The Uncertain Fate of In-Store Retail
As large, well-established retail companies like Macy’s, Sears and JC Penney begin to plummet in sales and power, the fate of retail has become quite unclear to many. These major retailers have been strong through many years but seem to be unable to compete against the efficiency and low prices of online retailers. Closures have been sweeping North America.
There are many problems that these retail giants are facing, but the main issue is the disconnect with today’s generation. Sears, for example, has always had a target on the convenience of a family shopping experience. However, today’s parents tend not to shop at Sears because they do not have that relationship with the store. The average age of a female shopper at Sears is 52.1 years. They are unsuccessfully targeting the younger generation that is supposed to carry them into the next 100 years.
However, the lack of youth interest in Sears is not the only source of blame for the $26 billion sales drop from 2000 to 2015. Sears has a disconnect with their current customers and is unsuccessful in promoting customer loyalty, since those customers complain about the fact that there are few cashiers, lengthy checkout processes and the lack of quality in the products. Sears stores are understaffed and under-stocked; customers feel as if the store itself doesn’t want to operate.
Even Macy’s, which has always been an American cultural icon with the Macy’s parades, flower shows and fireworks, has been struggling with sales and relevancy. This year they are closing 68 stores after closing 70 last year. Macy’s shares many similar dilemmas with Sears: inadequate customer service, messy and unappealing stores, and lack of relevancy with the younger generations.
Many customers prefer to shop in-store because of the atmosphere and environment where you can interact with other shoppers/the staff and evaluate the products better. However, Macy’s, Sears, and other once-large retail stores are lacking in the customer experience department. Customers want to be greeted by friendly and enthusiastic workers, clean and orderly shelves and a great shopping atmosphere. They want to know that the products on the shelves are top quality, even if they are a bit pricier. Walking in an empty, almost abandoned store does not stimulate the urge to shop in consumers.
These retail giants are also distracted by the blossoming online retailers. Amazon, for example, is growing at an almost exponential rate with its recent acquisition of Whole Foods and growing customer base. Macy’s has been pouring millions of dollars into trying to create a competitive online store.
However, the in-store retailers need to focus on the interior problems before attempting to address the outside competitors. If the in-store experience, which is what the brand is built on, is repelling customers, then these retail giants have something larger to focus on: the very core of their brand and company.
