Sunday, November 20, 2011

NEWS ALERT The Retail Battle Of The Decade - With Retail Stores As Collateral Damage

Last week, AdAge reported what retailers all fear the most:  The Retail Battle Of The Decade has begun between Walmart & Amazon.
“While Walmart may be 10 times Amazon's size in overall sales, it has only about a tenth as much in online sales, making Walmart a distant also-ran online.” A Perilous Situation For All Retailers.
Walmart knows Amazon’s Achilles’ heel:   No Local Stores.  So, to prevail against Amazon, Walmart is unleashing their version of The Ultimate Shopping Convenience®Rapid Home Delivery.
But Amazon recognized their weakness years ago and started LOCAL Rapid Home Delivery programs in most major cities, albeit unsuccessfully – but they kept trying because they knew a huge Apocalyptic battle with Walmart was inevitable.  Today, Amazon is countering Walmart’s enormous store footprint by offering local SAME-DAY service using their TWO MILLION Third Party Sellers.
Unfortunately, major national retailers’ stores are standing in the middle of this Armageddon, the potentially final catastrophic battlefield between these opposing behemoths.  To win, Amazon and Walmart both need new customers; consequently these major retailers’ stores could become significant collateral damage without a miraculous intervention.  (See their SIX “Target Industries” charts below)
Synopsis Of AdAge Article Nov 14/11: “Walmart Brings Bricks and Mortar Battle to Amazon” (click here for full AdAge article)
Walmart competes with almost everyone in retail, but is increasingly focused on rival: Amazon.

That has put Earth’s largest retailer and Earth’s largest online retailer on a collision course for what could be the “retail battle of the decade 

Sales in electronics and general merchandise have gone from 43% of Amazon global sales only two years ago to 59% last quarter, and an even bigger 61% in North America.

Key to Walmart’s emerging e-commerce strategy is integrating store and online marketing like never before.

Walmart is using its 3,800 stores as a logistical and marketing advantage over Amazon. Last month it rolled out “Home Free” delivery, with free home shipping on orders over $45 from its stores.

Walmart plans "next- day delivery at a very economical price" using its stores as distribution centers and aimed largely at urban markets.”   (Sure beats FedEx, UPS & USPS.)
HARVARD BUSINESS ANALYSIS Oct 10/11: “Retailing Revolution: Category Killers On The Brink” (click here for full Harvard article)
Best Buy and many similar businesses didn't see the bullet coming.  (see charts below)

Initially their sales lost to Internet competitors were quite small in relation to overall business, and confined to a small number of items. And as these retailers introduced their own shopping sites, they became complacent about the impact of the Internet to their overall store model. Much like the story of the frog in the slowly boiling water, they are finding out late in the game that their physical store businesses are fundamentally unsustainable. Given the item assortments they carry, these stores are just too large. Even a robust economic recovery is unlikely to do more than delay the inevitable “restructuring”.  (Borders, Circuit City, Blockbuster, etc)

1.       Retailing generally is at a tipping point, with category killers being the first significant casualties. 

2.       Physical stores can compete by emphasizing (1) instant gratification, (2) unique shopping experiences, and (3) customized support.”  (NOTE:  The Now Mall does all 3 of these for you)
Walmart’s Timing Couldn’t Be Better. Other than Amazon, most major retailers have been struggling for years. (See Retail Behemoths’ SIX “Target Industries” charts below)
Major National Retailers can trump Amazon’s and Walmart’s newest strategy with Guerilla warfare tactics outlined below.
Walmart’s and Amazon’s newest battle strategy of Rapid Home Delivery is that of a COPY-CAT, as most retailers know.  It’s their collective Achilles’ heel. 
Major National Retailers have the advantage of thwarting both of them by joining the proven leader that has 30 years of knowledge that they do not have – patents included.  We’re leading the very powerhouse Walmart and Amazon are now BOTH trying to copy.
The NOW Mall.com is the Industry Leader in Rapid Online Order Fulfillment© (ROOF) technologies & shared workforces using our 100% turnkey SuperCyberCenter© Network developed and proven during our 30 years of retail rapid fulfillment experience and with 1.3 MILLION Local Third Party Seller Stores earnestly awaiting Major National Retailer participation.   (See more details after the industry charts below)
Guerrilla Warfare StrategyMajor National Retailers can trump the behemoths by combining our seasoned mobile forces and technology together with their stores in a coordinated onslaught of superlative customer service.
The Retail Behemoths Collective Achilles’ Heel: They are COPY-CATS.  They don’t know HOW to do true “Rapid” Online Order Fulfillment (30 to 60 minutes) so they are trying to copy the easier parts  (same-day & next-day) of The Now Mall.
The Underlying Strength: We patented the Rapid Online Order Fulfillment© (ROOF) system, technologies & shared workforces which use our 100% turnkey SuperCyberCenter© Network.
Key Tactics:  Major National Retailers can join us now to benefit from our over 30 years retail rapid fulfillment experience and 1.3 MILLION Local Third Party Seller StoresCollectively, these will generate substantial ongoing “Evergreen” free cash flow to their bottom line via this unique and effective retail sales, marketing and distribution channel that complements their current multi-channel strategies.  (See more details following the SIX “Target Industries” charts below)
Only we can help these Major National Retailers aggressively and nimbly counteract the looming pincer attack by Amazon and Walmart with our patented SuperCyberCenter Network with ROOF in this totally unusual crisis period to return their store sales, profits & growth rates to 2006/2007 levels and higher. 
And, for a limited time, these retailers can also secure a competitive advantage with an Industry EXCLUSIVE enabling them to not only compete with Amazon and/or Walmart; but also with their regular local competitors.
Defend against The Four Horsemen Of The Retail Apocalypse: Inertia, Fear, Myopia, Apathy© by working with us TODAY to reverse the downward trend of their FIVE YEAR STATS (below), leaving their competitors the only option of fighting these behemoths alone and unprepared.  (Good luck to them since Webvan, McDonald’s, Borders and many others failed trying the same seemingly-simple in-house delivery approach.)
Members of their industry (see below) are in discussion with us for the exclusive rights for their branded SuperCyberCenter with ROOF.   Just Imagine where that leaves the others:  with virtually no defense in the middle of this newest Apocalyptic Battle of the decade between the two Retail Behemoths.  We urge them to place their order for their Industry exclusive with us TODAY while it’s still available.
For further details about our SuperCyberCenter with ROOF, please scroll down below the following Industry charts.
AMAZON’S & WALMART’S SIX “TARGET INDUSTRIES”
1.     “ELECTRONICS” INDUSTRY ARMAGEDDON: Top 3 Players 5-Year Results:
hhgregg +4.04%;   RadioShack -32.32%Best Buy -50.79% // AMAZON +402.13   DOW JONES -2.58%  

2.     “OFFICE PRODUCTS” INDUSTRY APOCALYPSE: Top 3 Players 5-Year Results:
Staples -45.03%, OfficeMax -90.48%, Office Depot -94.48% // AMAZON +402.13   DOW JONES -2.58%  


3.     “BOOKS, MUSIC & VIDEOS” INDUSTRY WRECKAGE: Top 3 Players 5-Year Results:
Hastings -76.25%, Books-A-Million -87.23%, Barnes & Noble -57.64%  // AMAZON +402.13   DOW JONES -2.58%  

4.     “RETAIL PHARMACY” INDUSTRY CATACLYSM: Top 3 Players 5-Year Results:
CVS +31.76%, Walgreens -22.98%, Rite Aid -71.78%  // AMAZON +402.13   DOW JONES -2.58%  

5.     “MASS MERCHANT” INDUSTRY DECIMATION: Top 4 Players 5-Year Results:
Target -8.97%  Kohl’s -23.41%, Sears Holdings -59.07%, J.C. Penney -59.39% // AMAZON +402.13   DOW JONES -2.58%  

6.     “GROCERY” INDUSTRY ANNIHILATION: Top 4 Players 5-Year Results:
Kroger +1.09%  Safeway -38.24%, SUPERVALU -76.15%  // AMAZON +402.13   DOW JONES -2.58%  

These Registered Trademarks are a glimpse of the most dynamic & powerful TRUE solution to national retailers’ current competitive nightmare – Walmart & Amazon.
The Ultimate Shopping Convenience®;   Delivered In A Flash®;   When You Just Can’t Get Out Or Have Better Things To Do®;   The Last Mile Of The Internet® 
Overview of this Decade’s TWO Biggest Retail Innovations:
1.       SuperCyberCenter© (SCC):  a HYBRID online “Marketplace” with Third Party Sellers similar to Amazon, eBay and Walmart but much more powerful:
A ‘Hybrid’ because we add a patented upgrade – we include “LOCAL”  physical stores;  restaurants; pharmacies, grocers & retailers with unique fashion and/or time-sensitive commodities as Third Party Sellers.  Not available on Amazon (or anywhere else).
This is an astoundingly lucrative new Third Party Seller profit source enabling Major National Retailers to dramatically increase their in-store sales from LOCAL cross-marketing and our powerful EVERGREEN Free Cash Flow “War Chest” program.  This locally-focused Neighborhood initiative is a strategy that Amazon, without local stores, simply cannot EVER match.  Our patents cause Walmart to try the “back-door” into a unique Hybrid business they know nothing about.
2.       ROOF (Rapid Online Order Fulfillment©): a HYBRID FedEx/UPS for their local stores AND their SCC Third Party Stores.
A Hybrid because we add our 100% Turnkey LOCAL In-Store Shopping + Rapid Delivery both usually within 30 to 60 Minutes 24 / 7 / 365 using our proprietary and excellent Shared Workforce.  No single retailer, no matter how large, can do this without Third Party Stores co-operating in sharing a “much” larger driver pool to cover their volatile Peaks & Valley periods; it takes an entire neighborhood in scope and years of experience doing it (similar to Amazon’s 10 year lead online and Walmart’s 30 year lead in-store).
This enables Major National Retailers to earn substantial income from their increased in-store sales & profits reclaimed from Amazon & Walmart (and other local competitors) due to Rapid Shopping & Delivery (30 to 60 minutes – 24 / 7 / 365) instead of same-day, next-day, or up to 10 day more expensive in-house fulfillment with FedEx/UPS delivery. 
THEN ADD their new EVERGREEN Free Cash Flow “War Chest” from all ROOF rapid fulfillment orders through their Third Party Seller storesAgain, nobody else can match this, it’s “The Last Mile Of The Internet®literally.
Another Consideration: Delivered prices of their products via ROOF can be the same or less than in-store prices and are more profitable than if delivered by UPS / FedEx since their store staff do not assemble, package or deliver ROOF orders PLUS we pay before we leave the storeROOF is 100% turnkeyWe also sponsor Free Delivery (unlike FedEx and UPS). 
Hidden Windfall:  They also save their current significant cost of the 20% to 30% returned online orders shipped by USPS, UPS or FedEx.  Our online discount coupons redeemable in-store are FAR less expensive, easier to use and faster to update than regular online daily deal sites like Groupon, which they can add to or change at any time without some else’s approval – a huge ADDITIONAL selling point for their Third Party Stores.
BONUSES:
A.      There are 600± neighboring Third Party Stores around each of their local stores = cross-marketing and use of our shared rapid in-store shopping & delivery workforce which destroys Amazon’s and Walmart’s basic online marketing tool of same-day, next-day to 10 day home delivery.
B.      The above programs (SCC + ROOF) are available on an exclusive industry and area basis so they can immediately recover their market share from their local competitors as well as from Amazon and Walmart.
As the only major game-changing / industry-changing solution in sight, we enable them to significantly boost their share value with a proven HYBRID online LOCAL marketplace with EVERYTHING: Delivered In A Flash®  24 / 7 / 365 that nobody else can even closely match – including FedEx, UPS, Amazon. Walmart or their local competitors.
Initial ramp-up capital cost payback for their branded SuperCyberCenter with ROOF is 9 to 14 months on our conservative “Plan A” (which we are pleased to send upon request); or 6 to 9 months on our less conservative Plan B (full marketing plan); and immediate (2 to 3 months) on our aggressive Plan C (which we have already done for one of the World’s largest US retailers and can validate from their statistics in detail).  And remember, as results of their initial benchmark city roll forward, this increases the speed, payback time and Internal Rate Of Return (IRR) of ongoing ramp-up in the next cities.  Based on a very high Internal Rate Of Return, this puts this project to the top of their investment list and allows rapid national & international rollout with very little invested capital beyond the initial benchmark cities.
“To be, or not to be, that is the Question: Whether 'tis Nobler in the mind to suffer the Slings and Arrows of outrageous Fortune, Or to take Arms against a Sea of troubles”  William Shakespeare
We hope more national retailers will contact us to help defend their stores with our proven weapons recently adopted by Amazon and Walmart to provide:  The Ultimate Shopping Convenience®
Thank you,
Gail
Gail Nichols - Vice Chair

Monday, November 14, 2011

Have Walmart, Amazon & eBay Made You & Your Industry Irrelevant ? Here's A Glimpse Of The Future.

It’s no secret, everybody knows it, including your shareholders, analysts, suppliers and major customers.
Collectively, Walmart, Amazon and now eBay’s $2.4 Billion GSI Commerce have already devastated the top 5 retail industries:  Electronics;  Office Products;  Books;  Pharmacy & Grocery with more on the way.
Look at the top three players in each of these industries.  At least one (if not all three) are “On-The-Ropes” with sales dropping steadily, profits in decline, and working capital slipping; causing share values to tank (see Chart One below).
That is the simple reality that nobody wants to talk about, let alone do anything serious about.
BUT THERE IS A REAL SOLUTION FOR THOSE WHO APPRECIATE POWERFUL CUSTOMER-CENTRIC SOLUTIONS.
Our Registered Trademarks listed below give you a glimpse of the most dynamic & powerful “real” solution to your current nightmare(s) – Walmart, Amazon & eBay’s GSI Commerce.
The Ultimate Shopping Convenience®;   Delivered In A Flash®;   When You Just Can’t Get Out Or Have Better Things To Do®;   The Last Mile Of The Internet®; 
To be more specific:
Overview of this Decade’s TWO Biggest Retail Innovations:
1.       SuperCyberCenter© (SCC):  a HYBRID online “Marketplace” with Third Party Sellers similar to Amazon, eBay and Walmart.
A ‘Hybrid’ because we add a patented upgrade – we include “LOCAL”  physical stores; restaurants; pharmacies, grocers & retailers with unique fashion and/or time-sensitive commodities as Third Party Sellers.  Not available on Amazon (or anywhere else).  Take The Leadership Position In Your Industry.
This is an astoundingly lucrative new Third Party Seller profit source enabling you to dramatically increase your in-store sales from LOCAL cross-marketing and our EVERGREEN Free Cash Flow “War Chest” program.  This locally-focused Neighborhood initiative is a strategy that Amazon, without local stores, simply cannot EVER match.

2.       ROOF (Rapid Online Order Fulfillment©): a HYBRID FedEx/UPS for your local stores AND your SCC Third Party Stores.
A ‘Hybrid’ because we add our 100% Turnkey LOCAL In-Store Shopping + Rapid Delivery both usually within 30 to 60 Minutes 24 / 7 / 365 using our proprietary and excellent Shared Workforce.  No single store, no matter how large, can do this without Third Party Stores co-operating in sharing a “much” larger driver pool to cover your volatile Peaks & Valley periods; it takes an entire neighborhood in scope and years of experience doing it (similar to Amazon’s 10 year lead).
This enables you to earn substantial income from your increased in-store sales & profits reclaimed from Amazon (and other local competitors) due to Rapid Delivery (30 to 60 minutes – 24 / 7 / 365) instead of same-day, next-day, or up to 10 day more expensive FedEx/UPS delivery.  THEN ADD new ‘EVERGREEN’ Free Cash Flow from all ROOF rapid fulfillment orders through your Third Party Seller storesAgain, nobody else can match this, it’s “The Last Mile Of The Internet®literally.
Delivered prices of your products via ROOF can be the same or less than in-store and are more profitable than if delivered by UPS / FedEx since store staff do not assemble or package ROOF orders PLUS we pay before we leave the store – ROOF is 100% turnkeyWe also sponsor Free Delivery (unlike FedEx and UPS). 
Hidden Windfall:  You also save your current significant cost of the 20% to 30% returned online orders shipped by USPS, UPS or FedEx.  Our discount coupons redeemable in-store are FAR less expensive, easier to use and faster to update than regular online daily deal sites like Groupon, and can be added or changed at any time without some else’s approval – a huge ADDITIONAL selling point for your Third Party Stores.
Bonuses:

A.      There are 600± neighboring Third Party Stores around each of your stores = cross-marketing and use of our shared rapid in-store shopping & delivery workforce which destroys Amazon’s basic marketing tool of next-day to 10 day delivery.

B.      The above programs (SCC + ROOF) are available on an exclusive industry and area basis so you can immediately recover your market share from your local competitors as well as from Amazon and Walmart.
As the only major game-changing / industry-changing solution in sight, we enable you to restore your market value with a proven HYBRID online LOCAL marketplace with EVERYTHING: Delivered In A Flash®  24 / 7 / 365 that nobody else can even closely match – including FedEx, UPS, Amazon. Walmart or your local competitors.
Initial ramp-up capital cost payback is 9 to 14 months on our conservative “Plan A”; or 6 to 9 months on our less conservative Plan B (full marketing plan); and immediate (2 to 3 months) on our aggressive Plan C (which we have already done for one of the World’s largest US retailers and can validate from their statistics in detail). 
And remember, as results of your initial benchmark city roll forward, this increases the speed and payback time, Internal Rate Of Return (IRR) of ongoing ramp-up in the next cities.  Based on a very high Internal Rate Of Return, this puts this project to the top of your investment list and allows rapid national & international rollout with very little invested capital beyond the initial benchmark cities.

A Graphic Look At The Problem: The THREE Top Players in the Office Supply Industry and their Competition compared with The Dow Jones


A Graphic Look At The Solution:


A Graphic Look At Our Track Record of Achievements:

We're looking forward to being of assistance to you and your industry.
Thank you,
Gail 
Gail Nichols
Vice Chair

Monday, October 31, 2011

The Four Horsemen Driving The AMAZON Retail Apocalypse

The Four Horsemen Driving The AMAZON Retail Apocalypse Are: Inertia, Fear, Myopia, Apathy


Amazon’s “Killing Fields” are now relentlessly consuming the entire Specialty Products Industry with significant help from “The Four Horsemen of the Retail Apocalypse” (Inertia, Fear, Myopia & Apathy).
Amazon’s recent QUARTERLY results show their $40.3 billion online sales rose $3.3 billion (31% y/y);  more than the TOTAL sales of most specialty retailers whose in-store y/y sales were -2% to +3%.
Borders (1971-2011), Blockbuster (1985-2011), and Circuit City (1949-2009) (collectively “BB&C”) were the largest “Big Boxes” recently taken down by Amazon, with more on the way.
The Problem Is:  the bigger Amazon gets, the more NEW sales it needs to continue its 30% annual growth over the next 10 years.  And to do this, they are significantly investing in new technology and infrastructure all the time to meet these higher and higher internal growth needs.
What Can You Do About It ?     It’s really quite simple:
E-Commerce is relatively new. Amazon had a 15 year head start.  Copying Amazon now is risky with dubious to mediocre results at best.  You need a significant “Game-Changer” not a ho-hum copy-cat.
Beware The Four Horsemen (Inertia, Fear, Myopia & Apathy) who force the gates open from within allowing Amazon inside unchallenged to destroy you and your Industry (confirmed in chart one below).
Here are a Few of The Horsemen’s Misguided Opinions that Push Open the Gate;  Allowing Amazon Unobstructed Entry to Your Customers. (You simply need to close the gate).
1.       When the economy recovers, so will we” – Your company’s decline began 1.5 years BEFORE the recession which ended one year ago (see Dow Jones below & the “Real Reason” Amazon).
2.        “You are blowing this whole Amazon thing way out of proportion” – Look Ahead – Within 10 years Amazon will be the #2 retailer in America next to Walmart from their current #17 position unless they are stopped now.
3.         “We don’t believe your Pro Formas can be achieved” – Prospective client only see our Plan ‘A’ – We achieved Plan ‘C’ (a MUCH larger plan) with one of America’s largest retailers, and we can prove it.
4.       “We want to be on the leading edge, not the bleeding edge” – What about the fact that Amazon already has you on the bleeding edge (see below).
5.        “The bar has been set for next-day delivery” – What about Amazon’s “Same-Day delivery, significantly up from their previous “Next-Day” and 3 to 10 days.
6.       Nobody needs things in 30 to 60 minutes” – Amazing.  Our research proves consumers prefer service in 30-60 minutes (83%) Vs. Same-Day (33%).  What else do you think can beat Amazon’s “Same-Day” service ? AND why are they offering it ?
7.       We’ve been in this business for years and don’t need anything new” – What about your customers who are now at Amazon – they wanted something new. (see below)
8.       What if it doesn’t work for us” – What about the decline of your sales, profits and share value over the last five years ?  Try it in ONE benchmark city.
9.       This is so new, I could lose my job if I OK it” – What about your job (and résumé) if your company follows BB&C ?  Trying it in one benchmark city gives you huge rewards with minor risk.
10.   We had other problems like this before but our senior executives always came through What about your responsibility to suggest/recommend/implement “turn-around” change ?
11.   We’re introducing new features into our website, like a complementary marketplace to offset Amazon” – What about Amazon’s 15 year head start ? Copying Amazon will not stop them from depleting your in-store sales, quite the opposite.
12.    “We’re installing our own Rapid Delivery system” – When you consider added staffing to cover your considerable PEAK & VALLEY order periods, it’s cheaper and more efficient to hire local couriers.  (Webvan; Borders & McDonald’s amongst many, tried DIY and failed.)
The Grand Finale:  “What makes you think you are the only solution to our problems” – Please see ‘Our Credentials’ below.  Offsetting the drain on your sales by your biggest marketplace problems (Amazon, eBay & Walmart) with new growth sales, free cash flow and higher profits by implementing a proven system they can’t duplicate will have a tendency to mitigate your other lesser internal problems.
When your Innovative Industry Executive Champion objectively looks line-by-line at: (1) our detailed SuperCyberCenter ‘Before & After’ P&L statements; (2) Earnings Analysis;  (3) 18-month ramp-up per store;  and (4) 3 to 12 months capital payback period; they will quickly confirm our claim – and want to at least try it in one benchmark city.
Assuming you are open to something new, we are the only realistic “game-changing” solution to The Amazon Retail Apocalypse (shown graphically below).
As far as The Four Horsemen go, behind them are good people, but they need your Executive help to get on track with the current problem below.
These Other Four Horsemen (Action, Courage, Vision, Boldness) Can Easily Beat AMAZON – as long as they know:
1.       There is an INDUSTRY-WIDE problem – that is relatively new, but growing quickly.
2.       Their job is not at risk for “trying” a new significant “game-changing” solution.
3.       AND they will be rewarded for their extra efforts.  Win-Win – not Lose-Lose.



Thanks,

Gail

Gail Nichols

Vice Chair

Tuesday, October 25, 2011

Get Amazon Out Of Your Stores – While You Still Can

Get Amazon Permanently Out Of Your Stores – Once And For All.

An Incredibly Difficult Task – Particularly In The Hard Hit ‘Mass Merchant’ Industry.

Even More Difficult:  Quickly Getting Back The Customers You Lost. 

Here’s The PROVEN Industry-Changing Solution:


Summary of the Problem with Amazon:  (see it graphically  below)
5 years ago, when we forewarned retail executives about Amazon and the Internet’s future negative impact on their store sales, nobody paid any attention.  They said, “Losing a few store sales to the internet is not going to hurt us.”  

Today, seeing consumers with smartphones comparison shopping in-store with their staff’s help, then buying from Amazon while their store sales stagnate, retail executives are now highly concerned because nothing is stopping Amazon from increasingly devastating their stores at will.  Amazon had an unrestrained 10 years to gain unstoppable traction while nobody cared.  (see 6 Reasons Why Amazon is Nearly Impossible to Beat – a bellwether warning)

Then, 1.5 years BEFORE the recession, your stores began significantly losing customers to Amazon’s unrelenting growth that continues on rising unabated, recently crushing ‘Big Box’ stores such as Borders, Circuit City and Blockbuster, with more casualties to come, and causing your share value to suffer (see actual example below at -94.68%) while Amazon’s increased an incredible 604.62% in the same time period. This widening gap will not reverse any time within at least the next 10 years.  (See the Conclusion in the above-mentioned bellwether warning article)

A few aggressive retail senior executives have recognized the full extent of this problem, and importantly what’s yet to come.  Some are fighting back (e.g.  Sears, Best Buy) to improve customer loyalty with in-store pick-up and faster service from their stores (e.g. same-day couriers) but @ 3X cost, ¼ revenue and lower profits.  Some have tried their own in-house next-day delivery like Webvan, OfficeMax, Borders & Walmart by saying: “The Bar Is Set At Next-Day Delivery”.   This is ‘70’s thinking that Amazon has now matched and beaten, especially price-wise.  

More recently, a few retailers have attempted  to copy Amazon’s Marketplace with complementary third party sellers.  However, none have succeeded simply because Amazon is so far ahead in every conceivable way, particularly in technology, branding, customer loyalty and unimaginable traffic counts.  Unfortunately, such well-intentioned marketplace copies don’t have a chance of “game-changing” success.  However, this effort is a clear indication of the seriousness of this yet unsolved Amazon challenge.  (Details in Item 2 in the above-mentioned bellwether warning article)

Copying Amazon’s Marketplace might increase your online sales 5% to 15% but this won’t stop Amazon’s progress, let alone bring your existing in-store customers back.  To stop Amazon (and now others), a powerful game-changing / industry-changing solution is urgently required.   Two confirming articles: Harvard Business School and Computerworld.

Here’s Your PROVEN “Industry-Changing” Solution To Permanently Stop Amazon and Bring Your Customers Back:

The Ultimate Shopping Convenience® is Your Decisive Competitive Advantage

“Physical stores can compete with Amazon by emphasizing (1)  instant gratification, (2) unique shopping experiences, and (3) customized customer support.”  See  “Thinking About The Future” – third topic heading

Overview of this Decade’s TWO Biggest Retail Innovations:
1.       SuperCyberCenter© (SCC):  a HYBRID online “Marketplace” with Third Party Sellers similar to Amazon and eBay.
A ‘Hybrid’ because we add a patented upgrade – we include “LOCAL”  physical stores; restaurants; pharmacies, grocers & retailers with unique fashion and/or time-sensitive commodities as Third Party Sellers.  Not available on Amazon (or anywhere else).  Take The Leadership Position In Your Industry.
This is an astoundingly lucrative new Third Party Seller profit source enabling you to dramatically increase your in-store sales from LOCAL cross-marketing and our EVERGREEN Free Cash Flow “War Chest” program.  This locally-focused Neighborhood initiative is a strategy that Amazon, without local stores, simply cannot EVER match.
2.       ROOF (Rapid Online Order Fulfillment©): a HYBRID FedEx/UPS for your local stores AND your SCC Third Party Stores.
A ‘Hybrid’ because we add our 100% Turnkey LOCAL In-Store Shopping + Rapid Delivery both usually within 30 to 60 Minutes 24 / 7 / 365 using our proprietary and excellent Shared Workforce.  No single store, no matter how large, can do this without Third Party Stores co-operating in sharing a “much” larger driver pool to cover your volatile Peaks & Valley periods; it takes an entire neighborhood in scope and years of experience doing it (similar to Amazon’s 10 year lead).
This enables you to earn substantial income from your increased in-store sales & profits reclaimed from Amazon (and other local competitors) due to Rapid Delivery (30 to 60 minutes – 24 / 7 / 365) instead of same-day, next-day, and up to 10 day more expensive FedEx/UPS delivery.  THEN ADD new ‘EVERGREEN’ Free Cash Flow from all ROOF rapid fulfillment orders through your Third Party Seller storesAgain, nobody else can match this, it’s “The Last Mile Of The Internet®literally.
Delivered prices of your products via ROOF can be the same or less than in-store and are more profitable than if delivered by UPS / FedEx since store staff do not assemble or package ROOF orders PLUS we pay before we leave the store – ROOF is 100% turnkey.  Plus, we also sponsor Free Delivery (unlike FedEx and UPS).  You also save the significant cost of the 20% to 30% returned online orders shipped by USPS, UPS or FedEx.  Our in-store discount coupons are FAR less expensive, easier to use and faster to update than regular online daily deal sites like Groupon, and can be added or changed at any time without some else’s approval – a huge ADDITIONAL selling point for your Third Party Stores.
Bonuses:
A.      There are 600± neighboring Third Party Stores around each of your stores = cross-marketing and shared rapid in-store shopping & delivery workforce which destroys Amazon’s basic marketing tool of next-day to 10 day delivery.
B.      The above programs (SCC + ROOF) are available on an exclusive industry and area basis so you can immediately recover your market share from your local competitors as well as from Amazon.
As the only major game-changing / industry-changing solution in sight, we enable you to regain your 2007 market value with a proven HYBRID online LOCAL marketplace with EVERYTHING: Delivered In A Flash®  24 / 7 / 365 that nobody else can even closely match – including FedEx, UPS, Amazon or your local competitors.
Initial ramp-up capital cost payback is 9 to 12 months on our conservative “Plan A”; or 6 to 9 months on our less conservative Plan B (full marketing plan); and immediate (2 to 3 months) on our aggressive Plan C (which we have already done for one of the World’s largest US retailers and can validate from their statistics in detail). 
And remember, as results of your initial benchmark city roll forward, this increases the speed and payback time, Internal Rate Of Return (IRR) of ongoing ramp-up in the next cities.  Based on a very high Internal Rate Of Return, this puts this project to the top of your investment list and allows rapid national & international rollout with very little invested capital beyond the initial benchmark cities.
We look forward to helping you achieve your future success in returning your stores and profits to your previous high growth rate.

A Graphic Look At The Problem:
A Graphic Look At The Solution:

A Graphic Look At Our Track Record of Achievements:

Thank you,
Gail
Gail Nichols
Vice Chair

Monday, September 5, 2011

Who Wins? Juggernauts, Innovators, Caretakers or Undertakers: A Surprising Conclusion


AMAZING – Amazon’s Sales Growth Just Beat Walmart’s . . . But Here’s The Shocker !

In 2010, Amazon’s sales growth was $5.3 Billion, while Walmart’s sales growth was only $3.8 Billion !  10 years ago, Amazon barely existed.

In the 24 months ending 12/2010 and 01/2011 respectively, Amazon’s sales growth was $15 Billion and Walmart’s sales growth was $17.5 Billion.  TOTALING $32.5 Billion “NEW” SALES.

The Shocker is:  COLLECTIVELY they are tracking to reach $33.8 Billion  NEW GROWTH THIS YEAR ALONE (equaling the last 2 years).  That’s $66.3 Billion GROWTH in the last 3 years !!

Where did these Juggernauts’ incredible $66.3 Billion NEW sales growth come from during this sluggish economy ?  Let’s do a little exploring.

These sales came from other retailers (including mall tenants).  But, you may ask, which retailers lost this incredible amount of sales, and where will this year’s greater losses come from ?

Some innovative companies are still winning new sales against these Juggernauts (as well as from other retailers) as shown in the following graph.

HOWEVER, companies don’t win or lose – only their senior management teams do.

Let’s evaluate the following management team profiles to discover who the Winners & Losers are and who is most likely to win LONG TERM against these Juggernauts.

But first, take this simple test that allows you to DEBATE these remarkable conclusions from your senior management team’s unique perspective as a Winner or Loser.


OK, First let’s explore these interesting Profiles to discover Who will most likely be the LONG TERM Winner:

JUGGERNAUTS:  were first to discover a new “RADICAL Game-Changing System”, which they quickly exploited to the fullest before anyone else even knew it existed.  Then along came the “copycats” who tried knock-off copies that inevitably failed against the sheer power and knowledge of these Juggernauts, at great cost to the “copycat’s” brand and balance sheet as well as their time lost to find and implement more productive solutions.

INNOVATORS:  are ALWAYS open to new ideas and new challenges.  They take calculated risks that Caretakers would never consider.  They win more often than they lose.  So this team is always very busy with other great and challenging projects.  The problem is:  there is a huge waiting list for access to their time.  BUT, “radical game-changing” opportunities pass by in fleeting moments.

CARETAKERS:  are notorious for holding the line rigorously, doing nothing radically new (other than a few “Bells & Whistles”).  Any major radical change is a non-starter – too risky and anyway “we’ve been doing things this way successfully for years”.  They absolutely believe as long as they’re not losing ground, they must be winning !  They will give myriad reasons to their shareholders and analysts why none of the following options will work for them or their company, such as; “Our people explored the ecosystem and there’s no independent corroboration” – even as these solutions produce extremely positive results for their Juggernaut competitors !

UNDERTAKERS:  Here are 7 reasons this team SHOULD be the LONG TERM winner using a Winning Option outlined below.

1.     THEIR NEEDS ARE BY FAR THE GREATEST.  (Including virtually all regional mall owners whose tenants are losing to the Juggernauts).

2.       They know they have a problem, but can’t find the solution usually because their mid-level management team is looking in the wrong direction (they prefer Safety – nothing Radical – just more of the same old).

3.     They blame the economy for their current predicament hoping a solution will “mysteriously appear” BEFORE they become the next Borders or Circuit City.

4.      They tried all the new “Mods & Apps” but none changed their overall competitive position.

5.      They tried the “copycat” routine with stunning failure, so they are now “Gun-shy”.  (Why waste more time or money on “copycat” things that simply can’t get you out of the hole?)

6.      As only the senior management team is held to account, overall executive leadership must prevail to be the long term winner.

7.     Since they have KNOWINGLY been under fire so long (12 – 36 months), this leadership team is most likely to prevail considering the low risk and very high reward of the options below.

Winning Options: 3 New “Radical Game-Changers” to Catapult Juggernaut Challengers Ahead Of All Others– with ONE Major Winner:

1.     ROOF (Rapid Online Order Fulfillment©) 100% Turnkey In-Store Shopping & Delivery usually within 30 to 45 minutes, 24 / 7 / 365, NATIONWIDE and it is patented.

Orders are assembled and paid for by us at your local store BEFORE we leave.  Delivered price can be the same as in-store price. We handle returns which are reduced to less than 5% from normal 20% - 30% online.

When You Just Can’t Get Out Or Have Other Things To Do®

If FedEx (or UPS) could deliver your online orders at less cost and in 30 to 45 minutes – there would be a line-up of customers on your website because NOBODY LIKES TO WAIT 3 to 10 days for online orders.

Walmart has been doing Next-Day delivery for years in other countries (not 3 to 10 day delivery) and just brought “Walmart-To-Go” to the USA.  Amazon is trying to do the same thing in Seattle as well as promoting AmazonLocal.com nationwide. ROOF enables you to significantly improve upon the Juggernaut’s Next-Day delivery – or even Same-Day.  (And ROOF strategically complements “Order Online with In-Store and/or Curbside Pick-up”.)

2.     SuperCyberCenter© – The Online Marketplace For LOCAL Area Retailers & Restaurants

SuperCyberCenters: HYBRID – Patented – Online –  LOCAL AREA – Marketplaces –  uniquely including ROOF (Rapid Online Order Fulfillment) that no other Marketplace offers.
The Last Mile Of The Internet®

Ever wonder what was Amazon’s key growth factor?  Its Marketplace.  Third Party Sellers using Amazon’s trade name for higher traffic and higher sales are now 40% of Amazon’s ONLINE GROWTH and revenues.

Walmart.com also is a significant ONLINE Marketplace.   Many “Copycats” have tried in-house Marketplaces against these well-founded and powerful Juggernauts and colossally failed at a huge cost to their brand; such as Overstock.com simply because they had nothing truly unique to offer.  Our SuperCyberCenter with ROOF is so unique, it is patented.

EVERYTHING – Delivered In A Flash®  THE HIGHEST FORM OF CONVENIENCE & THE FUTURE

The bar has been raised to a NEW standard in customer service:  Choice, Price & Convenience are the three things all consumers want, need & desire.  The Juggernauts only have the first two – We have all threeConvenience is overall the most important of these three consumer attractions putting the Juggernauts at a huge disadvantage.  Here’s your chance to greatly improve upon the Juggernauts’ overall programs with a powerful NEW patented customer service loyalty program the Juggernauts simply cannot match and cannot copy.

Walmart and Amazon cannot touch this SuperCyberCenter merged with ROOF (Rapid Online Order Fulfillment).

Your 3 SuperCyberCenter Winning Options with ROOF (Rapid Online Order Fulfillment):

A.    Your Brand Name Local SuperCyberCenter with ROOF

Ideal for major LOCAL area retailers, restaurants and/or regional malls.

With LOCAL AREA Stores & Restaurants as Third Party Sellers promoting your stores locally and cross-marketing with these major local retailers, with higher profit ratios than your local store.

B.    Your Brand Name Regional SuperCyberCenters with ROOF

Primarily for major REGIONAL retailers, restaurants and/or major regional mall owners.

With LOCAL AREA Stores & Restaurants as Third Party Sellers promoting your stores locally and cross-marketing with these major local retailers, with higher profit ratios than your local store.

C.     Be an Anchor or Regular Tenant in your LOCAL SuperCyberCenter with ROOF

Put your local stores ONLINE where your local customers can go to find local products and get immediate in-store shopping & delivery.

Use the power of well-respected major retailers to draw the premier customers in your LOCAL area to your store (as well as to your website) away from the Juggernauts who have been hurting your sales and profits for years.  Cross-market with other tenants and anchors for mutual recognition, growth and sales.


3.     Master SuperCyberCenter with ROOF INTERNATIONALLY for all SuperCyberCenters – The ONE Overall Long Term Winner.

Perfect choice for a major international company with significant global influence and an exceptional innovative executive management team.

The Ultimate Shopping Convenience®  
EVERYTHING – Delivered In A Flash®
Are you ready to Innovate to Win against Juggernauts with a truly new and fully proven RADICAL Game-Changing Network ?  If yes, please let me know your preferred ‘Winning Option” before September 15 and I will have the appropriate person contact you ASAP.  Your customized Earnings Analysis for your SuperCyberCenter with ROOF “Game-Changer” option is available upon request.

Thank you,

Gail

Gail W. Nichols  - Vice Chair