What’s in Store for Stores
Will the next generation have patience for in-store shopping?
About ten years ago, I had a seemingly funny conversation with a friend. She sheepishly confessed that long hours at work forced her to order everything from Amazon, even toothpaste! At the time, it was a shocking and almost lazy admission. Now, it’s the norm, as Amazon is the most trafficked e-commerce site online, serving as the first search destination for 74% of online shoppers. Shopping has truly gone digital, as further evidenced by the fact that Shein is the biggest fast-fashion retailer in the US despite having no physical stores.
Covid and the evolution of internet retail have accelerated the pace of change in the ways we purchase goods. Many purchases can be made solely online, and online information influences over half of in-store sales. We may enter a store to discover a new item or try it on, but most of us know that we can optimise price online fairly quickly, order it for immediate delivery and even return it at our leisure for free. The power of choice and optimisation in digital commerce is undeniable.
What will shopping look like for the next generation?
Exactly how the physical and virtual worlds collide for a seamless shopping experience continues to evolve. Online discovery (via apps like Tiktok or well-targeted advertising) is proving just as powerful (and maybe even more relevant) than serendipitously walking past something appealing in a bricks-and-mortar store. This becomes powerful as people choose to preserve valuable time and energy by searching for a definite outcome (online) as opposed to a probable one (physical stores).
Price optimisation, targeted discovery, and bulk purchasing are definite benefits of the online domain. But there are some definite drawbacks as well. First, shipping logistics (and safety) are not always straightforward. Also, as goods become more valuable, authenticity often comes into question and requires a third party’s approval. Finally, pushing a button online is easy and tends to dampen the whole concept of cost and expenditure. We see this in today’s “on-demand” generation who just have to tap a card or push a button to get what they need imminently.
The human element of shopping and the preservation of Main Street (or the “High Street” here in the UK) also remains critical. There is still no real substitute for trying out a different brand of shoes for the first time or picking your own produce. Local relationships and experiences are irreplaceable, particularly for members of communities to feel connected. Goods that have meaning (locally grown or handcrafted, often with a story behind them) can have a lot more meaning than those ubiquitous brands that we find all over the world.
The question is whether customers will remain patient to browse and willing to make spontaneous purchases, or if they will revert back to the digital world for the bulk of their transactions going forward.
