The Struggle Against the Retail Apocalypse – The Buyer’s Journey 09

In today’s episode the team discusses the retail apocalypse. What is it? Is it as real as everyone thinks? And what are retailers’ strategies going forward?

The Retail Apocalypse

Our potentially morbid conversation today began because of the news that The Gap Inc. will be splitting into two companies. Zacharay Crockett on The Hustle reports that the primary reasons for this are the result of Old Navy’s success. The brand brought in $8 billion in sales alone, and has risen to the #2 clothing brand in the U.S. It’s important to keep in mind that all of Gap Inc’s other offerings only had $9 billion in sales combined last year. Gap Inc. will be merging Gap, Banana Republic, as well as the smaller chains Athleta and Intermix.

However, the split isn’t necessarily good news. According to Crockett, within a 48-hour span, nearly 500 retail store closures were announced. That includes 230 Gap stores, 165 Foot locker, 53 Victoria’s Secret, and 27 JC Penny. 

Hitting the Target+

Target is unveiling a new third-party marketplace on it’s site: Target+. Suman Bhattacharyya on Digiday reports that the program will be invite-only. The goal of the program is to compete with the likes of Amazon and Walmart, the latter of whom began hosting third-party retailers during it’s partnership with Google in the last few years.

Rick Gomez, Target’s chief marketing officer and digital officer wrote in a blog post that, “Guests look to Target for great products. With Target +, we aim to give them easy access to even more great products by partnering with best-in-class specialty and national brands that will help guests save and get more done in just one stop to Target.com.”

While this expansion is good for Target, it also comes with a problem for potential partner brands. Bhattacharyya writes that “[t]he retailer reportedly will require third-party sellers to take on fulfillment costs, and the company did not comment on how revenue-sharing arrangements will work.” What that means is some or all of the shipping cost will be on the seller to fulfill. This will likely slim down profit margins for the smaller sellers.

Check out our next episode tomorrow where we’ll discuss a news article covering the Retention stage of The Buyer’s Journey.

Tune into more of The Buyer’s Journey by checking out our YouTube and Soundcloud, Take us on the go on the iTunes, TuneIn, Google Play Music, and Stitcher.

Matt McGrorty

Videographer / Podcaster

Emails you will look forward to.

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