Quarterly NewsletterSeptember 2011
Retail Organization Structure
If you're growing internationally, then you have a number of organizational challenges to address. Do you want geographical-based commercial operating units? What retail functions belong in these units? What decisions and processes are best performed by a global group? If product strategy is global, should merchandising be local?
These same questions apply to how a retailer should construct their social media and mobile retail operations. Should this be a separate unit? How do you tailor merchandising to this channel? In our Merchandising and Marketing Alignment study from earlier this year, 63% of retailers have defined a unique role responsible for social media and mobile commerce. But 71% of retailers designed this role to report to Marketing. Is this really an execution role? It is your most dynamic merchandising channel. You need to align the behavior of this role to Merchandising.
As we manage through another busy holiday season and budget initiatives for next year, I hope you'll reflect on the structure of your organization and how to enable it with your initiatives in 2012. If you'd like to benchmark your retail organizational model or discuss alternatives, don't hesitate to call.Sincerely,
Founder and CEO, The Parker Avery Group
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