20 January 2015
Kurt Salmon business analyst Tom Ducker calls on traditional retailers to change their risk aversion mentality through the use of technology.
With the increasing need to adopt new technology to meet growing customer demands, traditional retailers are being encouraged to act more like pure-plays, be less risk averse and more willing to fail fast.
In the shifting retail landscape, the agility and flexibility provided by technological innovation is paramount to success and the ever-increasing data availability surrounding shopping behaviours presents retailers with a significant opportunity. Despite their differences in DNA, for traditional bricks-and-mortar stores, making these changes and incorporating the right technology may not to be as difficult as one might expect.
One of the key success factors for pure-play retailers is team and culture. As Travelocity founder recently stated at NRF in New York, "culture eats strategy for lunch" and culture and team are one of the key pillars for innovation, Pre-play retailers have an in-built advantage here: they have tended to hire younger, tech-savvy individuals, who are more at ease with a culture of innovation, who tend to operate instinctively from a mobile platform, who can quickly create and test apps and who are at home with creating more opportunities for interaction with customers via social media.