Is in-store retail shopping dead?
Online shopping has been steadily growing, for example in the 12 months from March 2019 to February 2020, total online sales averaged growth of 14.4% in Australia.
Then with the COVID-19 pandemic, total online sales averaged an annual rise of 67.1% from March to October 2020.
It would seem that the prediction that online sales would kill in-store shopping is coming true as large and small retail stores, some of them over a hundred years old close their doors the world over.
Except, in my opinion, that’s not what’s happening. And I believe many entrepreneurs and retail executives are missing a HUGE opportunity. What is happening is that many brick-and-mortar businesses have adopted online really well, so they can offer both. It turns out consumers like it because what online-only fails to satisfy in real life is BRAND INTERACTION. Futurists predict that people will predominantly buy online; however, they will visit bricks and mortar shopfronts (or pop-ups) to engage with their brand.
Customers are already seeking brand activations, opportunities to try on samples, and in-store social experiences.
As a result, stores will become fewer and smaller, but more luxurious, focusing on people and BRAND. This is called CLICK & MORTAR!
So, if your marketing strategy and business model do not focus on providing customer brand experiences, then you need to start now or perish, which is why so many retail stores are closing; they have failed to morph quickly enough to satisfy consumer need quality brand experiences.
As always, I would love to hear your thoughts on the CLICK + MORTAR model; please comment below!