January 16, 2016 Chris Riddell

Future Retail – Masters’ collapse is a big warning

Future Retail Chris Riddell Masters Home Improvement

Stack it high and sell it cheap doesn’t work anymore

Masters recent announcement of it finally admitting defeat in the highly competitive market of bricks and mortar retail is no surprise. The cost of doing business on the ‘high street’ in Australia is at an all time high, and you can’t win the battle of getting customers in by just throwing money at the problem.

Customers are more demanding today than ever, and they are more savvy with the advent of social media and online shopping.

Masters failing was quite simply down to customer experience, there just wasn’t any. Canstar blue published some of the surveys recently conducted, and the comments were overwhelmingly negative about staff being untrained, unhelpful and at worst just not there to even speak to.

Any store that wants to entice customers in, and more important gain loyalty and repeat business has to focus on the holy grail of creating experiences, having a clear point of difference, and treating the customers with absolute respect. Customers today want to feel like they’re going somewhere that is giving them value, and that the experience matches their expectations.

 

This is where Bunnings has a clear win. The staff are well trained, they are knowledgeable, and they have a passion for the Bunnings brand. Employees of Bunnings are actually not really employees when you think about it. They’re part of the fundamental DNA that makes Bunnings who they are. They’re passionate, knowledgable and they live for the brand. You can see it and feel it when you walk in to a Bunnings store any day of the week. It’s vibrant and there’s texture.

It’s the future of retail, and it’s how experiences are created.

Don’t believe me? Take a brief look at Apple. Nobody believed a phone manufacturer could make a bricks and mortar retail store work. They’ve nailed it, and they’re the retail cult store, of todays connected world.

 

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