In The Retail Renaissance, Omnichannel Is The Mona Lisa
By Geoffroy Martin, Criteo
With two months left in 2019, there is plenty of evidence that retail’s doomsday is indeed upon us. Store closures abound — Q1 2019 saw more brick-and-mortar shutdowns than the entirety of 2018. Household names like Toys ‘R’ Us, Nine West, Brookstone and Payless have shut up shop; and Amazon continues to squeeze the competition with one-day Prime shipping.
However, all this doom and gloom fails to reflect the whole story. While tales of retail’s demise make for great clickbait, there’s another side to the story that points not to a retail apocalypse, but a retail renaissance. The U.S. is on pace to see more than 3X as many brick-and-mortar store openings in 2019 than in 2018.[1] Big box brands like Bed Bath & Beyond, Target and Toys ‘R’ Us are launching new store formats better suited to today’s more urban shoppers and even Amazon is seeing its share of e-Commerce sales decline.
So what can retailers do to ensure they are part of the renaissance instead of the apocalypse? We see smart retailers playing to their strengths and investing in creating the sorts of omnichannel shopper experiences that pure play e-Commerce giants can’t.
Experience Is Still King
For many products, an in-store shopping experience is critical. Sunglasses must look just right, décor needs to fit the home and perfume will always be intensely personal.
Target is navigating this trend perfectly in the back-to-school season. It shows college dorm supplies online on its easy-to-navigate web site, and consumers have the option to purchase online or go into the store to inspect the items before making a final decision.
It’s Not The Number Of Bricks, It’s How You Use Them
Massive malls and warehouses won’t be the avenue most choose when they pair online with in-store. Big stores come with big upkeep fees, sprawling parking requirements and lots of employees.
Bed Bath & Beyond isn’t closing 40 stores this year because it’s confused about what’s next. In fact, the retailer is testing out 15 experimental “lab” stores that sell more home décor and food, building on the 21 experimental stores it opened last year. Target is making similar moves, closing six stores and opening 30 small-format locations in urban neighborhoods and college towns.
Mobile Isn’t Optional
In just two years, mobile will make up 75% of all e-Commerce globally. Consumers are already spending unprecedented amounts of time on mobile shopping apps. In fact, consumers are spending 45% more time on apps than they did in 2017.[2]
Today’s consumers demand hyper-relevant shopping experiences; they want to research products, read reviews and easily purchase items no matter where they are and aren’t willing to give these up when shopping on mobile devices. To give consumers what they want, you need to leverage first- and third-party data to deliver customized, meaningful experiences to shoppers — experiences that quickly translate to increased sales and brand loyalty.
Now It’s On You
This is a renaissance moment in the industry, but only for those retailers who focus on delivering unique experiences through a smarter omnichannel mix of brick-and-mortar, web and mobile channels. Major retailers have already shown the way. It’s time for others to follow.
Coresight Research, April 2019.
App Annie, 2018.
Geoffroy Martin is the role of EVP and GM of Retail Media at Criteo. Prior to joining Criteo, Martin was a private consultant with a focus on growth strategies and innovation. From 2004 to 2015, he held multiple positions at Art.com, including COO and CEO, where he oversaw an explosive growth in revenue and customer base across 150 countries.