In the era of rapid e-commerce growth, brick-and-mortar retailers face the challenge of competing with fast delivery services. Many physical stores have attempted to match the speed of online shopping, a strategy that has proven to be an uphill battle. Instead of trying to outpace e-commerce giants, experts suggest that retailers should focus on what physical stores uniquely offer: emotional and experiential shopping experiences that cannot be replicated online.
The Pitfalls of Speed in Retail
The Consumer Preference for Convenience
Research from WD Partners, presented at the National Retail Federation’s Big Show, indicates that nearly 70% of over 3,000 U.S. consumers prefer online shopping because it saves time and effort. Other reasons contributing to this preference include tangled store layouts, difficulty in locating items, tedious checkout processes, and subpar customer service. Lee Peterson, Executive Vice President of Thought Leadership at WD Partners, emphasizes that these issues represent fundamental breaches of retail principles that can be addressed.
According to Peterson, the primary problem doesn’t lie in the rapid delivery of e-commerce platforms like Amazon, but rather in the inefficiencies within the stores themselves. Since retailers have made significant strides in enhancing the speed of online fulfillment to satisfactory levels for most consumers, they should now pivot focus. It’s crucial to address the root issues in physical stores, such as improving customer service and the overall shopping experience, rather than strictly aiming to match the speed of online giants.
Rethinking the In-Store Experience
Peterson advocates for a ‘slow retail’ approach, which prioritizes quality over speed, similar to the slow food movement’s response to fast food. This strategy suggests creating a higher-quality in-store experience where shoppers can enjoy their time rather than feeling rushed. One key area of improvement is the checkout process. Implementing more associates or deploying mobile checkout systems can considerably enhance the shopping experience, making it streamlined and less time-consuming for customers.
Moreover, stores can adopt tactics used by movie theaters that maintain exclusivity periods for their content before it goes online. Retailers could reserve certain products or collections exclusively for their physical stores. This approach not only adds value to shopping in person but also creates a sense of anticipation and exclusivity that online shopping often lacks. Providing unique and curated in-store experiences can be a significant draw for consumers, urging them away from the convenience of their computer screens.
Localizing the Retail Experience
Benefits of Community-Centric Stores
Many U.S. consumers express a preference for stores that are conveniently located within their neighborhoods. This trend propels the concept of local retail at scale. An excellent example of this is Ace Hardware, which, despite average merchandising and limited assortments, excels in customer service due to its community proximity. By focusing on localizing stores, retailers can better understand and meet the specific needs of their communities.
Local stores can capitalize on their proximity to customers to provide more tailored and personalized services. This community-centric approach not only fosters loyalty but also distinguishes these stores from impersonal e-commerce giants. Engaging with local customers through events, personalized recommendations, and accessible services can provide a more enriching shopping experience. Consequently, these retailers can build a tight-knit community of regular customers who value the personalized touch that local stores offer.
Enhancing Customer Interaction and Design
According to Peterson, elements such as customer service, store design, exclusive products, mobile checkout, and visual merchandising are pivotal in making in-store shopping engaging and attractive. Stores should invest in training their staff to offer exceptional customer service that goes above and beyond what online platforms can provide. Knowledgeable and friendly associates can significantly influence customer satisfaction and loyalty.
Design also plays a crucial role; stores need to create visually appealing and easily navigable layouts that encourage customers to explore and discover new products. Exclusive in-store products or limited-time collections can draw customers in, offering something unique that isn’t available online. By creating a pleasant and visually stimulating environment, retailers can enhance the emotional and experiential aspects of shopping. This strategic shift could help physical stores establish a distinct and competitive niche against e-commerce giants like Amazon.
Conclusion
In today’s age of booming e-commerce, traditional brick-and-mortar stores struggle to compete with the rapid delivery services online retailers offer. Many physical retailers have tried to keep up with the swift pace of online shopping, but this approach has often turned out to be an arduous task. Instead of engaging in a losing race to match the speed of e-commerce giants, experts advise physical stores to leverage their unique strengths: providing emotional and experiential shopping experiences that the online world cannot replicate.
Physical stores have the advantage of creating environments where customers can touch, feel, and try out products before making a purchase. This sensory engagement fosters a deeper emotional connection to the products and can enhance customer satisfaction. Additionally, in-store shopping can be a social activity, allowing friends and family to shop together, creating an enjoyable outing that online shopping simply cannot offer. By focusing on these unique experiential aspects, brick-and-mortar stores can carve out a niche that e-commerce can’t fill. This strategy can help sustain their relevance and appeal in an increasingly digital market.