Is it the end of physical stores?

After many comments on our blogs, I started wondering how people will go shopping in the years to come.

Are physical stores going to disappear? What role will digitalization play?

The rise of e-commerce suggests that physical shops will tend to disappear. However, I do not share that opinion. A recent survey shows that 50% of purchases in 2030 will still be made in store. Customers remain attached to physical stores because human contact remains essential to them. They can ask questions, as well as touch, test and smell products. All of this is not possible online.

Digitization will not lead to the end of physical stores; it is going to transform them. Digitalization will allow offering a superior customer experience and you need to remember that customer experience is the competitive advantage of brands today. Physical stores will not only deliver products but they will offer personalized experiences to consumers. Digitalization in stores will then attract people in stores because shopping experience is just going to be fun and interactive and people can entertain themselves.

So, how will future physical stores look like?

We are going to see the development of more and more connected shops:

• Presence of interactive digital displays

Under Armour Store in Chicago:

Source: Retail Customer Experience

• Geolocation of products: Metro in Germany has introduced Findbox technology in their stores in order to simplify customer shopping experience. You can scan your desired product and it tells you where the item is situated in the store and it suggests you matching products available. This technology can therefore influence your purchasing decision.

Source: CNet

• Intelligent shopping trolleys: it suggests what you need to buy, where you can find each product, and how much money you have spent

Source: The Register

• Optimisation of fitting rooms: Uniqlo in the USA proposes a magic mirror: you can try on a piece of clothes and virtually see it in different colours.

Source: YouTube

Rebecca Minkoff proposes a connected wall; you can add items to the fitting room, order drinks and you receive a text message when the room is ready. Once in the fitting room, thanks to a digital mirror, you can adjust the light in the fitting room, call a stylist and confirm items that you want to purchase in order to receive a digital receipt.

Source: YouTube

• Augmented reality and artificial intelligence technologies: Ray-Ban, for example, proposes virtual mirror allowing you to virtually try different glasses

Source: VM-unleashed

• Simplified payment process: Amazon Go is the perfect example

Source: GeekWire

And many other improvements in the years to come thanks to technology….

To conclude, physical stores are not going to disappear. I personally think that we are going to see more and more physical stores in the future thanks to digitalization. Even exclusively online retailers start to open physical stores such as Amazon: the brand is planning to open bookstores in the US. Alibaba opened a physical store as well which proves that human shopping experience remains important. Brands need to focus on Omni-channels customer experience!

What do you think? Is the end of physical stores? Or are we going to see an expansion of connected stores?

 

Sources:

• http://www.vm-unleashed.com/window-framed-virtual-mirror-becomes-a-rayban-reality/
• https://www.youtube.com/watch?v=NrmMk1Myrxc
• https://www.youtube.com/watch?v=oUD57MpHAE8
• https://arstechnica.com/information-technology/2017/04/how-amazon-go-probably-makes-just-walk-out-groceries-a-reality/
• https://www.retailcustomerexperience.com/articles/under-armour-boosts-customer-experience-with-digital-signage-in-new-chicago-store/
• https://www.youtube.com/watch?v=6G3JIyG_GeY
• https://digiday.com/marketing/rebecca-minkoff-digital-store/
• https://www.theguardian.com/media-network/2017/jan/25/what-store-future-look-like-retail-technology
• https://www.theregister.co.uk/2008/01/15/mediacart_shopping_trolley/
• https://www.geekwire.com/2016/amazon-go-works-technology-behind-online-retailers-groundbreaking-new-grocery-store/
• https://www.cnet.com/pictures/findbox-pictures/