RE: UKNM: Toys R US - site, outdated - who does it???

[Robin Edwards]

On Thursday, January 28, 1999 9:35 AM, Andrews, Stephen 

[SMTP:

Stephen [dot] Andrewsplc [dot] cwplc [dot] com

] wrote:

> Don't the big retailers need someone to tell them that this whole thing

> is an opportunity rather than a threat (isn't that the new media

> marketeer's message?).


<The rest snipped>


>From the points raised, you can easily see why many retailers opt for the 

toe-in-the-water approach. Re-using the existing buildings and land sounds 

great in principle, but must surely be fraught with complications. For example, 

is a prime (and probably costly) retail location the most appropriate place to 

set up large, potentially faceless distribution centres? This could even 

involve breach of a lease agreement and council regulations etc. - probably 

better to set up on a cheaper plot nearer to motorway and rail connections.


Franchise operations are faced with even more problems. If distribution becomes 

more centralised, you upset your franchisees because you are potentially taking 

the food away from their table (only potentially, because it depends on your 

national and international coverage.) If you offer local fulfilment to the 

franchisees, they may find the logistics costs prohibitive given their small 

slice of the online pie.


The reality of online retail taking off (taking over?) in the UK is pretty much 

a numbers game. Until there are more complete online retail offerings, Johnny 

Consumer will still need to go to his nearest store. Until there are more 

Johnny Consumers using online retail systems, BigRetailCorp will be unwilling 

to pump a large investment into their own systems.


What I find interesting is where brand loyalty fits into all of this. Is early 

adoption by some (possibly new) retailers a barrier to more established 

retailers joining in at a later date and taking back any lost business? My gut 

feeling is not, if enough of the budget is set aside to make a big enough media 

splash...


One thing is for certain, this is a challenge to us all - retailers and 

consultants alike. Personally I'm rather enjoying it :o)


Robin

--

Robin Edwards

Clockworx Design Limited

T: +44 1543 252370           F: +44 1543 420761

E:

robinclockworx [dot] co [dot] uk

     W: http://www.clockworx.co.uk/ 

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