Far From Dead, Bricks And Mortar Is The Future Of Retail
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
Latest News
Would TikTok Be Missed?
In this opinion piece, Alpha Digital’s head of performance Amir Rezaee outlines the impact to brands of a potential banning of TikTok in Australia The six weeks or so since TikTok announced its local Australian office has been a busy period. Aiming to make a similar impression on SMBs as it has on its 1.6m […]
NextMedia’s frankie And Gardening Australia Magazines Report “Surge In Sales”
Amid the sadness of magazine closures, the challenges of COVID-19, and industry concern as companies merge or change hands, some magazines are thriving. NextMedia titles such as the much-loved frankie and ABC Gardening Australia magazine have been enjoying a surge in sales during this period of home isolation. Gardening Australia retail sales have been robust […]
Mag Closures & The New Landscape For Earned Media
In this guest post, MINT’s publicity director, Nathan McIlroy (pictured below), explores the new norm for Australian media and says Bauer’s/Mercury Capital’s recent mag closures should be viewed as an exciting opportunity for the brave… Last week’s announcement that new owners Mercury Capital were to permanently close eight of Bauer Media’s magazines sent shockwaves through […]
“Worst Year In Living Memory!” Aussie Ad Spends Plummet 14.7% In 2019/20
As expected, 2019/20 ad spends make for very difficult reading indeed. Even more so if you've forgotten your glasses.
Jamie Whincup And A Host Of Aussie Personalities Star In Club Marine Series
In a first for the Australian insurance market, Club Marine, Australia’s largest provider of boat and pleasure-craft insurance, has released a new series of videos to help explain insurance cover. With a few familiar Aussie personalities to help out, Club Marine is helping its members, as well as the broader boating community, to understand the […]
Ultimate Edge Communications Welcomes Michaela Fulop Back As Client Success Manager
Sydney, July 31st, 2020: Sydney-based media marketing consultancy Ultimate Edge Communications (UEC) announces a new hire in the company’s media team; Michaela Fulop returns to fill the vacant role of Client Success Manager, to be the go-to person across the full client roster.
No Change At The Top! Initiative Remains Top Performing Media Agency For June
June's new business wins is pretty much the same as May's, just with a few less factual inaccuracies this time around.
DDB Still Top Dog For New Business Wins For June
DDB still top agency for new business wins. Sadly, has postponed celebratory rooftop effigy burning due to high winds.
Australian Advertising Students To Compete In Advertising Capstone Challenge
Ad grads set to compete in the Capstone Challenge. Which sadly doesn't appear to include a hotdog eating component.
Harold Mitchell Wins Legal Battle Over Australian Open TV Deal
Harold Mitchell wins his battle with ASIC. Which is top news for the lucky restaurant in which he chose to celebrate.
KitKat Partners With R U OK?
No one enjoys a chocolate finger for morning tea like the B&T office. On other occasions we might even have a KitKat.
Microsoft Lays Out Plan To Acquire TikTok In The US And Australia
The Microsoft exec team are working on their dance moves ahead of this bumper acquisition.
Sunday TV Wrap: Ninja Swings The Night Nine’s Way
As a plus, Ninja Warrior affords B&T the wonderful opportunity of upping our quota of gym-hardened hotties photos.
Mark Read Admits “Huge Amount Of Work To Do” As WPP Reveals Diversity Workforce Numbers
WPP's workforce diversity numbers make for a very sobering read. Unless, you're already pissed, of course.
ABC Comic Unveils Riotous “The Ballad Of Bunnings Karen”
B&T admits it's a difficult time to be a Karen. However, spare a thought for the Adolfs, the Lucifers or the Mike Hunts.
“There’s A Lot Of Uncertainty!” Roxy Reveals How CV-19 & Bauer’s Mag Closures Have Wreaked A PR Apocalypse
In harrowing news for marquee hire, Moët sales & scallops served on spoons, Roxy says the PR biz is in for a pummeling.
oOh! Launches The Junkee Network
Junkee Media and parent company oOh!media have launched a powerful new way to reach young Australians – the Junkee Network. Combining Junkee Media’s content platforms with oOh!’s leading Out of Home assets in venues and universities across the country, the Junkee Network will be the largest and most influential youth content network in the country. […]
Cricket Australia Rejects Super-Sized McDonald’s Sponsorship Deal In Favour Of Incumbent KFC
Cricket Australia spurns Macca's' overtures, insisting it had nothing to do with getting soggy fries at the Drive-Thru.
Aimee Buchanan Says It’s Time To Evolve Historical ‘Maternity Leave’ Into ‘Parental Leave’
When Aimee Buchanan speaks, B&T listens. Our editor doubly so, due to him being slightly deaf in the left ear.
Indie Agency Channel T Wins Ego Pharmaceuticals’ Creative
Ego produce some of Australia's best-loved pharmaceuticals. Particularly if you suffer from a myriad of fungal diseases.
James Murdoch Quits News Corp Board Over Editorial “Disagreements”
Expect awkward silences & a distinct lack of joie de vivre at the Murdoch family Christmas lunch this year on this news.
The Opportunities & Challenges Of Working From Home
B&T lists the advantages of working from home as The Young & The Restless, chardonnay at 11 and noticeable weight gain.
GroupM’s Finecast Allows Advertisers To Measure BVOD Reach For The First Time
Admittedly, GroupM's Finecast can't help with the office footy tipping, however, it can help with your BVOD numbers.
Research Reveals Aussie Small Businesses Upping Digital Marketing Spend
Australian small business owners are turning to skilled local freelancers and upping their digital marketing spend as they move online to connect with customers and keep cash flow positive. The Federal Government’s pandemic response has earned a tick from small business owners as have those of New South Wales and Queensland, but one in three […]
Foxtel Announces Female-Focused Lifetime Movie Network
No one loves a good 'chick flick' like the B&T office. Our favourites being 'Saving Private Ryan' and 'The Terminator'.
“Sex Sells?” Yes, There’s Now An Instagram Page Dedicated To Australia’s Hottest Real Estate Agents
You opened B&T today expecting another 'Karen' story, didn't you? Instead, it's real estate agents in states of undress.
Amobee Launches OOH Offering For Aussie Market
Amobee throws off tech's slightly unhealthy, closeted indoors reputation and heads outside with new OOH offering.
Optus Assistant Chatbot Surpasses 2 Million Conversations
In the last 12 months, Optus’ AI Assistant Chatbot has surpassed two million conversations, with 1 in 6 Optus customers having their queries resolved immediately, providing a seamless experience without needing to speak to a person. Optus Assistant greets every customer that comes through My Optus App Messaging and its Web Messaging service with on average […]
SodaStream Introduces Respiratory Device For COVID-19 Patients
Sure, it might have a little 70s hangover about it, but SodaStream's proving it's very much on-trend with this top idea.
AKQA Recognised On Best Workplace For Innovators List
AKQA recognised on best workplace list and not merely for banning the Orange Cream from the office biscuit barrel.
