Despite headlines touting the end of bricks-and-mortar retail in the era of ecommerce, earlier this year it was reported that Amazon - one of the world’s biggest retailers – plans to open a department store.

Amazon Books, NYC

Source: Shutterstock

That is some of the greatest evidence suggesting physical retail is not dead.

According to a Retail Economics and Eversheds Sutherland report, the UK is likely to be the first European nation where the majority of clothing is bought online, and more than a third of UK shoppers will not return to physical stores as often as they went before the pandemic. But that does not take into account the critical role the store plays in the consumer shopping journey. 

In 2020, at the height of the global pandemic - and in April nearly half of the world’s population was under some form of lockdown - 82% of the $23trn (£17trn) sales made across the year were made in physical locations. 

For shoppers, the ability to access purchases immediately, and avoid shipping fees were important considerations. 

The importance of emotions while shopping

Touch was also a powerful factor in creating emotional connections, and was the sense most repressed during the pandemic. Shopping has never just been about meeting utilitarian needs, customers want excitement and social connection.

In this year’s Salesforce Connected Shoppers Report, which surveyed more than 1,600 shoppers and 1,000 retail executives around the world, it was clear that the store is central to a unified shopping experience. 

But the rise of the physical store is not happening in isolation. Connecting the dots between the physical and digital is more important than ever. Consumer journeys are becoming increasingly complex, and expectations for convenience and choice have never been higher.

Christmas shopping

Another of our consumer studies revealed that this holiday shopping season, 58% of consumers anticipate only shopping in-store. It is also predicted that six in 10 purchases will be influenced by brick-and-mortar locations such as by helping with the placing of an online order or fulfilling it via curbside pickup options. 

As a result, store associates are taking on expanded roles as fulfillment experts, customer service agents, ecommerce specialists, and social media managers.

The role of the store is evolving to deliver a safer, smarter and more unified experience for consumers. 

Retailers are beginning to think more broadly in terms of experience, with consumers more likely to see shopping as an event or destination experience. Technology is playing an integral part, and brands are transforming what it is like to be in-store by stocking less and focusing instead on the consumer experiences and clienteling.  

The rise of the QR code

In the last 18 months, we’ve seen an increase in the use of QR codes. According to Statista, nearly 50% of consumers have noticed more opportunities to use them. They now understand what they do and how to use them to their full potential. Some retailers are now placing QR codes across their high street stores so consumers can simply scan them and immediately be transported to a relevant online page where they can learn more about the product. 

This is digitisation in action, extending the physical customer experience beyond the moment that they are physically present, and presenting an opportunity to build greater brand loyalty and advocacy.

Amazon Fresh store London 2

It is this blurring of the lines between physical and digital that reaffirms the store’s ongoing place in the shopper journey and it deserves careful consideration as it remains an irreplaceable mainstay for consumers. 

The need to find different ways to serve consumers and build resilience into entire business models has accelerated many retailers’ digital transformation, and digitisation is now an imperative to their survival. 

Delivering memorable and connected experiences continues to requires a deep understanding of how consumers want to be served when they engage with a retailer, to be met where they are, no matter the location or channel.