Jack Trout on Strategy by Jack Trout

Author:Jack Trout
Language: eng
Format: mobi
Publisher: McGraw-Hill
Published: 2004-03-17T14:00:00+00:00

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THE SAME GOES FOR RETAIL

Take the retail industry. Which retailers are in trouble today? The department stores. And what’s a department store? A place that sells everything. That’s a recipe for disaster, because it’s very hard to differentiate an “everything” place.

Campeau, L.J. Hooker, and Gimbel’s all wound up in bankruptcy court. Hills department stores also went bankrupt. Macy’s, the world’s largest store, filed for bankruptcy. While some department stores have emerged intact, this indicates how tough the world is becoming for this kind of store.

Interstate Department Stores also went bankrupt. So the company looked at the books and decided to focus on the only product it made money on: toys. As long as Interstate was going to focus on toys, it decided to change its name to Toys “R” Us. Today Toys “R” Us does 17 percent of the retail toy business in the country.

Many retail chains are successfully patterning themselves on the Toys “R” Us formula: a narrow focus with in-depth stock. Staples and Blockbuster Video are examples.

In the retail field generally, the big successes are the specialists:

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