Over the past decade, retailer growth strategies were heavily predicated by offering more and more brands on store shelves. However, as product choices within each category increased, it has become difficult at the point of purchase for consumers to make choices. Do Walgreen consumers really need 25 types of superglue to chose from? Apparently, not as the chain is cutting the category to 11 selections.
While variety in theory is important, too many choices, especially when there is no accompanying guidance can slow the buying process in the physical retail world. However, when consumers are online, a myriad of options can be presented based on a variety of criteria – from price, to user reviews.
The other threat to traditional brands is retailers capitalizing on their captive distribution assets by developing their own private brands, ranging from food to consumer electronics.
These developments will provide a further catalyst for the growth of ecommerce retail sales.
Tags: Ecommerce