Digital disruptions continue to play an important role in the evolution of retail. The dot-com era of the 1990s begets the dot-com bubble that burst to create the dot-com collapse. By 2003 the few dot-com survivors began playing an important role in retail. By 2010 e-commerce had reached a level of significance creating the term multichannel retail, describing retailers who participate in stores and online. The field has evolved, and entered the era of New Retail. -Jim Tompkins, CEO, Tompkins International and MonarchFx
Jeff Bezos has said consistently for 15 years, “We would love to open Amazon retail stores, but we want to do something that is uniquely Amazon, but we haven’t found the idea yet.” Jeff in the last six months has been talking about “Retail Innovation” while at the same time buying Whole Foods Market.
Similarly, a year ago Jack Ma said in a letter to his shareholders, “Pure e-commerce will be reduced to a traditional business and replaced by the concept of New Retail.” Now as he has substantially grown the Alibaba store footprint via Hema, In-Time, He Ma and more, he says, “E-commerce is rapidly evolving into ‘New Retail’. The boundary between offline and online commerce disappears as we focus on fulfilling the personalized needs of each customer.”
What we see as the foundation of “Retail Innovation” and “New Retail” is a new era in retail where:
The three foundational supply chain requirements to achieve New Retail are:
New Retail will result in the increased profitability of retailers, the increased satisfaction of customers and the evolution of a seamless and integrated ecosystem experience regardless of channel. To achieve these results a total reinvention of your supply chain is required to enable collaborative logistics and an Eaches store replenishment as channels are unified into a seamless flow of goods throughout your supply chain.
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