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Content “…what is now really clear when we re-open the stores [is that people] really want to meet us in both channels, physical stores and online. They want to do both.” Helena Helmersson Chief Executive, H&M Group What is patently clear is that there needs to be a balance between physical stores and ecommerce. Nowadays,
Content Retailers and brands had to deal with considerable constraints on their business as the COVID pandemic unfolded. Some of these constraints will remain dominant factors in retail for many years to come. Although we want to think that these events are an exception rather than a rule, retail operations should include resilience and contingency
Content Good inventory management in supply chain companies achieves two objectives: To ensure a ‘proper visual display,’ for an attractive offer that makes consumers want to buy (the right stock). To have enough to cater for sales, that can be expected until the next delivery (enough of it). Dr Goldratt, founder of the Theory of Constraints and Throughput Accounting, and the author of the title
The Open to Buy or OTB is a common concept in the fashion industry, that is used by buyers and retail managers to control trends in a proactive way. Their main goal is to optimise inventory levels while maximising profits. Open to buy is often used as a control measure that aligns orders to ensure
Content Examples of vertically integrated businesses that are thriving There are numerous examples of vertically integrated businesses and they include some of the highest-valued companies on the equities markets and some of the most successful fashion and sportswear brands. One famous example is Amazon. Although this business started with a simple ‘asset-light’ model, it gradually
Content The advantages of vertical expansion While horizontal expansion has serious advantages in terms of the economies of scale and scope, it is a high-risk strategy. It is a perfect example of putting all your eggs in one basket. In contrast, vertically integrated companies can be successful even in dire situations where other companies fail.