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Saturday, November 25, 2017

Retail Road Kill

My former P&G colleague and Microsoft exec Bob Herbold talks retail models and performance  in his blog.  No holds barred in his gutsy take.  Worth following.

Retailers: Most are Lethargic Road-Kill!

It’s amazing to see many of the major retailers simply stand by and watch their business atrophy.  On the other hand, there are a few that work hard to get out in front of the key trends/changes impacting retailers.  Best Buy is an amazing example of doing exactly that.  While facing bankruptcy in early 2013, with its stock price down to $11.80, it watched its competitors such as CompUSA, Circuit City and Radio Shack fall by the wayside.

Instead of simply standing still and getting run over, Best Buy launched a completely new business model.  Stores became not only retail outlets, but also inventory warehouses used to fill online orders from a new, robust Best Buy website.  Since orders were being filled from the nearest store to the buyer, one or two day shipping was achieved.  Best Buy also brought accountability to the store-level by measuring the performance of individual salespeople on the floor and before long, it was on the road to success.  The stock price today is in the $58/share range, almost 5X that of early 2013. .... " 

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