“Why Retailing Will Never Be The Same Again” John Karonis and Madison Riley Forbes.com.

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Presentation transcript:

“Why Retailing Will Never Be The Same Again” John Karonis and Madison Riley Forbes.com

 Wal-Mart and other large retailers are splitting the retail business  Discounters with national brands Wal-Mart Target  Vertical retailers with “House Brands” Abercrombie Apple  Why?

 Only 4% of goods in the US are sold over the internet  People do research over the internet before they decide to buy  73 million people did research at work computers during the ‘08 holiday season People know where the best price is

 Those who cant compete on price fail, or switch to designing some or all of their products  Integrated product design and development  Mervyns (Dumped by Target) V. Gap (41.4% gross margin)  Circuit City (Bankrupt) V. Best Buy (26.2% gross margin)

 Offering branded fee-generating services  Pet Smart Pet Hotel Vet Clinics Grooming  Best Buy Computer Repair Installation Geek Squad

 Where does Fred Meyer fit in?  Article link  industry-change-leadership-managing- revolution.htmlwww.forbes.com/2009/05/13/retail- industry-change-leadership-managing- revolution.html