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Shopping Stores: Antique Gems in the E-commerce Age
Is it a thing of the past for retail flagships to have relevance in today's shopping landscape, where customers embrace the convenience of online shopping — especially after the pandemic? Well, according to a statement from Wells Fargo analysts, a staggering 75% of retail executives assert that flagship stores are no longer a worthwhile investment. But, hold on tight, 'cause legendary retail designer Lee Peterson, executive vice president of WD Partners, begs to differ, and here's why.
Peterson strongly contends that the issue lies with retailers treating their stores like nothing more than a physical representation of their websites for nearly 25 years. In a survey of 2,500 individuals, more than 63% admitted their preference for online shopping, prioritizing convenience and functionality. Peterson bluntly stated, "Going shopping is dead."
But fear not, heroes of brick-and-mortar shopping! There's still room for flagships to shine, says Peterson. By focusing on providing discovery, inspiration, and genuine human interaction, these physical stores can offer a unique experience that e-commerce can't match — getting consumers off the couch and into the store.
Peterson proudly showcased several retailers that have mastered the art of experiential retail, such as Yeti's iconic Austin locale, Sephora's flagship in Paris, and the Petco store in Union Square, New York, to name a few. These stores expertly blend visual merchandising, creative design, and dedicated staff to create spaces that ooze atmosphere, a task nearly impossible to achieve online.
"Discovery, inspiration, associates, vibe — this is what's missing to rouse customers from their slumber," Peterson says. He also pointed out that these successful stores have shied away from fancy and costly renovations, breathing new life into visual merchandising and honoring the lost art.
But retailers must also ensure they invest in their employees, Peterson warns. By paying associates a fair wage and valuing their contributions, retailers can foster a motivated, knowledgeable workforce as advocates for their products. And there lies a valuable lesson from the words of Sam Walton: Retailers competing with big-box stores shouldn't try to emulate them but rather find their unique strengths — a maxim applicable not only to Main Street but also to e-commerce versus brick-and-mortar retail. In Peterson's vision, every store is a flagship.
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Successful retailers are striking a balance between physical locations that foster product discovery, inspiration, and staff interaction through several key strategies:
Experiential Retail- Support showrooming and webrooming by merging digital technology and in-store experiences to offer a holistic shopping journey- Elevate brand narratives by creating immersive environments that allow customers to engage with products in a novel way- Encourage community engagement through local partnerships, events, and loyalty programs
Data-Driven Decisions- Optimize store locations by analyzing demographics and lifestyle preferences to position stores in high-traffic areas and cater to target audiences- Use foot traffic analysis and GIS mapping to identify prime store locations
Sources:
[1] The Role of Pop-up Stores
[2] The Future of Retail: Malls and the Moribund Mall
[3] Cultivating Customer Loyalty Through Experiential Retail
[4] The Challenges and Opportunities of Brick-and-Mortar Retail
[5] The Evolving Retail Landscape: Gen Z Shopping Preferences
- Despite the preponderance of online shopping, especially after the pandemic, flagship stores are not necessarily deemed worthless investments for the retail industry.
- Legendary retail designer Lee Peterson maintains that retailers have overlooked the potential of physical stores, treating them as mere physical representations of their websites.
- According to Peterson, by prioritizing discovery, inspiration, genuine human interaction, and a captivating atmosphere, brick-and-mortar stores can offer an unparalleled shopping experience compared to e-commerce.
- Stores like Yeti's Austin locale, Sephora's Paris flagship, and the Petco store in Union Square, New York, have distinguished themselves as successful examples of experiential retail.
- To truly capitalize on the power of physical stores, retailers must focus not only on store design and visual merchandising but also on investing in and valuing their employees.
- By creating a motivated, knowledgeable workforce, retailers can mimic the advice given by Sam Walton, who encouraged small retailers to find their unique strengths rather than copying big-box stores.
- Effective retailers are striking a balance between experiential retail and data-driven decisions, optimizing store locations, fostering community engagement, and using digital technology to enrich the shopping journey.
