Why most retail stores are destined to close

A large portion of the stores we see today in our cities are very likely going to close in the next few years. In New York, London and other major cities this process has already started and the percentage of closures could be around 80%.
Although the enormous challenges currently facing retail are frightening, they provide some very exciting opportunities through which the next generation of brands can thrive.
Here are four trends in consumer behavior, what they mean for the future of physical stores, and how you can adapt. It’s about experience and individuality.
New and evolving retailers: pay attention!
Retail stores and MP3 music
The shift that happened in the music industry in the last 10–15 years is now happening in retail and the consequences are dramatic. Before Napster, Pandora, and Spotify, musicians were making all their money selling albums. Today they’re giving away their music for free. Instead of selling the product, they play live concerts and sell experiences.
Retail stores are undergoing a shift of the same proportions and incumbent retail brands are at risk because they have been doing just one thing for the last fifty years: selling a range of products rather than an experience.
When I was a kid there were four or five brands. You didn’t have many options; if you needed a pair of pants you knew where to go. That was the offer, and you were happy with it.
The situation is different in 2017. You have thousands of different options, both in physical stores and in the digital realm. The offer has exploded in a way most of us did not predict and, for the most part and probably because of it, the quality of products has also fallen dramatically.
Here’s an example:
Imagine that you are going to a large retailer to buy speakers. They are all lined up on a shelf; one is pink, one is black, one is white. You might visually like one better than the other but what about the sound?
You can’t play anything on the speaker. Even if you could connect your phone to it, the music that comes out is horrible because the space has not been designed to play music. It’s been designed like a warehouse to display as many products as possible.
The choice is overwhelming and the experience sucks so you probably end up not buying anything — going home disappointed and exhausted.
Now let’s say that you go to a Sonos store instead. There you will find several little spaces designed to feel like the living room in your apartment. You listen to your music and the quality is unbelievable. Why? Because you are surrounded by a small selection of products that are easily personalized to fit you. You have the right materials, a nice chair to sit on, you are playing your own music, and you basically have everything that makes you feel like you are in your home.
Sonos understands the importance of the experience. At the end, it doesn’t even matter if you are buying the speaker there, or later at home on your phone or computer. The experience has had an impact on you and you will not forget about it.
You can’t find that experience in a traditional store selling hundreds of products and that’s why I believe they are on their way out.