How’s this for controversial and provocative?
Continued retail marketing investments designed to drive shopper traffic to stores is … wasted.
A difficult pill to swallow, for sure, particularly for retail marketers. But, it was exactly the message recently delivered by Alexei Agratchev, co-founder and chief executive officer at RetailNext, and Sid Gupta, founder and chief executive officer at Lolli and Pops, during their recent joint presentation at the annual WWD CEO Summit.
Their underlying points were two-fold. First of all, why would retail brands want to drive even more traffic to stores when they’re likely under-serving their current shoppers and converting at nowhere near 100 percent. Secondly, driving traffic to stores is extremely expensive and not particularly effective – foot traffic at brick-and-mortar stores has declined each month, as measured year-over-year for more than 48 consecutive months. Wouldn’t brands be better served by diverting some of that investment to bettering their in-store shopping experience?
You can catch the entirety of Alexei’s and Sid’s entertaining presentation at the Women’s Wear Daily CEO Summit with the video, below.
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