Like the ancient city of Pompeii and the modern city of Napoli, retailers live next to a snoozing volcano of transformation.
Changes are afoot. We’ve seen retailers close locations or simply go belly up.
The Retail Market
In this positioning chart, luxury retailers exist on top. This high-end section blurs with the middle-tiered players.
The Retail Market
The middle-tiered players blend into the value and discount retail providers
Walmart owns the discount market. Its customers see themselves as smart because they save money and live better.
Target apes Walmart: "Expect more, Pay Less."
That means Walmart always becomes the default choice
The Retail Market's middle pack
It offers high-end fashion to snag shoppers who may frequent the luxury stores, but are attracted to Macy's blowout sales. Macy's has no new ideas.
JCPenney plays in the middle market like a discount player. JCPenney has no new ideas.
You must be known for something. Right now, retailers play the middle - trying to have a foot in one end and the other - and being known for nothing.
And so they die.
All known for
OWN SOMETHING
OWN AN EMOTION
OWN DIFFERENT
What about Amazon?
Department stores own huge retail spaces empty of customers. Basically, the doomsday scenario. If you don’t believe it, the evidence is all around you.
Brand still wins
Brand is the only way customers choose
For emotional reasons Not rational ones
Online or brick and mortar? It doesn't matter