Stefan Niemeier & Andrea Zocchi 
Reshaping Retail 
Why Technology is Transforming the Industry and How to Win in the New Consumer Driven World

The modern retail system has worked to dazzling effect. From the
19th century, store owners emerged from small beginnings to set in
train an industry that has seen some operators become nationally,
even globally, dominant. Along the way, they turned retailing into
an art, and then a science. Now retailers in emerging markets
appear to be repeating the story all over again, except on a scale
and at a speed beyond anything we have seen before.

Given all of this, it can be hard for those who work in
retailing to accept that the industry as we know it is living on
borrowed time, on the brink of transformation. There is now an
urgency with which conventional store-based retailers must now act
and the extent of the challenges this change represents in
strategic, organizational, and above all, technological terms.

Reshaping Retail sets out the driving causes, current
trends and consequences of a transformation in retail triggered by
technology. The changes go far beyond making items available for
sale on the internet. Starting by briefly setting the historical
and business system contexts for retail and describe the role that
technology has played in the creation of modern retail it then
explains the underlying technological drivers behind the current
revolution – radical changes in the capacity of both hardware
and software, mobile telecommunications changes and the advances of
the Internet.

Ultimately, success will hinge on more than competence; it will
come down to a way of thinking. Customer-centricity will need to be
valued not just by the store owner, as in the past, but also by all
employees in the organization. It will need to become embedded in
their daily tasks. The same applies to technology, which must be at
the center of the organization and recognized as such by
everyone.

With a combination of extensive desk and field research,
interviews with leading retailers and technologists, together with
the real world experience of practitioners in this area,
Reshaping Retail will inspire and help store retailers to
make the necessary transformation now to win in the new consumer
driven world.

Inhoudsopgave

Foreword vii

Introduction 1

1 A Brief History of Retailing 7

The mercantile era 11

The modern era 13

The digital era 22

2 Technology: The Crucial Retail Enabler 27

How retailers add value 30

Connecting the chain 33

Knowing what you know 39

A succession of evolutions 43

3 Game-Changing Technologies 47

Revolution 50

The next era of technology change 57

What it means for consumers 86

4 Consumer Empowerment 91

The consumer decision journey 94

Customer empowerment tools 95

Retailers’ response to consumers’ changing behavior 103

5 Toward a New Retailing Paradigm 113

The changing role of the physical store 116

New contenders 128

The power of information productivity 135

6 The Future of Retail 143

Stand-alone archetypes 146

Building on the stand-alone models 155

7 A Call to Action 165

Leapfrogging 169

The way forward 170

Making it happen 181

Acknowledgments 191

About the Authors 193

Index 195

Over de auteur

Stefan Niemeier is a Director of Mc Kinsey & Company and leads its European ‘Technology in Retail’ group. He has advised retailers around the globe and across many retail sub-sectors. Stefan holds a Ph D in Economics and a Master in Business Administration.

Andrea Zocchi is a Director of Mc Kinsey & Company where he leads the Consumer Practice in Southern Europe. Andrea is also an adjunct professor at IMT – Institute for Advanced Studies – in Lucca (Italy), where he holds a course on advanced problem-solving techniques for Ph D students. Andrea holds a degree in Mechanical Engineering and prior to joining Mc Kinsey, he worked for Hewlett Packard Italy.

Marco Catena is an Associate Principal of Mc Kinsey & Company. He works with retail and mobile telecommunications players on commercial and performance transformation topics. Marco holds a Ph D in Industrial Management and a Degree in Management Engineering.