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By Bethany Davis, president, Bentonville team
In today’s retail environment the lines between online and brick-and-mortar sales have blurred more than ever before.
I see both my team and our supplier partners grappling with how to align their job functions to Walmart’s evolving omnichannel structure.
Our job at The Barcode Group is to facilitate great relationships between brands and major retailers, but the new struggle I’ve witnessed comes down to what should be a super easy question: “Who’s damn job is this?”
The answer? Well, everyone’s. But complexities arise when traditional CPG structures clash with the demands of an omnichannel world. It takes a village and a complete team to manage digital and B&M, but a village communicating to a single merchant can quickly start feeling like a town council meeting where everyone is invited to speak their minds. Lots of great thoughts, but very little outcome and an overwhelmed merchant trying to sort through it all at the end of the day.
Historically, our CPG partners and sales agencies alike have compartmentalized their digital and in-store strategies, often maintaining separate teams to oversee each aspect of their business. However, the landscape is shifting. Retail giants like Walmart are spearheading a new approach, consolidating their purchasing processes to treat online and in-store sales as facets of a unified buying strategy.
There’s nothing I love more than a holistic strategy that bridges the digital and physical realms of retail. On the other hand, it requires a level of agility and collaboration that traditional structures struggle to accommodate.
At The Barcode Group, we’ve encountered these challenges head-on, and while we continue to evolve every day, I’d love to share our learnings on how to structure your team for success in an increasingly omnichannel environment.
1. Streamline communication: One of the primary pitfalls we’ve seen is too many points of contact bombarding retailers with disparate requests and strategies. To counteract this confusion, we’re moving to appointing a single, dedicated point of contact for each merchant. This ensures clarity and consistency in communication, minimizing the risk of messages getting lost in the shuffle. Yes, that means you may need to get the person who has been selling brick and mortar for 20 years to speak to digital strategy and next steps. That often means there are multiple meetings to get everyone on the same page. But it’s totally worth it.
2. Leveraging cross-functional expertise: While the traditional brick-and-mortar team may have historically held the reins, it’s essential to recognize the unique skill set required for success in the digital sphere. There are very few unicorn people who can know everything strategic and operational about B&M and digital. It’s just too much, at least for me.
Our approach involves harnessing the specialized expertise of both our in-store and digital teams to craft comprehensive strategies that cater to the nuances of each channel. By fostering collaboration across disciplines, we’re able to develop plans that capitalize on the strengths of both online and offline sales. We have to talk. A lot. And getting everyone on the same page isn’t easy.
But it’s better than the brick-and-mortar team running a Walmart.com Summer Savings special for 30 percent off, not knowing to tell the digital team and then getting a $500,000 chargeback from Amazon three months later that no one was expecting.
3. Embracing a unified approach: In an era where consumers seamlessly transition between online and in-store shopping experiences, it’s imperative to adopt a cohesive 3P (third-party) versus 1P (first-party) strategy. Rather than treating these channels as distinct entities, we advocate for an integrated approach that acknowledges the importance of both Walmart.com and traditional brick-and-mortar sales.
Embracing Walmart’s emphasis on digital commerce not only positions brands for success in the short term but also future-proofs their businesses against evolving consumer preferences. We’ve kicked the can down that road far enough. The day has come where having a Walmart.com strategy isn’t optional. It’s an expectation that you will have a digital strategy that moves from 1P/In Store to 3P/Walmart.com and that you can speak to it with your single merchant point of contact.
As we continue to navigate the ever-changing landscape of retail, it’s clear that adaptability and collaboration will be the cornerstones of success. By restructuring our teams to align with the realities of an omnichannel world, we empower brands to thrive in an environment where agility and innovation reign supreme.
So, to sum it up: Embrace change, pivot quickly, foster collaboration and leverage the expertise of cross-functional teams. At The Barcode Group, we remain committed to providing our clients with the insights and strategies they need to gain an advantage in today’s competitive marketplace. Together, let’s chart a course towards a future where seamless integration across online and offline channels is not just a goal but a reality.
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