That is the opinion of Jaco Barnard, retail industry leader, IBM SA Global Business Services, who recommends that SA retailers revisit their strategies to ensure they reflect a strong differentiated position from a consumer segmentation and competitive point of view.

The key is to integrate a multi-channel, consumer-centric focus into the offering, including the assortment, services, marketing and promotional strategies, Barnard says. Stores are key as platforms where the customer experiences innovation. It is where innovation can differentiate.
 
Further recommendations include broadening the retailers collaboration capability to leverage the full strength of its merchandising, marketing, supplying chain and store operations functions, as well as using leadership, incentives and measurements to drive the necessary cultural shift towards innovation.
 
In addition, Barnard advises being vigilant in integrating processes and technology to enable enhanced capabilities around consumer-centric activities. It is important to ensure that innovation enhances the shopping experience, rather than destroys it, he points out. To achieve this, retailers need to first ensure that the basics are in place.

Commenting on the growing importance of mobile phones to retailers, Barnard says that, besides making and receiving calls, the most popular mobile phone activities among cellphone owners are using the calendar and address book, downloading or playing games, and downloading ring tones.
 
In fact, more than half of cellphone subscribers rely on the non-telephonic features, such as camera, clock, calendar, messaging, music, and use phones as substitute torches to see in dark places. Combined with the fact that we will soon be able to keep one cellphone number for life, this opens up a new opportunity for retailers to tap into the market particularly in SA, where it is possible that some people may not have an ID number, but they will have a cellphone number, Barnard says. I believe it will change the way that we think about marketing.
 
Features we are likely to see in 'next-generation stores' include the single point of sale migrating to multiple points of service as customer-focused systems become increasingly pervasive, he says. There will be more and more in-store developments for both employees and customers, as both use information on the shop floor.

All of these developments are great for the consumer, Barnard says. Rather than rushing to build expensive, innovative stores that do not deliver profits, retailers need to keep things in perspective by focusing on those developments which will deliver the best return on investment.