What: Forbes argues that retailers need to be much more assertive and brave when it comes to transforming themselves, otherwise they might go bust.

Why it is important: tech companies are able to radically transform themselves, sometimes very painfully (see X). Retailers might need such a dose of courage in order to revitalize themselves and become attractive again.

The retail industry has experienced significant transformations over the last two decades, reshaping the competitive landscape and the dynamic between buyers and sellers. Despite these changes, many brands have responded with only incremental adjustments, leading them to irrelevance or potential extinction. Notable failures include once-dominant retailers like Bed, Bath & Beyond, Blockbuster, and Sears. These companies, emblematic of broader trends within department stores, have lost market share due to their inability to adapt, opting instead for minor improvements and cost-cutting strategies in a bid for survival.

The shift in consumer preference towards more accessible physical stores with focused assortments and better value, such as TJX and Ross Stores, highlights the inadequacies of department stores. The success of TJX, now significantly outpacing Macy’s in revenue and store count, along with the rise of Ulta Beauty from a regional brand to a major player, exemplifies the missed opportunities and the high cost of timidity in the face of industry evolution.

The concept of the "transformation gap" discussed in the book "Leaders Leap" illustrates the risk inherent in not innovating or adapting swiftly enough in a rapidly changing market. Retailers clinging to outdated models are finding that minor, conservative changes are insufficient when radical shifts are required, potentially leading to a rapid downfall.

Retail transformation: the price of timidity is very high