The tip of the Space Needle is like Amazon and Wholefoods. 3 simple data truths.

“Digital makes the esoteric normal,” (Michael Schrage MIT in The Digital Helix).  Wholefoods and Amazon is a tip of a strategy to digitally transform the retail industry that has been one of the most effected by digitization of business practices.

40% of major retailers in the US are thriving in this process (far higher than any other industry in our research with Forbes Insights in June 2018). These retailers have done some very unique things that are indicative of how Amazon has thought about expanding its reach and relationships with Amazon. It’s a simple and highly valuable lesson for 2019 because the results can be near instantaneous.

Three simple facts we can all learn from a razor thin margin industry

1. Retailers who focus on the whole customers portfolio of experiences (food, prime, etc) are 4 times likely to be thriving than those retailers who just focus on one moment (food or prime). The 21st Century consumer sees everything through one one brand lens, irrelevant of channels.
2. Retailers who focus on managing their data in highly flexible and interactive ways (the book called these the digital DNA of themes and streams ) are two and half times more likely to be thriving because they have structured a way to lean into the evolving value of certain types or moments of data that have big implications. For example times when food is best delivered by the store and what else a consumer maybe consuming on TV at Amazon prime at that time. Retail thrivers are just touching the very early stages of this insights revolution. If 6% of major corporations told us they believe in an A.I centric future, 12% of retailers told us this. They get it because they have seen the power of immediate data that can change decisions on the spot.
3. Retailers whose executives are leaning into the digital revolution are not that uncommon. 75% of all retail executives claim they are. But in the 40% of digital retail thrivers these leaders invest an incredibly high 25 hours a week each leaning in to the day to day decisions needed. This is far more than just being retail leaders. This is about engineering a whole new digital and customer centric world. In a highly operationally excellent industry living on 2% or less margins leaders cannot win with incremental changes but they need to take giant leaps forward with digitally transforming how they think, design and act for success. The June Digital Genome DNA research in retail companies showed that the 40%% thriving got over 68% of all the positive available margin changes from doing digital transformation right. Investing more time as a leader to lean in to this could be the easiest ROI you can get in 2019.

I believe the retail industry could be the ultimate consumer digital experience laboratory in 2019. Amazon, Walmart, Zara, Marks and Spencers and others are going to lead the way so go online and go to a store and learn from them this week.