It doesn’t seem that long ago that management consultants and business schools were kept busy churning out reports with titles such as ‘How to compete against Walmart’.

It doesn’t seem that long ago that management consultants and business schools were kept busy churning out reports with titles such as ‘How to compete against Walmart’.

Today, and somewhat belatedly it seems, the focus has changed so the reports are on how to compete with Amazon.

While Amazon isn’t exactly ignored, it feels as if it’s the ‘silent enemy’ – acknowledged but perhaps underestimated, or somehow not quite regarded as ‘a proper retailer’.

But for an increasing number of retail sectors, the news is that Amazon most definitely looks like a retailer, acts like a retailer and therefore is a retailer. It just thinks differently and doesn’t play by normal retail models. That’s what makes it so difficult for retailers to compete against.

At a seminar recently, one of the presenters revealed that with the opening of its latest distribution centre in the US, Amazon will, by the end of this year, be able to deliver to 90% of the country within six hours.

It was one of those moments where you could have heard a pin drop as the audience of senior retailers absorbed that scary fact. Closer to home, the stories linking Amazon to Asos, coupled with the sad news of Comet’s death throes, reinforce the feeling that Amazon is on an unstoppable and remorseless path to total victory.

Going back to those reports on competing with Walmart, that was the view then of that retail elephant in the room. So you have to conclude that nothing is inevitable and retail remains one of the most dynamic sectors where change is the one constant. The battle-lines are certainly becoming clearer too. Taking on Amazon at its own game involves holding a completely comprehensive and constantly in-stock range at the lowest prices, delivered in the fastest possible time. Not a position open to many multichannel retailers.

To find another way forward though you need only look at that other new ‘silent enemy’, Apple, which competes by creating a fantastic brand, unique product, tightly controlled distribution channels and a great in-store experience with enthusiastic, knowledgeable and ultra-friendly employees. Simple really…

  • Ian McGarrigle, Director, World Retail Congress

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