Retail Virtuous Circles

 

Definition: “virtuous circle” – noun

  • a recurring cycle of events, the result of each one being to increase the beneficial effect of the next

Sam Walton built a business, Wal-Mart, that is now the biggest retailer in the world; what is extraordinary – the work of a genius – is the fact that he created from scratch an incredible, unbelievably simple, innovative retail business model:

  • leverage logistical superiority, to have a faster and more efficient distribution system
  • offer the lowest price possible (relying on higher volumes to sustain profitable growth)
  • leverage purchasing-power to buy at ever-lower prices from suppliers

Immagine1

This is what I call an awesome “virtuous circle”…

…and a very good lesson for many modern retailers.

Andy Cavallini

 

 

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