The Experience Margin (written for Currency Alliance)

This is an abstract; read the full article on Currency Alliance.

Retail brands can be saved; but not by conventional retail strategy

In an economy where it’s no longer possible to profit off physical goods, the most successful businesses today are migrating their profit centers on to services and experiences.

The changing economics can be clearly seen in the UK’s RPI data, which shows services becoming progressively more valuable over time, whilst consumer goods remains flat[vii].


Agile technology businesses are making progress on this front – Amazon being the prime example, becoming an increasingly service-oriented retailer.


…whilst the retail establishment remains sluggish in embracing change.

Tesco, for instance, has failed to show any real growth in two decades – instead largely tracking the performance of the UK economy.


To synchronise their businesses with the changing economy, retailers must cease to view sale of physical goods as a raison d’être, and start viewing them as a passport to other, more profitable forms of trade.

Read the full article.


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