The Fundamental Challenge of Vertical Retail

The Fundamental Challenge of Vertical Retail

This IDC Perspective provides a view on the current decision making within vertical brands and discusses the root issues. Waves of publicly announced store closures validate the view of some that there is an ongoing retail apocalypse. For others, it supports the idea that the global pandemic has permanently altered the retail landscape. A more nuanced view is that many of the closures are instead part of overdue strategic decision making among vertical brands that results in the choice to exit one of the least efficient sales channels for those brands that are not, at their core, a retail business."Operating a retail channel is no longer a prerequisite that legitimatizes a vertical brand. Brands that properly view their retail business as a strategic choice rather than a foregone conclusion are able to make more effective investment decisions with a broader perspective about their business," states Jon Duke, vice president of research, IDC Retail Insights.

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