Timeless Lessons From 50 Years at Retail’s Cutting Edge

There’s been a seismic shift in retail over the past five decades and I’ve had the privilege of a front-row seat.

As a Harvard Business School (HBS) student in 1971, I was already captivated by the world of retail.

Between my first and second years at HBS, I had the privilege of working at Bloomingdale's, which at that time was the crown jewel of the retail world. Rather than being handed some perfunctory project in a cubicle, I was thrust into the thick of it, working alongside buyers and assistant buyers as we prepared to open two new stores.

The experience was far from glamorous, but it was intoxicating. The entrepreneurial spirit, the tangible nature of the business, the immediate feedback loop of consumer response — I was hooked. This led to a decade-long tenure at Bloomingdale's during what I consider its most exhilarating era.

If that eager young man from the '70s were to time travel to today's retail landscape, he'd be a fish out of water — but I have no doubt he'd still fall in love with the industry.

The world of retail has transformed so dramatically that it's almost unrecognizable, yet its core remains as exciting and challenging as ever.

Then and Now: A Retail Revolution

Technology has vastly extended our opportunities and challenges, revolutionizing not only how consumers shop but also how they expect to be served. The emergence of e-commerce and the demand for omnichannel experiences have added layers of complexity to retail operations. The cost of doing business has skyrocketed as retailers juggle brick-and-mortar locations with online platforms, social media presences, and a host of ancillary services like buy online, pick up in-store.

It's a stark contrast: where department stores like Bloomingdale's once were the hallmark of innovation, today's retail trailblazers are more likely to be direct-to-consumer brands or tech-savvy startups.

Perhaps most challenging is the shift in talent acquisition and retention. The dearth of merchandising talent is a far cry from the days when department stores were the breeding ground for retail's best and brightest. High turnover rates in front-line positions have become an accepted norm — a situation I firmly believe we must challenge and change.

However, this new landscape, while daunting, is ripe with opportunity for those willing to adapt and innovate.

The Keys to Success in Modern Retail

Despite the challenges, the keys to retail success — a unique blend of time-tested wisdom and modern innovation — remain within reach. Consider the following tips:

1. Understand the customer. Today's tools for consumer research and customer segmentation allow for unprecedented insights that must be harnessed. When I started out, our customer was the burgeoning baby boomer, hungry for the new and the now. Today, we're dealing with a mosaic of generational preferences, each with its own set of expectations and shopping habits. The retailer that truly knows its customer — not just demographically, but also psychographically and behaviorally — will always have an edge.
2. Leverage technology. From artificial intelligence-driven inventory management to data analytics that predict trends before they happen, technology is a cornerstone of retail strategy. The key is to use technology to enhance, not replace, the human touch in customer experience. Take, for example, stores like Sephora that use mobile point-of-sale systems. They can eliminate a major point of friction for the customer and enhance the one-on-one interaction with the sales associate. 
3. Build strong teams. In an era of high turnover and skill shortages, building and retaining a strong team is more critical than ever. This means preserving your company's DNA while fostering a culture of collaboration across departments. It's about creating an environment where talent wants to stay and grow. This can look like offering competitive pay, investing in digital skills training, providing opportunities for advancement, valuing everyone’s input, and other strategies that focus on nurturing talent and fostering teamwork.

The retail landscape may have changed dramatically since my days at Bloomingdale's, but its fundamental appeal remains. It's an industry that demands the best of you — your creativity, your analytical skills, your ability to understand and meet human needs. And for those of us who love it, there's simply nothing else like it.

Michael Appel is a managing director and retail practice leader at Getzler Henrich & Associates, one of the nation’s oldest and most respected middle-market corporate restructurings and operations improvement firms.