Rupert Collins-White reports R etailers are racing to bring their brands to the Web but some fare better than others. In the bricks and mortar world, physical location is important in differentiating shops. But online, small and large retailers compete on more equal terms. Both can have sophisticated and integrated supply chain management, delivery and stock management systems, both can compete directly for the same online and direct customers and both can deliver goods to the customer. However, staking out territory in the online world is also possible.
Firms can link to portal sites, spend on advertising and create their own high-profile brands.
Amazon, for example, is a firm that has done all three. The top UK grocers, including Sainsbury's and Tesco, are investing sizeable sums, the kind of money one analyst doubted they would spend on any other kind of project. They are doing this to survive in business. Richard Hyman, chairman of retail research firm Verdict, says the high street chains cannot afford to delay. They have really got to develop an online presence for defensive purposes.