Far From Dead, Bricks And Mortar Is The Future Of Retail

Far From Dead, Bricks And Mortar Is The Future Of Retail
SHARE
THIS



Following on from last week’s B&T piece predicting a rocky road ahead for online retailers, in this opinion piece, Heather Levy, vice president  of content and strategy at research tech firm Gartner, agrees that people who write-off bricks and mortar do so at their peril…

When Tesco, the UK-based retailer, wanted to grow its South Korean supermarket chain, Home Plus, without a bigger physical footprint, the company built a virtual subway store by posting photos of its products with QR codes. The pictures mimic inventory on store shelves and give busy commuters an opportunity to build a shopping cart while waiting for their trains and schedule delivery within minutes or hours.

This type of innovative shopping experience heralds the digital store of the future, however, don’t mistake the retail store for a relic that may disappear. Rather, physical stores are here to stay and will remain the largest contributor of revenue, which is forecast to provide an average 72 percent of overall retail revenue through 2017, according to Miriam Burt, research vice president, at Gartner Symposium/ITxpo in Barcelona, Spain.

The store of the future

Although we are moving into a digital business environment, the majority of retail revenue is still coming from the store. “The digital store is not a store of the future, but rather a store of the past, present, and future,” Ms. Burt said. Retailers estimate that up to 50 percent of store sales are impacted by e-commerce and m-commerce combined. “However, there is also evidence that the click and collect service is on the increase, and that the store will remain the heart of digital business execution,” said Ms. Burt.

Massive online retailers have made moves to reflect this trend. Alibaba, the Chinese e-commerce company, bought a 20 percent stake in Suning Appliance, owner of 1,600 stores across China, Hong Kong and Japan. U.S.-based Amazon opened the Amazon Books bookstore in Seattle, Washington.

To meet evolving customer needs, the digital store must accommodate three competencies:

Buying: Customers have already made a choice to enter a store and require the following essentials:

  • Stock on the shelf
  • Easy to find
  • Informed available staff
  • Fast check-out
  • Easy to try
  • Easy to return
  • Detailed product information

Shopping: Customers expect what they want, when they want it, in a cohesive shopping experience that is:

  • Connected
  • Consistent
  • Contiguous
  • Convenient

Customers don’t necessarily need products delivered in real-time, but in “right time”. For example, a birthday present should be delivered on the right date. Customers also want products delivered to the location of their choice, not necessarily at home. Consistency extends to pricing policy.

“There’s no reason the consumer should be penalized with higher prices for coming into the store,” Ms. Burt said.

Living: In the most evolved state, customers want retailers to understand how they live and service them on their terms. This involves levels of collaboration, personalisation and customisation.

Moving forward, retail CIOs should begin to evaluate relevant vendors in the market for real-time store monitoring platform solutions and general regular multichannel customer analytics reports. Set up a team of application and technical architects to work with the business to investigate the impact of the Internet of Things (IoT) in the store. Additionally, start the discussion with the business on how technology can augment the role of store associates.

This article originally appeared on B&T’s sister site www.which-50.com

Please login with linkedin to comment

Advertising Standards Bureau These Final Hours

Latest News

BTC Markets Launch Australian First DOOH Campaign Via Handle Media
  • Marketing
  • Technology

BTC Markets Launch Australian First DOOH Campaign Via Handle Media

The rise of cryptocurrency and its ever-changing value sees Australian owned cryptocurrency exchange experts, BTC Markets, turn exclusively to QMS to help launch and drive awareness of its crypto trading platform. BTC Markets have implemented a first of its kind DOOH campaign, by broadcasting live cryptocurrency prices for Bitcoin and Ethereum among others, dynamically across […]

Octagon Appoints Simone Errey To Managing Director Of Australia.
  • Media

Octagon Appoints Simone Errey To Managing Director Of Australia.

Octagon, IPG’s global creative agency specialising in sport and entertainment, has announced the promotion of Simone Errey to managing director, Australia, Formerly Octagon’s head of operations, APAC, Errey (Pictured above) will now oversee the agency’s local creative, planning, strategy, commercial consulting, client services and production teams, while also retaining a key position on the APAC […]

Koala Says ‘Sorry’ In New Campaign Via The Royals
  • Campaigns

Koala Says ‘Sorry’ In New Campaign Via The Royals

Australian furniture brand Koala has launched a campaign to celebrate its new mattress range and has debuted an updated webste. Koala has taken to the soapbox to say ‘sorry’ on behalf of the mattress industry that Koala believes is now awash with confusing lingo, complicating what it takes to get a good night’s sleep. Creative […]

ESPN Secures Landmark Deal With NBL
  • Media

ESPN Secures Landmark Deal With NBL

ESPN and the National Basketball League have extended their broadcast partnership for a further three seasons as part of an expanded television rights package. ESPN and the National Basketball League announce a new expanded agreement that will run for three seasons, until the end of the 2023/24 NBL season. The landmark broadcast deal comes with […]

Workit Spaces Launches Aussie First ‘Beyond The Store’ Web Series
  • Marketing

Workit Spaces Launches Aussie First ‘Beyond The Store’ Web Series

Sydney-based co-working startup, Workit Spaces, announced today the launch of ‘Beyond The Store’, a six-part web series to uncover the smarts and passion behind successful Australian eCommerce businesses. Workit Spaces has gone where no other coworking hub has gone before, by investing over $100,000 to tell the stories of six Australian eCommerce businesses and how […]

Semi Permanent Sydney Announces New Dates For 2021 Festival
  • Marketing

Semi Permanent Sydney Announces New Dates For 2021 Festival

In light of the prolonged lockdown occurring throughout New South Wales, Semi Permanent Sydney has announced new dates for this year’s festival. It will now take place between 17-19 November 2021 at Carriageworks. “Our mission, always, is to craft the best and most valuable experience for both our speakers and audience, and to ensure the […]

Acast Adds New Brand Suitability Controls For Advertisers Via Comscore
  • Advertising
  • Media

Acast Adds New Brand Suitability Controls For Advertisers Via Comscore

Acast, the independent power source of podcasting has teamed up with Comscore to provide brand suitability controls for brands advertising through the Acast Marketplace. This new innovation is part of a global partnership with Comscore, and will be available to all advertisers working with Acast Australia and New Zealand. The brand suitability solutions offered by […]