Digital is key in the retail space, both in terms of e-commerce and how technology can improve the overall experience for the consumer. The company has been working with retailers to develop a digital platform that will allow them to offer customers more personalized experiences when they shop online. Sainsbury’s can extract value from its planned acquisition of Home Retail Group, if it can instill digital change into the Argos shopping model and use their combined out-of-town retail park locations to power a distribution network to re-write the delivery rules of online ordering. The deal also brings a host of big data and granular customer insights which can be mined to inform the retailer and implement change. An important part of the puzzle that Sainsbury’s will need to solve in order to truly compete in the digital retail space is accurate product recommendations which drive more than a third of Amazon sales.
Digital is key in the retail space, both in terms of e-commerce and how technology can improve the overall experience for the consumer. Interaction of online and offline space is also a key challenge. Sainsbury’s can extract value from its planned acquisition of Home Retail Group, if it can instill digital change into the Argos shopping model and use their combined out-of-town retail park locations to power a distribution network to re-write the delivery rules of online ordering. The deal also brings a host of big data and granular customer insights which can be mined to inform the retailer and implement change. An important part of the puzzle that Sainsbury’s will need to solve in order to truly compete in the digital retail space is accurate product recommendations which drive more than a third of Amazon sales.