Blurred Lines: The Changing Face Of Physical Retail

Young Beautiful Woman Sitting On Couch Shopping Online

This year Australian’s are expected to spend more than $46 billion over the Christmas period, $7 billion of which will be spent online*. These impressive figures highlight the ever-increasing importance of ‘online shopping’ as a key area of growth for retailers.

However, the notion of online shopping as being distinct from in-store shopping is false, as increasingly the line between internet-based and real-world behaviour is becoming blurred.

Shopper journeys – from trigger to transaction – increasingly play out over numerous channels and on multiple devices. From inspiration seeking to bargain hunting, consumers are embracing the connected world. There has been a fundamental power shift in the landscape and consumers have gone from passive receivers to empowered decision makers; no longer happy to accept what they are offered, and are willing to hunt out and bargain for the best products at the best price.

In a recent poll, one fifth of Australians said they’ll be relying on their smartphone more than sales staff for help in store when they’re Christmas shopping (Metrix/ SSI Christmas Shopping Poll). This raises a number of important issues around declining customer service expectations, digital / in store shopping integration, and empowered, savvy shopping behaviour. It also reflects the bigger, longer term opportunity in retail: to deliver more responsive mobile-led technology as a way to enhance the physical shopping experience for consumers.

‘Click and collect’ also plays to changing role of the physical store – and almost 20 per cent of shoppers say they’re going to rely on ‘click and collect’ services over Christmas to save time when buying gifts (Metrix/ SSI Christmas Shopping Poll).

Asda, the UK’s second largest grocer, is taking ‘click and collect’ to the next level and have launched a new service that allows for collection (and return) of parcels bought from third party retailers through their stores – you can go to your local supermarket and pick up your Amazon shopping along with you milk. It’s been somewhat dramatically hailed as ‘game-changing’, but it certainly does demonstrate bold and brave thinking from a large corporation faced with the challenge of driving footfall into their stores.

Back home in Australia, Target is re-defining the in-store experience to help drive foot traffic. They have opened eight new stores with bra fitters and seamstresses ready to adjust clothing while kids frolic in play areas and mums sip their lattes at in-store cafes. This provides a clear value proposition vs. online shopping, and gives the customer a reason to visit the physical store.

The above examples demonstrate a focus on two important aspects of retail that will act as key growth drivers over the long term:

  • Genuine integration of digital and physical retailing: finding new ways to engage shoppers (on their devices) to build a richer shopping experience across different channels.
  • Disruptive innovation of the in-store experience: building a newly defined role and purpose for stores (and staff) that play to the changing needs of empowered consumers.

These two drivers are not being presented as exhaustive and could no doubt be the subject of debate. But what is irrefutable is this: retailers today need to engage, learn and act quickly. They must innovate based on a deeper, more intimate understanding of consumers and their shopping behaviour across channels.

This requires more than customer feedback surveys and focus groups; it’s about applying ethnographic principals and more design thinking to insight gathering, to observe and interrogate genuine behaviours that will bring the truly ground-breaking advances.

This complex and ever-changing landscape will require adaptive and brave action to survive and grow, and there will no doubt be spectacular failures along the way. But as demonstrated through history, the best innovation is based on revealing the fundamental human needs that underpin behaviour, identifying the core tension that can be leveraged, and focusing on how best to solve this problem in a more relevant and meaningful way.

Today, this means not thinking about online vs in-store behaviour, but joining the dots through a more holistic view of the consumer experience and shopper journey, taking into account the broader context of peoples’ lives and understanding how their devices, (and retailers) fit into their worlds.

*http://www2.deloitte.com/au/retailers-survey-2015.html




Please login with linkedin to comment

Latest News

One Man’s Waste Is A Major PR Win For The Bravery
  • Advertising

One Man’s Waste Is A Major PR Win For The Bravery

Independent purpose PR, Communications, and Social Media agency, The Bravery, has strengthened its commitment to enhancing behavioural change in waste after being appointed by Dulverton Waste Management in North West Tasmania. Lead image: The Bravery Team The Bravery has been appointed as the lead communications, community engagement and PR partner after a competitive tender process. […]

Broadsheet Promotes Claire Booth To National Sales & Partnerships Director Role
  • Media

Broadsheet Promotes Claire Booth To National Sales & Partnerships Director Role

Broadsheet has promoted Claire Booth to the national sales and partnerships director role. Since its launch in 2009, Broadsheet has published news, features, and events coverage across the Australian cities of Sydney, Melbourne, Brisbane, Adelaide, Perth, Tasmania, and New Zealand. Claire Booth was acquired by the Broadsheet team in 2019 from The Story Lab and […]

Yahoo Academy Invites Applications From Future Industry Leaders For 2024 Program
  • Marketing

Yahoo Academy Invites Applications From Future Industry Leaders For 2024 Program

Nominations are now open for Yahoo Academy 2024, an immersive talent building program which helps 30 rising media agency and marketing superstars across Australia and Singapore develop the skills needed to lead and thrive in the workplace of the future. Taking place over two days in Sydney, Yahoo Academy 2024 will engage participants with in-depth […]

Taboola Appoints Experienced APAC Advertising Exec To Manage New Zealand Sales
  • Marketing

Taboola Appoints Experienced APAC Advertising Exec To Manage New Zealand Sales

Taboola, has announced the appointment of former Taboola APAC director and skilled digital strategist Joe France (lead image) as its New Zealand sales lead, as it continues to expand its presence in the ANZ market. Under his new remit, France will be responsible for cultivating key partnerships and delivering innovative solutions to meet evolving New […]

Activation Union Hires Bree Mankin As Managing Partner
  • Media

Activation Union Hires Bree Mankin As Managing Partner

Activation Union is thrilled to announce the appointment of Bree Mankin as Managing Partner. In this pivotal role, Bree will spearhead the agency’s growth initiatives and client strategy, leveraging her extensive experience and innovative approach in delivering exceptional results for her clients. With over two decades of experience in marketing and communications, Bree is a […]

Toyota Launches Integrated Electric Vehicle Campaign Via HERO
  • Campaigns

Toyota Launches Integrated Electric Vehicle Campaign Via HERO

Toyota Australia has launched its highly anticipated new all-electric vehicle, the bZ4X, on Australian shores through a nationwide integrated campaign. Spearheaded by a big spot, the campaign was created by independent creative agency HERO, which sees a typical EV sceptic named Barry behind the wheel of an all-new Toyota bZ4X much to the surprise of […]

Canva Launches First Ever Podcast: Design Surfaces
  • Media

Canva Launches First Ever Podcast: Design Surfaces

Canva has announced its very first podcast: Design Surfaces. Covering all areas of design, from brand campaigns to UX flows, the podcast digs deep into the intricate parts of designers’ brains to unearth valuable insights, unique perspectives, and what makes them tick. The Design specialty at Canva is made up of some of the most […]

SBS Launches Development Fund To Find Australia’s Next Top Documentaries
  • Media

SBS Launches Development Fund To Find Australia’s Next Top Documentaries

SBS is searching for its most daring, unflinchingly fearless and boundary-smashing factual format yet, issuing a call out for impactful ideas for new documentary series unlike anything seen on Australian screens before, with up to $50,000 in development funding on offer. Announced this morning at the Australian International Documentary Conference (AIDC) in Melbourne, SBS is […]

Resolution Nabs Sarah Truong From PHD
  • Advertising

Resolution Nabs Sarah Truong From PHD

Full-service media agency Resolution has appointed Sarah Truong as head of investment to lead the agency’s investment product. Sarah joins from PHD where she was Group Investment Director for half a decade. With 14 years’ experience in the media industry including seven years at media agency, Carat, Sarah a proven track record for delivering results-driven […]