Report: Evolve brick-and-mortar to keep up with times

Retailers should continually re-invent the in-store experience to keep up with changing consumer needs.



That is one of the key imperatives for growth identified in a new retail index and executive survey, “Reigniting Growth: Three Imperatives for Retail’s Future,” by SAP SE.



The index, developed together with Oxford Economics, measures the performance of top retailers around the world. The analysis of market intelligence data, combined with survey insights collected from 120 senior retail executives, sheds new light on the current challenges and strategic goals of retailers.



The report finds that retailers are under pressure to adjust business strategies to keep pace with rapidly evolving consumer demands. And most are not evolving fast enough. It identifies three key imperatives to retail growth:



• Focus on an integrated digital strategy, as trend lines show that neither online nor in-store sales alone will sustain growth.



• Improve the in-store experience, because while a focus for many years on the in-store experience has paid off, retailers must continue to evolve and innovate to keep up with changing customer needs.



• Create a comprehensive view of each customer, as only 37% of survey respondents currently utilize internal and external data, such as social media, to achieve a 360-degree view of their customers.



“To sustain growth and satisfy shoppers, retailers must improve the in-store experience, expand online and mobile interactions and develop the operational strategies needed to integrate these elements into a seamless experience for customers,” said Matt Laukaitis, senior VP and general manager, Retail North America, SAP Industries. “Retailers that fail to create this experience may find themselves struggling for loyalty.”



To read the full report, click here.