If there is one constant all retailers have to deal with, it is
change; change in technology; change in consumer tastes, change in
the competitive landscape. The only sustainable competitive
response to change is innovation. Over the past thirty years, much
of the successful retail innovation has focused on improving supply
chain efficiencies.
There have been numerous attempts at demand chain innovation, but
few have succeeded. While supply chain innovation will continue,
the stabilization of SG&A costs as a share of sales over the
past decade suggests that the biggest gains to be made there have
already been achieved. What remains is the demand
chain.
