In Retail, The Grass Is Always Greener

The crosswinds in retail are blowing at breakneck speed. Blink, and you may miss a major development.

Among traditional retailers, there’s a palpable sense of defeatism in the air. The feeling is: “It’s Amazon’s world, and we’re just trying to coexist.” Admittedly, Amazon’s landscape seems far more lush than that of brick-and-mortar retailers. It's easy to feel like the grass is greener over there. From Sears’ death spiral and the continued woes of department stores, to the mauling of so many mall-based retailers, it's a discouraging portrait. Macy's, Sears, Kohl's, J.C. Penney and Dillard's have between them shut down nearly 700 store since 2013. EMS, Bob's Stores, and more are rumored to be days away from bankruptcy (and may be as you read this).

Yet the demise of retail is not that at all. While the brick-and-mortar side of retailer sales has been in decline, online demand has actually been quite positive. It's really about a rebalancing of where retailers enable customers to transact.

What’s the “silver bullet” to combat Amazon? Actually there isn't one. But here are three simple steps you can take that will make a huge difference in your ability to keep up, and perhaps thrive.

1. Create an in-store experience that invites – demands – to be seen.

The customer “experience” remains a critical part of the retail equation. Think about the specialty retailers that have done well over the past six months: The Children’s Place. Build-A-Bear Workshop. Ulta Salon. Pirch kitchens and fixtures. All of these retailers provide unique experiences that cannot easily be replaced by a pure online experience.  What have you done to elevate and insulate your in-store experience?

2. Recognize it’s not an either-or thing. Get the brick and mortar and online channels in the right balance.

People want to shop in the way that fits their lifestyles and personal preferences. For some, that means buying their car online. Others would never think of such a travesty. But for most people, it’s not an either / or thing. Depending on their schedule, their desire for in-store engagement, they might order this weeks’ grocery’s online, and pick up next week’s in the store. Or buy the tires for their new car on Tire Rack, but schedule the install at Costco. And so on. Make sure your retail offering is providing the convenience and added value of online shopping, while ensuring the in-store experience is second to none.

3. Reward your best customers, and personalize their experience.

Whether at the online store or the physical location, rewards programs not only build repeat business through incentives like perks for points, but also allow retailers to gather valuable data about each shopper. Today’s consumer expects the hyper-personalization of the Amazon experience. They can suggest items you might like based on your purchase history, for instance, or propose subscribe and save options to you based on your purchase frequency. With shopper data compiled through loyalty programs (and other sources) retailers can provide Amazon-level personalization in their online stores, but also take it a step further: Adding thoughtful, highly personal customer service, online and off.

So much uncertainty that lies ahead. Change, evolving, and adapting to the new retail realities can be hard work, and takes no shortage of focus and time. But adapting and trying new approaches is how those green shoots of new growth appear. People say the grass is always greener on the other side. That's only true if you stop tending what's on your side of the fence. Grab some fresh seed, a watering can, and roll-up your sleeves.