Virtually everyone in America is probably aware that the retail landscape is changing rapidly and dramatically, and that means that retail business strategy has to change right along with it, or be literally left in the dust. Most people probably live near a shopping mall which is in a state of serious decline, or near a once-prosperous department store which has closed its doors in the past few years, all due to the changing dynamics of retail shopping in this country.
Here are the trends shaping the new retail landscape, and they’re the ones that successful retailers will have to adopt.
Shopping must be more experiential
Stores like Toys ‘R Us have faded away because they failed to recognize that the consumer public now desires greater engagement from the shopping experience. Stores like Build-A-Bear recognized this years ago, and provided people with a hands-on process for creating their very own stuffed toy, rather than purchasing a completed product from the shelf. Obviously, online stores have made serious inroads into brick-and-mortar store sales as wll, but the increased experience factor is a major one, and it’s one that shop owners will have to include in their retail business strategy, if they want to survive.
Online stores opening brick-and-mortar shops?
This may seem odd, but there is a definite movement among some e-commerce stores which once had only an online existence to open up traditional stores as well. This is because some products simply have to be touched and interacted with before a purchase becomes practical, for instance a home fitness gym. Other products like fine jewelry, eyeglasses, and expensive electronics also need to be seen and touched, and that can only happen in a traditional store.
Spending on experiences rather than things
A recent survey has clearly demonstrated that young people especially prefer to spend their money on experiences, rather than on more stuff to clutter their homes with. Some of the experiences they identified in this survey were dining, health and wellness activities, travel, and concerts. Retailers who want to cash in on this emerging trend would do well to establish a business which provides such experiences, rather than selling objects which fewer and fewer customers are buying.
Does your retail business strategy include a financial partner?
Virtually all businesses require an infusion of cash at some point, so your retail business strategy should include aligning yourself with a reputable financial partner like Bear River Financial. Contact us today, and we can discuss financial options for implementing the rest of your retail business strategy.