1、Retail Practice Rethinking procurement in retail For retailers, procurement is no longer solely a matter of negotiating “A” brands. Private labels and verticalization are trending. Advanced approaches and tools help get procurement in shape for the future. August 2019 Monty Rakusen/Getty Images by N
2、ikolaus Fbus, Alexander Merklein, and Daniel Rexhausen The days in which bricks-and-mortar retail monopolized touchpoints to customers are gone. Alongside pure internet retailers such as Amazon and Zalando, and start-ups like the beverage delivery service Flaschenpost, brand manufacturers are increa
3、singly seeking to gain direct access to consumersbe it online or through ultramodern flagship stores in premium city-center locations. Aside from pioneers like Apple, many categories are encroaching on the final consumer business, from coffee brands (take Nespresso) through to cosmetic lines such as
4、 Kiehls and Nyx by LOral. As a result, traditional retailers not only face intensified pressure on margins but also unrelenting pressure to innovate. And the retail sector is mounting a response. By increasing its share of private brands, it is endeavoring to win the loyalty of customers and set its
5、elf apart from the growing competition. Some retailers, among them the French sports equipment discounter Decathlon, are already aiming to increase their share of private labels to 100 percent. Those who can afford it pursue verticalization and set up in-house production facilities for their private
6、 labels. Leading grocery retailers such as Edeka, Migros Switzerland, Morrisons UK, and Kroger US have long produced much of their assortment themselves from beverages to meat through to baked goods. Even coffee roasters, ice cream factories, or potting-soil producers have since been added to the ve