Big Retail Stores Reinventing Themselves

For big-box retailers, a tough economy and an increasingly Internet-dependent shopping culture can disrupt business as usual. In order to stay viable in a changing environment, large retailers must adapt their business models. As retail industry trends and technology developments continue to revolutionize the retail experience, small business owners can apply lessons from big chains to their own operations. By creating an agile, responsive business plan, your store can ride the economic and technological wave instead of being pulled under.

The economic downturn has had a significant impact on big-box stores. Target is a prime example. Less than a decade ago, it was nearly indistinguishable from its other competitors. In 2013, it has completely reinvented itself as a provider of stylish, affordable clothing and home items. Whereas its competitors like Wal-Mart and K-Mart focus mostly on prices, Target updated its brand to focus on price and style. It stays on top of retail industry trends by offering a mix of trendy items and classic pieces, each made with careful attention to detail and quality. The store also introduced designer diffusion lines, which offer items from well-known design houses, like Missoni, at lower prices. As a result of its reinvention, Target has distinguished itself from its competitors.

Other retail businesses can learn from Target's brand strategy; with its sleek, modern visual brand elements and stylish products, the store has completely differentiated itself. Smaller retail outlets can do the same by focusing on an aspect that sets them apart from other companies. To do so, it is important to capitalize on retail industry trends. A grocery store might emphasize its connection to local farmers by offering a variety of locally produced vegetables and meats. A clothing store, on the other hand, might streamline its inventory to include timeless, classic pieces. By creating a distinct identity, you can attract customers who share similar tastes or ideals.

Mobile technology and sophisticated online shopping have also created a problem for large retailers. One of the latest retail industry trends is "showrooming," in which customers come into the store to evaluate a product in person before buying it online at a lower price. To combat this problem, electronics retailer Best Buy has made continual efforts at reinvention. It introduced a price-matching program that allows consumers to buy products in the store for the same prices they find online. The store also partnered with an app that pushes coupons and deals to customers' mobile phones. Its latest move, according to a Forbes magazine retail industry report, is to partner with Samsung to create branded mini-storefronts inside Best Buy stores.

Like Best Buy, many companies in the retail industry report that showrooming damages in-store sales. By staying aware of the latest retail industry trends, you can take steps to combat them. Many stores are taking steps to keep pace with technology developments, such as creating their own apps, implementing systems that work with digital wallets, or giving discounts for in-store purchases. In many cases, reinventing your operations can have a significant impact on your bottom line.

For retail professionals, retail industry trends can have a positive or negative impact on business. By staying alert and planning for reinvention, you can keep your business afloat, even in a depressed economy.

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