CORPORATE SCENE
The Morphing Store : Bricks And Mortar `Evolution In A Convergent Commerce World
By Marketing Africa Crew
Marketing Africa magazine crew had a chat on the changing fortunes of the physical retail outlets with the Ipsos in Kenya Managing Director , Chris Githaiga . Here-under are the excerpts from the discussion .
Comment on the findings of the Ipsos survey , the changing fortunes of the physical retail outlets .
Recent Ipsos data indicates that shoppers are spending a significant portion of their shopping time - between 39 % and 73 % depending on the category - shopping ( browsing , researching , buying ) in physical stores . Between 29 % and 77 % of the purchases were subsequently made in the physical store . This has increased between January and September 2022 .
Even in 2020 , a year when many physical stores were shuttered during lockdowns , Google reported that 82 % of global retail sales occurred in physical stores .
That said , some reports indicate that digital commerce sales will overtake physical store sales globally as soon as 2024 . One study found that 30 % of Gen Z and 36 % of Millennials planned to shop less in physical stores than they did pre-pandemic .
It would be easy to assume that the role of the physical store is shrinking in the face of the emergence and scaling of several types of digital commerce . In fact , the reverse is true as the roles the physical store plays in a consumer ’ s commerce ecosystem of channels , touchpoints , retailers , and brands is expanding in some ways . The value of physical stores has been validated by previously online pureplay and ‘ big tech ’ companies such as Amazon and Google moving into the physical store space . While not always successful , such as with Amazon , they have led others in building seamless ‘ scan and go ’ grocery stores , among other formats .
What is the future of the physical retail stores ?
The role of the physical store varies markedly by country , culture , category , and channel . But even with these caveats , traditionally the role of the physical store historically revolved around exploration , display , demonstration , transaction and perhaps some after-sales servicing . All of which led to a variable customer experience .
Over the past decade the experiential role of stores , particularly brand flagships , has increased . The pandemic underscored both the experiential opportunities ( AR , VR , metaverse ) and limitations ( tangibility , sensoriality , human connection ) of digital commerce types .
During and since the pandemic the role of physical stores in fulfilling digitally placed orders has also accelerated markedly .
Whilst from a retailer ’ s or brand ’ s point of view the physical store serves both sales and marketing goals , from a shopper ’ s standpoint the store serves several functional , experiential , and human purposes . The functional , experiential , and human roles of the physical store have all increased , and the customer ’ s brand experience is , in effect , the sum of these differing aspects .
What advantages do the physical stores have over online shopping ?
There is some evidence that consumers are becoming tired of dealing with chatbots and webchat , which have not advanced as much as perhaps anticipated , and those poor experiences are in some cases driving customers back to a physical outlet or the human in the contact center . Only 25 % of shoppers currently turn to a chatbot for help .
People want to talk to a real human - in real life , in a real environment . Store staff fulfill this function . Not only can they recommend specific brands , but they also act as advisors . In a world of increasingly digital and impersonal commerce options , we may get to a place where consumers are willing to pay a premium for having a human involved in the transaction .
The precedent has already been set with apparel shopping concierges , wardrobe consultants and personal brand consultants . High end luxury try-on curated advice sessions , in environments approximating
6 MAL53 / 23 ISSUE