Retail Consolidation

IMS (Integrated Marketing Services) is a company that we use to help research and define our retail efforts in North America and Europe. They keep their finger on the pulse of the retail ecosystem, and they've done some amazing work for us. IMS sends out a quarterly newsletter that has some great insight into what's happening.

Today, an article called "Retail Consolidation Continues to Accelerate!" gives predictions about how things are going to look in the next few years: Quoting from the newsletter:

"Do you really want to buy your plasma screen at Wal-Mart? Obviously yes if price is an issue.

But we believe that there is an important new trend – good old fashion service and support. When you spend $5,000+ plus on your plasma, do you really trust hanging it on the wall yourself? Do you know what cables you need and how to hook them up?

Yes, the consumer electronics space is converging. Both Dell and Wal-Mart will continue to grow and gain share, especially on opening price points.

IMS has been actively engaged in measuring a number of retailer pilots. The IMS analyses of comp store performance and growth paints a very clear picture of what the computer and electronics channel will look like in the very near future …

Those retailers that differentiate with service, support, installation … and even on-site structured wiring … are the ones growing significantly faster than their peers.

Implications for your business:

1. It’s not just about the best product … or price.
2. Ability to measure the winners and losers is imperative, especially at the store level.
3. SKU rationalization and Vendor Co-Managed Inventory become strategic differentiators.
4. Service and support will become imperative across categories with significant price points valued by consumers: entertainment, major appliances and even home “networks”."

The article goes on to offer more insight and further predictions. Check it out!