3 Reasons the Future is Still Bright for Small Retail Brick and mortar retail will survive and thrive post-pandemic. Here's how they can compete with the e-commerce market.
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There's been lots of gloom and doom over the past year regarding the future of brick-and-mortar retail. Because of Covid, many stores and large retailers have had to close their doors. Especially in the beginning, things looked dire for brick and mortar stores — e-commerce grew to an all-time high, with more customers than ever deciding to spend their money online.
These developments made small boutiques and brick-and-mortar retail owners a bit nervous and uncertain about the future. But it shouldn't. Although many large retailers and some small brick-and-mortar stores had to close or scale down, the need for brick-and-mortar retail is still there. Customers still want to shop, and not all of them want to shop exclusively online.
Despite popular sentiment, brick-and-mortar retail is not dead. Here are three reasons brick-and-mortar retail owners should have a bright outlook on their future and continue to expect great success in the years to come.
1. The need for physical stores is still strong
It's no secret that e-commerce has taken the retail world by storm. It provides a way for customers to shop at their own pace and in the comfort of their own homes. They don't have to worry about traffic, lines, or items not being there when they arrive. And in the midst of a pandemic, it helped people feel safe while fulfilling necessities. Once the world started to open back up, many customers realized they liked shopping online, so they kept doing it.
There is a flip side, though. Although e-commerce saw huge jumps over the past year, a good portion of retail sales still happened in brick-and-mortar stores. Some customers didn't appreciate the negative parts of shopping online. Things like long shipping times, shipping costs, items not fitting correctly, or items not being what they ordered were major pain points. Shopping online was convenient and safe, but it brought other headaches that some customers didn't feel were worth it. They wanted to actually try the product and see what they were buying before they bought it. They liked the idea of getting questions and concerns answered upfront with a person and not waiting to speak to a customer service rep on a chat or via email.
Online retail exploded with new and exciting brands that offered unique and different products that weren't in physical stores. As a result, many established brands had to pivot online to stay afloat and stay in business. This brought some new life to retail, but it still only accounted for a small portion of retail sales for the year. Online shopping was fine and what we needed at the moment, but customers soon discovered that it lacked the ability to help buyers feel secure in what they were purchasing. It also lacked the service and connection that many buyers enjoyed when shopping at a brick-and-mortar store.
Related: 3 Takeaways About the Future of Retail: Selling Online, In-store, and Both
2. The "experience" trend in retail is on the rise
Continuing on the need for a physical store, the "experience" trend has become the real recipe for brick-and-mortar retail success. Giving customers a unique and special experience is how retailers can stay profitable and build their customer base.
An experience is the one thing that e-commerce can seldom deliver. Online shopping will always be two-dimensional. With the recent isolation that the pandemic caused, connecting with people is a basic need that online shopping can't fulfill like old-school shopping can. Giving customers a unique and fun experience will keep retail owners competitive and customers coming back for more.
This is where business owners can get really creative and use various marketing and sales strategies to keep their store top of the mind with customers. Retailers can create sales-driving experiences through:
VIP shopping. Create a one-of-a-kind shopping experience by treating top customers to a VIP day. Have a raffle or contest and treat these lucky customers with a personalized shopping day event with refreshments and swag.
Appointment only shopping. A little different from the VIP; customers sign-up for one-on-one styling and personalized shopping during certain times of the day.
Special event shopping. Have a sale or celebrate a local or national event with a special sale on the entire store. Give incentives for customers to come and shop during a specific period of time to boost interest.
Visual presentation. Make every day an experience with a dialed-in and detailed visual presentation. A store's windows, layout, display setups, and proper use of color all create a store that is engaging and fun to shop.
In-store pick-up. Bridging brick-and-mortar with the convenience of online shopping is one key to keeping customers engaged. Allow customers to pick up items bought online creates a seamless shopping experience and deepens your connection with buyers. (And there are no shipping charges!)
Regardless of what type of experience a retailer chooses to give their customers, the important thing is that they have a fun and memorable one.
Related: Why Pop-Up Stores Should Be Part of Every Retailer's Strategy
3. The popularity of the pop-up shop model is growing
Pop-up shops have been around for decades. The concept itself is not new. However, the demand for this model of retail has grown. With many mall tenants closing and leaving due to the pandemic, mall and retail center landlords have taken a huge hit in revenue. They are finding themselves looking for new ways to generate profit.
And now that things have returned somewhat to "normal," retailers are looking to reopen or expand — but at a reasonable price. Pricey rent and long-term leases are not appealing.
The solution — a pop-up shop! Pop-up shops have become a win-win scenario for both retail landlords and business owners alike. People are out and about again. They are looking for an experience and a physical place to have that experience. Buyers want to interact and engage with brands that they got to know online or on social media. Pop-up shops give these buyers what they want in a place that they are already familiar with.
Pop-up shops also allow retail owners to have a physical location to attract customers and grow their brand without a long and costly commitment. As a result, landlords get a unique group of brands to fill their centers, drive more traffic, and generate more income.
These shops are also a great way for small retailers to expand their physical presence without major costs. For example, if a retail owner is unsure if a new center or part of town is right for their business and brand, they can negotiate a pop-up shop lease to test the waters. The landlord gets a rented space with a new and vibrant tenant, and the retail owner gets a way to test out the market without a long and costly commitment.
Related: The Future Of Retail Is Omnichannel
The bottom line is retail is not dead. It just looks different. As with all things, change is a part of life. Learning to adapt is the nature of retail and those who learn this early are the ones who are successful. Yes, e-commerce is here to stay, and that is a good thing. Successful retail owners should embrace it and ensure that their brick-and-mortar store is ready for this new type of buyer. This buyer likes the convenience of online shopping but craves the interaction, connection, and experience that only a brick-and-mortar store can bring. By holding on to this, the future of brick-and-mortar retail is looking very bright!
