True Value of Retail Stores and their Importance in the Modern Economy

So what is the true value of your retail store? Consumers appreciate physical stores more than 2 years ago. That is what the survey among 10,000 companies and 40,000 consumers shows. When the stores were temporarily closed, consumers realized how easy it is to pop in to make a purchase.

Perhaps the retailer owes this figure mainly to its innovation and entrepreneurial drive. Nothing was too crazy in the past years. Retailers drove all over the country to deliver orders themselves. Consumers could also make video calls, WhatsApp and order via Social Media.

The Value of Stores in Today's Economic Environment

1. In-store shopping: Customer are more likely to buy the product in real-life

A recent study by the McKinsey Global Institute found that in-store shopping is more likely to result in a purchase than online shopping. The reason for this is that customers are more likely to buy the product they saw in the store and shop around while they’re there.

Furthermore, in a brick-and-mortar store you have no shipping time and costs. The customer receives the product immediately (although there is of course a threshold to visit to the store). This is an extra value of the physical store in a world where the consumer now want the product immediately.

A good example is a consumer who wants to buy the new iPhone X. The consumer has seen videos of people trying out the phone, and they know that it is worth the purchase. Because they want it now, they will go to an Apple Store and make a purchase there in person.

2. Click & Collect: More additional sales when picking up items in the store

Click & Collect is a service that allows customers to order products online and pick them up in a physical store. The customer can choose to pick up the product either in-store or at a designated location near the store. This service has been around for many years, but it has only been recently that it has become popular with retailers. This is because of the rise of e-commerce and the need to compete with online shopping by offering incentives for people who are not comfortable with buying items from their homes. The number of retailers using this service is growing at a rapid pace, and they are seeing an increase in sales because of it.



More and more, shoppers are preferring to buy from their mobile devices. However, it is important for retailers to understand that customer still prefer the in-person experience. Customers prefer to touch products before they make a purchase decision. That is the added value of the retail store. Furthermore, additional products will be purchased more quickly in-store. This allows the average order value to be increased thanks to the physical store.

3. Order and home delivery: Better one-on-one assistance especially for complicated products

Certainly in the case of complicated products, you would rather first want advice in the store. For example, an expensive product with many colors and dimensions. This is true value of a brick-and-mortar store. You also want to test products such as a mattress before you buy it.

As a retailer, you can offer home delivery in this case. For example, if it still has to be ordered from the supplier. This gives the consumer the best of both worlds.



4. Brand experience: Trusted impression on consumers

"There is an increase in consumers who are shopping for experiences rather than products," said study co-author Mark R. Kantrowitz of the University of Southern California's Marshall School of Business. In addition, a physical store makes a reliable impression on a consumer. Consumers are more likely to trust a company that they can visit in person and merchandise is more likely to be viewed as valuable if it is seen and touched. Therefore, a physical retail location helps to establish a well-regarded brand. Turn excuses into a sales opportunity.

The stores are not only for consumers to use for making purchases and interacting with the people behind the brand, but also as a place where they can simply wander around and enjoy the atmosphere of being in a store. It starts at the entrance! In addition, you can get free market research on a personal level of the customer. With a personal conversation you will find out much better about the needs of the consumer. This is also a true value of the retail store.

The Importance of Re-thinking Retail Store Spaces for Today's Customer Needs

So there are real pluses to the retail store that can increase sales. Yet it is important not only to invest in this, but also to include the other sales channels. The changing retail industry has created new demands for modern retail design principles and trends.

The shift to online shopping has changed how customers interact with retailers, now more than ever, retailers need to rethink their store spaces to meet the needs of today’s customers.

One way retailers have done this is by adding experiential retail to experience the shop in person. Another way is through in-store technology that can find customers what they are looking for and direct them to the nearest location of an item. Retailers can use their store space as a way to draw customers into their stores, rather than just providing them with a location to purchase products,

The best retailers use the whole store to create an immersive experience that will keep customers coming back and going out of their way to visit. Experiential retail is really important because it changes the customer interaction with the company and product.



How to Increase the Value of Your Store by Increasing Customer Engagement

Retail stores are not just about buying products. They are also a place where people go to get information, explore, and enjoy themselves. This is why it is important for retail stores to keep up with the changing times and cater to customers.

In the future, retail stores will become more like theme parks. There will be more interactive elements in these stores that will make customer experience more fun and memorable. The store ambiance is an important factor to maintain value.

So the best way to increase customer engagement is by giving them a personalized experience. A personalized experience includes customizing their shopping experience, providing them with the information they need and making them feel like they are important.

Digital transformation offers you a range of possibilities

61% of consumers believe that retailers should be as flexible after the pandemic in 2022 as they were when it comes to selling through different channels. For example, customers are more loyal to retailers where they can buy items online and return them in-store, a 26% increase compared to the same survey in 2020.

That is why it is even more important to connect the online and physical channels and work on a complete digital strategy. Think of the website, WhatsApp, Social Media and the physical store. Only in this way can you bring the comfort of online shopping to the store and the personal touch of physical shopping to online. The research of Adyen shows that this is the key to success. Companies that focus on this expect to grow 11% faster in 2022.

Wholesale integration and finding the right brands will also contribute to offering the ultimate customer experience. It gives the opportunity to reduce inventory, so that you can invest more in marketing.

Conclusion: The true value of your retail store in combination with other channels

The conclusion is that the true value of your retail store is in combination with other channels. This is why it's so important to have a strong online presence and a physical store. Indirectly, the store also strengthens the brand experience and the fulfillment of consumer needs. On the other hand, online reinforces the profitability of your retail store.

Research shows that a combination of channels contributes to exponential growth. For this it is important that the store automation is in order. It is essential that systems are properly connected so that the best value of the retail business can be delivered efficiently.