Stores of the Future: The Changing Face of Retail

As ownership of smartphones and tablets continues to increase across the globe, more and more consumers are turning online to satisfy their shopping needs. With this transition, retailers are seeing a decrease in sales-per-square-foot of retail shopping space. Unfortunately for brick-and-mortar retailers, this trend shows no sign of stopping anytime soon.

This has caused many businesses to consider downsizing their brick-and-mortar retail locations (consider Wal-Mart's smaller Wal-Mart Express and Neighborhood Market concept stores), cutting sales staff and in some cases closing hundreds of stores. The overall impact of mobile devices on retail shopping behavior has many large chains rethinking the way their stores look and operate as well as how they engage consumers. Is there a way brick-and-mortar stores can remain relevant, become more efficient and adapt to the changing shopping environment?

Today's retail store is about to get a facelift. The store of the future will be about the individual and use technology to provide the best experience possible. Retailers no longer need warehouse-style spaces, large sales teams or immense product inventory on-site. These large spaces cost more money and don't yield higher sales. Stores of the future will make better use of their space with reduced staff sizes, smaller merchandise showrooms, and a unique shopping experience grounded in refined customer service and convenience. Customers will be able to easily interact with products, receive personalized assistance and check out — all via mobile devices.

As online merchants like Amazon.com quickly gobble more market share, retailers have to embrace change and react accordingly. Here are three best practices to incorporate into your business:

1. Deliver a higher level of customer service. With today's clienteling apps, in-store staff can provide top-notch service by enabling instant access to product-specific details simply by scanning a product's barcode with a smartphone or tablet. For example, sales associates can determine if other colors or sizes are available in-store, and, if not, they can offer other possible options, creating a more consultative, customized shopping experience that helps to bolster customer satisfaction and drive sales.

2. Offer a faster, more efficient shopping experience. Today's busy consumers, combined with a smaller amount of space in-store and reduced staff, drive the need for time-efficient mobile shopping solutions. For example, consumers can simply scan barcodes of products they want to purchase with their smartphones before placing them in their shopping carts, and then easily complete their orders via an app that supports mobile payments or at a single checkout station that totals the scanned items. Retailers can also offer sales associates a barcode scanning-supported smartphone (or tablet-based mobile point-of-sale solution) to maximize floor real estate, provide enhanced customer service and expedite checkout.

3. Increase loyalty and drive sales through personalization. Retailers can offer mobile shopping apps that enable consumers to scan barcodes on items with their mobile devices to get more information about them — e.g., product reviews. It can also include discounts, coupons and loyalty rewards program points for products scanned to drive engagement and encourage purchases.

With smartphones and tablets redefining the shopping experience for both retailers and consumers, now is the time to embrace these changes to ensure future success. Stores that adopt these practices will remain relevant to consumers and generate more sales. If retailers don't embrace this new way of doing business, the current downward trend will continue. Brick-and-mortar stores will mostly be used for "showrooming," while online sales will increase and physical stores will downsize further or enter bankruptcy.

Brick-and-mortar stores aren't extinct, but they are evolving. As we enter a new age of shopping, the digital and physical environments will merge to create the new face of the store.

Samuel Mueller is co-founder and CEO of Scandit, a developer of software-based enterprise barcode scanning and data capture technology for smartphones, tablets and wearable computing devices.