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www.IndependentRetailer.com NEWS Upheaval in Retail
THE RETAIL sector appears to be undergoing one of its peri- odic bouts of upheaval, what with the rise of social media in marketing, the launching of on- line only stores, and an increase in loyalty programs. This fl urry of innovation might fi t well with the thesis of Robin Lewis and Michael Dart’s book, “The New Rules of Retail: Competing in the World’s Toughest Marketplace.” It states that the U.S. retail in- dustry is undergoing a wave of fundamental change, and brands and retailers that do not respond are doomed to fail. Lewis, a for- mer executive editor of Women’s
Wear Daily, and Dart, head of private equity at retail consulting fi rm, Kurt Salmon, boldly pre- dict that 50 percent of current brands will disappear in a wave of structural change. There have been two such
upheavals before, they write. The fi rst, starting in the late 19th century, saw the emergence of the fi rst national retailers such as Montgomery Ward, J.C. Pen- ney, and Sears, Roebuck & Co. These pioneers sought to sat- isfy demand for newly available manufactured goods by using the new infrastructure of indus- trial America. The next came
after WWII, with the prolifera- tion of choices brought by new national brands of consumer goods and the ascendancy of mass marketing. It lasted until the beginning of the current cen- tury. The current upheaval, they say, is driven by the emergence
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