FIS Modern Banking Platform
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November 14, 2018
Dan Brames FIS | Head of Retail and Corporate Payments
Amazon has quickened the pace of retail evolution and redefined the retail landscape, just as Walmart did decades ago when it moved onto Main Street.
A recent analysis conducted by PYMNTS estimates that Amazon will account for 2.1 percent of all consumer spending and 6.4 percent of retail spending in 2018 – triple that of four years ago. Such rapid growth should not be ignored by any retailer even if Amazon does not yet compete in its space.
How can retailers respond to the “Amazon Effect”? I believe they have two choices – learn how to survive and move forward or wind down their companies as some big names are doing. This article discusses some of the ways in which retailers are using technology to move forward successfully.
Amazon is no. 1: Toppling Walmart as the favorite retail brand in the world, Amazon achieved its status by making shopping a seamless, frictionless process end-to-end and continues to up its game through innovation. It’s now the model that consumers use to gage other retailers.
Rising consumer expectations drive change: Consumers’ expectations rise for all retailers when a leading retailer successfully addresses a common complaint. Think about the long lines that draw consumer complaints especially during holiday shopping. Many leading retailers have adopted serpentine lines as a superior alternative to multiple lines because consumers can see movement. However, serpentine lines are further shortened and, in some cases, eliminated altogether, by digital technologies.
Good help is hard to get. With unemployment rates down to around four percent in the United States and the United Kingdom, retailers are struggling to find quality employees who are willing to work retail’s long hours for limited pay.
There is no “one size fits all” technology to respond to the “Amazon Effect”. However, retailers should assess how new technologies can support their core competencies and their ability to remain competitive.
FIS | Head of Retail and Corporate Payments
Dan brings over 20 years of financial and payments industry experience to FIS through senior marketing and management roles. Most recently, he was a management team member at Valutec which was acquired by Metavante in 2007 and FIS in 2009.
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