August 12, 2014  by

The Difference Is In The Details

No matter where you look, it’s clear that the digital age is upon us. The dizzying flurry of new technology onto the consumer scene over the last decade has changed almost every aspect of our lives, and the retail industry is anything but immune to this tech takeover. The landscape of how we shop is changing and retailers are finding new ways to reinvent the traditional shopping experience we’ve come to know and love.

Digital is in, but what are the different ways it’s impacting retail? We all know that online activity has skyrocketed over the past few years. It’s estimated that by 2017, U.S. online retail sales will hit $370 billon. While this technology has been around for the better part of two decades, the smartphone and tablet boom has helped to boost the number of online shoppers. In 2010, the tablet market didn’t even exist. Last holiday season alone, close to 25 percent of all sales occurred on mobile devices. Now, it’s not just a digital retail world, but a mobile one. One out of five people use a computer, but four out of five consumers are in the mobile ecosystem, when including smartphone users. Are traditional stores on their way to becoming extinct?

The impact of this digital revolution on bricks-and-mortar stores is undeniable, but to say that it’s putting an end to traditional shops is a misnomer. Retailers are being forced to take on a more omni-channel approach. In fact, you could say that bricks-and-mortar has now become click-and-mortar. Retailers that were once solely online are realizing that physical outlets provide benefits that just aren’t possible over a computer screen. This new style of offline retailing is also creating an opportunity to change the expectations of shoppers when they visit retail stores. More and more, bricks-and-mortar shops are focusing on the experiential rather than the transactional. In Japan, Kate Spade’s new Saturday store has taken on a whole new effort, using iPads to replace all paper signage. This initiative was started to make the store less about selling and more about entertaining and engaging with customers. Now that brands are available in cities around the world and on the Internet, the new darlings will be retailers that become a destination point and offer a social experience for shoppers.

As a result, store design is getting a major overhaul in order to attract this new brand of shoppers. Recently, a host of retailers have started to set up traditional stores more like showcase spaces where customers can physically interact with products and decide to either purchase in-store or later online. A great example is the home store, Pirch, in Dallas. Upon entering, shoppers are greeted by a hotel-like lobby experience, complete with a barista offering free drinks. The store features full-size kitchens where visitors can test appliances by actually cooking their own meals through a pre-arranged menu. Pirch even takes care of the trip to the grocery store before arrival. After-hours reservations let shoppers come in and try out the showers in the equally large bathroom department.

So while it’s true that the bond between retail and technology is showing no signs of slowing down, digital is not destroying the traditional shopping experience. Instead, it’s providing more options and opportunities for retailers and shoppers alike. Only time will tell if this approach proves to work. Until then, retailers must make a conscious effort to keep up with the times and be ready to meet new demands in this changing environment.

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CallisonRTKL

CallisonRTKL

For more than five decades, Callison and RTKL have created some of the world’s most memorable and successful environments for developers, retailers, investors, institutions and public entities. In 2015, our two practices came together under the Arcadis umbrella, expanding our sphere of influence and the depth and breadth of our resources. Our team is comprised of nearly 2,000 creative, innovative professionals throughout the world who are committed to advancing our client’s businesses and enhancing quality of life.
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