Driving Retail Growth: Top 5 Myths Dispelled
Doug McMillon, the CEO of Wal-Mart, is just 47 years old. He's using that youthful vigor to begin shaking things up at the biggest of the big boxes. My favorite story about this dynamic CEO is that he ordered every top executive at Wal-Mart to read a book about Amazon.com founder Jeff Bezos.
McMillon wants his team to focus on how Bezos, while creating Amazon, studied Wal-Mart's strategies of acting fast and experimenting often. (Get it? McMillon is reclaiming the "eye of the tiger.")
The retail sector is in flux, with established players like Wal-Mart (besides studying Bezos) vowing to open smaller, more intimate stores. At certain companies, "omnichannel" is the way of the future; at other chains, it's a four-letter-word. And still other retailers are closely watching Alibaba's ballyhooed entrance into the North American market.
What to believe? What to dispel? What retail strategies will work and what should you discard? Here, I dispel the top five retail myths so that you can spend time doing what really matters: supercharging your chain's profitable growth:
Myth No. 1: It's up to brands to analyze a shopper's behavior. Knowing when to run a promotion or create a brand extension is no longer the exclusive purview of the companies that own and market brand-name goods. Only by working with retail chains to analyze point-of-sale data can brands fully realize their potential. Technology gives both enterprises a way to understand every shopping basket before it gets filled or abandoned.
Myth No. 2: The consumer is a front-office concern. Your company has invested in state-of-the-art software platforms to get a 360-degree view of the organization, so start collaborating! Institutionalize processes and leverage technology to ensure that various parts of your company work together seamlessly. This means your entire value chain is in it to help improve productivity and satisfy consumers.