Page 32 - April 2020

RLI RETAIL INSIGHT

The Evolution of Retail

In this month’s retail insight, Ishwar Chugani,
Managing Director of Giordano takes a look at the
rise of e-commerce in recent years and how it has
challenged brick-and-mortar retailers to ramp up their
in-store experience and offer incentives to shoppers
that cannot be acquired online.

or years, industry watchers speculated about the In this light, e-commerce versus brick-and-mortar is not
demise of brick-and-mortar retail as e-commerce a battle in the retail world. The two are growing at similar
sales continued to soar. They were wrong. rates and it is no longer enough to simply exist and sell via
FRetail stores are not going anywhere. In fact, many are one channel. A hybrid shopping approach, blending in-store
continually expanding, evolving, and still doing good business. purchases with online shopping, however, brings its own
There is no one magic formula that works for all retailers, wave of challenges.
but what is certain is the importance of embracing innovation To succeed, today’s retailers need to embrace the
and change. The retailers that have strong traffic today are challenge of relationships by leveraging technology to
those that understand their customers and know what establish and maintain an omni-channel which will help
services they will value in-store. Savvy retailers are waking up connect with their customers effectively and serve their
to the e-commerce boom and have started to rev up their customers more efficiently. The goal is to remove friction
in-store offering not only in terms of products, but also through from the customer’s purchase and fulfilment experience.
the provision of creative and innovative value-adding services. Investing in data technologies and a high-quality customer
Consumers today seek convenience, choice, and unique relationship management and/or point-of-sale system is key
products. They also understand the trade-offs between both to delivering a more personalised shopping experience.
‘online’ and ‘offline’. Cyber shopping offers convenience and With accurate contact information, such as validated email
flexibility, minus the intimacy of a traditional in-store experience. addresses, you stand a better chance of reaching your
The notion of in-store customer experiences isn’t new, customers in a timely fashion with news, promotions, and
but consumer expectations of these experiences are rapidly other valuable upsell opportunities. Tracking consumers’
evolving. It is no longer enough to greet your customers, purchase history lets you know what customers are
offer personalised recommendations, and deliver a seamless interested in, and the data collected over time allows for a
checkout process. Today’s customers want more. lasting relationship as well as a more personalised service
To consistently exceed customer expectations, brands and shopping experience.
must ensure that their customer interactions are rooted in Collecting data about your customers is great, but how
empathy, engagement, and emotional intelligence — areas do you determine what data is most valuable and how
that haven’t been talked about enough. might you apply it to your business?
Retail employers are waking up to the fact that beautiful stores The key here is that we don’t need big data – we need
also need to have switched-on, socially conscious, and empathically real data. Avoid being an “askhole” —in other words,
driven teams. Happy employees will lead to happy customers. don’t bother your customers with too many irrelevant
We must remember that customers don’t simply buy from a questions and ensure that there is a purpose behind all the
company; they will buy from someone they can trust, someone information that is collected. Your data is only as valuable as
knowledgeable and someone who delivers what is promised. the actions you take based on the data.
Technology is great for driving the backend of the
business. However, up-front it is still fundamentally about
people connecting with other people. Retailers therefore
need to look for more innovative approaches to training
and staff development in order to adapt to the evolving
retail landscape. To be a salesperson isn’t enough — retail
employees are ambassadors of the brand and integral to
the human experience.
Retailers are also realising that true customer loyalty
cannot be bought by discounts, offers or points alone.
Your loyal customers return because the experiences
you create for them are preferable to those delivered
by your competitors.
Your competitors may be able to match your products
and services, feature for feature, but the experience
that your brand offers is yours alone, and this is what
provides you with a true competitive advantage. To enjoy
profitability in the long-term, retailers need to reach out
of their comfort zones, continually innovating and varying
their offers in order to continue attracting customers.
Today’s retail market is short on “distinct experience”; so
when you create one, you create an instant relationship
with your customers.

32 RETAIL & LEISURE INTERNATIONAL APRIL 2020