Brick-and-mortar stores are losing sales as many shoppers head online to buy their products, but the idea that this means retail stores are dying is “greatly exaggerated,” according to a study conducted by the Retail Council of Canada, Microsoft and researcher WildPlum.
The study found that physical stores still capture most sales in every major category. For discount, grocery and department stores, more than 90% of all sales take place in-store. Online shopping is gaining ground, however, particularly among shoppers aged 18-21, but Retail Council president Diane Brisebois said it is a mistake to assume this trend that may be apparent today will necessarily continue tomorrow.
“Physical stores are still the overwhelming preference, but consumers want a quick and convenient experience when they shop, no matter what channel they use,” she said.
Consumers still like touching products and browsing, the study found. Another way brick-and-mortar stores could increase their competitive edge, according to the report, is to offer shopping experiences that are engaging, entertaining and exciting. Technology, which is being blamed for turning customers away from physical stores, can be used to bring them back.
“Emerging technologies are going to draw consumers into stores, and retailers need to change their one-time purchase mindset to one that builds experiences around the customer’s actual lives,” Brisebois said.
The study also found that shoppers encounter fewer problems when shopping in retail stores than when they make purchases online. As well, online experiences tend to take longer.
@EmmaHampelBIV
