Retail: Staying in sync without sinking

Transition versus transformation. Evolution versus revolution. These strategies inherently plague the retail sector as companies decide what to do next to stay ahead of the curve.

As a retail professional for more than 35 years, too often I see companies forget to examine the current business model and understand whether or not it operates effectively. Basic concepts of product relevancy, store conditions, customer service and employee engagement and retention are essential in all successful retail businesses. Yet, increasingly these concepts are left at the doorstep as retailers try to outthink themselves in reinvention. Most times retailers leave their core consumer behind by forgetting the formula that brought them success in the first place.

For example, neglect of these basic concepts for a prolonged period of time ultimately led to RadioShack’s demise. Store conditions had deteriorated, products had become irrelevant — the move to a national brand selling strategy versus a proprietary, private-label selling assortment — employees had become apathetic and its biggest asset, customer service — remember, “You have questions, we have answers”? — became nonexistent. All of these factors left the customer saying, “What is RadioShack?”

The formula for success in retail has never and will never change. Aesthetics and technology most certainly have; however, the true testament to a strong retail brand always follows the same footprint.

Ultimately, the right locations, the optimal product mix, having those products in-stock and a passionate and knowledgeable customer service team will foster the ideal employee and customer experience — one that inspires all parties to have a vested interest in the retail brand's success.

Michael S. De Fazio is an independent retail consultant with more than 35 years in retailing, and experience in multiple leadership roles in store operations and store design, including DVP store concepts for Walgreens.