Retailers must restructure and provide better experiences for the customer. In the first place, more stores are closing their doors. In addition, the shift in consumer spending is very clear.
Retailers Must Restructure
When Amazon started selling books online, many wondered how that would play out with retailers. By the same token, many retailers have been restructuring their business. One of the most important aspects for any brick and mortar store is to have an online presence. Granted, it takes time to be online, but the rewards can be beneficial.
At the same time, many larger retailers are changing the way they do business. In like manner, they are reviewing whether consumers purchase more online or in a store.
As younger customers are driven by technology, it is important for retailers to keep up with this trend. Since many retailers aren’t up-to-date on technology, it is hurting their bottom line. Furthermore, individuals can shop online anytime. There are no time restrictions or days you cannot shop. Of course, when customers have free time, they shop online.
Retail Stores Closing
I wrote a post last year on retail store closing. Although a year has gone by since I wrote that article, I have seen more doors closing. As consumers continue to be more technically savvy and continue to shop for the best prices, brick and mortar stores continue to suffer.
Last year I predicted there would be many more stores closing. As the year continues, I believe we will see more doors closing. But a new year, a new president and we are continuing to see a sales skid in the retail industry.
Shopping Habits
Shopping habits continue to baffle many Store Owners. Visit my post I wrote last year about the skeptical female consumer. Of course, it is up to the store to entice the customer. Consumers don’t often know what they want until they see it. Hence, it is important for a retailer to have the right merchandise in place at the right time.
Will luxury stores get customers back into their store? Because I was a customer of many luxury stores, i.e., Saks Fifth Avenue and Neiman Marcus, I haven’t been shopping there for quite some time. One of the main reasons I stopped shopping in these stores in the Boston area is I don’t like to pay for parking to give a store business. At the same token, many of these luxury stores are understaffed and offer poor service.
For me, it is easier to shop online as I find it much more convenient.
Showroom Concept
Notably, a new concept in shopping are showrooms. When I was in New York last November, I visited a shoe showroom. Moreover, I encountered great service and was offered a glass of wine and bottled water. Indeed, these showrooms offer a high-end luxury experience from knowledgeable sales professionals.
With showrooms having less merchandise, it is cost-effective for the retailer, yet attractive to the customer. No one wants to be overwhelmed with too many choices. As this concept evolves, I think it will be a huge hit for the customer. Also, I think the showroom concept will increase retail sales, while cutting back on returns. To sum up, I think this provides a unique shopping experience for the customer.
Conclusion
As always, I welcome your comments on why retailers must restructure.