Online competition and access to price information has been squeezing already thin retailer profit margins for some time now. Combined with the added pressures of the economic crisis, many retailers are being pushed to the edge. Sadly, familiar names, such as Circuit City, have already been pushed over the edge. To survive this crisis forward-looking retailers need to focus on: Efficiency -- making every part of the business as lean and efficient as possible, especially in the supply chain. Cost Removal -- driving out costs everywhere, especially in labor, their second biggest cost after the goods that they sell. Customer Experience -- seeking ways to differentiate an increasingly homogeneous shopping experience. Salvation in Managed Services Retailers have traditionally been very closed to the idea of managed services provided by third parties. Razor thin margins have made them very risk adverse. There is a general skepticism of service providers, large IT firms, and their unde...
Digital Business Transformation Journal