The importance of the halo effect between physical and online sites cannot be overstated. A study by ICSC has found that when retailers invest in brick-and-mortar locations, their online presence also grows. In fact, the study found opening one new physical store in a market resulted in an average 37% increase in overall traffic to the retailer’s website, plus an increase in brand awareness and consumer perceptions, compared to markets with no physical locations.
It’s a phenomena that has not gone unnoticed, and Wayfair, Figs and Facebook (via Macy’s) are now among those that have joined Amazon and Google in establishing a physical store presence.
The strength of brick-and-mortar stores is also being seen on a global level. For a fourth consecutive year, respondents to PwC’s 2018 Global Consumer Insights Survey said they have increased – not decreased – their shopping in physical stores. In-person interaction with knowledgeable sales, and the “social” experience of retail shopping, have contributed to this trend.
Click to enlarge/download the infographic, plus find more market data in the December 2018 FDMC Wood Industry Almanac.
The National Retail Federation’s Consumer View finds that physical retail remains an important touchpoint for consumers, particularly when they are looking for something specific rather than to just browse. NRF previously forecasted retail sales to increase between 3.8 and 4.4 percent in 2018.
For each company closing stores, 2.7 are opening stores, according to IHL Group’s Company Reports.
Retail specialist Vend predicts traditional store formats to decline as retailers increasingly customize store formats to address the needs of different markets and locations. Target, for example, has big box stores in suburban locations, and smaller format stores in dense cities and downtown areas.
Half of all respondents to PwC’s 2018 Global Consumer Insights Survey use smartphones to complete payment at a bricks-and-mortar store, either through customized orders in advance, in-store apps, or a mobile payment platform at checkout. Nearly half of those respondents, or a quarter of the entire survey, say they now prefer mobile payment. The 22,000 respondents came from 27 territories.
The use of VR and AI in stores is moving ahead – but slowly.
62% of consumers have picked up an online order in a store in the past year, up from 58% a year ago according to Digital Commerce 360 – 2018 Omnichannel Report. (Shop! Whitepaper on Addressing the Changing Needs of Brick -and-Mortar Stores.)
U.S. consumers want an experience that makes coming to the store worthwhile; otherwise they can stay home and shop online, says a PwC’s US Total Retail report. Ease of checkout was cited by 46%, while 41% noted knowledgeable sales associates, 32% said the ability to check other store or online stock quickly, with in-house WiFi with fast and simple login specified by 23%.
Market Data Sources: PwC, Vend, Deloitte, ICSC, National Retail Federation, Visual Merchandising + Store Design, Chain Store Age, IHL Group, Shop! Association, design:retail.
Category: Store fixtures & interiors: display cabinets & cashwraps, POP & full store interiors, kiosks, endcaps, slatwall & systems
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