Summarize the three big reasons why the supercenters are brilliant.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
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#3 — Walmart supercenters can be data centers for 21st century retailing Not only will physical retail stores not need as much space in the future because of the likely continued growth in e-commerce but so too will they not need as much physical space in stores because of the way retail operations could change as well. As consumers opt for more scan-and-go or computer vision-based, checkout-free retail experiences (like Amazon Go), these innovations too should free up more space inside retailers’ four walls. Ancient artifacts like checklanes and cash registers could soon go the way of the dodo bird. This future state then affords Walmart the ability to rejigger its physical supercenter architectures to do more with its data. Walmart’s Intelligent Retail Lab in New York was the first indication that Walmart has been thinking about this type of future. In the store one finds miles of cable, cameras in the ceilings, and servers devoted to processing loads and loads of data, all aimed at one key output — making Walmart’s customers’ shopping experiences better and more friction-free. Processing the data running through the Intelligent Retail Lab is a Herculean task. As much as retailers would like to keep new server rooms out of current retail operations, the industry is still years out from being able to move all the computations necessary into the cloud. Hence, Walmart’s stated plans. Yet, also important to note and by a similar token, consumers will begin to demand the types of efficient and personalized experiences that can be gleaned from harnessing the power of such data. Regardless of which retailers are ready to accommodate these demands or not, the industry can bet its bottom dollar that Walmart’s largest competitive threat, Amazon, as exemplified by Amazon Go, will likely stop at nothing to give consumers what they want. It is just a fact dyed-in-the-wool of Amazon’s DNA. So, Walmart, despite all the fun talk of renting out server capacity to others, has to start thinking about enlarging the server operations within its stores, not as an additional revenue stream, but because competitively Walmart may have no other choice than to do so. Amazon will force the issue and the rest of the industry to follow suit. In essence, Walmart needs to stay ahead of the curve and ahead of the modern New Retail consumer, whose expectations are such that he or she expects to have whatever he or she wants, whenever he or she wants it. There is no time for a wait and see approach. Focusing on supercenters is prudent, expeditious, and defensible. It sets the foundation for Walmart to be able to meet the demands of the modern consumer in an omni-physical and omni-digital manner that is every bit as difficult or even more so for Amazon to pull off. Required: Summarize the three big reasons why the supercenters are brilliant.
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