Should Department Stores Follow Saks’ Lead and Spin Off Their Digital Businesses?

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Jason Junge, CEO of PointerTop, gives expert insight into current Retail Digital Strategies.

As a protracted global health crisis rages on, unemployment stays unrelentingly high and consumer spending remains sporadic (at best), if ever there were a time for retailers to throw spaghetti at the wall to see what sticks, this might be it…

Jason Junge, CEO of PointerTop, a platform that converts websites into sales channels, said that he understands why some traditional retailers may yield to shareholder pressures to spin off their dot-com businesses since the channel tends to have “slightly” better margins. However, Junge added, overall, separating physical retail businesses from their digital counterparts could create more problems than it solves.

“It doesn’t make sense to me to do this because one of the key differentiators for retail is customer service,” he explained. “If you separate out your brick-and-mortar from your online completely, then you’re basically creating two different corporations, two different cultures, and eventually two different types of customer service.

That scenario, said Junge, is a recipe for customer confusion and eventually even a degradation of brand value — even if, internally, it may help to clean up some business processes.

It loses sight of the customer when you separate out businesses because of processes rather than what your end deliverable is or what your value is to the customer,” he added…

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