There’s a misconception that “retail is dead.” You’ll hear this from analysts as they watch companies like Sears, Toys R Us and Payless shutter physical stores, and from e-commerce businesses that point to their ongoing growth as a sure-fire sign that times have changed.
But here’s the thing: Even as some brands nationwide board up their windows and online shopping continues to thrive, consumers haven’t given up on in-store shopping. For a variety of goods that range from groceries to pharmacy purchases, personal care and household products, good old brick-and-mortar retail is still very much a part of consumers’ lives. According to the U.S. Census, nearly 90% of transactions still happen offline.
Whether it’s the convenience of physical stores or the immersive, tangible experience they offer, there are many benefits to making purchases offline and consumers know it. Interacting with knowledgeable sales associates, for example, can simplify the purchasing process for shoppers and ensure they get exactly what they’re looking for. What’s more, engaging with brands online simply isn’t the same as visiting a store, where consumers get a taste of the lifestyle, image and even values each unique brand conveys.
Last year, my company surveyed more than 2,000 consumers on how they shop, and the resulting research clearly indicates that while consumer expectations around the in-store experience may be changing, the physical retail industry is thriving.
Here’s how brick-and-mortar owners of all business sizes can capitalize on the enduring in-store shopping trend and meet consumers’ needs in our increasingly customer-centric world:
1. Great customer service builds brands and boosts sales.
I’ll be honest: Food shopping is never an enjoyable experience for me. But some stores make it far more pleasant than others. I’m more likely to visit Trader Joe’s than other grocery stores near me, for example, simply because I know the employees are friendly and helpful.
This may seem like a trivial factor in the retail decision-making process, but the interactions customers have with your staff can make or break their in-store experience. When customer service is exceptional, 81% of consumers are likely to “shop at that store again in the future,” our research shows. And according to a CMO Council study, almost half of participants said they wanted “knowledgeable staff ready to assist wherever and whenever needed.”
This isn’t only the case in the grocery space. Good customer service and a positive experience don’t just impact immediate sales but can also boost revenue and brand loyalty in the long term. When consumers encounter a staff that’s happy, helpful and knowledgeable, we found that 75% of consumers will recommend your brand to family and friends.
2. Investing in the in-store experience pays off.
It isn’t just customer service that makes the in-store experience better. Shoppers also want to get what they need and be on their way fast.
We found that more than 80% named “quick checkout” as the top factor in creating a great customer experience, while 66% said they wanted self-checkout options. At Trader Joe’s, the staff keeps a close watch on the length of the checkout lines and rings that famous maritime-style bell when it’s time to open another register. That kind of attention to detail and respect for customers’ time is what makes the chain a winner in my book.
It’s vital that business owners of all kinds pay attention to the quality of the in-store experience. Keeping in-store shoppers satisfied can bring a lot of additional value to your brand.
3. Gen Z is the next big sales opportunity.
It’s easy to assume that Generation Z is a group of cashless kids, but in reality, these consumers are poised to become the next big market for brick-and-mortar retailers.
Based on a survey of 1,000 Gen Z consumers in the United States, a retail analytics company discovered that 42% of shoppers ages 18-22 would rather shop in-store than online. And according to an NRF survey, 98% of Gen Z said they buy in a store “some or most of the time.” In fact, three times as many Gen Zers said they shop mostly in stores, compared to those shopping mostly online.
If you aren’t convinced that young consumers would opt for a good brick-and-mortar experience over a trip to Amazon.com, consider the extent to which this online retail giant is struggling to attract Gen Z consumers.
Shoppers — particularly young ones — are motivated by exciting experiences and the opportunity to see products in person, which might explain why brands are actively developing their physical store offerings. Recently, trendy activewear brand Outdoor Voices began expanding its physical store footprint. In the Netherlands, Levi’s opened a high-impact concept store aimed specifically at Gen Z shoppers.
The retail world is changing, but that doesn’t mean brick-and-mortar stores need to fret. By focusing on your physical stores — from customer service to check out and more — you can create an amazing brick-and-mortar experience that will help your business grow and adapt to consumers’ evolving needs.
Whether you’re a franchise owner, an artisan with a storefront or a chain with several locations, creating a meaningful shopping experience will bring loyal customers to your door again and again.
