For some time, conventional wisdom has characterized independent retailers as "technology laggards." Not that they are Luddites; it's just that they regarded retail technology as a major expense, especially in human capital. They often were cautious, even skeptical, about the promises of new technology being pitched to them. When the pandemics arrived, many retailers responded rapidly and smartly. In scramble mode, some crammed five years of technology adoption into five months! Now, as the lockdown restrictions recede, the conventional wisdom eagerly suggests that consumers of all ages will continue to rely on online shopping and other technology. Hmm. Let's consider that "conventional wisdom" a bit more closely.
Here are some stats from the June 22 On Tech newsletter*:
And isn't that the point? All the talk and attention is given over to whatever is new or different. You know, "newsworthy." Now, consider this almost throw-away comment by Rose Jia, Amazon's head of growth marketing, speaking at the NRF Retail Converge.**
Hmm. The shopper needs to be "educated" about the value of buying the way that Amazon wants to sell? Might that mean that it's the customers who are the "technology laggards?!" Maybe independent retailers were simply listening to their customers. Granted, the customers are seldom out on the leading edge. Like Henry Ford's comment: no customers were asking for a car; what they wanted was a faster horse. As we wait for the post-pandemic dust to settle, those who keep listening to the customer – rather than trying to "educate" them – will likely be far better served. Meanwhile, now more than ever:
Exciting times continue. --- * Shira Ovide, The Big Impact of Small Changes, On Tech newsletter, New York Times, June 22, 2021 ** Retail Brew, June 24, 2021.
Independent retailers are renowned for being "technology laggards." Those days have to end!
As you wait and worry about re-opening your stores, the state of the economy, the health and safety of your family and friends and employees, here is an idea of what you might do with some of your found time. When you do re-open, be sure that you are actually in the 21st Century! Put your energy, your resilience, and your flexibility to use, focusing on improving your IT. The goal: When you re-open, be even better than your competition! And more relevant to your shoppers.
You've no doubt seen the headlines and the commentary:
Consumer spending is up, but not on what was expected, especially those publicly-traded chains that must report quarterly.
It's a given that your sales volume is a very big deal. Granted, you are analyzing it every day. But here's a slightly different approach which you may find very revealing. Let's start with a couple truisms. The definition of retailing is “selling to the ultimate consumer.” Retailing also is having "the right product at the right price at the right place at the right time for the right customer." But, as retailers ponder how best to manage sales in the current consumer environment, does it really matter whether their "right customers" buy from them in-store or online? Actually, it might! And here’s a simple, free "pilot project" to find out a little more.
Think about the prominent characteristics of today's shopping experience:
Hmm.
Amidst the fog of uncertainty of 2020, retailers have experienced a breath-taking acceleration of time, as an array of new-to-retailers technologies have now become almost commonplace. 2020 has put an end to the days of retailers being technology laggards. We applaud the resilience and adaptability of retailers who did embrace change and especially technology during 2020. Retailers definitely rose to the occasion! And yet, again, the virus is surging. Even as promising announcements are made about vaccines, the threat that COVID-19 continues to pose to the survival of local businesses is ominous, and substantial. We agree! This is so not fair! But, who is up to that challenge? Independent retailers who are merchants supreme.
Throughout the pandemics, many independent retailers successfully shed their "technology laggards" label, as they pivoted to embrace an array of digital tools. Yet going forward, it is well to keep in mind what really matters to the customers. And it may not be more technology. A recent survey* of more than 2,000 customers provides some interesting insights as to who shops where, why, when and how. It especially highlighted the differences between "large stores" and "smaller stores" (or as we view them, "specialty stores.")
Hmm. This suggests to us that shoppers essentially are treating large stores the same way they treat the internet:
Incredible value! 👀
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