You are viewing:-
you're reading...
1.Market Observations, 8.Was Sticky

23 May 2017 (AFR) – Pricing the services of our retailers – As Amazon looms, what would you ‘pay’ to shop with Australian retailers?

[COMMENT: Now this is an interesting view of how to put a price on the value that a bricks and mortar store brings to our shopping experience.]

(23 May 2017, AFR, p32, by James Thomson)

‘How much would you “pay” to buy a product from Harvey Norman, JB Hi-Fi and Myer? That’s the question posed by some fascinating new research from Credit Suisse analyst Grant Saligari, who always looks at the retail sector with fresh thinking (you may recall his argument that Wesfarmers should consider selling its top-performing Kmart chain a little while ago) and has provided another lens with which to study the arrival of Amazon. His idea is to look at retailers as selling entry “tickets”.’ <snipped…>

‘Saligari argues that given Amazon’s entry, incumbent retailers need to add value to their ticket (by, for example, improving delivery options, or improving in-store experience) and/or by cutting the cost of a “ticket”. ‘ <snipped…>

‘Do they invest heavily in the in-store experience to provide what Amazon clearly can’t? Do they invest in delivery options better than Amazon can provide, for, by example, using their stores as delivery hubs? Or alternatively, do they bring costs down and try to take Amazon on at its own game?’

Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

Advertisements

About robertbrain

Brainy's Share Market Toolbox. Read the honest truth about the sharemarket. Develop or fine tune your investing/trading strategies using share price charts (technical analysis), or learn about the investment strategies of others. Melbourne (Australia) based - supporting share market investors and traders to build wealth through smarter investing using my Share Market Toolbox arsenal of weapons to tackle the market.

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: