Can omni channel marketing help brick and mortar retailers compete this Christmas ?

An article in Bloombergbusinessweek (November 5,2012) describes a decision by Target, Macy’s and Nordstrom to match online prices to compete gainst Amazon, Gilt and Ebay. Offering same day delivery from store inventory, choosing unique items only made for specific retailers (such as Target’s Marc Jacobs scarf) and free family portraits at stores, these retailers are described as using omni-channel marketing that merges online and store inventory. Given the need for etailers to build more warehouses closer to customers to offer fast delivery without the prioirty cost, and laws that require etailers to collect state sales tax, will such moves make the retail space more competitive ? Will offering customers the flexibility to ship gifts to family members online and schedule shipments on specific dates help etailers ? How should manufacturers react to the upcoming clash between brick and mortar retailers and etailers to maintain their profitability ?

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3 Responses to Can omni channel marketing help brick and mortar retailers compete this Christmas ?

  1. Greg Nichter says:

    With Amazon breathing down the necks of most traditional brick and mortar retailers, it is essential that they adapt in order to compete. As margins fall, competition between retailers will heat up causing them to look for new marketing and warehousing strategies. The ability to merge online and store inventory will decrease lost sales, as well as provide a long-tail benefit to retailers. In turn, customers will be able to choose from a far wider selection of goods. For now, it appears that traditional retailers are safe, but all bets are off if Amazon starts to open up brick and mortar locations.

  2. Qidi Cao says:

    In my opinion, offering customers the flexibility to ship gifts to family members online and schedule shipments on specific dates do help etailers. In this way, customers do not need to go out to the retailer store and prepare their gifts in a short period of time. They now can take their time to shop online and set up a specific time for their gift delivery. In this way, the etailers are surely benefit and the retailers needs to figure out new ways to compete that.

  3. Kevin Morrisroe says:

    As this was written 3 years ago, we can see that price matching for brick and mortar stores is becoming the norm. I almost always check online for big items before buying them in the store and I have never been told by the cashier that they won’t match the price. I have also seen prices rise on Amazon due to the state sales tax with having more warehouse space and it has made brick and mortar stores more competitive. With prices becoming very similiar, its becoming a battle of fast delivery to your front door versus consumers want to go to the store to pick up an item.

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