Not surprisingly, in a recent survey 67% of Americans say they plan to do their holiday shopping online this year. (Schultz, 2020)
But prior to Covid-19, 92% of retail purchases were made offline.
The number one reason - wanting to touch and feel items before buying. But the desire for instant gratification was nearly as strong.
(Rekuc, 2020)
Still retail was on the decline prior to the start of the pandemic and many iconic brands including Lord & Taylor, Brooks Brothers and Neiman Marcus have declared bankruptcy over the past year.
So what does the future hold for retail?
Perhaps Levi's has the answer. Much like Nike, they had begun to move toward DTC over the past few years. But with the onset of Covid-19 they went a step further and converted their stores into mini distribution centers to facilitate curbside pickup. (Nishimura, 2020)
A few years back Macy's tested stores that had only sample items on display. Customers could see, feel, touch and try on items that interested them and then place their orders which were shipped to their homes.
Would either of these options interest you? Are you looking forward to shopping in stores again? Or will you continue to buy more things online now that you have gotten used to it? Which ones and why?
Where does retail therapy come into the picture? Will overnight shipping satisfy your craving for instant gratification? What about the other reasons listed above? Will they have any impact on your choices?
Schultz, R. (2020, November 10) Over Two-Thirds Of Consumers Plan To Shop Online This Holiday Season: Study. mediapost.com. Retrieved November 11, 2020, from
Rekuc, D. (2020) Study: Why 92% of Retail Purchases Still Happen Offline. ripen.com. Retrieved November 11, 2020, from https://ripen.com/blog/ecommerce_survey
Nishimura, K. (2020, November 10) Levi's Leaders Reveal Most Effective Pandemic Pivots. sourcingjournal.com. Retrieved November 11, 2020, from
https://sourcingjournal.com/denim/denim-brands/levis-omnichannel-stores-iab-brand-disruption-summit-dtc-harmit-singh-243888/
13 comments:
I do think there is still a place for the retail experience- with an emphasis on the word "experience". Brick and mortar stores are going to become less about functional shopping (I believe routine purchases will continue to trend in the direction of online shopping) and more about 'retailtainment'. The act of shopping will be viewed as more of an intentional way to spend quality time and brands/retailers that make an effort to create an experience above and beyond just shopping will win with consumers
I think the option of in-store or online is dependent on the product. Levi’s option would be great for products that are more functional, in which customers can easily decide whether to buy them based on their descriptions and pictures/videos online. However, Macy’s option would be ideal for products like shoes and clothes because customers really want to try these products before actually buying them, it’s hard for them to decide whether to buy them based on several pictures/videos online. Thus I’m still looking forward to shopping in stores again for products like shoes and clothes. For other functional products, I will continue to buy them online because this is what I usually do.
I think retail therapy is effective for some people as they enjoy the feeling of shopping and the instant gratification of the product. I certainly enjoy the fast shipping speed on my online orders, I think an overnight shipping would satisfy my craving for instant gratification considering the fact of online order’s delay. Another reason that would impact my choices is to see or feel item in person. Like I said, for products like shoes and clothes, I prefer to shop them in store instead of online.
I agree largely with the commenters before me. I will continue to shop in stores (hoping brick and mortar remains, at least in some instances!). At the same time, I may continue to purchase more specific items from Amazon or other online retailers. My recent online purchases included a humidifier and face wash, as I am loyal to the brands and products and didn't need to see or feel them, and didn't need to receive them on a rush-basis.
I have relished a bit walking into galleries and stores in recent months. Small boutiques, only the shopkeeper and me were present, and I of course sanitized my hands immediately. I felt safe, and happy, to be able to engage "live" again.
I think COVID has significantly accelerated digital adoption, even among segments of the population that have historically been "anti-digital", such as older generations. However, I do think it depends on the category and we are going to see uneven digital adoption vs. off-line traditional retail/brick and mortar. I do believe that the pandemic has accelerated the notion of instant gratification though. People's patience for things like waiting in lines, making reservations, and capacity restrictions is dwindling. I think traditional retailers are going to be investing more in things like apps, order ahead, express lines, etc. to ensure people can get in and out as fast as possible.
As mentioned, I believe the digital adoption is going to be even. For example, once things go back to normal I think categories like Apparel and Home Furnishings are going to do well since people haven't been able to touch, feel and try on products for the past year. There is an experience associated with these type of categories. I also think there is going to be a sub-set of the population, especially in major cities, that's going to gravitate back to flexible working outside of the home. Retailers like Starbucks, local coffee shops, boutiques are going to see a spike due to younger generations wanting to get out of their apartments.
On the contrary, I think categories like Pet, Household essential items, fitness (think Peloton), and Alcohol (think Drizly) are categories that many have learned to shop online for during the pandemic.
Online Shopping is certainly an increasing trend for its convenience and even the consumer ratings helping make purchase decisions. I however, love shopping in person to "touch and feel" the product as 30% of fellow consumers agree. I also, as a mother, view instore shopping as "me-time" to get away from the household and feel pampered. It's not quite the same with online shopping. During the lockdown, my husband said to me one night when I was shopping online, to "stop working on my computer" and I abruptly told him that online shopping at that point was my only time to escape! Also, online shopping for clothes and shoes, as Joe said, is not as satisfying or practical.
I have started shopping in stores again, and salespeople are so grateful, I really enjoy the interaction. I also think it's important to keep town centers alive with business and every online purchase reduces a town's livelihood. I still buy on Amazon for stupid, hard-to-find cheap things (like a blender blade replacement), but for big purchases, I always try to shop in person to ensure the shop and salesperson get their commission.
For the holidays, I organize my in-laws to create gift-registries on MyRegistry.com to reduce the $13 Billion spent each year in unwanted gifts in the US! Each person puts items they want on there and then you click the link, buy and ship the item they want. Since people are across the country, its more convenient and economical to buy online and ship to them, then to buy instore and ship it yourself. I did go to Warby Parker to try on the sunglasses, to then put them on my registry. I'm sure as mentioned about Levis, people want to try the item in person, then buy it online and have it shipped. While that's ok for a sole distributor like Warby Parker, it is why Giggle (the baby store) went out of business. People are seeing the item at the neighborhood store, then buying it cheaper online. That is unsustainable. I am guilty of it. We all are guilty of it. So where is the balance? What's the new business model?
I agree with Andrew, that groceries, household supplies, diapers which are repeatable and bulky are easier to order online and get delivered. Perhaps instore shopping will become a method for bonding, experiences, and a hobby.
Perhaps the stores of the future are an experiential showroom to try and feel the brand's quality and culture.
Perhaps sole distributorship is the only way a brand can control their brand regardless of the consumer's modes of purchase, and otherwise it all comes down to the cheapest price and fastest shipping.
T e r e s a
I think this topic really depends on what type of products I’m buying. Personally, I prefer to shop offline when I’m buying some clothing or shoes. Because I can make a better decision by trying them on. It’s also not an easy thing to get the right size with just some images. On the other hand, I would rather purchase kitchen utensils and bathroom accessories online. Because I have already know what it gonna be and the products often come in as expected, plus it’s convenient to let them ship in and you don’t need to carry them all the way back home. I would say overnight shipping can satisfy my craving for instant gratification. The fact is people don’t like to wait. However, overnight shipping always comes with an extra fee, and you can’t guarantee everything you want would be in stock in your area. I like Macy’s idea to only have sample items on display. It not only can allow customers to see and feel in person but also have online availability for them.
Zhengbiao Ji
For me, it’s not worth the risk to go shopping at retail stores. While shopping online doesn’t provide the same “retail therapy,” the holidays this year are going to be anything but normal.
I’m hoping to do most of my shopping through a few select retailers such as Lululemon (we’re all strictly wearing athleisure wear now, right?), Sephora (you can never go wrong with a self-care face mask) and Williams-Sonoma (I for sure could always use another kitchen gadget).
Beside these major retailers, I’m going to prioritize small, women and BIPOC-owners brands even more this year.
Like the other commenters, I’ll continue to buy household goods and some non-perishable items on Amazon and Thrive Market due to convenience, value, and free shipping.
Retailers are stating to advertise “Black Friday” deals sooner than before in order to jump the lead of other stores. That said, we’ll need to wait and see which brands/stores prevail and are able to remain profitable during the busiest shopping time of the year.
I have always preferred to shop online. It is just far more effective to see hundreds of items at once, compare with competitors products, and save for later to think about. I don't really see myself buying in person, unless it is for the experience or is a luxury item, or a second hand thrift store because quality, feel, and fit need to be seen.
-N.O.
As COVID-19 has taken shopping digitally to a new dimension, I personally think Brick and Mortar stores will get back its old Mojo back as soon as COVID-19 will be over because it offers more convenient service and gives people from options to choose from. However, online platforms are trying hard to make everything easier for example the return process, size change but it is certainly time consuming. In general people prefer to interact with others while shipping which is impossible in digital platforms.
These are great questions and working in retail for over 16 years I can remember the first time I heard “retail, these days just isn’t the same”. I began working in retail in 2004, right after High School, and thought my seasonal job would be a great fit for the moment. Fast forward to 2020, I am well-known for living by a quote that says, “Attention to detail, is my kind of retail” and managing a luxury beauty brand as the number one store in North America.
The future for retail is ambiguous but Ricardo Semler says it best when he says, “Growth and profit are a product of how people work together” and I believe this is true. Collectively working towards one organizational objective and controlling your controllable expenditures is the most you can do. Ecommerce has been a channel where organizations can improve their consumer experience to drive sustainable growth and meet immediate needs. However, it simply is just that; a channel to grow sales and build a profit. Experiential, and therapeutic retail experiences might not outweigh e-commerce at the moment, but I believe it still holds a significant role in society. “Retail is not and never will be dead” (Research Gate). The retail “industry has been going through a transformation for some time now” and this happens to be before COVID-19 It is said that it’s not” immune to change and will eventually come out stronger and more knowledgeable than ever” (Research Gate).
Concerning Macy’s suggestion, I don’t think these options would interest me. If I am out and about, I’d rather receive the item I paid for in the moment. And so, as a Free-Standing Store, Store Manager I prefer to do my shopping in-store. I find it quite therapeutic to put my ideas together for the products I’d like to purchase throughout my visit.
References:
(PDF) The Relevance of Porter's Five Forces in Today's Innovative and Changing Business Environment. (n.d.). Retrieved November 17, 2020, from https://www.researchgate.net/publication/326026986_The_Relevance_of_Porter's_Five_Forces_in_Today's_Innovative_and_Changing_Business_Environment
Jonathan Antoshka
Blog Post: Online Shopping
I think shopping in person is going to become a luxurious experience where we would have to book appointments in order to shop in certain stores. I like shopping online a lot better than shopping in person. It is less time consuming, I remember when I use to go shopping it literally use to take me at least 5 hours. Considering the time to get to the physical stores and the time I use to spent looking around.
Rairis Morrobel
It is important to unpack the question before actually providing an answer. First, the fact that covid-19 will ‘end’ is not necessarily accurate, as the virus and its memories will take a long time to actually end in a definitive way. This means that life as we know it has essentially changed for good. With regards to the retail experience and shopping in store, I believe covid-19 has only accelerated something that was bound to happen sooner or later. Online shopping, supported by the capabilities of such technologies as location-based services and virtual reality, will become a more important part of the retail experience. When Covid-19 ends, therefore, online shopping will be the best and, in many ways, perhaps the safest option for shopping. While there might still be circumstances where in-store shopping is necessary or unavoidable, online is the future, and stores will do well to embrace and enable digital channels.
Xinhu Chen
I have a love and hate relationship when it comes to shopping online. I love the convenience- there's more options- I love getting mail. But what I don't love is having too many options, waiting for the package, and things arriving nothing like they looked like online.
If my only two choices were between Macy's display trial or curbside pick up I would choose Macy's display- but because of COVID I have forced myself to enjoy the online experience only for the most part. I suffer from really bad asthma and cannot risk being infected, I was also was taking care of my mother for some time and she was more prone to being infected because she had cancer.
I've been trying to shop online for things I never thought I would, I tried 'Insta-cart' the other day for groceries for example. Although the app was innovative- nothing makes me happier then going down aisles and finding things I need that I forgot to put on my grocery list. Some things feel better when you do them yourself.
Overnight shipping does not satisfy my craving for instant gratification because I've only witnessed overnight shipping with Amazon prime. Now that I do not want to support Amazon- overnight shipping does not exist because they do not include the 2-3 days for processing.
For my safety and the safety of others I will learn to adapt and deal with the dissatisfaction of online shopping for almost everything. Some things aren't fun when you feel like you have to do it. I enjoyed shopping online when it was a choice.
Lorie
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