For those who don’t, it goes like this…Robert Crandall, the head of American Airlines at the time, calculated that if they removed just one olive from every salad served to passengers, nobody would notice and the airline would save $100,000 a year.
Creative cost-cutting took off from there.
Unfortunately, so did the trend of companies cutting too many corners and ultimately sacrificing execution in order to cut expenses.
Retailers are no different. Every year they lose billions of dollars (between 2-5% of sales) due to poor execution at the store level. The lack of emphasis on the customer experience is a result of retailers focusing on the cheaper e-commerce market instead of their brick and mortar locations.
Many retailers believe their "olive" is e-commerce - it's cheaper, convenient, and easily controlled. Here's why that's a problem....unlike with American Airlines where the company saved $100,000+ without anyone noticing...retail customers are noticing.