One of the best avenues for growth for retailers is to go cross-border, and open up a new market altogether, said Tim Hood, the Global Vice President, Strategy and Technology, Retail Industry Business Unit at SAP SE. But coming up with a cross-border strategy is not an easy task.
“You need to create a strategy and think about multiple dimensions – merchandising, pricing, location strategy – all these things you need to think about explicitly,” Hood said during a break in the action at the NRF Big Show 2016. “Replicating what you do at home may not work very well.”
One example Hood mentioned is Target (which he disclosed as an SAP client), and its attempt to do business in Canada (where he lives)
“Unfortunately – and they are a great customer of ours – but they had a complete failure, and were removed from the country,” Hood said. “There’s many theories about that, but trying to replicate what they did at home just didn’t work, so it’s important to think about how to do it properly.”