Retail is going through a "golden age" as businesses adapt to a new landscape of consumer engagement, said "Shark Tank" star and serial entrepreneur Daymond John on Friday.
Companies like Home Depot are using the Internet to their advantage to thrive while others who lack the technology are dying, the founder and CEO of the FUBU fashion line told CNBC.
"Retailing is changing day by day," he said in a closing bell interview about successful retailers. "[Retailers] either die or strive," and successful retailers "are just finding a new way to reach their new consumer online."
The need for experimental shopping, he said, can be illustrated by the rising share prices of online retailers Amazon and Shopify, whose share price has recently risen to the four-figure club.
Amazon, the e-retail conglomerate, has risen more than 73% since the beginning of the year and closed the session on Friday with a new high of $ 3,200. Shopify, which equips e-commerce tools, has risen nearly 160% over the same period, closing the session at 1,031.86, which is within $ 30 from its high earlier this month.
The comments come in the midst of a wave of retail bankruptcies during a response to a coronavirus pandemic that had restricted or closed store operations and blocked consumers at home for months. Some of the most notable retail bankruptcy protection measures included Nieman Marcus, J.C. Penney, Pier 1 Imports, and J. Crew.
"They'll close, they'll have smaller prints, and they'll have to change their models," John said of companies that want to survive the technology disorder. "Your model has to be more of an experience."
The experimental retail model involves more than just marketing products and customers who buy goods. Traditional retail is about winning new customers, selling current consumers, and getting returning customers to shop more often, said John.
Home Depot switched to the new retail environment in 2018 by investing $ 11 billion in its technology infrastructure to ward off Lowe & # 39; s competition and build a web presence to ward off others like Amazon.
The goal is to find customers online, said John, explaining how a company like Sephora needs to train salespeople to keep track of a customer's buying habits and to consult them on future purchases. He contrasted it with the heyday of FUBU when the product was simply delivered to a department store like Macy's and the clothing company was unable to document the interests of its customers.
"If your salespeople are now out of transaction mode to make a quick sale and they are able to play content and conversions, follow you home, and know your buying habits, you are in good shape." Form, "said John." But if you only see your business as a place of transaction, you won't be in good shape. "
Disclosure: CNBC owns exclusive off-network cable rights to "Shark Tank," with Daymond John co-hosting.