Comment: Playing a new retail game

Last year, my wife and I both celebrated our 60th birthdays. I know, I know, you are absolutely right - neither of us look it. Well, she doesn’t at any rate.

As a treat to ourselves we decided to take a holiday of a lifetime and, as Gwen is a cricket fanatic, we went to Australia to follow the Ashes series.

Despite the cricket result, the holiday was fantastic - Australia is a beautiful country with energetic cities, good food and fabulous weather.

Everywhere we went the Australians were welcoming, charming and hospitable, and boldly living their lives outside rather than inside their homes.

But I am afraid we have to return to the cricket, since it provides an interesting case study on how, in a matter of only a few months, the effect of team dynamics and a different environment can completely change the outcome.

The England team were flattered by a strong result in the summer and didn’t pay attention to the warning signs. Clearly a lack of preparation, key players performing badly and the early loss of confidence demoralised the team.

The Australians played very well and were consistent throughout the series, with accurate, hostile fast bowling and runs being scored throughout the batting order. It was incredible to see how England, a team that had won the corresponding series 3-0 in September, could slump to a 5-0 defeat the following January. It’s a bit like retail really.

Many of the present teams in retail have been around for a long time and their businesses have performed reasonably well - but suddenly they appear to be coming unstuck.

The general economic downturn has affected everyone, but the arrival of ecommerce and the resulting shift in customer behaviour has taken some of the experienced players by surprise.

Ecommerce and the shift in customer behaviour has taken some experienced players by surprise

Many aren’t coping or reacting well to this new order. Some retailers retreat into their shells and hope that it will all blow over, and that somehow they will survive what may just be a brief or temporary storm.

A few lack the leadership that can respond to this change, often because they are from an older generation.

The new kids on the block, such as Amazon and Asos, are running amok.

So what is needed to correct the situation? Some of the retail players have disappeared or restructured - this is likely to continue. Almost every mature retail chain wishes it had fewer stores. Some senior management teams also need to change, with younger (internet generation) managers coming to the fore.

Traditionally, the retail operations director would be a member of the board, but many companies are still only inviting the digital/ecommerce head to the occasional board meeting.

A different business model for retail is emerging with omnichannel, and there is demand for a web presence that does more than simply list product.

With different team members needed, some established players retiring and a new style of playing the retail game, it all sounds a bit like what needs to happen in the cricket.