According to UXC Eclipse, the conventional thinking has been that the Internet would significantly change the way customers shopped, but the intelligent business solutions company says that in 2015 in-store - or so-called ‘bricks & mortar’ retail therapy - is “alive and well.”
“For more than two decades retailers have leveraged the internet to expand their businesses through e-commerce. The conventional thinking has been that the Internet would significantly change the way customers shopped,” says UXC Eclipse solutions delivery manager retail, Donna Taylor.
According to Taylor, retailers are adapting to changing consumer demands (online shopping)and their physical stores need to follow suit in order to remain competitive.
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“What is changing is the way consumers interact with stores as part of their overall shopping experience. There are a few trends that make that change very clear and UXC Eclipse expects to see these trends gaining traction in the Australian retail market.”
Three of the trends UXC Eclipse expects to see emerge include:
1. Consumers using stores to get the ‘real’ experience. While consumers may start their shopping journey online, if a product is available both online and in a nearby store, many consumers prefer to purchase the product in the store. A key driver for making an in-store purchase is the ability to ‘touch and feel’ the product before deciding to buy.
2. Bricks-and-mortar stores becoming hubs. The primary role of the store as a shopping channel for consumers has not changed and remains a key preference. The bricks-and-mortar store has become more than just a shopping channel; it has evolved into an order fulfillment centre. Consumers can browse, pick up purchases they have made online, or return products they purchased online or at other store locations. Essentially, retailers can use their stores to complete customer orders using store inventory.
3. Stores getting smaller. Retailers are rethinking their store format, re-modelling and shrinking to fit.
“This is all good news for the bricks-and-mortar store, but there are some challenges ahead. While mobile commerce and e-commerce continue to gain prominence, the need for bricks-and-mortar stores remains and continues to grow,” Taylor says.
“However, retailers cannot ignore the omni-channel approach. Changing stores to adapt to a ‘fulfill ship-to-customer’ model will create inventory headaches for many retailers.
“Retail stores are not warehouses. Traditional store inventory models are based on store sales, not on stock control, so the stock-planning process and the fulfilment logic need to account for variables both in-store and for online sales.”
Taylor says the challenge for retailers will be how they successfully manage their customers’ expectations.
“The retail store must enhance the consumer’s shopping experience to gain sales and encourage repeat purchases. Retailers must therefore leverage their retail supply chain to delight and entice their customers.”