13 July 2015
Kurt Salmon consultant David He assesses the successful and not-so-successful examples of retailers dabbling in the digital space.
We have seen many examples in recent years of UK grocery retailers acquiring companies in the digital space (think Morrisons and Kiddicare; Tesco and Blinkbox, and many more). However, the money retailers spent on M&A in the digital space has not always delivered success and there is a high level of risk in integrating the acquired business. As a result, a large number of these deals subsequently resulted in a sale of the same asset at a later point. So have these digital acquisitions been a classic case of marketing myopia? Had retailers lost sight of their core business in the rush to emulate the likes of Amazon and Google? Or can acquisition be a viable route to accelerate retailer's digital transformation?