Is the Retail Apocalypse upon us? Takeaways from Shop.org 2017
Markus Linder
Entrepreneur | Impact Investor (Biodiversity & Climate) | Founder of inoqo & zoovu
Shop.org Retail Digital Summit, organized by the National Retail Federation, is an event known for its eclectic group of experts, thought-leaders, and downright fascinating people. This year, apart from enjoying the great food and networking opportunities, I got to listen to several of those people discuss the burning issues facing the retail industry today.
Retail Apocalypse?
“Retail apocalypse” is a term that has been spinning around for some time. Almost every month there’s news about another retailer going bust or closing its stores. High-profile retailers such as Macy’s, Sears, Abercrombie & Fitch have been among the casualties, only to name but a few of them.
Business Insider recently published a list of the 6,403 closures that have been announced so far in 2017.
It’s obvious that the brick-and-mortar is experiencing some rough times. Considering how much more convenient it is to order a product online and have it delivered to your door-step, many stores just aren’t giving consumers enough reasons to leave their homes.
The picture looks pretty grim. Or does it?
Greg Buzek, president of IHL Group, begs to differ. At the NRF’s media conference he revealed that the actual numbers are not quite as pessimistic as they may seem. He shared findings from a recent IHL Group report, which shows a net increase in store openings of over 4,000 in 2017.
“The negative narrative that has been out there about the death of retail is patently false. The so-called ‘retail apocalypse’ makes for a great headline, but it’s simply not true.”
If you look at the stories behind some high-profile store closures hitting the news, you’ll realize that it’s mainly retailers who were not able to keep up with the fast-paced, highly competitive industry they’re in.
The way consumers shop is changing and so is the store’s function and the retailer’s role. They need to shift from being product-pushers to becoming insight-providers. Companies that understand this will attract consumers and create a bigger purpose than just selling a product. They’ll be the ones to quickly take the spots vacated by the companies unable to transform. For instance, the IHL Group report showed that “for each company closing stores 2.7 are opening stores.”