Don’t Believe the Headlines — Brick-and-Mortar Retail is Here to Stay

After reading his own obituary, American writer Mark Twain is said to have wryly remarked, “The reports of my death are greatly exaggerated.”

I have a similar thought whenever I read an article about the death of retail stores because, if you look past the sensationalist headlines, the opposite appears to be true.

Earlier this year, retail behemoth Walmart shared its plans to “build or convert” more than 150 stores in line with its “Store of the Future” concept.

Fast-fashion retailer Uniqlo recently announced it would soon open over 20 flagship stores in Asia, Europe, and North America, taking its worldwide store count to more than 2,500.

American retailer Target plans to open over 300 “predominantly full-size stores” over the next decade, expecting they will “boost sales by $15 billion annually.”

The list goes on. Many brick-and-mortar retailers aren’t just surviving, they’re thriving.

However, success in retail is never guaranteed. We’re entering a new era of brick-and-mortar retail where shopper expectations are higher than ever and a store’s margin for error continues to shrink. Retailers that want to compete with the convenience and selection of “the everything store” and other e-commerce sites should focus on a few important areas.

Offer Exceptional Experiences

The in-store experience is the greatest advantage brick-and-mortar stores have over online-only retailers. And “experience” can take many forms:

• Visually appealing stores that excite the senses and make it easy for shoppers to discover new products. Uniqlo’s flagship store approach is one way to generate excitement about physical stores, but you don’t necessarily need expensive flagships; well-executed visual merchandising strategies can effectively engage shoppers while also resulting in increased sales.
• Well-trained, friendly staff who are able and willing to help when shoppers require assistance; employees should never have to “check the back” for inventory when that information can be readily available on the phone in their pockets.
• Incorporating the latest technologies — e.g., digital signage and displays, electronic price labels, and smart carts — into stores, making shopping easier for customers.

Furthermore, it can mean understanding a part of the in-store shopping experience is having the right product assortments in-store and in-stock. Because nothing drives an in-store shopper online faster than when they walk into your store to buy a product and find an empty shelf.

Right-Size Your Stores

You may know Macy’s is closing 150 stores by 2027… but it's also on record with plans to open up to 30 small-format stores by the end of 2025. Why?

Because small-format stores offer lower costs and greater flexibility, and a retailer that has small-format stores in its retail portfolio unlocks opportunities unavailable to those with a “one-size-fits-all” approach.

For example, Best Buy recently announced it would open 167 small-format stores in Canada. A traditional Best Buy store might not be feasible in some places, like a college or university campus, where retail space can be limited. But a small-format store format allows Best Buy to open convenient locations on college campuses and more easily reach students. Retailers such as Staples, Ikea, and Sephora (to name but a few) can benefit in similar ways.

Of course, smaller format stores need to be more intentional with product assortments, and less storage space means efficient forecasting and inventory management systems are critical. But for retailers that can get those elements right, small-format stores represent a tremendous growth opportunity.

Invest in the Future

Consumers are constantly changing, so retailers that want to succeed need to change along with them. But that requires more than just a desire to remain relevant.

Thanks to e-commerce retailers that know how to effectively use the reams of data they collect, consumers have become accustomed to personalized recommendations, communications and offers.

Walmart’s “store of the future” concept will include “improved layouts, expanded product selections and innovative technology” to help store associates better support customers. Expensive? Absolutely. But for Walmart, modernizing its stores to deliver on customer expectations isn’t a cost, it’s an investment.

Can you say the same about the money you spend improving your retail locations?

Brick-and-Mortar is Never Going to Be Dead

In a recent interview, Foot Locker CEO Mary Dillon said “brick-and-mortar is never going to be dead,” explaining that, for certain categories, “that’s how people want to shop.”

And that will continue to be true as long as brick-and-mortar retailers focus on offering exceptional experiences to shoppers, right-sizing their locations to make shopping more convenient for customers, and investing in the types of technologies that allow for both of those things to happen.

Sam Vise is the co-founder and CEO of Optimum Retailing, the in-store experience management solution used by multi-unit retailers to design, deliver and optimize every element in every store.