Storefronts and the Retail Apocalypse
The retail apocalypse sounds like a terrifying prospect: closed storefronts, lost jobs, and consumers left without the options they crave while shopping. But this does not mean the death of retail storefronts altogether. Brick-and-mortar stores can (and will) survive these shifting trends in the industry if they can recognize the aspects of the retail store that make it an indispensable part of the consumer experience.
Why consumers need retailers
Retail storefronts are unlikely to go away entirely because consumers will always look for some interaction and connection. “People are still looking for experiences outside the comforts of home,” says Henry Ma, CEO of Ricoma and Garmeo. “At the end of the day, humans are social creatures.” In-person shopping is an experience that is so ingrained in our culture that it is unlikely to disappear entirely.
Additionally, even though speeds of online transactions have increased to where a product can arrive on a customer’s doorstep in a mere matter of days, it still doesn’t compare to the instant gratification of being able to pick out and take home a product from the store. While the convenience of sitting on your couch and ordering clothes with the click of a button might be tempting, the hands-off experience of e-commerce doesn’t help if you need something new to wear by the following morning.
Of even more concern is that you have little control over the quality of the products you receive when you purchase them online. We all know the feeling: you order something online that looks precisely like what you want, only for it to then show up on your doorstep and realize how underwhelming it truly is. This is even more so the case when purchasing grocery products.
“From receiving your delivery of fruit and vegetables that aren’t as fresh as the ones you might have picked, to receiving products near their expiration dates that you know you wouldn’t have chosen had you gone to the store yourself, sometimes doing things yourself means less time lost and a higher quality experience,” says Ma.
How retailers can stay open
One of the most crucial steps a retailer can take to survive this retail apocalypse is to differentiate itself from the online competition. It’s easier for specialty retailers to prove their worth — that is, so long as they are fulfilling a genuine need — but if you’re a big-box retailer competing with an online retailer that can offer next or same-day delivery, what do you have to provide the consumer that is unique? The more options a customer has to choose from, the harder it is for you to prove that you are the best one. The simplest way to prove your worth is by offering an irresistible bargain.
“Everyone loves the feeling of getting a deal, so wholesale clubs like Costco are already at an advantage over other retailers,” says Ma. The goal needs to be to keep prices as low as possible while keeping your company at a healthy profit level. Even if it’s just by a few cents, those pennies add up with every purchase. If every item a customer buys is a bit cheaper with you, their transaction total will be significantly lower with you than the competition.
It is known that customers are willing to pay a premium for a superior experience. Even if your products cost a bit more, if your customer service is second-to-none, it will leave them feeling happy and wanting to return. Ma says, “From providing top-notch customer service to the style and feel of the store and maintaining excellent products, retailers need to have a balance of all these things to entice people to come in.”
Indeed, the quality of your products can make or break the success you have in attracting customers to your brick-and-mortar retail store. If your products have shoddy craftsmanship, it’s unlikely that customers will want to buy more things from you. If you are selling apparel that fades easily or doesn’t last through the wash, your customers aren’t going to have confidence in the products you are offering.
Transparency is also an essential feature of a successful retail business. “Being visible, accessible, and active with your community of customers goes a long way for brand loyalty,” says Ma. If consumers know whose products they are interacting with, it gives them an invaluable personal connection. People will stick with brands that they trust, so it is important not to betray that trust by abandoning any of these principles.
The best retailers can identify a widespread need of consumers and fulfill it. Ma says that the best solution is to, “Try to create a one-stop-shop experience. You want to keep your customers in your ecosystem by providing all kinds of solutions and products they may need. Figure out ways to offer new, relevant products that keep you on-trend and keep previous customers coming back for more.” This will ensure that you stay relevant in your customers’ shopping experience.
Consumers have more options than ever before, and so it is up to the older options like retail stores to stay relevant by creating additional value offerings for their customers. The worth of retail storefronts comes down to the service they provide: immediate access to goods, a physical interaction, and a better capability to make decisions. Retail stores won’t die if they emphasize these aspects of their customer’s experience.
