The retail powerhouses of America have a synergistic relationship between their brick-and-mortar stores and eCommerce sites.
Walmart, Kroger, Costco, Home Depot, Walgreens, CVS, Target, Best Buy, Apple—these retail giants maintain their physical local presence in the communities they serve while also providing online convenience.
Ideally, you want consumers coming into your stores where they are enveloped by your branding and sent on their way with a favorable impression. Your online shop can be used to provide more information, comparison research, fill inventory gaps, and appeal to those who would prefer to shop from the convenience of their home.
While it is possible to have a successful eCommerce business without a physical location (as we see with Etsy and eBay sellers), the majority of business is still conducted offline. Last year, the top 100 digitally-native retailers unveiled plans to open more than 850 physical stores over the next 5 years. In the age of evolving consumer behavior, we discuss how brick-and-mortar stores can compete with online retailers.
There is some evidence that online retailers are increasing in prominence and threatening to dominate:
The retail landscape is changing, but physical stores shouldn’t be discounted just yet. The numbers pretty speak for themselves: eCommerce sales rose from $390 billion (2016), 16% to $435 billion (2017), and 14.2% to $513.61 (2018). While slower growing, but massive by comparison, transactions continued in brick-and-mortar retail, rising from $2,985 billion (2016), 2% to $3,043 billion (2017), and 3.7% to $3,103 billion (2018).
It’s not that brick-and-mortar is coming to an end, but rather, that the way people choose to shop is evolving; 87% of shoppers begin their trips online, but 90% of retail transactions occur in physical stores. Why? Consumers like to physically interact with products in a tangible way. They like the immediacy of being able to have an item at the moment, without delay. They like not paying for shipping and avoiding the hassle of returns by mail. Lastly, people like the social experience of visiting a physical location and interacting with other shoppers and sales associates.
So, before you throw in the towel, consider how to meet consumer expectations, bolster your best competitive assets, and keep your business focused on good old-fashioned people-to-people interactions.
To successfully compete with online eCommerce empires, brick-and-mortar stores should:
Shopkick provides a way to engage consumers in brick-and-mortar locations, offering incentives for their presence and in-store engagement. The mobile shopping app rewards shoppers who visit retail locations, interact with products at-shelf, and purchase them in-store. Once they amass a certain number of rewards points, called kicks, users receive a free gift card of their choosing.
Just as eCommerce sites offer special deals, brick-and-mortar retailers can offer the same in a convenient way—through shoppers’ mobile devices.
Just as eCommerce sites offer special deals, brick-and-mortar retailers can offer the same in a convenient way—through shoppers’ mobile devices. Shoppers can check into the Shopkick app and earn rewards points all along their shopping trip—from the moment they walk into the store, while they’re browsing the aisles, and through checkout. Meanwhile, you make it easier, more incentivized, and more profitable for consumers to shop in your store as opposed to online. It’s a win-win for everyone.
Continue reading how Shopkick has helped our brick-and-mortar retail partners compete with online retailers, or contact us to learn more about engaging your customers in-store.
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