Universality Mindset: Another Race To The Retail Bottom?

"The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday's logic."— Peter Drucker

This week, we have four quick discussions: The universality mindset in retailing could lead brands to another race to the bottom. The second is our usual discussion about the market, the economy, and consumers' reactions behind the scenes. Third, Executives ignoring AI will sink their company. And last, Being ahead of the game until you're not. My new book, Predictive Leadership, written for every executive striving to keep their careers and businesses relevant in this AI era, will be out in November 2024.

Universality Mindset: How to prevent the race to the bottom

You’ve heard it all. Customer Experience: building a better e-commerce model, using ChatBots, merchandising creates traffic, retail is an art, creating a positive workplace to drive conversion. Omni channel experience, personalization, loyalty programs, experiential retail, digital transformations, same day or instant delivery, sustainability, subscription models, Millennials this, Gen-Z that, Alpha hopefuls, Betas haven’t been born yet, but wait for it. Not to forget influencers, payment options and everything I missed. Look, I am not saying these things are not important. However, not every retailer will win from this or even stay in business, let alone be able to afford and execute them flawlessly.?

Only a handful of retailers can occupy the number one and two spaces in any part of the retail space, whether department stores, sports brands, convenience stores, or luxury brands. Not every marketing, merchandising, Omni channel, or service trick-or-treat works for everyone.?

Yes, we can argue that each brand must create its own story and be real with its customers, but why isn’t it working? Why doesn’t it retain them, why aren’t they buying more, and are loyal no longer. CEOs will tell you that when your teams begin to blame the weather, the economy, and changing consumer habits, brands will begin to falter because of weak strategies, which are usually just too much of the same as what everyone else is doing.

The Problem Lies in the Illusion of Universality

Retailers often fall into the trap of believing that what works for one brand will work for another—that success can be replicated simply by adopting the latest trends or mimicking the market leaders. This is the illusion of universality, the misguided belief that there is a universal formula for retail success. But the reality is much more complex.

Each brand has a unique DNA—values, culture, customer base, and market positioning. Copying what another retailer does without considering these unique elements often leads to fragmented strategies, diluted brand identity, and confused customers. Instead of strengthening their position, these retailers end up in a race to the bottom, where everyone offers the same things with diminishing returns.

Focus on What Matters to Your Brand and Your Customers

Retailers must abandon the illusion that adopting every trend will lead to growth. Instead, they should focus on what truly differentiates them in the eyes of their customers. Understand your core audience, build a brand story that resonates deeply, and invest in experiences that align with your values and customers’ needs.

Winning in retail today isn’t about doing everything; it’s about doing the right things exceptionally well. It’s not about chasing every shiny object or jumping on every bandwagon. It’s about finding that sweet spot where your unique brand promise meets genuine customer desires and executing it consistently and authentically.

The reality is stark: not everyone will win in this competitive landscape. However, those who focus on their unique strengths, understand their customers intimately and resist the urge to be everything to everyone have a greater chance of surviving and thriving.

Are you chasing every trend or building something unique and enduring? The choice—and the future—are yours to make!?

Personal Log: Executives Ignoring AI Will Sink Their Company

I am shocked that many companies are far from ready to compete in a dynamic environment led by AI. Organizations that believe in following the herd and abstaining from AI investments will maintain a level playing field and be doomed to failure. That is happening because there is absolutely no awareness of what a fully technology-led company can do in the marketplace. CEOs have a duty to their shareholders and lenders to remain competitive. It is astonishing to hear that there are Fortune 500 companies still tinkering with spreadsheets and low-level algorithms.

The danger is the consumer. Technology companies are going to target them to use AI. Apple has already begun with the iPhone 16. I don't know what business leaders are thinking. You might think that AI is a fad. Well, let's forget about its predictive capabilities for a moment. Let's focus on how it can change the workplace. AI and its current capabilities can eliminate many tasks and make your staff far more productive.

The day is near when investors will drop stocks that are not collecting data and using AI. They will be looking for growth due to AI predicting your next strategies and innovations and will want to see a reduction in operating costs. This will be the introduction of personal computers, the internet, and the e-commerce moment rolled up in one and on steroids all over again. I repeat: I am shocked at the weakness of the leadership vision. CEOs should see this as a warning shot over their bow, they may not get another.

The Markets and Consumers: We Are In A Precarious Moment?

The “R” word is back. Timing is critical in central banks' inflation management. If a central bank waits too long to address rising inflation, it can escalate prices and erode public confidence in the economy. Conversely, if measures are implemented too late or aggressive, they can stifle economic growth and potentially trigger a RECESSION. Therefore, central banks must carefully monitor economic indicators and act promptly and proportionately to maintain price stability and support sustainable economic growth. You’ve read in previous newsletters that they waited too long and have increased the rates too far. Rates must come down faster. But we have a problem with economic growth; prices are higher by around 15-20% from two years ago, and they are not coming down. Even with inflation down around 2.5%, consumers are paying a lot more and can’t afford to spend over their budgets without more debt.?It is a global problem, and even China is afraid of falling into deflation. And the US investors are jittery about the Feds not moving fast enough to lower rates.

At the end of the day - Ahead of the game until you're not

You can never rest on your past successes, not for a moment. If you don't challenge the status quo with a different, more powerful vision of the future, you will get caught up and possibly stuck in the past. Careers and Brands face the same hurdle every day. When you think you've done enough and earned it, you haven't because something or someone else has come with a fresher perspective. Your challenge is never to stop learning and listening and always occupy your mind with how to be more progressive and seek innovation.

We all need to be very proactive to stay ahead of the game. My thing is never to follow the herd or frenzy; it doesn't mean I am unaware of it. However, I am always looking for the next consumer or technological shift. That's how you stay in the game. It requires a great deal of commitment to constantly paying attention to how all things are really connected and influencing change. Don't wait for the research; create the future.

Thank you for reading this week's issue of The Business Brief

Clicking on the image will take you to more information about the book.