Have you noticed? From the growing Shopify online businesses, to an array of pop-up shops, mobile "fashion trucks," or newly-repurposed spaces in neighborhood shopping districts, there are many new retail operations emerging. They're actually springing up! Plus, there are the established retailers who, having shed many legacy features, are re-imagining their place in the ("Coming soon!") post-pandemic environment.
And why not? Shoppers are certainly eager for whatever is new and fresh. And they are more willing than ever to adopt new ways of shopping. We know. There are those "experts" who see all these new retail startups simply as store closings waiting to happen. They are quick to cite statistics that 20% of new businesses fail in the first year, and just over 70% are no longer alive beyond year 10. Ignore them! (We do wonder how many of these "experts" have more than 10 years experience...but we digress.) Meanwhile, back to the real world of risk-taking entrepreneurs. Some may have been one of those statistics, but are now back with a new strategy and new resolve. These are the folks to pay attention to. We sure are.
Those same options are available to all independent retailers. This is the time to dream and scheme, and then invent your own new ways of doing things. Sure, it is still very early in March. There will be blustery days, maybe even some snow in places. And certainly a lot of rain. But, spring has sprung! And so too has your chance to bring forth bright, exciting, innovative retail "blossoms." Go for it!
As we approach April of 2021, the question for retailers is "Now what?" Having survived 2020, in many cases on guts and guile, we must now focus on how best to survive 2021 and beyond. As having one foot on the dock and one foot in the boat, the future of retailers in that Red Zone is not a pretty picture. Granted, there is much talk about the expectation that "convenience" will become a major factor for shoppers going forward. And we don't disagree.
Here's the deal: We see that this has brought heightened awareness of two different retail strategies: Convenience Retailing versus Destination Retailing.
The basic definition of retailing is "selling to the ultimate consumer." As you know, HOW that is done, and in what location or format, continues to change and evolve. So, we were intrigued by this recent post on the Shopify Retail Blog: The Future of Physical Retail in a Digital-First World.*
To us, the blog post was essentially a wide-ranging journey of discovery(and perhaps even some new-found respect for those "physical retailers".)
Yes, we know. Owning a retail business these days is one flexibility test after another. And there are no one-size-fits-all solutions. In the United States, one of the most widespread impacts of the virus is uncertainty. With no end in sight. It is the virus that is in charge. As the president of Alaska Airlines noted, "We don't know what the future looks like."* But the fact remains, whomever is selling to the ultimate consumer has leverage. Might that be you?
As the global efforts to "flatten the curve" of the coronavirus pandemic continue, there is another curve that is being flattened. That would be the seasonality of retail sales. And this may prove to be what really defines the New Normal for retailers. The customary peaks of retail spending have been flattened.
Throughout the pandemic, millions of shoppers – including the older Baby Boomers – discovered the benefits of online shopping. Then, as brick-n-mortar retailers scrambled to survive, the increased availability of delivery, curbside pickup, BOPIS (Buy Online, Pickup In Store) and BORIS (Buy Online, Return In Store) was well received by a broad swath of consumers. We see that this has brought heightened awareness of two different retail strategies: Convenience Retailing versus Destination Retailing.
And here's the deal: retailers now must choose either one or the other of those two strategies. You cannot have one foot on the dock and one foot in the boat. You DO have to decide!
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