Question

With the growth of online retailing, where do you see the future of Brick and Mortars?

Answer 1

The retail landscape has significantly changed due to the digitization of shopping and shift in consumer buying behavior. Consumers today have low attention spans, shop mobile first, use peer recommendations and conduct research before making a purchase.

Digital Transformation: Marrying The Online And Offline Experience

Creating a unified, seamless experience between digital channels and brick and mortar gives retailers a competitive advantage in today’s digital economy. Digital transformation presents an opportunity for traditional retailers to improve the overall shopping experience for the customer.

While online shopping is convenient, customers are still looking for social and experiential experiences, which can be achieved in a physical store. With the adoption of smartphones and tablets, leveraging mobile strategies to drive traffic to stores (i.e., push notifications, coupons, mobile apps, etc.) will drive engagement and loyalty with consumers.

Once in store, expect to see more technology. The stores of the future will use data to personalize the shopping experience. Mobile technology will educate customer-service representatives with profiles on buying behavior, product preferences and demographic information -- driving more sales.

The In-Store Experience: Mobile First

The shopping habits of consumers have changed drastically in recent years due to a rise in mobile shopping; approximately 71% of consumers are shopping online to find the best price. Studies have found that consumers browse products on mobile devices for the best price while in a brick-and-mortar store (known as “showrooming”) and compare products online to find the lowest price (known as “webrooming”). This shift in the retail landscape provides as an opportunity for retailers to improve the overall shopping experience.

Some online retailers view the physical store as a way to move beyond transactional selling and connect with consumers through experiences. An example of this is Rent the Runway, an e-commerce brand that sells designer dresses and accessories. After building its online presence, it opened showrooms across major U.S. cities offering a personal stylist and the ability to try on and feel the fabric of the clothes.

Upon entering the store, you sign into your account via a tablet and the stylist has access to your recent purchases and favorite items. This makes it easy for the stylist to provide recommendations and add accessories to complement your look. They also make it easy for the customer by providing a pre-paid, pre-addressed package to return the goods.

Placing an emphasis on customer service and streamlining the customer journey will drive loyalty in an increasingly competitive space.