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Are stores out of fashion?

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The digital tide is hitting all of us, profoundly transforming our
everyday lives, and dramatically transforming the way
consumers behave and think about brands. Far from being the harbinger of the end of retail, digital is a big competitive advantage for stores that know how to use it. This presentation was shared by McKinsey partner Nathalie Remy (Paris) at the Women's Wear Daily Apparel and Retail CEO Summit. View McKinsey's top retail content: http://mckinseyonmarketingandsales.com/sector/retail

Publié dans : Business, Design
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Are stores out of fashion?

  1. Are stores out of fashion… …or a competitive weapon in the digital era? Nathalie Remy WWD CEO SUMMIT October 28th, 2013
  2. … than the 3 networks broadcasted in the last century McKinsey & Company
  3. In fashion too, digital is a tide… <10% 2010-12 China online market France purchasers Market share How will this impact you? McKinsey & Company
  4. Transforming stores, a must to overcome the dual burden Consumer expectations are changing The economics of stores are deteriorating Are stores out of fashion… …or a competitive weapon in the digital era? McKinsey & Company
  5. In the old world, customers followed a linear purchasing funnel Consumers used to narrow a broad selection of brands to a single choice AWARENESS FAMILIARITY CONSIDERATION PURCHASE McKinsey & Company
  6. Today, the fashion Consumer Decision Journey is multichannel… and changing the role of the store EVALUATE Stores / catalogs / WoM Blogs / websites / search / comparison CONSIDER Outdoor / editorial / windows Blogs / display / video / emails / social / search Offline Online BUY In-store E-shop/m-shop Click & collect EXPERIENCE Interact with friends and family Blogs / social / reviews McKinsey & Company
  7. Text Consumers’ expectations are changing “Stores are here to stay” “Technology is cool” “Experience is a must” McKinsey & Company
  8. Retail strategies are also evolving "To what degree do you envision changing your retail strategy given digital proliferation?" No change TOP 3 LEVERS Adopt new technologies 5 Adjust store formats 53 Some change Significant change SOURCE: WWD participants survey 42 Adapt supply chain McKinsey & Company
  9. Apparel store productivity has declined Change between 2006 and 2012 Total sales -2% +3% +93% Offline sales -9% -2% +79% Retail space +6% 0% +103% Offline sales per sqf -14% -2% -12% McKinsey & Company
  10. Retail economic equation will further deteriorate Pressure on sales productivity... … with continued costs drift Market growth Margin Online share Labor Retail real estate Rents McKinsey & Company
  11. 2 key steps to reinvent your retail strategy Redefine role of the physical store Adapt store formats and footprint McKinsey & Company
  12. Rethinking the role of each store… PICKING SELLING BRAND BUILDING …WITHIN AN INTEGRATED MULTICHANNEL STRATEGY McKinsey & Company
  13. Transforming store formats and footprint Which retail format portfolio? Flagship Which target footprint? F FSS SIS Large free standing store Mini free standing store SIS O F FSS FSS FSS SIS FSS Shop-in-shop Outlet FSS SIS O McKinsey & Company
  14. The next challenge: make it happen! Mindset Technology Performance Talent McKinsey & Company
  15. Departing thoughts Are stores out of fashion… …or a competitive weapon in the digital era nathalie_remy@mckinsey.com @Remy_Nathalie

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