The Evolution of Retail: Why Brick-and-Mortar Still Matters in the Digital Age

By Vanessa Schnekenburger, Managing Director

Recently, I was in an older shopping centre with my daughter. Since she’s away at university, these moments can seem rather fleeting; thus, I revel in them. As we walked around the mall, we chatted as we do. I was talking about my young days when I would hang around the mall with friends and, when allowed, would spend what seemed like endless hours hanging out in the food court. Walking around this older shopping centre, these memories came flooding back. I have memories of how packed a mall would be at Christmas time. My mother would get up early on a Saturday to get to the mall when it opened to evade the throngs of Christmas shoppers. In this pre-digital era, brick-and-mortar shopping was king. ?Well, times have definitely changed. And yet, despite the advent of digital shopping, an essential truth remains: ?the brick-and-mortar shopping experience matters.

Tangible Experiences

When shoppers experience a physical store, they see, touch, and feel the products in a way you can't do online. When shopping for clothes, you can try them on, caress the fabric, and see how the garment fits your body style. This hands-on experience helps you make better decisions about what to buy, as we humans are tactile; touch has been proven to calm us. Therefore, this is a fundamental part of the human shopping experience.?

Of course shopping online offers its own set of advantages. With just a few clicks, you can compare prices, read reviews, and find a more comprehensive selection of products than you would in a physical store. Online shopping also allows you to shop anytime, day or night, without worrying about store hours or travel time. Additionally, many online retailers offer free shipping and easy returns, making the shopping experience more convenient and hassle-free. While physical stores provide a hands-on experience, online shopping offers convenience and accessibility that can't be beaten. This comes with a hitch, however. As much of our online shopping experiences are on conglomerated sites like Amazon. What is apparent in these shopping experiences is that there is little sense of a brand: its recognizable identity, its emotional connection. ?Thus, shopping is based on price and ease, not brand loyalty. Brick-and-mortar retailers need to work very hard to combat this. Luckily, there’s a solution.

Instant Gratification

Shopping in a store gives you instant satisfaction. You can pick up a product, check it out, and decide immediately if you want it. This quick decision-making process is satisfying and can make you feel more confident about your purchase.?Our Western culture is heavily focused on instant gratification, so it is a crucial aspect to consider in any retail environment.

However, online shopping offers an immediate amygdala-stimulating experience. With just a few clicks, you can compare prices, read reviews, and find the best deal without leaving home. This allows for a more informed decision-making process, ensuring you get the best value for your money. Additionally, online shopping provides access to a broader range of products and brands that may not be available in your local stores.

So how do brick-and-mortar shops compete with this?

Brand Credibility

Having a physical store makes a brand seem more trustworthy and reliable. It shows that the brand is committed to its business and is willing to invest in providing a resonant shopping experience. If done thoughtfully, a store's design and atmosphere can help communicate the brand's values and identity.?In the trip to the mall, I reference at the beginning of this piece that we were there so my daughter could expand her wardrobe. We entered the Canadian-founded retailer Aritzia and could quickly see how a great live retail experience can lead to brand convergence and loyalty. When we selected an article of clothing that wasn’t available in my daughters' size, the far less aggressive than what was familiar customer service specialist assured us that it could be shipped directly to our home. While this data entry happened, they suggested that the in-house barista make us our desired speciality coffee. This confluence of in-store experience combined with a highly effective digital experience was refreshing. This made me realize brick-and-mortar isn’t dead; it just requires an evolution or, better yet, a revolution.

It's important to note that in today's digital age, having an online presence is still vital, if not more so, than having a physical store. With the rise of e-commerce, consumers expect brands to have a robust online presence where they can easily browse and purchase products. The reach of an online store is incomparable. Thus, by combining an experience-based physical store with an online presence, a brand can create a seamless shopping experience for customers, leading to increased sales and the required brand loyalty.

Omni-Channel Strategy

What am I suggesting? Successful retailers must now use physical stores combined online platforms to reach customers. This omnichannel approach allows customers to interact with the brand differently, making shopping more convenient and personalised. Retailers use data to understand customers' wants and tailor their marketing strategies accordingly.

Overall, brick-and-mortar stores are still relevant in today's retail world. They offer a unique shopping experience that online shopping can't replicate. The best retailers know how to balance physical and digital channels to meet the needs of today's shoppers.?This suggests we need an experience revolution in retail; the current experiences in many retailer locations often do not surpass the mundane.

As noted, brick-and-mortar stores allow customers to experience a brand essence, see, touch, and try products before purchasing, which can be a crucial factor in their decision-making process and also drive long-term brand loyalty. Additionally, these physical stores allow for immediate gratification, as customers can immediately take their purchases home. By integrating digital technologies such as online ordering, in-store pickup, and virtual shopping experiences, retailers can enhance the overall shopping journey. Ultimately, a seamless omnichannel approach that combines the best of both worlds is vital to staying competitive in the constantly evolving retail world.

Vanessa Schnekenburger is Managing Director at Match Retail, a leading sales, merchandising and branded retail agency working for major brands across North America.