Going digital won’t save a bad retail proposition

The announcement by struggling store-based retailers that they will develop their online businesses is one answer to the problem but not the only one, and in fact, simply pumping money into ecommerce may not solve the problem at all. A bad retailer is a bad retailer, whatever channel they choose to trade through.

There is still a belief among some retailers that multi channel simply means developing another channel to market without any regard to how they will work together. The starting point must be the customers – what do they want, how might they shop from a truly integrated retailer, what are the limitations of the current channels, and so on.

The problem is that many retailers lack any formal system for communicating with their customers beyond the store, something that some have sought to fix by adding a social media channel. Tuning into customers in a strictly non-salesy way and encouraging, and even rewarding feedback. As well as providing feedback, social media channels can be the glue that links all other channels to market, enabling customers to access a retailer in any way that suits them.

However, in addition, the level of integration between stores and virtual channels must be much tighter, as evidenced by retailers that have introduced click and collect, multi channel returns, on line promotions redeemable on line or in store and apps that provide convenient access to the channel of choice using links to transaction sites, or locators and maps for stores.

And the systems that drive these channels must provide integration to ensure consistency of product information, stock position, pricing, description, promotion and so on.