Retail, Redefined:
5 Ways To Keep Up In The Modern Commerce World
Visit any mall in America, and you’ll soon realize that the modern world of retail is not what it used to be. By April of 2019, U.S. retailers had already announced more than 6,000 store closings. Now? That number’s even higher.
Seemingly staple stores of the past decade have all filed for bankruptcy, including Payless, Sears, K-Mart, and Toys R Us – the ultimate childhood let down. And other big-name brands aren’t far behind.
So, what gives? As Business Insider puts it, have we officially entered the retail apocalypse?
Ehhh… not so fast.
In a new phenomenon known as “clicks-to-bricks,” once online-only brands such as Warby Parker, Glossier, and Bonobos have announced plans to open physical store locations. As the online marketplace becomes increasingly saturated, these digitally-native companies are finding it harder to acquire – and keep – loyal customers without a traditional retail location.
It’s a confusing, contradictory reality, but it’s the reality nonetheless. Turns out, retail isn’t dead – it’s simply being redefined.
So, how can retailers survive in such an unpredictable climate?
Thankfully, it’s not impossible. Equipped with the right information, retailers can enjoy a future of success.
Here Are the Top 5 Factors To Consider When Planning For 2020 And Beyond:
Data Is More Important Than Ever
The top 3 goals of every store are to 1) attract customers, 2) sell products, and 3) retain loyalty. If you’re able to master those objectives, your retail location will never be lacking for business.
However, that’s definitely easier said than done. To ensure long-lasting success, retailers must always ensure they’re selling the right product, at the right price, to the right people. But, how can a company be totally sure what they’re doing is right?
The answer is easy: data, data, and more data.
In order to enhance the shopping experience, retailers need to take advantage of customer data and adapt plans accordingly. According to Forbes, retailers can make the most of their data by combining external information (demographics, location, and market trends) with internal statistics (transaction history, popular inventory, and customer loyalty) to create a comprehensive understanding of their target market.
By understanding who you’re selling to, you can then develop targeted marketing campaigns, create enticing promotions, and cultivate an inventory lineup that’s more likely to sell.
Data is an invaluable tool in today’s technology-driven world, and it’s already available for the taking. Ultimately, the insight that data provides can help guide decision making and create more personalized shopping experiences.
Create The Full Customer Experience
Because online shopping is widely considered a more “convenient” way to shop, retailers need to get creative when it comes to delivering excellent in-store experiences.
To tempt a person to leave their home to visit a retail location, there should be something special waiting for them – something that gets them excited to show up. That means stimulating displays, aesthetically-pleasing planograms, well-designed store layouts, and more.
According to a recent report from PWC, there are five core elements that create a good customer experience: speed, convenience, consistency, friendliness, and the human touch. By creating better in-person customer experiences, retailers will be able to provide maximum value to shoppers.
Just look at CVS Pharmacy’s new BeautyIRL concept, an in-store shop that features an expanded and redesigned beauty department that offers mini beauty services and personalized consultations through a partnership with GlamSquad.
By recognizing the need for enhanced in-person interactions, CVS created the ultimate self-care experience that their customers simply couldn’t get online.
Appeal To Millennials With Customer Service
Not only do high-quality shopping experiences enhance retail reputations, but they also create a sense of brand loyalty, especially among the younger millennial generation.
According to a recent survey by American Express, “seven in 10 U.S. consumers say they’ve spent more money to do business with a company that delivers great service.” Additionally, “US consumers say they’re willing to spend 17 percent more to do business with companies that deliver excellent service.”
Since millennials now make up the largest consumer segment with more than 76 million members, it’s safe to assume who’s advocating for this level of improvement.
Quality customer service fosters brand loyalty, and it also elevates retail reputation through online reviews. Millennials grew up in the social media generation, and they depend on reviews from websites like Yelp, Google, and Facebook to drive their shopping decisions.
Since millennials are more likely to leave an online review than any other age segment, it’s essential to provide great customer service. Because if you don’t, you’ll be hearing about it – and so will everybody else on the internet.
Retailers Need To Be Everywhere
In our mobile-friendly, ultra-connected society, it’s not enough to only have a retail location and digital presence. Instead, you must meet your consumer where they are, whether that’s on social media, in the blogosphere, or browsing the internet. Retailers need to develop a core strategy that drives all cross-channel communications, and create a continuous shopping experience, no matter the medium.
By developing an “omnipresent” mindset, retailers can begin to dominate the modern world of shopping. In retail, omnipresence means being available to consumers everywhere, at all times. Although that’s practically impossible in a traditional sense, the popularity of chatbots, automated technology, and AI interactions has made it possible for companies to be “always on.”
However, it’s essential to not allow tech-enabled customer service to replace the real thing. The two must work in tandem to enhance the entire shopping experience, while also providing information to guide future process improvements.
By using technology to supplement the traditional in-store experience, retailers can begin to better understand their customers, and develop a more omnipresent marketing approach.
Consistency Is Key
Big-box retailers typically have more than one store location, if not thousands of them. In this situation, it’s vital to create a consistent shopping experience across all retail locations. No matter if a customer enters your company’s store in New York or in L.A., they should walk away with a similar impression of your overall brand.
In order to create this level of consistency, retailers must invest in high-quality store associates who will serve as brand advocates for your products, in addition to creating brand ambassador training programs to educate shoppers. Additionally, it’s critical to consider the overall design of your retail locations, and how the products are displayed within.
A professional, detail-oriented retailer will do what it takes to coordinate major efforts like store resets, remodels, and product merchandising to create a seamless experience for customers all over the country.
Consistency is important, but it’s not a set-it-and-forget-it situation. In order to maintain consistency and ensure retail integrity, ongoing efforts such as product surveys and in-store audits are essential. Not only will consistency across stores create a sense of corporate organization, but it will also help to develop core standards to which all future projects must comply.
Retail Is Evolving, And So Should You.
The world of retail is constantly evolving, and it can be difficult to predict what tomorrow’s trends will bring. With the rise of online shopping giants like Amazon, retail locations are often left scrambling to compete.
However, it’s not necessarily a fair contest – online offers a specific set of benefits that retail does not, and it goes both ways. For American consumers who still appreciate in-person experiences, exceptional customer service, and the ability to look, feel, and touch products before they buy them, nothing can replace retail.
For this reason, retail is unlikely to go away any time soon. But in order to get ahead, retailers need to adapt with the changing times.
If you’re looking to create a forward-thinking retail plan, Strategic Retail Solutions can support your in-store initiatives. We have more than 100 years of retail experience, and our 5,000+ retail specialists provide large-scale merchandising services to help redefine the way big-box retailers serve North American consumers.
If you’re ready to discuss your strategic ideas, call us at (513) 272-3439. We will ensure a successful implementation.