The physical retail space is in a profound time of flux, with many questioning its future as e-commerce behemoths like Instagram-focused, fast-fashion company Fashion Nova take center stage. The difficulties are a roll call of complex issues with no simple answers: customer behavior has shifted radically and permanently; labor is becoming higher priced and harder to staff and train; and “silver bullet” technology solutions pile up the anxiety and operational impact with often little or no leads to show for it.
On the one hand, Amazon Prime Day, held this year in July, is, pardon the pun, a leading example of this mindset. The annual discount day for Amazon members has reached the heights of Black Friday and Cyber Monday, additionally driving Prime subscriptions to double in just 4 years.
This is putting additional pressure on traditional retailers, with a few, including JCPenny, Nordstrom, Bed Bath & Beyond, and Target, even promising to complement less expensive costs found on Amazon. Unsurprising given that during 2017’s Prime Day retailers saw an estimated drop of nearly 1 percent foot-traffic at electronic stores plus some 3 percent at department stores.
With much success inside the digital space, best shops near me raised some eyebrows with its acquisition of brick and mortar Whole Foods, as well as the launch of the personal physical retail space and of course, the launch of Amazon Books.
But Amazon knows full-well that physical retail is way from dead. In reality, in accordance with Scott Clarke, Chief Digital Officer at Cognizant, “America’s top retail chains reported a net increase of 4,000 new store openings in 2017 and are projecting a further net increase of more than 5,500 new stores in 2018.” That coupled with recent government policies voting in support of brick and mortar, or rather in favor of a far more robust sales tax in the digital space, Amazon’s “money moves” begin looking less dubious and rather speak even more of an excellent read on the market. Afterall, 90 percent of sales still occur in physical stores.
Who else remembers the infamous quote provided by Marc Andreessen in 2013 citing the death of brick and mortar? Andreessen was dead wrong about his claim that 100 % of our transactions goes digital, but he was dead on about software playing a tremendous role later on of retail. People are digital creatures – these are well versed in convenience and customization and expect the identical in their physical interactions. Let your software transform your retail experience instead of annex it i.e., make use of data thoughtfully.
Customer experience is key when winning the hearts and loyalty of clients. Think convenience, consistency, customization, and contact. Nike by Melrose is really a prime example of a brand name really using this lesson to heart, making a local, digitized, customized, humanized and socialized experience for Nike fans and individuals Nike Plus.
In accordance with InMarket, a micro trip is actually a shopping trip which takes under 5 minutes along with a behavior that is becoming more and more common as supermarkets add programs that let customers order online and get face-to-face. Though traditionally retailers have been partial to longer shopping trips, micro trips allow brick and mortars the benefit of more efficient store formats and improved targeted marketing.
How do you create a microtrip-friendly environment? It’s about merging your eCommerce platform with all the physical interaction. The pick-up type of business is becoming increasingly essential to consumers. Brands like Home Depot and Walmart are taking lessons from Amazon and Nike by installing lockers in stores in order that shoppers can physically pick up online orders. Whole Food locations with Amazon lockers saw a growth of 11% when it comes to micro-visits and chainwide microtrips to Whole-foods are up 8.7 percent.
Why would you would like to pick up a web-based order, you may ask. Paradoxically, it’s about convenience. Deliveries include their own group of complications, including scheduling and traffic delays or perhaps the shipment of damaged products. And at the end of the day, there is certainly nothing more immediate than an event with a physical retailer. “As effective as jngzsv is getting – one-day delivery, sometimes one-hour delivery – that still can’t contest with the one-second immediacy to be available and obtaining that avocado … because I figured about it because moment,” said Todd Dipaola, InMarket CEO and founder.
The consumer journey will appear totally different in five years as retail’s transformations embrace tech that will continue to evolve, deepening our understanding of consumer preferences and shopping habits. Should you offer the right combination of experiences and environment, you could make a unique dynamic involving the logo and your consumer. After your day, your audience, your brand family, can be your currency. In a post-digital world, you should approach all of them with a 360 TLC mentality.