In the past decade, shopping behavior has changed significantly, with more and more people choosing to shop online for goods and apparel. While online retailers have typically remained online, many see the potential for expansion through brick-and-mortar retail. The past two years have seen an unprecedented convergence of online retailers moving offline – seeking an omnichannel presence and getting closer to where their consumers are. The trend goes the other way as well. Traditional retailers are feeling the strain of increasing online sales and are pressured into finding solutions that fit the needs of the consumer that’s shopping online. Retailers are making moves to position themselves on both sides of the coin.
Offline Goes Online
In addition to building out their own online presence, many big box stores are acquiring online-first retailers to get in the online game and tap into those increasing sales. By doing so, not only are they investing in the business, but with it comes a community in a typically younger demographic that have become loyal to these brands since their start.
Online Goes Offline
On the flip side of the coin is Amazon. Not only is Amazon the leader in online retail (accounting for up to 38% of online holiday sales by some estimates), they are now taking steps to start to build out a physical presence as well. If things are going so well for Amazon online, why would they want to open stores? An understanding of their consumers and behaviors through massive online data has led to deep insight into how people will shop in physical stores. They’re delivering a different kind of experience that offers curation, discovery, and sociability unlike their online experience. By opening physical locations, Amazon draws itself even closer to where consumers are.
Amazon Go, the convenience store that lets you “just walk out” without standing in line to check out, still in beta
Offline Just Goes Away
Companies that rely too heavily – or solely – on their physical store operations are failing at an alarming rate. Without adapting to changing consumer behaviors, they’ve missed the opportunity to survive and thrive in today’s market.
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