Brick-and-mortar retail has long been a very competitive business, and with the rise of online and mobile shopping, the challenges faced by stores on the “street” have only grown in recent years.
Not only are whole categories, such as video and music/CD stores, now virtually non-existent, but as Bill Lewis, vice president of consumer products, retail and distribution for Capgemini Consulting, points out, “There have been a number of major malls across the country that have closed their doors for good.”
Many airport retailers take their cues from the latest trends on the street, and developments in brick-and-mortar retail are often highly applicable to airport operations.
Experts say street retailers that have managed to thrive in this current market are the ones that are quickly adapting to how modern consumers prefer to shop. That means incorporating new features and technology while also putting an added emphasis on employee training and retention, all with the goal of providing an engaging customer experience that can’t be matched by a few clicks on an ecommerce site.
“The ability to touch, try and test product has always been a focus area for brick-and-mortar retail, but it is increasingly being labeled and marketed as a competitive advantage, instead of an expected part of the business,” explains Chris Hammond, management consultant with The Parker Avery Group, an Atlanta-based retail consulting firm.
Hammond adds that brick-and-mortar stores realize that many of their customers are using online tools as part of their shopping process even when they plan to make the actual purchase with their local retailer.
As a result, these stores are adapting strategies to facilitate that behavior.
“The real key here and to the future is the integration of ‘omnichannel’ capabilities, which is a customer-centric retail model that essentially fuses a retailer’s multiple channels into one seamless customer experience with the retail brand,” he explains. “Omnichannel allows consumers to shop a brand in any way and at any time, and subsequently having the products delivered however and whenever they choose.”
Among the new amenities being offered at retail are the ability for consumers to order online and have the product sent to a store so it can be tried on before purchase. Stores also are encouraging ship-to-store options that let shoppers avoid large shipping costs for heavy or expensive items, while also letting them return items purchased at the chain’s online site to their local outlet.
“Retailers with brick-and-mortar stores gain huge benefits with all these features,” Hammond says.
The complete article appears in the December/January print issue of Airport Revenue News.Click Here to subscribe.
