Keeping Doors Open: Starting From the Inside Out
Over the last decade, the retail industry has evolved substantially. E-commerce continues to outpace brick-and-mortar strategy, dramatically changing the way consumers shop. Accommodating new consumer preferences requires brands -- from corporate executives to field managers to in-store associates -- to communicate, and regularly evaluate the in-store customer experience.
Fast forward 10 years later, and many brick-and-mortar retailers are still struggling to make ends meet. In the last year, we’ve seen major brands announce store closings, employee cuts, and quarterly losses. On the heels of Macy’s and Sears’ decisions to close more doors, both The Limited and American Apparel’s announced the shuttering of all physical locations. These decisions mark the latest examples of retail brands’ struggle to adapt to meet the demands of today’s consumers.
While technology has transformed the retail landscape, and despite news of major retailers looking to rightsize, the fact remains – brick-and-mortar retail stores aren’t going away. Recent data by Square Root shows that shoppers still like going into stores, with more than 65% of consumers saying they prefer to shop in-store because they like to touch, see, and feel products in person. And, despite the convenience of shopping online, 61% of consumers prefer shopping in-store because they can get their products faster and don’t have to wait for -- or pay for -- shipping. (All stats in article are from surveys by Square Root.)
Driving Data
While many retailers have focused on consumer-facing technology investments, they have neglected their in-store teams, a move that has proven detrimental for many brands. Innovation in the storefront starts with refocusing and re-investing internally. Implementing the right technology can offer teams valuable insight into internal operations across physical stores, as well as online counterparts. New tools can align internal teams, help identify key areas of weakness, and provide actionable data to drive real improvements in both store performance and customer satisfaction.
However, getting internal teams on the same page won’t come easily if they aren’t set-up for success. Many stores and employees aren’t equipped with the proper resources, and are left scrambling, with outdated and siloed tools. In fact, only 42% of store managers feel they currently have the proper tools and training they need to be successful. Moreover, many employees undergo sub-par training and onboarding, especially in the lead up to the holidays. Nearly two-thirds of store managers report that training new store associates is a challenge, impacting employee satisfaction and customer experiences.
Without the right tools, implementing new initiatives and measuring success is useless. Brands are spending too much time and resources making gut-decisions without informed data to adjust and improve. New tools and technology have the power to provide both stores and corporate access to critical data that can help brands and individual stores quickly learn, adapt, and realign.
Communication Counts
Today, many retailers have forgotten what drives consumers in-store. They’ve become so focused on the bottom line that they’ve forgotten to listen to what consumers want, forcing brands that were once considered industry giants to close their doors. Not only has customer engagement taken a hit, but internal communication between corporate, the field, and stores is broken. Brick-and-mortar success now depends on brands transforming that relationship.
Today, stores are suffering because of their inability to quickly make decisions. With one in five store managers saying they don’t understand what they need to do to improve store performance, it’s no surprise that the in-store shopping experience has deteriorated. And with 70% of shoppers reporting they have abandoned a purchase because of a bad in-store experience, brands that don’t fix and re-invest in support up and down the ladder, have a lot to lose.
Now, empowering agility and transparency both vertically and horizontally is critical to saving physical retailers and the in-store shopping experience. Internal teams need to share and have access to critical data across all channels in order to successfully meet and fulfill customers’ requests. Consumers want and expect a consistent and cohesive shopping experience both in-store and online, yet many retailers are still missing the mark and are closing their doors because of it. Shoppers expect to be able to buy online and pick up or return in store, for example. A fully integrated omnichannel experience is expected among shoppers.
From corporate and district managers to store managers and associates, fixing the broken feedback loop requires brands to streamline communication and establish visibility into all stores. This will not only give teams access to the right information, but ensure that all learnings are being used to drive better decisions.
Looking Ahead
While the retail experience is changing, at the heart of it, consumers still want what only brick-and-mortar can offer. Consumers will always want to see, touch, and feel products before they buy. People want to be informed before they decide to purchase and will seek expert opinions. Last minute shoppers will always exist, and will remain dependent on stores. And, while we’ve seen many stores close their doors, physical retailers won’t be going away -- but they’ll need to adapt and shift with the ever-changing consumer.
The past 10 years have taught us that meeting consumers’ increasing expectations can only happen when brands start changing from the inside. Brands that ignore this will continue closing their doors, but those that communicate, refocus, and realign will find consumers coming back to their stores again and again.