
Why are online stores opening offline shops and what does this mean for retailers?
The answer to why this paradigm shift is happening in retail is because of two words “instant gratification.” Studies show that Gen Y’s are less patient and demand instantaneous shopping. A brick and mortar shop is another good way to build a personal relationship with your customer. It seems like a paradox doesn’t it? Isn’t online commerce supposed to be the future of retail? Well according to Reuters, online retail increased by 24% in 2014 from a year earlier. However, offline sales are still the dominant factor in retail with a total of 92% of the market.
Online retailers opening a physical pop-up shop or location may be hanging on to their technology roots with bringing in more innovative or newer technology that can enhance the shopping experience the physical store. Some of the technology to look out for are ibeacon, magic mirrors, virtual fitting rooms, as well as good old fashion face-to-face contact with personal shoppers.
So how does this technology personalize the customer experience you ask? If you watch the videos below you will understand how retailers are using technology to better serve you by using data to better understand your shopping behaviors and provide a more personalized customer experience.
Magic Mirrors by Ebay
iBeacon for retail by Shopkick
Topshop Virtual Fitting Rooms
5 Reasons Why Consumers Should Be Thankful for Brick and Mortar Stores
1. In Store Pick Up
2. Merchandise Returns
3. Supporting the Local Economy
4. Convenience
5. Larger Purchases are Best Made in Person
Large purchases like jewelry and furniture are typically best to buy in person. Consumers appreciate the immediacy of these type of large transactions and it helps to get input from an experienced sales rep at the store to be sure you are making the right decision.
Wait…There’s more. Social Benefits for Brick and Mortars?
It’s an exciting time for retail! We would love to hear your feedback on your experience with your favorite online store turned brick and mortar. Feel free to comment below.
Stay tuned for a follow up article on how some of the top retailers in the world are combining their online stores with their offline shops to create the ultimate customer experience.