We already know that, as ecommerce is booming, traditional brick-and-mortar stores are losing their exclusive role of distribution-points for goods.
As a result:
- many traditional retailers are in (deep) trouble
- a few others are going (very) well
Average numbers may suck, nevertheless there are many significant “local maximums”, for example:
- traditional brick-and-mortar players like Dollar General and T.J. Maxx (in the US) are success stories
- many luxury retailers are literally thriving in many areas of the world
These “local maximums” are more often than not localized on the opposite sides of the market:
- off-price retailers, fighting openly on price and convenience
- upscale retailers, offering brand-value and exceptional in-store shopping-experiences
Off-price retailers are in direct competition with online retailers (e.g. Amazon), while upscale retailers offer an in-store shopping experience that cannot be replicated online because:
- the shopper interacts with real products
- the shopper interacts with nice, consultative Store-associates
- bricks-and-mortar stores offer same minute delivery
Recap: are you a traditional retailer?
Consider that your physical stores are still – and will be in the future – the only true product-value amplifier and the best advertisement-vehicle for your brand/brands.