The online retail giant Amazon is widely seen as one of the biggest threats to both independent and multiple retailers, as it often dominates consumers’ searches for last-minute product. Last week’s Retail Week Live conference asked a panel of experts to reveal how they believed independent stores can compete, both online and in the high street.
Chaired by journalist, broadcaster and author Harry Wallop, the expert panel included Peter Pritchard, ceo of Pets At Home, Miriam Lahage, ceo of Figleaves, Morgan Fowles, coo of Spoke London and David Grimes, founder and ceo of Sorted.
Miriam Lahage emphasised that she doesn’t think of Amazon in terms of David and Goliath. “We don’t try to overtake it,” she explained. “We are a niche, specialist company… This allows us to have our own online business but also play in the Amazon marketplace. Our business is a search game.”
Sorted’s David Grimes focused on delivery; Amazon Prime customers can receive their orders the next day. “So how does a normal, online retailer compete?” he asked. “Amazon have set the bar very high, but they have £billions to invest… The key for retailers is therefore to partner with a specialist to help to level the playing field. Free delivery is key and retailers need to invest in that area.”
“As a retailer you have to be everything that Amazon isn’t,” Peter agreed. “Amazon has no emotion. It is a machine. However, we as retailers have a magic key and that is people… Through people we add value to our business, with our staff holding conversations of relevance with our customers. Of course Amazon is a threat, but as a retailer you have to bring it back to what you are good at and to evolve with your customers.”
The final word went to David Grimes, who said that trying not to lose brand identity by being on Amazon is crucial. “Amazon is a powerful partner, but we all need to own our customers which is the most important thing. Having niche products and a strong personality within the brand is how retailers can stand out.”
“The advantage that independents have over Amazon is that they can engage with their customers and utilise click and collect,” he added. “But the real power lies in bringing offline and online together.”
