Future Of Physical Retail Stores – “Retailers need to continue to think about how their mobile experience can work hand in hand with the in-store experience. »
The physical store concept has been a hot topic for several years. They die? Are they prosperous? Whatever you think, one thing is certain: they are evolving, with an eye towards digital.
- 1 Future Of Physical Retail Stores
- 2 What 2021 Foot Traffic Trends Mean For The Future Of Physical Retail
- 3 Exclusive: Victoria’s Secret Unveils Store Of The Future In Chicago
- 4 Webinar Recap: Tapping Into The Future Of Physical Retail
- 5 Why Healthcare Is Key To The Future Of Physical Retail
Future Of Physical Retail Stores
Whether meeting customers wherever they are via mobile or creating personalized digital interactive displays, modern retailers are embracing the idea that digital experiences will enhance the traditional in-store and retail experience and, together, drive customer engagement customers and sales.
What 2021 Foot Traffic Trends Mean For The Future Of Physical Retail
According to a study by Yes Marketing, more than half of consumers use mobile retail apps when shopping in person. Of the 1,000 consumers surveyed, 65% use in-store apps to redeem coupons, 57% use them to find coupons, and 46% use them to locate items on sale. In other words, consumers are using their apps to complement the in-store shopping experience, not replace it.
This study suggests that retailers have an important opportunity to improve the customer experience by combining the two halves of their business. While customers clearly value coupons and sales, research also shows that they value local events and additional in-store services. With a seamless omnichannel strategy (e.g. retail app, website, events, services, etc.), retailers can encourage in-store purchases and drive more mobile users to visit physical stores.
“Of the 1,000 consumers surveyed, 65% use in-store apps to redeem coupons, 57% use them to find coupons, and 46% use them to locate items on sale. »
For example, Anthropologie could use its mobile app to present users with exclusive sales information and to promote an in-store holiday event, which the retailer already presents through email campaigns. Using the app also allows for greater customization based on the user’s location and history. Nordstrom Rack could use its app to further promote its free in-store sewing and appointment scheduling service, including for online purchases. This is an opportunity to educate and assist the user throughout the purchase journey and funnel, not to mention entice them to return to the store where they might make another purchase.
Reinventing The In Store Experience With Smart Store Solutions
Retailers can use apps to enrich the in-store experience. Whether it’s in-store moments like scanning an item to find the real price, offering coupons, or building loyalty through events and services, retailers need to continue to think about how their mobile experience can work in tandem with in-store experience.
It’s important to note that shoppers continue to find value through in-person shopping. Sixty percent of respondents in the Yes Marketing study said they shop in stores because they want to see items in person.
Many shoppers also appreciate visually appealing stores and displays, which retailers can enhance with digital elements. CNN reports that major retailers such as Nike, Macy’s, Sephora, Reformation and American Eagle are adding augmented reality, interactive touchscreens and other technologies to their physical locations. “These retailers hope the new technology will attract younger shoppers and reduce the hassle of shopping in-store. They also benefit from a financial incentive to encourage customers to buy in-store rather than online. In-store sales are more profitable because retailers avoid paying shipping costs.
Blended customer experiences, from digital to physical, are becoming the norm. Technology can make in-person shopping easier, more engaging and more fun. For Sephora, this means using an augmented reality-enabled mirror to allow users to virtually try on their makeup. For Reformation, that means displaying just one of each item in its showrooms and having shoppers use tablets to request the items they want to try, mimicking the online experience. Selected items are delivered to the dressing rooms, which feature several lighting options designed for taking selfies. American Eagle works to eliminate some of the hassles of purchasing and offers customers more information about their products. The retailer is testing interactive tablets in fitting rooms that allow shoppers to request different sizes and styles, receive product recommendations and view purchase totals, all without having to leave the fitting room.
Exclusive: Victoria’s Secret Unveils Store Of The Future In Chicago
For an increasingly tech-savvy audience, bringing digital technology into the physical world is no gimmick. Help retailers connect with younger shoppers and enrich the experience with thoughtful, hands-on services. Technology can help draw more customers into stores, stimulate impulse purchases and, of course, improve engagement and loyalty – all key goals of any retail brand.
Shopper behaviors are changing, which means retailers must adapt to stay relevant. Finding new ways to engage customers in the omnichannel journey isn’t just nice, it’s a necessity. From mobile apps to in-store displays to digital fitting room services, it’s important to maintain a seamless brand experience so customers can move from one touchpoint to the next with easy recognition.
This means having a unified design strategy, from color to typeface to photography to iconography/graphics, that anchors the customer throughout their journey. Each point of contact should resemble an element of family cohesion. And, for global retail giants (e.g. Nike, Zara, Adidas, H&M), typography shouldn’t be an afterthought.
When there are so many access points, retailers must be careful not to lose their brand (or become too repetitive to the point of redundancy) in an attempt to deliver desired digital experiences to customers. The future of physical retail is a topic that has attracted considerable interest. debated in recent years. Some experts believe that physical stores will become obsolete as online shopping continues to grow, while others believe they will play a vital role in the future of retail.
Physical Retail Is Back. And This Time It’s Sustainable
There is no doubt that online shopping is growing rapidly. In 2021, global e-commerce retail sales reached $4.9 trillion and is expected to reach $7.4 trillion by 2025. However, this growth doesn’t mean brick-and-mortar stores are doomed. Indeed, there are a number of reasons why physical stores will continue to play an important role in the future of retail.
First and foremost, physical stores offer a unique shopping experience that cannot be replicated online. Customers can touch and feel the products, receive help from expert staff and return items they are not satisfied with. This is especially important for frequently touched products, such as clothing, furniture and electronics.
Secondly, physical stores can create a sense of community. Customers can interact with other shoppers and employees and learn about new products and trends. This is especially important for younger consumers, who are increasingly looking for social experiences.
Third, physical stores can be used to collect customer data. This data can be used to improve the online shopping experience, as well as target customers with personalized marketing messages.
Webinar Recap: Tapping Into The Future Of Physical Retail
Of course, brick-and-mortar stores will need to adapt to the changing retail landscape. They will need to offer more convenient shopping options, such as curbside pickup, buy online and pick up in store. They will also need to use technology to improve the shopping experience, for example by offering interactive displays and virtual reality.
The retailers that succeed in the future will be those that are able to create a unique and differentiated physical retail experience that cannot be replicated online. They will need to focus on providing excellent customer service, creating a sense of community and collecting customer data. By doing these things, they can ensure that physical stores continue to play a vital role in the future of retail.
The future of physical commerce is still uncertain, but a number of trends suggest it will continue to play an important role in the years to come. Retailers who can adapt to these trends and create unique and memorable shopping experiences will be the ones who see success in the future. Facebook’s parent company Meta has opened its first physical retail space. Amazon has opened its first cashier-free Amazon Go store in a suburban format. In Europe, retail chain Carrefour France is installing telemedicine booths in its stores, and fashion retailer Zara has opened a store in Madrid with scan-and-go payment technology, click-and-collect points and a robotic storage area.
The pandemic and lockdown measures have pushed shoppers online and accelerated the shift to e-commerce. This has impacted supply chains, giving rise to new sales channels and digital routes to consumers.
Why Healthcare Is Key To The Future Of Physical Retail
In the post-pandemic future, we expect e-commerce to continue to grow across all retail sectors. Ascential’s Edge predicts that global e-commerce will reach at least 35% of retail chains’ sales in 2023, at least two years earlier than pre-pandemic projections. By 2026, e-commerce will represent 40% of retail chains.
The consequences for in-store sales are clear. As e-commerce accelerates, the share of stores in retail chains is decreasing, from around 85% in 2016 to 60% in 2026.
This new economic reality has major implications for the store’s traditional business model and, essentially, the store must adapt if it wants to remain viable in the long term.
Physical commerce is not dead. Indeed, the opening of economies after years of intermittent lockdowns has demonstrated the popularity of shops, and many high streets are responding as shoppers enjoy reconnecting in physical spaces.
Trends To Inform Your 5 Year Retail Strategy
Retailers with store networks need to understand how to effectively leverage their physical assets to differentiate themselves in their market and still ensure operational efficiency. Of course, many retailers are already innovating
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