United States
Take off your tin foil hat - the retail end times aren’t nigh. Rather than preparing for a retail apocalypse, prepare for a retail revolution. Shift your thinking about physical storefronts and re-envision how you can integrate your brick-and-mortar space with your digital channels to create a more interesting, memorable, and higher-level customer experience.
Yet another major fashion brand has recently announced its plans to shutter hundreds of stores in the US and exiting 40 other countries altogether. Stating the obvious, the brand notes that the apparel industry is changing, with less foot traffic in shopping malls and massive increases in online sales. It’s worth nothing that only 16% of this company’s revenue last year came from eCommerce. The Washington Post reports that the average U.S. household spent $5,200 online in 2018, nearly a 50% increase from 2013, reflecting the continuing rapid growth of online shopping.
Many other companies on the brink of bankruptcy smartly opted to refocus their energies on eCommerce. Brands like Zumiez and Target have reformatted their stores into small, localized distribution centers, cutting down the waiting period for consumers who buy online. Others, such as Casper and Carvana, are integrating their digital and in-store experiences and utilizing their storefronts to offer more experiential retail events. Notice that there are two common threads here - the more apparent being a shift to focusing on eCommerce, the more nuanced but even more critical focus on enhancing customer experience. Customers want a personal relationship with their favorite brands and they expect that personal experience regardless of channel they are shopping.
It may seem like time to panic for brick-and-mortar retailers, but it’s not - it’s time to restrategize. Growth for growth’s sake, when it comes to brick-and-mortar, isn’t a strategy. Focus on your customer’s wants and needs, using data from their behavioral patterns. Customers want convenience, smooth shopping journeys, and amazing service with a personal touch.
Here’s your retail apocalypse survival guide in four simple steps. Keep these in mind and as technology and online sales continue to trend, and you won’t have to go the way of many other retail giants
