THE TREMENDOUS BOOM OF THE DIGITAL WORLD PLAYERS,..OR THE NEXT ECONOMIC BUBBLE?

Or how leading digital players make business, without making profit..?

By analyzing the major online retailers,..almost all have something in common...they haven tremendous increasing sales figures every year...but do not have... or make profit!

It seems to be part of a mystery, to know the real profits of above companies. 

If they have any profits???

By reading the comments of Coolblue..."that they make many millions of profit last year,..but due to strategic company decisions, it is a secret", by looking to Amazon, being in business for over 20 years, still not making money or Zalando, after 6 years of operating, achieving his first annual group profit in 2014, by mainly reducing its sales and marketing costs in order to obtain above positve results, it is creating a lot of doubts about above...

As independant retailer, for over more than 25 years, I always thought that basic business rules and the end results (profits) are the key and the target, as company to achieve.  .

That controled growing, always went together with strong clear company results. 
In order to achieve investment capital, a healthy business plan was needed..and that you could be proud, to announce every quarter year, your positive company results.

I would like to tell you the story of the "BREAD WAR" in Valencia, Spain. 

About 4 years ago, a local business man, decided to reinvent the bakery market, selling French bread at 20 euro cents, instead of the 1.20 euro. It started as a tremendous success,  He opened sudenly 5 bakeries, selling more than 15.000 pieces a day,..he had more than 150 people working for him. There were long waiting lines, to buy his cheap bread.

By using an aggressive low price expansion plan, killing local traditional competitors, he created a local revolution and lots of enemies.  
Unfortunately, due to his too fast expansion (in order to obtain the necessary volumes), his very low margins and the lack of fresh capital, in order to maintain his increasing production capacity, made him very fragil, for any 'out of control' situation.
Last month, he went bankrupt..leaving tremendous debts.

Above story, makes it clear, that a strategy, based on rapid expansion and low pricing, in order to penetrate and kill your competitors, is not the best and very difficult to maintain on a long term.   
It is amazing to see, that above online retailers, are able to continue to receive the back-up of investors, putting their trust into above companies, without receiving any profits. (after so many years)

Listening to the strategy of Amazon...

,... "they are not into short-term profits", nor "into short term profitability"..it is "all about growing and evolving" and "profits will come later"...

we could ask, for how long, his investors, still will have the patience, to wait for some return.

                    Are we not facing a kind of collective internet trance?

By analyzing the evolution and growth of above companies, we can see varios common points:

- They all started their activities as online retailer, many years ago. It was a virgin market,..

   easy to control,..as there were no other key players. 

- They all made a very rapid expansion. 

- They dont make real profits (comparing with their masive turn-over)

- They are all very secret about their real company results.

- They all started with the idea, eliminating the traditional retailer, delivery right

   at your home, but end up opening physical stores or showrooms, in order to give

   a better service.

- They are heavely investing in worldwide property owned logistic facilities.

- They all started with some small specific owned  productgroup, ending up, being

   a global platform for other brands to sell and or distribute their products.

As we can see, they all benefit of a kind of worldwide internet trance, where everything in 
the future is and will be focussed on digital retailing. Like there will not be any other form of retailing.
A kind of blind trust, to follow above companies and their strategies.

However, when a company does not have real results or any clear profits, 
after so many years, can we not talk about a speculative bubble?

Are they not.....

"Creating a super fast continuously growing project, with tremendous sales figures, covered and misusing this especific worldwide internet mood?"

A kind of internet bubble, a kind of  unusual very prolonged expansion, without any clear profit results.  Selling a project or business, using above mood, convincing investors to follow them untill the land of nowhere?

Lets called it speculacion.

Are we not just talking about future "Overvalued" logistic platforms, offering all kind of products around the world. (not even cheaper than classical retailers)

When they started, they were benefiting of a new unkown situation, which they were controlling. Internet was relatively new. Their competitors were the traditional retailers, not at all prepared for this digital change. 

It was quiet easy. 

"Offering the lowest prices of the market, 24hours, at your home,...backed up with a unlimited creditline."

With the time, they started realizing that above traditional retailers also got informed about internet, that digital retailing is more that just placing products on a website, that you still need physical salespoints, that you need a logistic system in order to serve above, that you can not continuously sell at the lowest price, earning almost nothing and hoping to maintain selling high volumes, that maybe, in order to earn real money, you need also proper products. (some or suddenly launching proper brands)

They tried to replace the global traditional retailer, offering a complete service but were faced, more and more with the reality of retailing. 

You, always, will need physical retail points, a well organized distribution system and a human team.
Offering this services have a cost, you still have to cover.

Today, all mayor traditional retailers have adapted or urging themselve to switch towards this new digital market, having the advantage of the experience of their product segement, possessing physical stores, a well controled distribution systems and a well trained team.

By implementing the latest digital technology, combining with the "savoir faire" and the tremendous experience they possess, they most probably will place above digital platforms on a 2nd plan.

At the end..they are the real retailers.

THUNDERSTORM IN RETAIL LAND.

Or how retailers are been shaken up....

Macy's, Tesco, Vroom & Dreesman, Brantano, Gap,...etc..just some of a large list of retailers suffering in a fast changing retail world.. Some have already failed,..others try to survive,   reorganizing and cutting down the heavy existing cost structures, by closing stores, changing their complete strategy, focusing and our copying some of the more succesfull competitors. 
Often too late.

Being retailer today, is not anymore, how it was yesterday....yes, only yesterday....
In a fast moving consumer market,...where consumers are evoluting much faster than retailers can follow, it is more than important as retailer, completly control the off and online business. 

By analysing the main problems of some of the above retailers, we can detect some very common errors.

- Very boring physical store experiences for the consumer.

- Outdated products groups and business models 

- Too seasonal depending sales situations. (today, a retailer can not depend anymore on a 

   warm winter  or cold summer situation)

- Unmotivated sales teams and a lack of a "culture" mentality in the company.

- The non-existance of a properly owned omnichannel structure.

- Too heavy management estructures, with long time decisions delays.

- Too heavy company cost estructures and very high rental prices.

- Too many venture capital investments situations, losing the real core essential 
   of the purpose of the business.

- The complete lack of a value added, ..."we are different" concept, and most of the time, 
   just focusing on a more continuous "low price" discounter concept image.

It is clear, that due to, the tremendous switch to the digital area, where people are almost 24 hours connected to the mobile or other digital application, (just took the train this morning, and almost everybody was mobiling), the increasing power of some of the world leading e-commerce players like Amazon, Alibaba,...etc..(.which have managed to control all major retail flows and putting the new rules), retailers have to act immediatly by:

- Start integrating the "off and online business" as a company philosophy, 
  tuning both as complementary and vital for the future of your business.

- Leaving the endless "discount" concept philosphy (there will always be one cheaper), 
  moving towards a more innovating and a new "must have" product group.

  Lets  call it "differentiating". Creating an "appealing assortement" by having 
  the right product on the right time.

- Understand your consumer, by using the tremendous internet, smart phone, etc...tools,
  in order to detect, listen and react to your consumer interest and sentiments.

- Getting the pricing right. Today, consumers are more price-aware than ever, 
  comparing prices off and online continuously. 
  There are no secrets anymore, as all market prices are visible and trackable.  
  Immediate actioning is requiered.  

- Controlling your stock levels, by not depending on too seasonal sales behaviours, 
  using a  flexible retail and mechandising planning, controling your main production.
  Using small collections with a fast leadtime, adapted to the lates market trends
  and needs... (one of the best examplas of above is the "quick market" response
  of the Inditex group).

- Controlling your retail rental prices. Often, due to excessive rental prices
  for prime locations, retailers often put themselves into financial problems.  
  A "flagship" can be nice,...but it could be letal for your company too..

As you can see,..above, are just some of the ways to implement in your retail organization, in order to to be prepared and affront major changes in retail land.
However, altough we are confronted lately, with this digital retailing, we should never forget that it is and always will be complementary. (representing often a 5% to 10% of your regular physical sales figures)
We should not forget the importance of the employees, who are the people who connect in between the company and the consumer.  Even online,..they make the difference. 
It is more than needed,.a super motivated team on all llevels of the company, who knows to manage all retail tools and understand the reason to use them, in order to give the best service to their consumers.

At the end, buy using the words of a top shoe retailer in the Netherlands, retailers have to put the focus on the consumer, instead of on the technology.  This technology is very important but it is no more, than a a very helpfull unmissable tool, to make it the easier for the client, to buy your product and to interact on all levels.

People still make the difference.

WE ARE BACK...

                                                                               

Dear readers,

After taking a sabbatical year,
picking up lots of new ideas,
we are back on track,
preparing some nice articles for the blog.
Happy 2016.
So, stay tune.

Thanks.
Leo                                                                            

2015, A NEW START,..OR HOW GETTING YOURSELF MOTIVATED...

2015...A NEW START!

Each year, in january, we are full of energy, ready to forget the previous year, starting with a lot of new and good intentions, plans and projects.  Often, during the occurring of the year, we are losing again our track and are falling often into our typical habits.
Making good intentions is one thing, realizing them is often something different.
In order to maintain above,..here we give you some tips to stay focused with plenty of energy on your real 'New Years' targets.





* SET UP TARGETS: 

As in every company, you need to know where you want to go.  Define general targets for yourself and for your company, write them down. It will be your guide to help you to obtain want you want in your life.  Be careful, stay flexible and be ready to adapt yourself, when it is needed. Be not afraid, to put your targets on a regularly higher level.

*CONTROL YOUR MIND:

A positive mind and thoughts is always more helpful in what ever you undertake.  Avoid negative thoughts. Often when you have a bad day,..it helps to relax and to convince yourself that 'the day after' it will be different. ..And most often..it is like this.

*STAY HEALTHY:

A healthy body is a healthy mind. You can only think clear and take good decisions, when you feel good in your body and automatically in you mind.  Take time,..to take care of yourself,..do some sports exercises..  Your health will take care of you and give you the energy to succeed. A healthy person reflects a healthy business.

*THINK BEFORE YOU SPEAK:

Often, we talk to fast. We talk, before we think.  Can we listen?..Try to control your voice, starting to listen first,..it will help you, to avoid a lot of misunderstandings.  People will feel comfortable with you and you will become clever.

*LEARN FROM YOUR MISTAKES:

If you can listen, you often will understand better and learn from your mistakes.  Nobody is perfect.  Accepting your mistakes, reenforces you as person.

*AVOID NEGATIVE PEOPLE AND SURROUND YOURSELF WITH THE MOTIVATED CROWD:

Negative people are waisting your time. Motivated people give you energy and a guideline to follow their way of success.

*DO NOT BE A PERFECTIONIST:

If you try to be too perfect, you wast your time in details and less important things. You start worrying about everything and automatically not advancing. Just do it. (even if it is not a 100%)

*KEEP YOURSELF RESPONSIBLE FOR YOUR RESULTS:

As in everything, only you are responsible for your decisions, the way you want to go, what you want to do with your life. How and where, you want to lead your company. Nor 'being lucky' or 'God' are the reasons of your well being.

*BROADEN YOUR HORIZONS:

The best way to advance, is try new things,..or things a different way.  It will widen your knowledge, broaden your mind and make your life much more exiting. Avoid passivity, because it will lead to failure.

*RELATIVIZE SUCCES:

Often when you had a success, you become complacent. Even after this success,..you have to keep and or find the same ambitious to achieve a new or better target.  Be carefully, without loosing your roots and the position from where your started.

As you can seen, above very simple tips will help you, to maintain your good intentions and a kind of guideline, to questionize yourself during 2015.

Have a fantastic 2015!

SEASONS GREETINGS.

A MERRY CHRISTMAS AND A VERY HAPPY NEW YEAR FOR YOU AND YOUR FAMILY.

 

WHY SOME RETAILERS HAVE SUCCESS AND OTHERS....OR LETS CALLED 'THE ART OF BEING CHOSEN'

Probably one of the best books about in-debt retail behavior and a must, to understand why customers choose one retailer over another.
Martin Butler, a more than experienced retailer, marketeer and writer has shown with above, some key points to understand the success of some of the key international retail players.

Remarkable...

.....THEY ARE BEING CHOSEN....



A 2 years worldwide retail study, interviewing retailers around the world, asking all..'what was the most important key to obtain above positive result', Martin Butler came to some important conclusions.  Successful retailers have a company mindset of being chosen and are.....

BEING DIFFERENT

Being different is the key to 'stand out of the crowd'. Being different can be in your complete marketing mix offering a unique product, concept or service and a way to be successful. 
Often, being different, are outstanding details. (not always big differences...)





BEING TRUSTED

Trust in a company can come from customers previous experiences with your company, but also  its behavior towards the society in general. A proud and loyal employee reflects trust,...a correct and honest marketing and price policy,...
Being trusted is an action you control. It is a like longterm relation.  Something you build up.  Todays social media is a vital way to distribute above trust. 
Being trusted is something you have to earn. Trust is the way, the people, perceive your company.

VISIONARY THINKING AND CREATING IDEAS

Visionary thinking is the art of looking in front, without seeing the sky. 
Thinking, imagining, creating ideas, visions and projects who one day... will be reality.
Apple would be nothing with the visions and illusions of Steve Jobs.
Often, visions are simple and can be find around the corner. They are the key, consumers choose them.


SHOW THE STAFF HOW THEY APPRECIATE THE JOB DONE

A key to your company success is the appreciation from and towards your staff.  Knowing how and when, to motivate and appreciate, for the work done, opens the door to self motivated staff members, reflecting the trust and satisfaction, as a red line through out your business.
A motivated staff member is a happy and satisfied client.



What have above successful companies en common!

The key of success and challenge start in the mind...lets called it 'THE SUCCESS MINDSET'.

It is all about broadening your imagination. That what, we really believe, most often comes reality. Not be afraid to think bigger, even if we have fear, doubt or compare it with other peoples previous failures or situations. 
Some key factors are needed to succeed.

1. PASSION 

You just have to love what you do.  If you don't enjoy your job, product or service, how can you convince somebody else, to love it and at the end to buy it.  Passion is the thing you could talk about for hours, what you find easy,...what you really want to do....there is no time limit...So,..never go into a business or career, you don't really love! (should be a key definition and a standard question to all young people, BEFORE electing there future study orientation.  
'WHAT DO YOU REALLY LIKE TO DO,...WHAT IS YOUR PASSION'


2. TOTALY SERVICE ORIENTED

The key to success, especially in retail is good service and the base to build up trust and a longtime relationship with your customers.  All todays successful retail companies started small and managed to convince their consumers about their good intentions. The 'good service' principle is the key angle of their business.
Just apply 'personal excellence' to everything as a standard rule.


3. LEARN FROM THE MISTAKES

If you are afraid of making mistakes, your are paralyzed.  Making mistakes is human and the only way to learn and to do it better next time.
All mayor inventors have tried a lot of times, before getting the right result. All mayor retailers have made a lot of mistakes, but have learned to adapt them on time, on the different market situations.

4. GO STEP BY STEP

The key to success is going 'STEP BY STEP'.  About building a successful, profitable and sustainable business.  Often, growing fast is the beginning of the end.  Going step by step, is keeping control on your situation (mainly financially, as often it is the reason why companies lose control about there actions and own decisions)

By analyzing all successful retailers, you will find common points in all.  They had a dream, a lot of passion, made clear goals, supported by a clear action plan and a super motivated staff.  They are persistent and maintain the focus on what they do de best.  They are never ignorant, always open to learn, recharge and know how to adapt themselves. 

'They just invest continuously, to become better in all ways.'

NEW YORK...PROBABLY FIRST PHYSICAL AMAZON STORE CITY.

NEW YORK GET THE FIRST PHYSICAL AMAZON STORE. 

As already informed in our previous posts, Amazon has plans to open its first physical store in Manhattan, close to the famous Macy's.  This kind of showroom, warehouse facility will offer, its, mainly own high tech products like Kindle e-readers, tablets, smart phones,..next to some key other branded products of the Amazon catalog. .(the ones we like to see, try and touch before buying them), offering a 24hours quick delivery same day service.  The store would also function as a pickup and product return  base for the internet orders.

The main idea is getting more detail feedback on its products from the consumers, responding at the same time to a quiet big part of consumers, who buy still more emotional. (like to see and touch, before buying)

Considered as a test case, according to the results,..several similar sales points are planned.

Where Amazon, have shaken up completely, the classical retail market, offering lower prices, buying online, downgrading the physical store to merely, a showroom. (as clients try the product in the store but buy it online), today we see a swift towards a needed physical presence in the market.  Today,  most physical existing retailers have adapted there strategy and offer at the same time a sales point (with well prepared sales staff and good personal service) and the facilities to buy at home through there own website. (but never forgetting there core business strategy,..the physical retailing).
As already mentioned before,...they are fare more ahead ....than Amazon.

The 'Pixmania' experience and failure in Europe, has shown, that selling online, at much lower prices than your physical competitors, having at the same time, a kind of store, showroom in a quiet expensive A1 location,...is not profitable and most of the time fatal for above strategy and or company. The obtained retail margins (due to the selling at very low prices and the tremendous extra costs of the 'return goods' service) does not allow any mayor costs.

Often, the consumer gets confused and you will perceived, as neither good at both.  As always, it is important to stick to what you know the best.
  
At the end you always win, when you do, what you know.

HOW TRADITIONAL RETAILERS CAN COPE WITH THE UPCOMING ONLINE COMPETITORS BOOM.

OR HOW CONSUMERS ARE USING ALL CHANNELS TO OBTAIN THE BEST DEALS.















In a todays international retail world, where online business is de talk of the town, offering the most growing double digits and fasted future perspectives for your possible retail expansion plans, where we get drunk from the tremendous expansion hunger of the Amazon, Alibaba, Zalando,Vente Privee, etc...selling in one day (the famous Black Friday or Cyber Monday sales) more than the year turn-over of an average street retailer, we are forced to jump on the online fast train, in order to be with the leaders of the crowd.

Suddenly, the traditional retailers are old fashion and the most interesting growing area is the above online business, forgetting often the values of quality and service.   Or lets call it VALUE FOR MONEY.
So... lets focus on online and forget our current retail business......or...maybe...not???

HOWEVER, BELIEVE ME,..TODAY,..PHYSICAL RETAILERS HAVE THE BEST FUTURE!

Let me explain you...with an example.

Last month, we bought our ink for company printer, for the 2nd time with Amazon, as we until that time, were quiet satisfied with the delivery time and selling price.  Where the normal delivery day would be 3 to 4 days (depending the delivery choice you can make,..so faster..more expensive..), this time,we had to wait more than 14 days.  After trying to find out(various calls and emails), what was happening to our ink, we were informed that we actually, had bought a sub brand, through a sub supplier of Amazon and that above supplier is fully responsible for the delivery and that Amazon, can not do anything.  We had to deal the problem with the sub supplier. We did, however order and pay in advance to Amazon and had no idea or knowledge of the other sub supplier. After one week, of calling and emailing, (we were send from one to another, without knowing exactly, when we would receive our so needed ink). we decided to cancel the order and return to our specialized ink retailer with a physical store around the corner, who delivered us in only one day, the missing ink. 

Obviously, this is only an example, but what I like to show you here, is some of the current and future problems of the big online retailers.  Once you understand their organization problems, you, as physical retailer will be able to adapt yourself, offering quick answers and solutions, where above often are failing.  By implementing all multi channel tools, you will able to be more competitive than the major online international retailers.

Why?

Mayor international online companies, have based there huge aggressive expansion plans, on being the first on the market, opening markets worldwide, forgetting often the logistic problematic and needs of each market.  Most of above companies, are investing tremendous amounts of money to be operative, supporting heavy losses for the coming years.  (so..no clear profit previsions)

In order to be competitive...and be able to offer lower prices,...they are forced to have a lot of products in stock, expensive distribution centers around the globe, paying low salaries and offering pessimistic working conditions (ex. lately in Germany) in order to lower the overhead costs to its minimum. (with as result, a often horrible service)  They are in front o a big duality, as, when they start working with sub suppliers, often depending on the un-controlled delivery delays and existing service capacity of above. (you can have the best intentions.., but when the rest does not follow, your whole system is able to collapse).

The huge online return policies, (en case of Zalando, more than 50% of some of the product groups are returned), is forcing above online retailers into heavy extra costs.  

Also, the recently collapse on the deliveries (UPS), where the delivery company, with the lowest price offer gets the order, but unable to offer good service, as agreed.
The recent urgent need of physical sales points (Amazon is planning to open various, around the globe, in order to show there mainly more technical products and Zalando has planned to open it outlet stores in some major European capitals) or the so called 'showrooms, shows the need of the consumers towards something physical, real and secure.
By analyzing the online business, often we enter in circle of the  'the lowest price business' and probably, one of the biggest mistakes of many of the existing current online giants today.  You will always find somebody more cheaper....and to obtain the lowest price,...everything has to follow and be adapted, to, exactly obtain this price policy. (even if you have to cut into service, quality,...or people management)

Final,...do we really know, if above companies are profitable,..as most of the time, they are not very keen in informing about there operations costs and eventual profit margins.

Today the consumer is looking for ' VALUE FOR MONEY'.  Although low price is the main drive of customer to buy, finally, they value quality, service and innovative brands, before taking the final decision and here, the traditional retailer has a big opportunity ahead.

By implementing a multi channel retailing, you will be able to offer your customers a wide range of ways to inform, purchase, return policy,.. or just offering the best pre or post sale service.  This can be through your store, website, by phone (app), mail our home catalogue.

*Your store is the base and reference for your consumer. It will provide security and trust and a kind of repeated customer behavior.   Everybody still prefers to shop in a physical store.
*Your website is a tool, to distribute your products around the globe.  To inform, to sell, to handle and to show your image or what you have today or in the near future to offer. A way to attract the consumers to your store.
*Your catalogue or leaflet is your face and a way to be looked at the home of your client, the latest offers, creating a permanent interest for your products.  A tool to attract consumers. A leaflet, to take home, in order to remember your store or products.  We always we like to look into a leaflet. 
*The mobile (app) and use of digital marketing is a way, to reach your consumer permanently,where ever they are, in order to inform and guide them to your store.
*'Click and Collect' will permit your clients, visit, inform and order from their  home, office, etc... and pick up the goods at one of your physical sales points.

Just have a look and click on enclosed very interesting video, of one of the leading European retailers, in order to understand the importance of cross channel retailing.

CROSS CHANNEL RETAILING







As you can see, by adapting your retail business according to the latest trends, using a multi channel policy, you will be able to compete with the mainly online focused business and competitors.  As retailer with physical sales points, you have the tremendous advantage of using your existing retail network, combining it with all other possible channels, in order to satisfy your consumers and increase automatically your business turnover.
Your current retail position is far more easier than you think and you are miles ahead of some of the major online companies, as you control and own your sales and distribution channels and you possess the long lifetime trust of your clients.  At the end, they know who you are....you are local player.

...SO JUST BECOME AN OTHER EXPERT IN THE REST!

GOOD LUCK.

Latest...
Amazon is planning to offer a cooperation with local retailers, in order to plan a 'Pick up' and 'Post Sales' (clients can return back the goods through above) network. This way, they hope to find a easier way to distribute their products and solve their post sales problems. Amazing how some internet companies, first have tried and trying to kill local physical retailers, with a heavy low price policy and now try to look for a cooperation with the same retailers, to solve their logistic problems.  (probably also offering a very low cost fee...for the work done....)

SEASONS GREETINGS.

We wish you and your family a Merry Christmas and a very Happy New Year.

 

BACK TO THE ROOTS,..OR HOW RETAILERS ARE REINVENTING THE TRADITIONAL RETAILING.

BACK TO THE ROOTS.

How retailers are getting back to the traditional retailing, to reinvent their staggering retail concepts.

What does Carrefour, Tesco, Lidl, Mercadona, etc...have in common, to have been changing drastically there existing boring basic discounter retail concepts into a kind of new lifestyle experience.  Today, the hiper and supermarkets are presenting a new brand business model, using the old traditional ways of retailing, maintaining strong competitive price levels.
Last week, the big boss of Mercadona, a leading food retailer in Spain, admitted openly his failed marketing strategy of dropping a few years ago the fresh food concept and announced the immediate creating and formation of 21.000 professional shopkeepers. (like the you can find them in the little neighborhood stores,..the real specialized retailer....)
In the meantime, Lidl is leaving aside, its pure pallet image, by offering more branded products, better presented and showing tendencies of a real convenience store, offering daily fresh, in the store made bread and even in some cases, a coffee station, (offering, to take away hot drinks) or fresh seafood.

By reorganizing the store concept into various attractive 'boutique' areas, like a food court (where all food products, like fish, meat, bakery and grocery are presented and made on a very artisanal tradition), fashion corner (all items are well presented, like the way you can only find them into a high end fashion store) or the multimedia products presented in a high tech environment and managed by specialized trained staff.

The key is specializing and bringing a new buying experience, by offering a good service, wide range of products, fresh and in front prepared foods,...in house courses and or product presentations.  The whole, presented in a clear visual easy to understand attractive animated and well presented concept.
Shopping becomes again a unique experience, it has to be easy, comfortable,....
So more appealing stores are needed...

Have a look to the interesting opinions of the consumers (what drives them..) after visiting the new 'Tesco' store concept....

It is clear that few businesses will survive, staying sticked with their existing business format.  As consumer tastes, wants and needs are changing rapidly, each retailer has to adapt them to the new trends.
Where in the late 2005 / 2006...the key business slogan was standardize and in advanced prepared products, in order to reduce costs and create a easy high rotation of products and sales, today we go back to the good old school where 'Small is again Beautiful'.

The economical difficult situation (less income, so less buying power), the new forms of family (more and more single living persons, an increasing senior population, more fast food and already prepared meals) and changes in buying habits, have forced the retailers in offering small quantity product offers and more competitive prices.  (today your local supermarket is full of 1€ pack offers and today you can easily buy just one piece of fruit from the vegetable stand or just two slices of you favorite cheese in the cheese section).
By having smaller quantity of products, prices looks more interesting for the consumer.  (however not always more cheaper than bulk packs, where you get more value for your money).
The recent confession of Tesco, that it has generated more than 30.000 tones of food waste in the first 6 months of 2013, has created an strong reaction and motivation for retailers to push strongly into above small quantity product policy.  (so more benefit, less waste...)

By combining above new product and pricing policy, offering a more personal shopping experience into their store spaces, creating a kind traditional local market atmosphere, above retailers hope to turn there staggering sales turnovers, competing again with the local small retailer.
As mentioned already in my previos posts on 'small retailers' and the 'empty shopping street' problem, the key of success and survival is specializing and being different.


Just have a look to some of the above concepts like Carrefour and Tesco....and the motives for their changes.

Not only food retailers are getting back to the traditional roots of retailing.  Above strategy is implemented  in a wide range of concepts around the world.

Just have a look, how they changed a classical garden center in Alberta, Canada..to the 'The Enjoy Center', where the garden center and greenhouse are the anchor, completing it with a central market place, with a home decoration and kitchen store, a deli with local food specialities, a wine store, a spa and even a restaurant.
The marketplace is mainly used to present events, product presentations and or trainings and has become the principal public attraction and a motor for selling its products.
Like its name,...you come to enjoy...

Just have a visit...at this amazing concept.

http://www.enjoycentre.ca/

Today, by analyzing above movements of key world retail players, reinventing the past, we can only confirm that the concept of the local small neighborhood retailer is fashion, hot and back.
Maybe they never have gone...

Above operators can reinvent, copy and create an perfect atmosphere or store concept,...but the major challenge will be definitely, the creating of a high level competitive retail 'detail' sales staff, like you often can find them, in your small neighborhood store.