Does A New Survey Spell Good News For Brick-And-Mortar Stores?

-33.78%
Downside
27.29
Market
18.07
Trefis
GPS: Gap logo
GPS
Gap

Dwindling traffic to the malls and the popularity of online shopping had led many to believe the end was near for brick-and-mortar stores. This forced many retailers to concentrate on their digital channel to spur their sales growth. However, in a surprising turn of events, it has been revealed that millennials actually enjoy going to a traditional store. Research by behavioral marketing platform SmarterHQ has found that 50% of millennials prefer to go to a physical store as their primary means of shopping. While there has been an increased use of the online and mobile channels by millennials, it does not mean that retailers can discount their storefront, and attention needs to be paid to this avenue as well.

Need For An Integrated Omnichannel Environment

Relevant Articles
  1. Does Gap Stock Have More Room To Run After Rising 67% This Year?
  2. Gap Q2 Earnings: What Are We Watching?
  3. Gap Stock Has Upside Potential To Its Pre-Inflation Peak
  4. Gap’s Stock Looks Expensive At $14
  5. Will Gap Stock Trade Lower Post Q3 Results?
  6. Gap’s Q2 Earnings Preview: What Are We Watching?

Omnichannel retail is the ability to seamlessly integrate different channels, whether it is in-store or online, in order to offer consumers a coherent and consistent experience no matter what platform they’re using to shop. In today’s day, relying on just the traditional brick-and-mortar storefront would be a gigantic misstep. Businesses would be unable to survive for long enough if they don’t move along with the shift in technology. The increasing rates of internet penetration and a proliferation of smartphones have propagated the rise of online shopping. Furthermore, the added convenience which enables consumers to shop where they want and when they want are other factors that will ensure the growth of this segment.

While retail store visits have fallen considerably in recent years, it is imperative for such companies to leverage their store presence as a driver for customer acquisition in the digital space. It has been estimated that digital interactions influence 56 cents of every dollar spent in the retail store. Of the 56, 37 points are contributed to by the shopper’s use of mobile devices. While shopping online provides customers with product insight and options for customization, in-store experiences need to leverage the technology to help buyers make more informed decisions. Hence, features such as picking up online orders in-store, creating mobile apps to scan barcodes to gain access to product information and reviews, and accepting mobile payments through the point of sale system are vital to driving customer engagement.

It has been estimated that omnichannel customers end up spending “4% more on every shopping occasion in the store and 10% more online than single-channel shoppers.” Moreover, if the omnichannel shopper has conducted prior research on the retailer’s own shopping website or sites of other retailers, it would result in 13% greater in-store spending. Hence, it is imperative for apparel retail companies to find new and better ways to combine their online and offline channels, and enable customers to have a convenient and personalized experience, to emerge stronger.

The chart in this article has been made using our new, interactive platform.

Have more questions about the retail industry? See the links below: