The Story of Brick and Mortar Retail
I believe Dunkin Donuts could be considered as non-perishable as McDonald’s french fries, though I have yet to test this. In any event, brick and mortar is not going away. People like to shop and to peruse stores. It is a social activity as much as it is a fulfillment of needs and is something that online just cannot replicate. However, they will need to adopt an extended distribution approach to thrive.
Just observe the other direction in this online vs. brick and mortar battle. Tech giants like Apple, Microsoft, Samsung are investing MORE into physical stores. Startup ecommerce stalwarts are dipping their toes into pop-up stores and boutiques. Even Amazon and a boatload of startups are getting into same day delivery services.
This is the time brick and mortar stores should be implementing online channels and social networks. Some of the most enterprising are going online in novel ways, but most seem to be believe that online simply means having a website (usually one of the those horrible ones that are free and look like crap). Do not get me started on their Facebook pages…
Ultimately, I do not believe it is a question of perishable or shippable when it comes to the future of brick and mortars. Those boundaries are blurring. The trend to watch is how many of the brick and mortar small businesses evolve into hybrids stores that give their customers the most flexibility to shop and buy.
If you want to tell the story of national brick and mortar consumer retail, look back 8 years ago to 2005, when Bain Capital closed buyouts for Toys R Us and Dunkin Donuts.
Legos are non-perishable and shippable. A Boston Creme has neither of these qualities.
So Toys R Us has fallen squarely in Amazon’s profitless path of disruption. By contrast, Dunkin has thrived to become a dominant national brand.
I don’t know what the next 8 years holds for national brick and mortar retail, but the trend portrayed in the contrast of these two Bain deals does not feel like a pendulum swinging. It feels like progress.
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I believe Dunkin Donuts could be considered as non-perishable as McDonald’s french fries, though I have yet to test...
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