Feature
PHILIPPINE RETAILING
1ST QUARTER 2018
Surviving the retail revolution:
2018 will be a wild ride
There is much talk of dwindling department store
locations and an ever-booming e-commerce field of
competition facing retailers, but the sky is not falling.
Actually, according to The National Retail Federation, for
each company closing a store, 2.7 are opening shops. It’s
simply become critical that retailers rethink the retail
experience.
Unquestionably, Amazon-crazed customers will continue to use
subscribe & save to replenish necessities every month. But brick-and-
mortar clearly still holds a very real place in the hearts and minds of
shoppers. Consumer expectations have merely shifted to encompass
more curated and personalized in-store experiences. With the quick
changing environment of retail, we’re in for a wild ride in 2018.
Malls will get a facelift
Yes, there’s been a sharp decline in conventional malls in recent
years. But rather than a total big box apocalypse, we’re going to see
new shopping centers replace outdated mall concepts. There’s a
fresh crop of multi-use developments taking shape, as shopping is
becoming more focused on being experiential and tied in with leisure
and entertainment. The park-like Domain in Austin, TX and newly-
constructed Hudson Yards in Manhattan converge at the intersection
of commerce and culture. Both boast high-density offices, retail and
residential areas with salons and commercial offices, Yelp-worthy
eateries, movie theaters, apartments and grocery stores. Residents
have everything at their fingertips. We’ve learned that retail has
never been more interactive than when consumers are living in the
same place that they eat, work, play and shop.
Stores will become destinations for
memorable moments
The traditional mall concept is being overhauled. But how are we
driving consumers across the threshold? As online shopping grows,
brick and mortar locations will need to put more manpower behind
creating memorable in-store experiences that get customers off the
sofa and into stores. Thinking beyond online transactions that are
limited by a static 12” monitor, brands are beginning to reimagine
in-store real estate by hosting Instagrammable experiences. Brands
will need to start creating one-of-a-kind experiences year-round that
make customers love to visit their stores.
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Retailers will increasingly integrate digital
experiences in-store
While there’s power in creating memorable in-store moments that
can’t be replicated online, there are also cues we can take from the
ease of online shopping. Moving forward, retailers will increasingly
start to borrow from the digital world, integrating traditional online
experiences in brick-and-mortar stores. For example, retailers like
Macy’s and Kohl’s are offering “Click and Collect” options, providing
shoppers the option of ordering online and picking up purchases
in-store. Taking digital a step further, innovative retailers like Lowe’s
has an app which makes it easier for customers to navigate their
store. Shoppers using their app in-store are able to locate exact
aisles and bins of desired products — a fantastic way to respect your
consumers’ time.
Stores will start deploying mobile, beacon
technology
In addition to borrowing the best online shopping advancements
and implementing them in-store, retailers will increasingly leverage
mobile and beacon technology to connect with smartphone
users in advanced new ways. We’ll see stores connect to iPhones,
leveraging mobile devices as digital, in-store maps to help customers
locate items on their shopping lists. Retail giant Target has begun
incorporating the technology into their mobile app and is poised to
have the tool rolled out in half of their stores.
We will see a cohesive rollout across
physical and digital
To reach today’s omnichannel consumer, brands will need to make
a greater effort than ever before to create a consistent point of view
and cohesive experience across physical and digital touch-points.
When it comes to the in-store experience, lighting, color, scent,
texture, sound and taste will all become an integral part of the
competitive differentiator. These subtle nuances should be mirrored
when consumers receive an online order at their doorstep. When
implemented successfully consumers will recognize the brand before
opening the package. Tiffany & Co. has nailed it with their little blue
box.
(Retail Customer Experience, 01/19/2018)