A digital strategy isn't complicated, it is contrarian.

Date: 18/06/2020   l   Category: Business

•    In a 100-store chain. 80% profit from 20% of stores 
•    A 5 % traffic decline leads to a 15% decline of return on investment (store assets + inventory) 
•    20% of stores begin to bleed 
•    Resulting in unsold inventory. 

What happens: 

•    Retailers buy less 
•    Leading to more stockouts 
•    Nudge more customers to buy online (100% availability) 

Believe: 

•    Contracting business to grow is a good strategy 

Actions: 

•    Establish liquidation channels (1 outlet store for 4 regular) 
•    Cull stores fast (inventory cash is recoverable; store assets = sunk costs) 

Build capabilities: 

•    Map, track and engage customer digital and physical hybrid behaviors 
•    Metrics of digital sources of customers from digital platforms 
•    Link metrics to creative inputs, content, and material 
•    Create digital content in-house 
•    Merchandizing and pricing across channels 
•    Goalsetting GM$ across channels 
•    Store staff serve digital consumers using digital tools 

Build/lease digital platforms: 

•    Omnichannel eCommerce 
•    Logistics partnerships 
•    Loyalty/CRM 

Manage: 

•    A digital organization horizontally 

Believe: 

•    Strategy is driven by people (not hard assets) 
•    This approach is driven by ROI