Could online and off-price concepts be the key to capturing market share in the retail industry? It is no secret that the industry is facing headwinds, primarily driven by shifting consumer preferences. However, many online-only retailers and off-price retail concepts have found unique success in the challenging retail environment. Yet, much like traditional retailers, these organizations must continue to introduce innovative strategies to keep pace. One example of such innovation is Gilt’s recent website relaunch, in which the online designer merchandise retailer placed more emphasis on personalization than its traditional flash sales, while also introducing a mix of full-price and discounted goods.
As traditional brick-and-mortar retailers search for new ideas to get ahead of the competition, they may not make full-fledged pivots to online-only or off-price strategies, such as developing an entirely new off-price brand. However, as they explore similar concepts—such as off-price sections in-store, online flash sales, or enhanced omnichannel offerings—there are important considerations they should keep in mind as they emulate elements of these concepts to refresh and refine their own strategies.