Professor Paul Phillips from KBS comments on the move by Amazon to open 10 pop-up stores in the UK, and the potential positive that such a move could bring to all retailers.
‘Today’s announcement by Amazon to open 10-pop up shops – “Clicks and Mortar” as some have termed it – may at first glance appear to be a surprise, but from a strategic management perspective it’s a natural evolution of their business model.
‘At the beginning of the millennium (nearly two decades ago) with the dot.com boom, bricks/mortar (old fashion retailers) were faced with the tsunami of clicks (the online retailer). It was predicted even back then that sustainable competitive advantage will derive from those retailers that incorporate a balanced portfolio of offline and online presence. This latter issue is increasing being addressed by Amazon, and should give today’s retailers much food for thought.
‘Notwithstanding the death of countless independent and chain stores on the high street, instead of seeing Amazon latest actions as solely as a threat, retailers should see it as a huge opportunity. Struggling retailers should observe what industry pioneers such as Amazon do, to liberate their own strategic thinking and innovative strategies. With the rapid development of technology (Artificial Intelligence, Blockchain, Augmented and Virtual Reality) and changing customer values there are huge opportunities for retailers to become leading lights in a troubled sector. The revitalisation of the customer shopping experience must be at the heart of their offer to deliver value and create loyalty.
‘What I do find interesting is that Amazon may see their actions to “help small business grow” as a part of a much wider strategy to help overcome some of the bad press they have about paying too little tax. Corporate tax avoidance continues to be the number one company behavioural issue that members of the public want addressing.’
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