In Case You Missed It: Retailers Signal Competition Is Driving Innovation
2020 was a year of resilience, agility, and innovation for the retail industry. Last week, the National Retail Federation virtually wrapped up the first chapter of its annual “Retail’s Big Show,” showcasing how many retailers have continued to grow and fiercely compete throughout the COVID-19 pandemic and how they’re using data and insights to remain competitive. Strong retail competition is leading companies to better use data to create more personal experiences and innovate around multichannel sales to reach customers where they are. Below are some of the highlights:
Retailers Are Using Data To Improve The Customer Experiences
The retail industry’s focus on innovation allowed them to be resilient in the face of a global pandemic, asserted Mike George, President and CEO of Qurate Retail, Inc. and NRF Chairman in his keynote address. “Retail has always been a dynamic industry, constantly innovating to better serve our customers. And that willingness to embrace change, to find a better way, is what made us the backbone of the US economy, supporting 52 million, that’s one in four, private sector jobs. That spirit of innovation, that spirit of customer focus, prepared us well for a global pandemic that overnight changed everything.”
Walmart recognizes the power of data and considers itself a “data company” to remain competitive. The company uses data from it’s various offerings such as groceries, pharmacies, and financial services, says Janey Whiteside, Chief Customer Officer. “Are you a data company,’ he asked Whiteside. ‘If so, how are you making the best use of that data to stay competitive?’ There’s no question, Whiteside responded, that the breadth of Walmart’s offerings — groceries, pharmacy, financial services — enable it to collect a great deal of data about its customers.”
Data helps retailers understand and serve consumers better, especially in the midst of global uncertainty, writes Daniel Newman, principal analyst of Futurum Research and CEO of Broadsuite Media Group. “Data from the supply chain, online interactions, sales transactions, and brick and mortar locations when tapped for insights can take a retail organization to the next level. By using CDPs, AI, and machine learning tools from leaders like Microsoft, Oracle, Salesforce, Treasure Data, Twilio and others, organizations are learning more about their consumers than ever before which means targeting has become more specific.”
Embracing The Digital Transformation To Reach Customers Where They Are
Digital transformation defined 2020, but it is only the starting point for what’s to come, asserts Susan Reda, VP of Education Strategy at the NRF. “The last nine months alone have produced more digital transformation than the last decade. Retailers, manufacturers and consumers alike were forced to change and what appeared to be quick fixes in the early days have quickly become habits. The surge in online shopping, the race toward frictionless payments, the quick deployment of curbside pickup and the endless flurry of apps created to enable all these changes are just the beginning.”
Walmart leveraged its physical stores to meet demand when consumers needed it most, said Walmart’s CCO Whiteside. “Part of Walmart’s initiative to make it easier for customers is to offer them a way to deal with those products they forgot and urgently need. ‘We can fulfill that order from a store,’ she said. ‘We can’t fulfill it from an ecommerce shipping facility. Stores aren’t going anywhere.'”
Digital transformation coupled with physical store innovations helped Lowe’s thrive during the pandemic offering a seamless experience between on and off-line shopping and “emerging as a retail winner in 2020.” “[Lowe’s delivered] a 30 percent increase in sales in the third quarter [of 2020] compared with the same period in 2019…Lowe’s built a store navigation app to help in-person shoppers find what they need, among other in-store innovations. It was a leader in offering secure lockers outside retail locations where customers can pick up online orders. And it’s been following the buy online, pick up in-store trend, as well.”
Niraj Shah, co-founder, president and CEO of Wayfair, discussed the company’s “startling growth trajectory” (market cap is up $7 billion from three years ago) and how retail is a fiercely competitive business. “Not that this is easy. ‘Ecommerce is a tough business,’ Shah said. ‘You need to be good at everything — you can’t be great at merchandising and not so great at logistics. What you’re not good at is what limits your growth, and being great in other areas doesn’t make up for it.'”