they make, Deloitte LLP Vice
Chairman Alison Paul believes that
delivering compelling in-store experiences
could drive profitable growth for
retailers in 2012.
5
MULTICHANNEL INTEGRATION
It no longer matters, really, whether the customer is always right. The customer is in
charge. He decides when, where, and how he will interact with the retail landscape
through whatever channel, device, or touchpoint he wants. Such an environment
has made multichannel, by default, the new standard operating model for retail.
While it can be argued that mobile devices and multichannel commerce have made
it easier than ever for retailers to reach customers, they have also made it easier to
lose them. Retailers will need to use a combination of channels to attract and convert
consumers going forward, says e-commerce and multichannel consultant Kees
De Vos, “rather than focusing on channel-centric approaches. Companies relying
on selling goods and services to their end-customers have to recast their operational
and technical infrastructures to compete or even survive in the years to come.”
Best Buy CEO Brian Dunn, for example, is committed to making the chain’s physical
presence “more reflective of all the possibilities that are available to customers
today.” That means creating a web of experiences around the customer in all the different
channels in which he operates. “Customers don’t think, ‘I’m going to behave
in a multichannel fashion today,’” he notes. “They say, ‘I’m gonna go online and
check it out, I’m gonna call and check it out, I’m gonna stop by and visit the store.’”
Early multichannel adopters are now thoroughly vindicated and firmly in the driver’s
seat. Indeed, multichannel has been so roundly embraced that some, such as
blogger and principal analyst at Forrester Research Brian Walker, argue that multichannel
is already passé. “Customers no longer interact with companies from a
channel perspective,” he says. Customers now interact through touchpoints that include
not only channels such as “stores, branches, call centers and websites, but also
emerging interactions, including apps, social media, mobile sites, SMS messages
and interactive advertising across smartphones, tablets, cars and even appliances.”
“It is time for organizations to leave their channel-oriented ways behind,” he says,
“and enter the era of agile commerce.”
7