In this report, “Different Leaser, Different results”, our US partner McMillanDoolittle details shifting consumer expectations across all retail categories – and the blind spots the leaders of both legacy retailers and digital natives must overcome as they adapt to an integrated retail landscape.
In the report, McMillanDoolittle estimates that American consumers already spend $.45 of every dollar within categories where they expect their retailer to provide an integrated user experience, allowing them to make purchases and fulfill their transactions in the way that best suits their needs. These retailers require a new set of capabilities – driven by a new leadership mindset – to provide an integrated consumer journey.
As consumer expectations have shifted, new winners have emerged. Target, Warby Parker, & Domino’s are retailers that top the list. Meanwhile, some retailers that are just now opening stores are missing the opportunity to build integrated capabilities from a clean foundation. Many Digitally Native retailers are rapidly opening stores but do not operate “as one” with their digital presence. The customer is not at the center.
Due to their heritage, both digital natives and legacy retailers have executive blind spots that can be barriers to effectively operating an integrated retail model. McMillanDoolittle research found that only 7% of the leaders of digital natives come from traditional retail functions such as buying or merchandising. Meanwhile, legacy retailers lack marketing-driven retail expertise, with only 5% coming from marketing and even fewer have technology or analytics expertise. Both leadership profiles have their advantages – and blind spots. These legacy retailer and digital native executives can learn from each other to develop new models for leadership, customer-centricity, multi-channel shopping, and operations.
McMillanDoolittle forecasts that spending at integrated retailers will nearly double to $.86 of every dollar within five years. It remains to be seen which culture of leadership – and business model – can integrate more quickly to capture this share but doing so will be key to the future success of each.
Download the whitepaper from our US partner, McMilllan Doolittle, here.