Just as Google, Amazon and online retailers are opening physical stores, the ABC is closing them. It’s a shortsighted move that is out of step with shoppers.
Does anybody (besides me) listen to the ABC Classic FM Top 100 Countdown, ever? Every year, there are a stack of calls and messages from older listeners who don’t know – and don’t want to know – how to vote online.
At the other end of the spectrum, has any parent or aunty of a small child (besides me) ever hit the ABC store for destination last minute gifting for children? As much as I’d like to be more organised, as a (more than) full-time working mother, that rarely happens.
Sure, the ABC stores have had an identity crisis as a retailer. They present like a poorly merchandised post office. Ranging is a bit random; category navigation is almost non-existent; and store staff standards are lacklustre. And they’re no doubt being utterly smashed by Westfield rents.
Some bean counter has probably come in and said, ‘we’re not doing retail well, it’s a cost centre, shut it down’. Which is understandable, on face value.
But here’s the thing – shoppers still want a physical place to go to interact with a brand. And the shoppers of the future increasingly expect a seamless experience between online and offline.
Amazon knows this. Google knows this. Apple knows this. We now have a landscape where retailers that were traditionally online are embracing the flagship physical store as a key touchpoint for brand interaction.
Opting out of physical stores does not solve the problem. As my good friend Tim Stitt, of Social Media Monitors, said: “The ABC has effectively made a decision not to embrace a hybrid model. It’s an example of running a white flag up the pole on face-to-face customer service, rather than solving the retail riddle.â€
The decision ignores the tangible brand benefits that a chain of stores presents. The ABC brand is a relevant part of shoppers’ daily lives because they are present and accessible.
Google, “Buy Bananas in Pyjamas Doll†and get 148,000 results. The first is an ad from Big W advertising 20 per cent off.
The current ABC retail model is not profitable. However, the answer is not to revert to a digital-only model, where they face a myriad of competitors offering the same products as theirs. The answer is to redefine their retail model to keep it relevant to their customer base AND profitable.
As Tim Stitt from Social Media Monitors said: “The point is, if you want to participate in retail you need to be excellent. Falling back to what appears to be a more cost effective model doesn’t mean you become more effective.â€
The ABC as a brand is already politically and financially challenged; it cannot afford to lose the engagement of its current customer base, and lose even more relevance with the customers of the future.
It’s a retrograde move. Thumbs down, ABC. Click to dislike.
Lee McClymont is GM of the ANZ Chapter of POPAI, the global industry body for Marketing at Retail and can be contacted on 0414 941 585.