Disrupting the Industry and Its Own Business

CarMax Inc. (NYSE:KMX), the largest retailer of used cars in the United States, is now in the second year of its omnichannel strategy, “omnichannel” referring to the integration of online and traditional retailing.

If well executed, the strategy promises a seamless integration between the online experience and the brick-and-mortar experience for customers. For example, consumer product retailers such as Costco (NASDAQ:COST) and Walmart (NYSE:WMT) allow customers to order online and pick up their orders at the nearest brick-and-mortar location.

According to its latest 10-K, the strategy allows customers to shop its inventory of more than 80,000 vehicles at its 216 local stores. If a customer expresses an interest, the vehicle can be transferred to the nearest store or even to the customer’s door, for a test drive.

There are several elements in the business model that support omnichannel:

  • It has customer experience reps who help online customers through the buying
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