{"id":5199,"date":"2018-10-07T01:43:15","date_gmt":"2018-10-07T05:43:15","guid":{"rendered":"http:\/\/responseblog.wpengine.com\/?p=5199"},"modified":"2021-01-08T13:42:43","modified_gmt":"2021-01-08T18:42:43","slug":"on-the-edge-of-massive-disruption-in-store","status":"publish","type":"post","link":"https:\/\/responseblog.wpengine.com\/2018\/10\/on-the-edge-of-massive-disruption-in-store\/","title":{"rendered":"ON THE EDGE OF MASSIVE DISRUPTION IN-STORE"},"content":{"rendered":"

I’d like to preface this article with just a little bit of background.\u00a0 We have been working with Logitech<\/a> for over 10 years.\u00a0 A big portion of our work with them has been with Irma Sandoval<\/a>, applying our insights and creative solutions to their retail business.\u00a0 Irma exudes fervor for retail.\u00a0 Here’s what she says, “My passion for retail has always been about transforming ordinary spaces into extraordinary experiences for the customer. It’s never been about selling more, because if you can delight the shopper then the sale will follow. I’ve spent most of my professional career living my mantra of providing experiential, engaging and emotional connections at retail. I am excited by the new possibilities that lie ahead for retailers that can have a deeper connection with their customers.” I have to say that her enthusiasm for all things retail is mirrored by my own, and we get really fired up and highly creative when we work together.\u00a0 Just recently, we collaborated on a thought leadership piece that was presented to retailers and press in Latin America. What follows in this post covers many of the topics that Irma and I have been discussing and those that shaped the presentation in Mexico earlier this month.<\/p>\n

We all know that online retail sales are growing at an incredibly fast pace across the globe.\u00a0 In fact, global retail e-commerce sales are expected to reach 4.9 trillion by 2021 (Fig. A).\u00a0Even with this high growth, retail e-commerce represents roughly only 10%\u00a0of total retail sales globally today and a bit over 17% by 2021 (Fig. B)<\/p>\n

\"Statista<\/p>\n

One of the drivers of online retail is the growth of internet access and users, but there are 4 other key drivers of online sales growth:<\/p>\n

    \n
  1. Convenience.<\/strong>\u00a0 Consumers can literally shop anywhere as long as they are connected to the internet.<\/li>\n
  2. Selection.<\/strong>\u00a0 Shoppers are not limited to the selection available in a physical store.<\/li>\n
  3. Price Comparison and Deals.<\/strong>\u00a0 Consumers can search around for the best prices and deals.<\/li>\n
  4. Speed.<\/strong> With just a few clicks you can select what you want, pay and have your purchases shipped.<\/li>\n<\/ol>\n

    There is no doubt that the growth of e-commerce is stealing sales and foot traffic from the bricks and mortar retailers.\u00a0 The pressure on traditional retail is enormous, and in some cases, forcing store closings.\u00a0 Business Insider reported over 8,000 store closings in 2017 in the U.S. alone (Source<\/a>).\u00a0 However, and this is a BIG however, there are two huge advantages of In-Store over Online retail:<\/p>\n

    \"Advantages<\/p>\n

     <\/p>\n

    Given the expansion of online and the powerful benefits of in-store, we see exciting things happening in retail.\u00a0 It is our belief that we are on the edge of massive disruption in-store. Retailers who can be creative, think differently, be original and work hard to provide unique in-store experiences, capitalizing on the two advantages, will not only survive but thrive in 2018 and beyond. After all, the only way to justify a customer making the trip to your store rather than shopping online is to give them an experience that can’t be had elsewhere.<\/span><\/p>\n

     <\/p>\n

    Here are a few key trends that support our thinking along with examples.<\/span><\/p>\n

    Clicks to Bricks<\/strong><\/h5>\n

    Yes, some traditional retailers are closing physical stores, but on the flip side, we are seeing digital native retailers opening bricks and mortar locations.\u00a0 Brands like Zappos, Warby Parker, Bonobos, Amazon, Fabletics, Madison Reed, Birchbox, and Allbirds all have found the lure of a physical store irresistible.\u00a0 Unlike their offline competitors, however, they are breaking the conventional paradigms of retail and vastly improving the shopper experience.\u00a0 Check out what Amazon and Warby Parker are doing:<\/p>\n