Even though we find a clear preference for in-store shopping, the proliferation of online stores is significantly eroding the market share and sales of traditional brick-and-mortar stores. In many cases, their very survival is at stake and the downward trend will only continue. More closures and exits from the marketplace can be expected.
In light of all this, retail businesses have no choice but transform their business models and the customer experience. Otherwise, they will perish. The status quo is no longer an option.
However, not everyone will go out of business. The success of their transformation will depend on how well they are able to incorporate into their storefront operations the lessons learned thus far from e-commerce and technology.
First, it is clear that merchants today must have an online distribution channel. Even for consumers who prefer to shop in physical stores, e-commerce is a necessity for reasons of convenience, speed, product availability and sometimes price.
The winning in-store combination will be the one offering an optimal mix of approaches combining high touch, where we can see, touch and try on products, AND technological interfaces that enrich the customer experience. This will help boost customer loyalty and the value of the brand.
There are many tech options available today that can enrich the in-store experience. Virtual shelves using tablets (iPad, Galaxy, etc.) can showcase an entire product line, along with complete information about each one. Real-time access to product reviews can help consumers make informed choices based on their purchase criteria, and so on. The possibilities are becoming more and more numerous and affordable.
Merchants need to adjust to the "journey" that customers are now taking before they make their final purchasing decision (web research, product comparisons, need considerations, etc.). Fortunately, they have an opportunity to facilitate this journey in-store.