Is Retail Dead? 5 Reasons Retail Stores Can Still Thrive

(Newswire.net — February 24, 2016) — The digital age has given us the power of online shopping; consumers now have access to an international marketplace from the comfort of their living rooms, and can order competitively priced products, delivered to their doorsteps, with the click of a button. Does this mean physical retail stores are dying? Not quite. Retail sales are responsible for more than $2.6 trillion of the national GDP, and even though online stores continue to evolve, there are still some ways physical stores can gain an advantage.

How Physical Retail Can Stay Alive

Physical retail stores have advantages that digital storefronts simply can’t match. For example, digital stores have no face-to-face customer service, no touchable samples, and no immediate transaction value (due to the time associated with shipping). In order for retail to stay alive, stores need to take advantage of these traits while matching the power and convenience of digital functions however they can.

1. Retail can use a hybrid model. There are objective advantages that digital storefronts have over physical storefronts; for example, there are lower startups costs and overhead, they’re immune to theft, and they can reach a global audience as opposed to a local one. But where is it written that a store can’t take advantage of both mediums? Physical stores don’t have to close up shop to create a digital presence. In fact, these two separate iterations can work with each other to improve overall sales and customer experience. For example, digital marketing can make online users more interested in visiting the physical store location, and in-store visitors who want more variety can be pointed to the online store as an alternative solution.
2. Brick-and-mortar stores can integrate technology. It’s also becoming increasingly possible (and beneficial) for physical retailers to integrate technology into their stores. For example, stores can integrate QR codes or a similar scanning system to allow customers to learn more about the products they’re purchasing. Stores can produce apps that allow customers to see a map of the store, manage their shopping lists, or help them make the best possible decisions. Retail associates can also use technology to help get more information for customers, or make the experience a more interactive one.
3. Big data can work for retail. Big data isn’t just about monitoring online behavior and forming useful conclusions about a potential customer demographic; the same process can be used in a physical retail environment. For example, new apps and technology are making it possible for basic retail security cameras to capture information about physical retail consumers as they shop. For example, a store manager might learn that customers respond well to certain cardboard display stands, but almost never reach a certain pocket of the store because it’s inconveniently placed. This gives retail stores another tool to optimize layout, pricing, packaging, and even service to make the shopping experience better.
4. Physical stores can harness their key advantages. We mentioned some of these key advantages before, but they bear repeating. Taking advantage of them is crucial if you want your customers to have a good reason to skip the ecommerce platform. For example, you know that shipping adds several days to the otherwise instant gratification of making a purchase, so adjust your marketing and your special offers to increase the perception and power of this instant gratification. This might include giving your customers a special gift when checking out, or using advertising to celebrate the feeling of going home with a product in-hands. You might also highlight the physicality of your in-store offers – giving people the chance to see, feel, taste, or otherwise interact with your inventory before they buy it.
5. The personal touch is everything. To millions of people, personal interaction is still a big deal, and digital stores just can’t offer the same experience. Accentuate this distinction by stepping up your customer service game; get more associates on the floor, and empower them to make every customer’s physical experience a memorable one. Go out of your way to help people, and make sure that everyone leaves your store fully satisfied. Make people feel like they visited a friend’s house, not like they were doing a chore, and eventually they’ll want to come back for more.

These five solutions aren’t a guarantee that a physical retailer can stay alive in a digital age, nor are they the only possible strategies a store can implement. Cumulatively, these fundamental shifts in capacity, service, and development can help retailers preserve their current customer bases and maybe even attract some die-hard digital consumers along the way. The retail industry is objectively growing, so it’s entirely within your power to be part of that future.