The Future Of Shopping Has No Clothes
The slow destruction of in-person retail has generated a new tactic by struggling American stores. Looking to cut costs while keeping consumers interested, they’ve taken a page from the e-commerce playbook. Nordstrom Local is the latest iteration of this concept: clothing retailers with little or no merchandise. Come in, pick out a dress, and place your order—then go home empty-handed. At first, the inexorable march of the online economy was stalled by the apparel industry—you can’t try on clothes you’re ordering online. The new store-without-stock strategy tries to exploit this obstacle. By having merchandise shipped to your home from warehouses, these stores don’t have to flip inventory every season or mark down piles of sweaters that aren’t selling. Most important, supply chains don’t have to route trucks from warehouses to stores. That’s a lot of slashed overhead. And it’s not just Nordstrom Inc.—Wal-Mart is betting there’s a future in these sort-of stores, too. “A store with no inventory becomes very, very efficient,” said Michael Brown, a partner at the retail division of consulting firm A.T. Kearney. “You can get very streamlined.” Read more at Bloomberg.
