Do Retailers Need Physical Stores in 2023?

Reimagined physical stores offer new opportunities to grow after the pandemic, particularly for ecommerce brands, according to Shopify’s report on the future of the retail industry in 2022. A mix of online and brick-and-mortar stores could be more prevalent, allowing customers to shop anywhere but also have a complete shopping experience while visiting a physical location. Some retailers, particularly big box stores, are also trying out stores within stores as well, in an effort to drive sales and attract customers.

While many DTCs found their main success on the web, we are seeing an increasing acceptance of in-store concepts, pop-ups, and partnerships, which allows consumers to choose how they will engage with brands. Across verticals, shoppers are no longer limited to what is on store shelves, and their expectations for brands and product availability has grown along with technology. It is not just the rise of ecommerce that has changed consumers behaviors, but also the vast amounts of information available have shaped the way consumers shop in stores, with 81% researching brands online before making a purchase, and 59% actively reaching out to get information about products or prices when they are in the store.

The change in retail directions over the next few years is, surprising, due to changes in consumer behavior as much as it is technology. Finding solutions that are well-suited for improving experiences is changing how the retail industry does business, and that impact is sure to continue into 2023 and beyond. That is why personalization and customization will continue to be the two major trends shaping retail businesses in 2023.

As technologies and analytics capabilities advance, retailers lagging in personalization will be playing catch-up in 2023 in order to deliver similarly engaging experiences across channels. In 2023, retailers should be prepared to adjust their business plans to adapt to emerging trends and technologies that will transform the way they drive revenue.

From deeper digital transformations and omnichannel strategies, to improving the customer experience and adopting sustainability practices, here are some of the top trends that will shape successful retail businesses in 2023. In 2023, we are seeing retailers and brands capitalize on new opportunities to drive additional revenue, reshape business models to gain more market share, and adopt innovative, lower-cost practices for operational survival. As such, retailers will focus on developing strategies that integrate multiple business models and take advantage of different channels of demand, from brick-and-mortar stores to apps, while striving to reach consumers where, whenever, however they choose to shop.

Traditional retailers need to choose the best locations for stores, identify an optimal number of locations per market, stay ahead of consumers expectations for what an in-store experience should look like, and become better at eCommerce strategies.

Instead of solely focusing on a single channel, retailers should be focused on optimizing their physical store portfolio, while also improving their online presence. Retailers must elevate their in-store experiences, starting with technology changes such as no-checkout and no-touch shopping.

With an omnichannel approach, retailers can leverage their store spaces to fulfil online orders and deliver one unified, seamless experience for customers at all touchpoints. The growth in omnichannel and the demand for seamless, multichannel customer experiences will transform how physical stores are used, turning warehouse for rent melbourne into combined retail and logistics hubs that are capable of serving customers both online and in-store.

The power of technology to capture ever-higher levels of data on customers preferences, online and in-store, will allow retailers to personalize their offerings, providing ever-more-personalized prices, products, and experiences. Smart digital interactions enable retailers to customize their purchasing experiences, adapt products and services to individual consumers, and anticipate customers needs before they think about them.

Consumers will also expect seamless experiences, whether shopping in-store or online using laptops, tablets, or smartphones. Consumers will gravitate toward brands who deliver a better experience at a higher convenience level for them, but convenience is not always the same channel. They also have come to expect complete and utter flexibility from retailers today, who need to accommodate them no matter which channel or medium, providing an unadulterated, omnichannel experience.

From the threats posed by big box stores, to the recent advancements of mobile technologies, and the growth of eCommerce sites, retailers have had to adjust to various trends and innovations to capture consumers attention. Now that a temporary surge in eCommerce sales has subsided, retailers are better equipped to understand the longer-term preferences of their shoppers, and new challenges arise as a result.

The retail “pocalypse” which has seen more than 8,000 stores shuttered — is evidence that businesses must adapt rapidly to changes in consumer behavior in order to survive. These shifts in retail are not as much a seismic change as they are more gradual changes. Technologies like touchless cashiers, mobile robots in stores, handheld POS devices, even smart carts are getting some traction among big retailers.

If you are considering retail leasing for your retail business, keep reading to learn how to find the ideal space for your shop, how to manage your inventory, and how to ensure customers feel safer shopping after a pandemic.

A brick-and-mortar store is a retail space in which a business owner displays its products using a physical storefront. Brick and mortar stores may also serve as the hubs of omnichannel retailers that provide experiences like in-store events, curbside pickup, Buy Online, Pick Up In-Store (BOPIS), or Buy Online, Return In-Store (BORIS). The explosion of online brands in offline channels means retailers must build seamless, compelling cross-channel experiences, says Shopifys 2022.