Positioning the store of the future
In order to build the store of the future, it is critical for retailers to address the urgent need to reinvent the physical store.
According to Planet Retail, one of the key capabilities to accomplish this is store positioning – delivering more value, better experiences and reasonable operating profits.
While each capability is vitally important, in this article we will focus exclusively on store positioning.
The eight strategic store positioning’s
The combination of managing the cost base while offering differentiation, determines a retailer’s place in one of the eight defined positioning’s.
This positioning then informs key capabilities required such as; digital integration, experiential retail, merchandise fundamentals, rethink front of store and new measures of success.
Differentiation should be the backbone of your competitive position
The physical shopping experience has become an important differentiating factor in retail and
retailers should begin by embracing their core differentiation, investing in initiatives that complement or build on their existing strengths and thereby positioning themselves as a home of brands, products and experiences.
Lowering costs with store of the future initiatives
While new cost-cutting initiatives don’t necessarily translate to lower prices for consumers, retailers may need to consider this to remain competitive and sustainable.
Lowering prices can result in competitive advantage. Lowering costs can result in a sustainable, more profitable operating model.
A combination of these initiatives should be selected based on a retailer’s capacity to integrate them and the operational efficiency they are trying to achieve.
Continuous improvement is vital
Because competitors are constantly pushing the boundaries of each positioning, retailers are constantly evaluating their strategies.
Each positioning requires a different focus on differentiation and cost-cutting initiatives and retailers need to focus on different levers across differentiation and cost to maintain their position.
Retailers should clearly identify their store positioning and develop capabilities that create a distinct competitive advantage and build an operating model that continuously delivers value for the shopper, the retailer and the brand owner.
The range of factors driving store reinvention is constantly increasing.
How is your store evolving?