Multi channel retailers and snow storms in 26 states

Multi-channel retailers are counting the losses from the recent snow storms that affected 26 states in USA. The lost sales dollar amounts, in brick and mortar stores are staggering, ranging from hundreds of thousands dollars to even millions of dollars. Some customers were couped up in cozy homes and building snow men in their front yards. Some customers, depending on the areas where they live, were travailing in home without electricity and heat. Meanwhile, the store operations teams and finance teams at the retailers were desperately hoping the snow fall would stop, but to no avail. The upshot snow records were broken in many states.

However, one thing that was the common denominator for many multi-channel retailers is their Ecommerce stores were open and operational! Here are some questions that all multi-channel retailers need to ponder to avoid a 'deja vu':

• How many retailers captured online the lost sales in their brick and mortar stores?
• How many retailers are fluid enough with elastic supply chains to absorb all the lost sales in physical stores into their online stores?
• How many retailers, having heard the weather reports from a week or so before, proactively initiated email campaigns with percentage off and dollar off coupons to draw all those at-home customers online?
• How many retailers will report an increase in sales revenue in the next quarter by taking advantage of the snow?

If retailers don't have these capabilities, maybe it is time to strategize, invent, and take advantage of the next snow storm, online.

All the best!

Apple is definitely a cutting edge retailer

After many months, I walked in to the friendly, local, Apple Store in the mall. There weren't too many new products although the big screen iMacs are nice! The sales person was very helpful and gave all the news on the upcoming iPad. However, the thing that caught my attention was the iPod Touch in her hand. In a matter of few minutes, the Apple sales person, helped a customer purchase a few products and completed all transactions on the iPod Touch. The iPod touch unit had a barcode scanner, and a magnetic credit card reader. The application on the iPod touch was EZ Pay.

To me, this a revolution in the store Point of Sale systems. A typical cash register with bells and whistles could cost around $6000, including hardware and software etc. With the iPod touch even if the accessories cost a lot and the whole unit could be less than $1000.

If a retail store has 3 registers, the firm would spend $18000. With this iPod touch system, you could spend less than $3000. The sales person or cashier can roam around in the store. Talk to customers and help them check out in a matter of minutes.

Are the traditional Point of Sale systems going to be relics of the past? Will they end up in a museum some day? Will be very interesting to see the product evolution in the next 5 years. Will be an interesting journey for sure.